Middle District of Louisiana
Press releases recorded for this federal judicial district.
Owner of Regional Healthcare, Llc Pleads Guilty to $2.5 Million Payroll Tax Fraud SchemeRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that CHARLES A. LANPHIER, age 68, of Lafayette, Louisiana, has pled guilty to a Bill of Information charging him with two counts of failing to truthfully account for and pay over taxes, in violation of Title 26, United States Code, Section 7202. LANPHIER faces significant incarceration, fines, and restitution orders.
According to the factual stipulation contained in the defendant’s written plea agreement with the United States, at all relevant times, LANPHIER owned and controlled Regional Healthcare, LLC (“Regional”), a health care company with operations throughout Louisiana and Florida. Regional operated through eleven (11) different corporate entities, and provided four different types of service, including patient care assistance, home health services, extended home health service (also known as pediatric care), and hospice services.
Regional was required to collect payroll taxes from its employees, make deposits of the payroll taxes to the Internal Revenue Service (“IRS”) on a periodic basis, and file quarterly federal income tax returns. As the defendant has admitted, however, throughout the tax years 2008 through 2011, as LANPHIER was causing Regional to withhold tax payments from its employees’ paychecks, LANPHIER knowingly and willfully failed to file the quarterly employment tax returns and knowingly and willfully failed to forward payroll taxes to the IRS. In total, during the tax years 2008 through 2011, LANPHIER failed to make payments on Regional’s behalf totaling more than $2.5 million. LANPHIER’s sentencing date has not been set.
This matter is being handled by the United States Attorney’s Office for the Middle District of Louisiana and the New Orleans Office of the Internal Revenue Service, Criminal Investigations. It is being prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Chief in the Criminal Division.
Owner of Health Care Company Sentenced to Thirteen Years in PrisonRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced that U.S. District Judge Shelly D. Dick sentenced AHAOMA BONIFACE OHIA, age 60, of Missouri City, Texas, to serve one hundred fifty six (156) months in federal prison following his conviction earlier this year on seven counts of health care fraud. OHIA was also ordered to make restitution to the Medicare program in the amount of $1,239,283.58 and pay special assessments totaling $700. OHIA was also ordered to forfeit the proceeds of his criminal activity up to an additional $1,239,283.58. Finally, following his release from prison, OHIA will be required to serve a two-year term of supervised release.
The sentence follows a four-day jury trial last June at which OHIA was convicted of perpetrating a scheme to defraud Medicare through his company, All-Star Medical Supplies, which operated in Baton Rouge, Louisiana, and Houston, Texas. The evidence at trial established that from January 2007 through February 2009, OHIA caused All-Star to submit hundreds of false and fraudulent claims to Medicare. OHIA submitted hundreds of fraudulent claims, for instance, for “brace kits,” a package of nearly a dozen different braces, in matching left- and right-side pairs, regardless of whether any of the Medicare beneficiaries named in the claims needed or had prescriptions for the items. OHIA submitted hundreds of fraudulent claims for a highly-specialized, custom-fabricated device intended to be used by amputees, without ever actually providing a single such device to his clients, none of whom needed the device anyway. Finally, as the Court determined at today’s sentencing, OHIA submitted numerous claims for expensive power wheelchairs, through which claims the defendant falsely represented that he had replaced power wheelchairs for numerous beneficiaries whose original wheelchairs, OHIA falsely claimed, had been damaged or destroyed by a hurricane. In total, and as the Court determined today, the defendant, from January 2007 through February 2009, intended to obtain more than $2.2 million through the false claims described above.
U.S. Attorney Green stated: “Today’s sentence sends one of the clearest signals yet to those who would commit health care fraud in this district. Working with our law enforcement partners, we continue to work aggressively to combat health care fraud. When we are able to bring to justice and convict fraudsters who steal substantial amounts of money from the Medicare program over extended periods of time, such as OHIA did in this case, we will seek lengthy terms of imprisonment.”
“The sentence pronounced by the Court sends a clear message to health care providers that trying to make easy money by cheating Medicare isn’t worth it. There’s nothing easy about serving thirteen years in a federal penitentiary, as I’m sure this defendant will soon find out,” said Mike Fields, Special Agent-in-Charge of the Dallas Regional Office for the U.S. Department of Health and Human Services’ Office of Inspector General.
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 Alan A. Stevens, who serves as a Deputy Chief of the Criminal Division, and Assistant U.S. Attorney Cam Le.
Former Office Manager Indicted for Corporate FraudRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today the unsealing of an indictment returned by a federal grand jury last week which charges LORI S. FRY, age 46, of Baton Rouge, Louisiana, with nine (9) counts of wire fraud, in violation of Title 18, United States Code, Section 1343. If convicted, the defendant could face significant incarceration, fines, restitution, forfeiture of proceeds, and supervised release following imprisonment.
The indictment alleges that the defendant embezzled approximately $465,000 from her employer, a specialty electrical engineering firm in Baton Rouge. According to the indictment, while working as a manager and bookkeeper at the firm, the defendant diverted over 100 separate payments from the firm’s account to her own personal use, through her personal bank account and otherwise.
U.S. Attorney Green stated: “Fraud threats loom virtually everywhere, but it is often the insider who poses the biggest danger in terms of both amount and duration. As our region continues to grow, it is increasingly important for us to remain vigilant against corporate fraud. My office will continue to do its part in combatting such criminality.”
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.
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 Mayor and President of the National Conference of Black Mayors Re-sentenced to 20 YearsRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that U.S. District Judge Maurice A. Hicks has re-sentenced GEORGE L. GRACE, SR., age 70, of St. Gabriel, Louisiana, to twenty (20) years imprisonment, a $50,000 fine, forfeiture of $22,000, and a year of supervised release following imprisonment.
Today’s sentencing is the result of a decision by the Fifth Circuit Court of Appeals which required the original 22 year prison sentence to be reconsidered. The sentence is based on GRACE’s corrupt activities while serving as the Mayor of St. Gabriel and the President of the National Conference of Black Mayors. It is believed to be the longest public corruption prison sentence in the history of Louisiana.
GRACE was convicted by a jury following a six week trial of violating the Racketeer Influenced and Corrupt Organizations Act (RICO), obstruction of justice, making false statements, mail fraud, wire fraud, bribery involving a federally-funded entity, and use of an interstate facility in aid of racketeering. At sentencing, the court determined that GRACE was responsible for over four different bribery schemes involving over nine (9) million dollars, including schemes to extort businessmen seeking to do business in the city and help victims of Hurricane Katrina.
U.S. Attorney Green stated: “This historic sentence should send a loud and clear message that those engaged in public corruption will face severe punishment, and hopefully, any public official who might consider such a path will take heed.”
Status of Other Operation Blighted Officials Defendants
Thomas A. Nelson, Jr.: The former Mayor of New Roads, Louisiana, was convicted by a federal jury following a two and a half week trial of violating RICO, engaging in honest services wire fraud, using an interstate facility in aid of racketeering, and making false statements to the FBI. Chief Judge Jackson sentenced Nelson to 11 years in prison. Following appeal, Nelson’s sentence was reduced to 10 years in prison.
Maurice Brown: The former Mayor of White Castle, Louisiana, was convicted by a federal jury following a two week trial of violating RICO, engaging in honest services wire and mail fraud, and use of an interstate facility in aid of racketeering. Chief Judge Jackson sentenced Brown to 10 years in prison.
Frederick W. Smith: The Chief of Police for Port Allen, Louisiana, was convicted by a federal jury following a two week trial of 11 counts of violating RICO, engaging in honest services wire and mail fraud, and using an interstate facility in aid of racketeering. Chief Judge Jackson sentenced Smith to 90 months in prison.
Derek Lewis: The former Mayor of Port Allen, Louisiana, pled guilty to violating RICO and agreed to cooperate with authorities. Chief Judge Jackson sentenced Lewis to 40 months imprisonment.
Johnny Johnson: The former member of the Port Allen City Council pled guilty to using an interstate facility in aid of racketeering and agreed to cooperate with authorities. Chief Judge Jackson sentenced Johnson to two years of probation, with a condition of having to spend 6 months in a half-way house.
Richard Chambers: The former deputy commissioner of the Louisiana Department of Insurance pled guilty to using an interstate facility in aid of racketeering and agreed to cooperate with authorities. Chief Judge Jackson sentenced Chambers to 30 months imprisonment.
This investigation was being conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office for the Middle District of Louisiana, with assistance from the U.S. Department of Housing and Urban Development, Office of Inspector General, and the U.S. Department of Homeland Security, Office of Inspector General.
Operation Blighted Officials was prosecuted by First Assistant United States Attorney Corey R. Amundson, who serves as Chief of the Criminal Division, Assistant United States Attorney M. Patricia Jones, who serves as Senior Litigation Counsel, and Assistant United States Attorney Michael J. Jefferson.
Alien Smuggler and 6 Others Indicted on Immigration-related ChargesRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned seven (7) indictments arising from an investigation into the transportation of illegal aliens.
Sabino Guerrero-Estrada, age 27, of Mexico, was indicted yesterday for transporting illegal aliens within the United States for commercial or private financial gain. According to the indictment, on October 17, 2014, the defendant was driving a sports utility vehicle on Interstate 12 in Baton Rouge containing numerous illegal aliens, including six individuals who allegedly had previously been deported from the United States. Those six individuals have been indicted for illegal re-entry by a previously removed alien and include Maria E. Ixtlilco-Barreto, Osvaldo Rosas-Valencia, Lorenzo Hernandez-Fabian, Daniel Hernandez-Fabian, Mario Mata-Cigarrero, and Dimas Rodriguez-Uriostegui.
U.S. Attorney Green stated: “The integrity of a nation’s borders and its immigration laws – to control who and what comes into and out of the country – is fundamental to any nation’s security. This is why Congress has passed numerous acts related to border security, immigration, and work-site enforcement. For the same reason, my office, together with our partners at the U.S. Department of Homeland Security, Homeland Security Investigations (HIS) and the U.S. Border Patrol, recognize the importance of enforcing the immigration laws.”
New Orleans HSI Special Agent-in-Charge Raymond R. Parmer, Jr., stated: “Human smugglers routinely treat people as little more than cargo and place aliens at great risk of harm all in the name of illegal profits. HSI’s excellent partnership with U.S. Border Patrol sends a strong message that the U.S. border is not open to illegal migration and individuals who place their fates into the hands of coyotes face significant risks during the journey along with prosecution and removal from the country once caught.”
New Orleans Sector Border Patrol Chief Jonathan Richards stated: “The New Orleans Border Patrol Sector’s efforts with its DHS partners reduces the ability of criminal organizations to exploit transportation routes within the area and degrades their ability to conduct criminal acts.”
This matter was investigated by the Baton Rouge offices of the U.S. Border Patrol and the U.S. Department of Homeland Security, Homeland Security Investigations (HSI). These matters are being prosecuted by Special Assistant U.S. Attorney J. Brad Casey.
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.
Fbi Director Recognizes Prosecutors for Sex Trafficking ProsecutionRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced today that the Director of the Federal Bureau of Investigation has recognized two Assistant United States Attorneys (AUSAs) for their exceptional work in a commercial sex trafficking prosecution.
In a ceremony at the U.S. Attorney’s Office in Baton Rouge, FBI Special Agent-in-Charge Mike Anderson presented AUSAs Susan C. Amundson and Frederick A. Menner, Jr., with the FBI Director’s certificates in recognition of their achievements. FBI Supervisory Special Agent Charles Delaughter and FBI Special Agent Taneka Harris were also present.
AUSAs Amundson and Menner were specifically recognized for their work prosecuting Erick Banks, a man convicted of enticing a 15-year-old girl to engage in prostitution. Shortly after running away from home, the victim encountered Banks who used online advertising to offer the victim as a prostitute. Banks used the moniker “Sinsational” or “Blonde Bunny” to describe the victim in ads. Banks instructed the victim how to engage in telephone conversations with potential customers and how to determine if a customer was a law enforcement officer. Banks coordinated the sexual encounters and took the money paid to the victim by customers. Banks was sentenced to 9 years in federal prison. He was also sentenced to five years of supervised release after imprisonment and ordered to pay the victim $1,200 in restitution.
U.S. Attorney Green stated: “I join the FBI Director in extending my heartfelt appreciation to AUSAs Amundson and Menner. Their passion, dedication, and talent make all the difference as we pursue justice against the evils of commercial sex trafficking. The same is true of the dedicated FBI agent who worked hand-in-hand with prosecutors throughout the investigation and prosecution. I look forward to our office continuing the fight against commercial sex trafficking with the FBI and our other federal, state, and local partners.”
The U.S. Attorney’s Office leads the Middle District of Louisiana Human Trafficking Task Force which is made up of federal, state, and local enforcement agencies, as well as other governmental entities and non-governmental organizations involved in assisting victims of human trafficking. The Task Force members have contributed significantly to raising awareness of this issue, coordinating an appropriate response, and enabling law enforcement to successfully investigate and prosecute these important cases.
Tax Preparer Sentenced to Federal Prison for Her Role in Fraudulent Tax Return SchemeRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced that Chief U.S. District Judge Brian A. Jackson sentenced MALETICA V. FERGUSON, age 37, of Geismar, Louisiana, to serve ten (10) months in federal prison, and an additional eight (8) months in community confinement, for her role in a fraudulent tax return scheme. Following her release from custody, FERGUSON will be placed on supervised release for one (1) year. She has also been ordered to pay $263,769 in restitution to the IRS.
FERGUSON’s sentence follows her conviction for scheming to defraud the IRS during the 2010 and 2011 tax years by submitting dozens of false tax returns, seeking refunds totaling more than $300,000. In the returns, by misrepresenting the taxpayers’ incomes and falsely claiming various credits, among other means, FERGUSON fraudulently claimed that the taxpayers were entitled to significant tax refunds. As a result of her scheme, FERGUSON caused a loss of $263,769 to the taxpayers of the United States.
U.S. Attorney Green stated: “This sentence should send another clear message that the U.S. Attorney’s Office and the IRS are serious about combating tax fraud. We will continue to aggressively pursue those criminals who seek to defraud the American taxpayer.”
IRS Criminal Investigations Special Agent-in-Charge Gabriel Grchan stated: “We are pleased with today’s announcement regarding the sentence of Ms. Ferguson, who prepared income tax returns that sought over $260,000.00 in fraudulent refunds. The tax system is built on the premise that taxpayers file accurate and timely tax returns. Willfully aiding or assisting in the preparing of false tax returns is a serious crime, punishable under federal law. To ensure confidence in our tax system, Special Agents of IRS Criminal Investigation are committed to the aggressive pursuit and prosecution of individuals who intentionally abuse the nation’s tax system.”
This case was 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 tax fraud schemes. The case is being prosecuted by Assistant United States Attorney Cam T. Le.
Owner of Regional Healthcare, Llc Charged with $2.5 Million Tax FraudRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that CHARLES A. LANPHIER, age 68, of Lafayette, Louisiana, has been charged in a Bill of Information with two counts of failing to truthfully account for and pay over taxes, in violation of Title 26, United States Code, Section 7202. If convicted, LANPHIER faces significant incarceration, fines, and restitution orders.
The Bill of Information alleges that, during the relevant time period, LANPHIER owned and operated Regional Healthcare, LLC, a company headquartered in Baton Rouge, with operations throughout Louisiana and Florida. According to the Bill of Information, Regional consisted of four divisions, which provided patient care assistance, home health services, extended home health services (also known as pediatric care), and hospice services. During the tax years 2008 through 2011, LANPHIER allegedly withheld tax payments from his employees’ paychecks, but failed to pay over to the Internal Revenue Service more than $2.5 million of such withheld money.
This matter is being handled 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. It is being prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Chief in the Criminal Division.
NOTE: A Bill of Information is an accusation by the U.S. Attorney’s Office. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Civil Division Recovers Almost $2 Million Owed to Federal AgencyRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced today that a cash payment of almost $2 million has been made to the Export-Import Bank of the United States (“the Bank”), an agency of the federal government, as part of the settlement of a civil lawsuit filed by the U.S. Attorney’s Office in the Middle District of Louisiana on the Bank’s behalf.
The Civil Division of the U.S. Attorney’s Office filed the two-year old civil lawsuit against a group of individuals and businesses, primarily based in Portland, Oregon. The lawsuit sought to recover highly-customized, industrial equipment in Port Allen, Louisiana, which served as collateral on a government-owned $4.5 million loan that had gone into default.
Defendants Frank Cutler of Newport Beach, California, and James Cutler of Wilsonville, Oregon, made the almost $2 million payment as part of a settlement previously reached between the United States and the defendants. The other defendants are paying the remainder of the debt, which is now approximately $3 million, in a schedule of payments over time. Those defendants are R. Patrick Garrett of Portland, Oregon, and the following entities based in Oregon: Meco Environmental, LLC; Mobile Environmental Technologies, Inc.; ICI Process Technologies, LLC; ICI, LLC; and Terra Sana, Ltd.
The Export-Import Bank of the United States is the official export credit agency of the United States. Its mission is to assist in financing the export of U.S. goods and services to international markets. It enables U.S. companies – large and small – to turn export opportunities into real sales that help to maintain and create U.S. jobs and contribute to a stronger national economy. It does not compete with private sector lenders, but provides export financing that is otherwise not available.
United States Attorney Green stated: “Today’s payment is another good example of protecting the taxpayers’ dollars. It is critical that agencies of the federal government, such as the Export-Import Bank, are not unfairly taken advantage of and that those receiving assistance from such agencies live up to their obligations and responsibilities, such as repaying a loan. Our Civil Division will continue to steadfastly pursue civil claims against those owing money to agencies of the federal government, as well as those who seek to defraud the federal government. I commend the critical work performed by the attorneys and staff in the Civil Division in this matter and the many others like it.”
This matter was handled by Assistant United States Attorney James L. Nelson who serves as the Affirmative Civil Enforcement Coordinator.
Former Political Operative Convicted in Million Dollar Fraud SchemeRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced today that RAYMOND CHRISTOPHER REGGIE, age 52, of Mandeville, Louisiana, pled guilty this morning before U.S. District Judge Shelly D. Dick to all five counts of mail fraud charged against him. REGGIE had been scheduled for trial today and pled guilty without the benefit of a plea agreement. REGGIE faces incarceration, fines, restitution orders, and the forfeiture of assets. His sentencing date has not yet been set.
This morning, REGGIE pled guilty to a Superseding Indictment which charged him with engaging in a scheme to defraud various car dealerships in southeast Louisiana from January 2009 through July 2012. During the relevant period, REGGIE owned and operated Nexlevel Group, an advertising firm that purchased and managed advertising for the car dealerships. REGGIE submitted fictitious advertising expenses for payment by the dealerships, falsely representing that such expenses were actually incurred. Once the dealerships issued payments for the bogus expenses, REGGIE diverted the payments to his personal use and enjoyment. As a result of REGGIE’S submission of fictitious advertising expenses for payment, the car dealerships issued 138 checks totaling approximately $1,217,657.36 for advertising services which had not been received by the dealerships. REGGIE diverted all of the fraudulently obtained funds to a bank account which he controlled.
According to government filings in the case, REGGIE also allegedly engaged in tax and bank fraud during the relevant period. If proven, such activities could be considered at his sentencing in this matter.
United States Attorney Green stated: “Being articulate, smart, charming, and connected are often characteristics seen in successful con artists, like this defendant. The audacity of his fraud schemes is only outdone by his desperate attempts to deflect blame to others. This defendant only accepted responsibility after realizing that his efforts to smear and blame others would not save him from the harsh reality of the law and facts. I greatly appreciate the tremendous work of the prosecutors and agents who handled this matter. My office will continue to work with IRS-CI, the Fraud Section, and our other partners to ensure that such fraudsters are brought to justice.”
Acting Special Agent-in-Charge Jerome R. McDuffie of the Internal Revenue Service, Criminal Investigation, stated: “We are pleased with the guilty pleas entered today by Raymond Reggie. IRS-CI and the U. S. Attorney’s office will not ignore illegal business practices and remain fully committed to prosecution of those who engage in these practices for personal gain.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Criminal Fraud Section of the U.S. Department of Justice, and the Criminal Investigations Division of the Internal Revenue Service. It is being prosecuted by Assistant U.S. Attorneys Rene Salomon and Ryan Crosswell and Senior Litigation Counsel Jack Patrick of the Criminal Fraud Section.
Justice Department Election Day ProgramRead the Press Release
United States Attorney Walt Green announced today that the United States Attorney’s Office and the local Office of the Federal Bureau of Investigation, in consultation with Justice Department Headquarters, are prepared to receive and review allegations of election fraud and voting rights abuses related to the upcoming November elections.
The Justice Department’s Election Day Program seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, altering vote tallies, submission of fraudulent votes, and voting for another person against his wishes or without his input. The law contains special protection for the rights of voters. Voters have a right to cast their own votes or to be assisted by a person of their choice. Additionally, voters have a right to vote free from acts of intimidation or harassment. For example, actions designed to intimidate or interrupt voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting, may violate federal voting rights law.
To report suspected election fraud or interference with the right to vote, members of the public can contact the United States Attorney’s Office at 225-336-8856 or 225-389-0443. Members of the public can also make such reports to the FBI at 225-291-5159. Additionally, complaints regarding possible violations of voting rights laws can be made directly to the Justice Department’s Voting Section by phone to 800-253-3931 or 202-307-2767, by fax to 202-307-3961, by email to [email protected], or on the Internet at http://www.justice.gov/crt/complaint/votintake/index/php.
Operation Tango and Cash Recognized with National AwardRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that the Director of the Organized Crime Drug Enforcement Task Forces (OCDETF) for the U.S. Department of Justice recognized Operation Tango and Cash as the National 2014 Outstanding International Primary Money Laundering Investigation and the 2014 Special Investigation of the Year for the Southeast Region.
Operation Tango and Cash was an extensive effort to dismantle an international money laundering business in Baton Rouge that was being used to support drug traffickers in this country and overseas. The organization was infiltrated through the use of various sophisticated investigative techniques, including court-authorized wiretaps and undercover agents. The operation resulted in federal felony convictions against two corporations and three individuals for various money laundering and narcotics related offenses and the forfeiture of almost $1,000,000.
The matter was handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Baton Rouge Office of the U.S. Drug Enforcement Administration, and the Baton Rouge Office of the Criminal Investigations Division of the Internal Revenue Service, along with the Baton Rouge and Gonzales Police Departments and the Sheriff’s Offices in East Baton Rouge Parish, West Baton Rouge Parish, and Ascension Parish.
Operation Tango and Cash was another effort by the 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 OCDETF Director specifically recognized Assistant United States Attorneys Jennifer Kleinpeter and Jay Thompson; Special Agent Chris Abney of the Drug Enforcement Administration; and Supervisory Special Agent Ted Magee and Special Agent Andre Guilott of the Criminal Investigations Division of the Internal Revenue Service. Former Assistant United States Attorney Lane Ewing and support staff at all the agencies also provided invaluable assistance to the matter.
Violent Felon Sentenced to 88 Months in Prison for Illegal GunRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that Chief U.S. District Judge Brian A. Jackson sentenced DEMETRICE D. JOHNSON, age 31, of Baton Rouge, Louisiana, to 88 months in prison and three years of supervised release after prison. This sentence is based on his conviction for possessing a firearm as a convicted felon.
JOHNSON pled guilty in June 2014 after being indicted by a federal grand jury. In November 2013, JOHNSON was arrested by the Baton Rouge City Police after he allegedly fired a .45 caliber handgun several times into a vehicle occupied by an adult and three children. As a convicted felon, JOHNSON’s mere possession of the firearm is a federal crime. However, his use of the weapon increased his sentencing exposure, resulting in today’s sentence.
U.S. Attorney Green stated: “We will continue to assist and work with our federal, state, and local partners to reduce gun violence in Baton Rouge and throughout the rest of the Middle District of Louisiana. A large part of our role is the aggressive prosecution of felons who possess and use firearms in violation of federal law. Our relentless pursuit of those cases will continue.”
This matter was investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Baton Rouge City Police. This matter is being prosecuted by Assistant United States Attorney Lyman E. Thornton III.
Bail Bondsman Convicted of Stealing over $120,000 in Social Security Disability BenefitsRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that MACK CHARLES WELLS JR., age 48, of Zachary, Louisiana, plead guilty before Chief U.S. District Judge Brian A. Jackson to a Bill of Information charging him with theft from the United States Social Security Administration. He is scheduled to be sentenced in February 2015.
During today’s hearing, WELLS admitted to the facts giving rise to the charge. WELLS began receiving disability payments in 1997 after an on-the-job injury. As a recipient of disability payments, WELLS had the affirmative duty to report to the Social Security Administration if his medical condition improved or he resumed working and receiving income. Beginning in February 2007, WELLS began working as a bail bondsman. In June 2007, Wells became the registered agent and member of “All Day Bail Bonding , LLC” in Zachary, Louisiana. From February 2007 through December 2011, WELLS repeatedly failed to disclose and intentionally concealed that he was working and earning income as a bail bondsman. As a result, WELLS fraudulently received more than $120,000 in disability benefit payments.
U.S. Attorney Green stated: “Disability benefits are reserved for those who are unable to work due to a disability. Masquerading as a deserving participant through lies and deceit is outrageous and disrespectful to those who are truly in such an unfortunate situation. We will continue to aggressively pursue those seeking to defraud our nation’s safety net programs.”
This matter was investigated by the Office of the Inspector General for the U.S. Social Security Administration. This matter is being prosecuted by Assistant United States Attorney Lyman E. Thornton III.
Woman Indicted for Possession of Nearly Sixty-four Pounds of Liquid MethamphetamineRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned an indictment against VANESSA J. HERNANDEZ, age 34, of Houston, Texas. The indictment charges the defendant with one count of possession with intent to distribute methamphetamine, a schedule II controlled substance, in violation of Title 21, United States Code, Section 841(a)(1). The indictment also includes a forfeiture allegation which requires the defendant to forfeit the proceeds of her crime if convicted.
As alleged in a previous unsealed criminal complaint against the defendant, on September 29, 2014, the defendant was traveling through Baton Rouge on a commercial passenger bus when members of the Drug Enforcement Administration, High Intensity Drug Trafficking Area (HIDTA) Task Force interdicted the bus. The criminal complaint further alleges that the defendant was traveling with a suitcase filled with thirty-six soda bottles containing liquid methamphetamine weighing approximately sixty-four pounds.
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Kevin R. 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.
Operation Left Overs: All 17 Convicted in Drug Trafficking OperationRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today the conviction of the final defendant in Operation Left Overs, a long-running series of prosecutions aimed at dismantling a drug trafficking network in the Baton Rouge area.
HENRY BROWN, a.k.a. Cat, of Baton Rouge, Louisiana, pled guilty this morning before U.S. District Judge James J. Brady to conspiring with others to distribute over 500 grams of cocaine. He was one of 17 defendants who were federally prosecuted in this operation. With today’s guilty plea, all 17 defendants have been convicted.
The other defendants include Barry Cushenberry, Travis Newman, Tyrone Smith, John Sullivan, Coda Stovall, Patrick Scott, Marlon Thompson, Gregory McGee, Jonathan Wright, Demond Spurlock, Dwight K. Wright, Jr., Renan Gilkes, Charleston Jackson, Joseph Morrison, Dwayne Richardson, and Clarence Nero.
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 operation was handled by U.S. Attorney’s Office, the U.S. Drug Enforcement Administration, and the Baton Rouge City Police Department, with assistance from the East Baton Rouge Sheriff’s Office, the Livingston Parish Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the West Baton Rouge Parish Sheriff’s Office, the Ascension Parish Sheriff’s Office, the Gonzales Police Department, the Louisiana State Police, and the U.S. Marshals Service. These matters were prosecuted by Assistant United States Attorneys Susan Amundson, Cam Le, and Joe Blackwell.
Operation I Spy: Prosecution Against Drug Organization ExpandsRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today the unsealing of another federal grand jury indictment in Operation I Spy, an extensive investigation into a drug trafficking network operating in the Baton Rouge region.
Today’s indictment adds another defendant to the ongoing prosecutions, resulting in a total of 11 defendants. CASEY BASS, age 31, of Ponchatoula, Louisiana, is now charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; possession with the intent to distribute cocaine and cocaine base; and forfeiture. If convicted, he faces a mandatory minimum of five years in prison.
The other ten defendants who were previously indicted are:
• Ronrico Terrell, Sr., also known as “Ronrico Howard,” “Co,” “Shorty,” and “Rico,” age 38, of Baton Rouge, Louisiana, was charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of cocaine; possession with the intent to distribute cocaine and cocaine base; unlawful use of a communications facility; possession of a firearm in furtherance of a drug trafficking crime; and forfeiture.
• Rahkeyah Howard, also known as “Boo,” age 33, of Baton Rouge, Louisiana, was charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of cocaine; possession of a firearm in furtherance of a drug trafficking crime; and forfeiture.
• Howard S. Golphin, age 35, of Pine Grove, Louisiana, was charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; possession with the intent to distribute cocaine and cocaine base; unlawful use of a communications facility; and forfeiture.
• Danniesa Hughes Sanders, age 35, of Pine Grove, Louisiana, was charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; possession with the intent to distribute cocaine and cocaine base; and forfeiture.
• Johntha Rochon Williams, age 32, of Baton Rouge, Louisiana, was charged with distribution of cocaine and cocaine base and forfeiture.
• Bristen LaCour, also known as “Rudy,” age 24, of Baton Rouge, Louisiana, was charged with conspiracy to distribute cocaine base, distribution of cocaine base, and forfeiture. She has since been convicted.
• Troy A. Bell, age 25, of Baton Rouge, Louisiana, was charged with conspiracy to distribute cocaine base, distribution of cocaine base, and forfeiture. He has since been convicted.
• Michael C. Finley, age 43, of Baton Rouge, Louisiana, was charged with distribution of cocaine base and cocaine and forfeiture. He has since been convicted.
• Eric O’Neal Selders, age 42, of Baton Rouge, Louisiana, was charged with conspiracy to distribute and possess with the intent to distribute cocaine, possession with the intent to distribute cocaine, and forfeiture. He has since been convicted.
• Gerard Lathan Smith, age 40, of Baton Rouge, Louisiana, was charged with possession with the intent to distribute 500 grams or more of cocaine and forfeiture.
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
This operation is being handled by the U.S. Attorney’s Office, the U.S. Drug Enforcement Administration, and the Baton Rouge City Police Department, with assistance from the East Baton Rouge Sheriff’s Office, the Livingston Parish Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the West Baton Rouge Parish Sheriff’s Office, the Ascension Parish Sheriff’s Office, the Gonzales Police Department, the Louisiana State Police, and the U.S. Marshals Service. These matters are being prosecuted by Assistant United States Attorney Cam Le.
NOTE: An indictment is an accusation by the Grand Jury. The defendants are presumed innocent until and unless adjudicated guilty at trial or through guilty pleas.
State Audit Director Sentenced to over 3 Years in Federal PrisonRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today the sentencing of the former Director of the Bureau of Auditing and Compliance Services for the Louisiana Department of Children and Family Services (DCFS).
U.S. District Judge Shelley Dick sentenced DELRICE J. AUGUSTUS, age 35, of Baton Rouge, Louisiana, to 37 months imprisonment, 2 years of supervised release following imprisonment, restitution of $155,305.24 to DCFS, and forfeiture of $150,035 to the United States.
Augustus was sentenced following his conviction for stealing from a federally-funded entity, in violation of Title 18, United States Code, Section 666(a)(1)(A). Augustus served as the Director of the Bureau of Auditing and Compliance Services for DCFS, a state agency which receives over a billion dollars ($1,000,000,000) in federal funding annually. As Director, Augustus reported directly to the Secretary of DCFS and led the office responsible for safeguarding assets against theft and unauthorized use; ensuring that transactions were properly authorized and recorded properly; and ensuring compliance with management policies, as well as federal and state laws and regulations.
When he pled guilty, Augustus admitted to using his official position to defraud DCFS through the following means.
• Augustus admitted to fraudulently misusing government purchasing cards to obtain items for personal use for himself and others, including an installed dishwasher, televisions, movies, cameras, wireless audio systems, such as Sonos and Jawbone, gaming devices, such as Xboxes, Wii and Leapsters, mobile devices, such as I-Pads, Kindle Fires, and an I-Phone 5, Dyson vacuums, rental vehicles, hotel rooms, and fuel.
• Augustus admitted to misusing and causing others to misuse state travel and gas cards to pay for personal travel and entertainment expenses for himself and others, including gas, rental vehicles, and hotel stays. One such occasion involved purchasing hotel suites in New Orleans for Mardi Gras and the NBA All-Star Game.
• Augustus admitted to engaging in a scheme to create and use fraudulent documents to request and receive reimbursement from the State of Louisiana for official travel that did not occur. Augustus would sign and submit reimbursement claims for expenses he falsely claimed to have incurred as part of his official duties. Augustus would cause the signature of the Secretary of the Louisiana Department of Children and Family Services to appear on his fraudulent reimbursement claims as approving such claims, when, in fact, the Secretary had neither approved the claims nor authorized her signature to be used in such a manner. Augustus would also create fraudulent documents reflecting that C.P. and K.G., who were employees in the Auditor’s Office, had incurred certain expenses related to official travel. C.P. and K.G. would sign the fraudulent reimbursement requests as the requesting employees, and Augustus would sign as the approving supervisor. The State would pay the requested amount to C.P. and K.G. who would split the proceeds with Augustus.
U.S. Attorney Green stated: “It is a sad day when someone whose responsibility it is to safeguard and watch over hundreds of millions of dollars of federal funds is caught stealing from the very funds he is entrusted to protect. I commend DCFS leadership on their immediate action when the fraud became known to them. Such swift action and cooperation with law enforcement is imperative to ensuring that the occasional bad actor is addressed. I am grateful to our partners with the Louisiana State Police, the Louisiana Inspector General’s Office, and the Federal Bureau of Investigation who worked seamlessly with our prosecutors to ensure today’s just result.”
Louisiana Inspector General Stephen Street commented: “This sentence should make it clear to anyone thinking about stealing from the taxpayers that they had better be prepared to go to jail for it. Together with our law enforcement partners, we will continue doing everything we can to make that happen.”
“The public demands that we as law enforcement professionals hold those that commit such crimes responsible,” stated Colonel Mike Edmonson, Superintendent of the Louisiana State Police. “The Louisiana State Police and all of our law enforcement partners are committed to ensuring that individuals in positions of trust are held to a higher standard.”
This matter is being handled by the United States Attorney’s Office, the Louisiana State Police, the Louisiana Inspector General’s Office, and the Federal Bureau of Investigation. The matter is being prosecuted by First Assistant United States Attorney Corey R. Amundson, who serves as the Chief of the Criminal Division, and Special Assistant United States Attorney J. Brad Casey.
Federal Jury Convicts Leaders of Violent Drug Trafficking OrganizationRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced today the convictions of the leader of a violent drug trafficking organization and two of his lieutenants following a multi-week jury trial.
The leader, JEFFERY D. PERRY, age 31, of Baton Rouge, Louisiana, was convicted of conspiracy; seven other drug trafficking charges involving crack and powder cocaine; carjacking; and five charges involving the possession and use of firearms while being a felon and in furtherance of crimes of violence and drug trafficking. PERRY faces a mandatory minimum term of imprisonment of 45 years.
JERMAINE J. CHAPMAN, age 32, of Baton Rouge, Louisiana, was convicted of conspiracy; six other drug trafficking charges involving crack and powder cocaine; and possessing a firearm in furtherance of drug trafficking. CHAPMAN faces a mandatory minimum term of imprisonment of 25 years.
CHARLES BOYER, age 50, of Baton Rouge, Louisiana, was convicted of conspiring to distribute crack and powder cocaine. BOYER faces a mandatory minimum term of imprisonment of 10 years.
A sentencing date for these defendants has not yet been set. The jury acquitted a fourth defendant on the only count in which he was charged. In addition to the four defendants who went to trial, four other defendants previously pled guilty to their involvement in the drug trafficking conspiracy.
U.S. Attorney Walt Green stated: “Baton Rouge is truly a safer place without these defendants on the streets. The level of violence and depravity engaged in by this group made this prosecution essential. I am very proud of the prosecutors and agents who worked so hard to ensure that justice was done. This is another great example of how federal, state, and local collaboration can make our communities safer.”
The case was investigated by the Drug Enforcement Administration (DEA), the Baton Rouge City Police, and the West Baton Rouge Parish Sheriff’s Office. This case was prosecuted by Assistant United States Attorneys Robert W. Piedrahita, who serves as Litigation Counsel, and J. Christopher Dippel, Jr.
Former Sorrento Police Chief Sentenced for Making False Statements in Civil Rights InvestigationRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced that EARL L. THERIOT, age 66, of Sorrento, Louisiana, was sentenced today by Chief U.S. District Judge Brian A. Jackson to serve twenty-four (24) months of probation as a result of his conviction for making false statements to an FBI Special Agent in connection with a criminal civil rights investigation. THERIOT was also ordered to pay a $2,500 fine.
THERIOT had previously admitted that on November 1, 2013, while serving as the Chief of Police for the Town of Sorrento and following a 911 emergency police dispatch, he contacted an unresponsive individual at a local gas station, placed her in the front seat of his police unit, and, instead of bringing her back to her residence, transported her to his office at the Sorrento Police Department where he engaged in inappropriate sexual contact with her. THERIOT later pled guilty to making numerous false statements to an FBI Special Agent and a Deputy with the Ascension Parish Sheriff’s Office who were investigating whether THERIOT violated federal civil rights laws, among other things. As a result of this prosecution, THERIOT also resigned as Chief of Police.
United States Attorney Green stated: “This defendant had no business being in a position of law enforcement authority. The people of Sorrento deserve better. I am pleased that our office played a key role in his removal and felony conviction, and I am proud of the cooperation between all the federal and state agencies. I am particularly grateful to Sheriff Jeff Wiley of the Ascension Parish Sheriff’s Office, District Attorney Ricky Babin of the 23rd Judicial District, and the FBI, all of whom worked closely with my office to ensure that the defendant would be removed from his position of trust and that his criminal activity would be addressed.”
This prosecution and investigation were conducted jointly by the United States Attorney’s Office, the Federal Bureau of Investigation, the Ascension Parish Sheriff’s Office, and the District Attorney’s Office for the 23rd Judicial District.
The case is being prosecuted by Assistant United States Attorneys Chris Dippel and Alan Stevens.
Con Man Sentenced to over Five Years in Prison for Fraud SchemeRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced that Chief U.S. District Judge Brian A. Jackson sentenced JOHNATHAN E. WILLIAMS, age 34, of Baton Rouge, Louisiana, to serve sixty three (63) months in federal prison as a result of a multi-year fraud scheme. The defendant was also ordered to pay $835,650 in restitution and forfeit an additional $500,000 as illegal proceeds of his scheme. Upon his release from federal prison, WILLIAMS will be required to serve 2 years of supervised release.
WILLIAMS had previously pled guilty to a wire fraud scheme in which, from 2008 through 2011, he defrauded dozens of victims to obtain money that he could use to fund his gambling activity and other personal expenses. To accomplish his scheme, among a variety of other false stories, WILLIAMS would tell his victims that he had a trust fund containing millions of dollars, and that he would be able to repay his victims as soon as he gained access to the trust fund. WILLIAMS falsely told some victims that he was an heir to the family that produces Tabasco hot sauce. As part of the scheme, WILLIAMS used a false and fictitious letter, on an attorney’s letterhead, falsely representing that WILLIAMS had a trust fund worth “in excess of $20 million.” Throughout his scheme, WILLIAMS defrauded more than thirty (30) victims and obtained more than $800,000. At the conclusion of today’s sentencing, because the Court found that WILLIAMS had continued to engage in criminal conduct even after his March 2014 guilty plea, the Court revoked WILLIAMS’s release and ordered him immediately remanded to the custody of the United States Marshal.
U.S. Attorney Green stated: “We hope today’s sentence sends a strong message to those who would engage in fraud to line their pockets. This defendant’s long-running scheme caused his victims tremendous hardship, both financial and emotional, threatening the financial security and retirement plans of many along the way. My office will work hard to aggressively pursue con artists like Mr. Williams.”
This investigation was conducted by the Federal Bureau of Investigation, with assistance from the Louisiana Department of Public Safety and Corrections’ Division of Probation and Parole. The case is being prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Criminal Chief of the Criminal Division.
Baton Rouge Man Indicted for Fraud Against Healthcare Entities and Aggravated Identity TheftRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned an indictment against LARRY D. BUTLER, age 49, of Baton Rouge, Louisiana. The indictment charges the defendant with wire fraud, in violation of Title 18, United States Code, Section 1343, false representation of a social security number, in violation of Title 42, United States Code, Section 408(a)(7)(B), 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.
The indictment alleges that the defendant engaged in a scheme to defraud multiple healthcare entities from July 2013 through August 2014. The defendant allegedly used false credentials, false social security numbers, a false California driver’s license, and other false documentation in order to conceal his criminal history and obtain the pay and benefits associated with being employed by the victims. He also allegedly stole from the victims through the misuse of company credit cards for personal expenses, including furniture, travel, and meals. According to the indictment, the defendant sought to fraudulently obtain almost $300,000 through the scheme.
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.
NOTE: An indictment is an accusation by the Grand Jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Baton Rouge Woman Pleads Guilty to Embezzling $600,000 from Her EmployerRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced the conviction of DONNA M. DODSON, age 52, of Baton Rouge, Louisiana, who pled guilty today before Chief U.S. District Judge Brian A. Jackson to five (5) counts of wire fraud, in violation of Title 18, United States Code, Section 1343. DODSON faces a maximum sentence of one hundred (100) years in prison and fines totaling $1,250,000.
According to the factual basis presented to the Court in connection with her plea in 2009, DODSON was hired by a surgical center used by physicians throughout the Baton Rouge area. DODSON worked as the company’s office manager until mid-2013. During that time, she 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.
This investigation is being conducted by the United States Secret Service and the East Baton Rouge Parish Sheriff’s Office. The matter is being prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Chief.
Federal, State and Local Law Enforcement Announce the Unveiling of Additional Assets to Aid in the Efforts to Reduce Accidental Firearm Deaths Among ChildrenRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced today that in a continuing effort to promote an educational program about firearm safety and awareness, Louisiana Law Enforcement for Gun Safety is unveiling two additional demonstration trailers on September 23, 2014 at 10:00 a.m. at the Louisiana Sheriff’s Association, 1175 Nicholson Drive, Baton Rouge, Louisiana 70802.
Louisiana Law Enforcement for Gun Safety was created in response to the alarmingly high rate of accidental firearm injuries and deaths among children in Louisiana. The program uses certified firearm instructors to teach parents and children about gun safety through an interactive presentation involving live demonstrations and the distribution of gunlocks. The Project aims to (1) identify the hazards of unsecured firearms, why children are fascinated with firearms, and ways to safely maintain firearms; (2) identify distinguishing characteristics between real and toy guns; and (3) illustrate the destructive force of firearms through the use of the demonstration trailer.
Presentations are conducted at schools, camps and community events. Since its inception in June 2013, the Program has reached approximately 22,100 children and distributed 300 gunlocks to adults.
The demonstration trailers will be geographically disbursed throughout the state and will be housed by Baton Rouge City Constable’s Office, Gretna Police Department and Caddo Parish Sheriff’s Office. The program is available for use by all Louisiana law enforcement agencies in Louisiana through the endorsements of the United States Attorney’s Offices for the Middle, Eastern and Western Districts, Baton Rouge City Constable’s Office, Louisiana Department of Corrections, Louisiana Sheriff’s Association, Louisiana Association of Chiefs of Police, Louisiana City Marshals and City Constables Association, Louisiana District Attorneys Association, Louisiana State Police, and the Louisiana Attorney General’s Office.
Two More Individuals Sentenced for Their Roles in Large-scale Medicare Fraud SchemeRead the Press Release
BATON ROUGE, LA – A facility administrator and mental health therapist have been sentenced for their roles in an extensive Medicare fraud scheme. Chief U.S. District Court Judge Brian A. Jackson sentenced the individuals as follows:
• ARTHUR SMITH, JR., age 32, of Baton Rouge, Louisiana. According to court documents, SMITH was employed at Shifa and Serenity Community Mental Health Centers from in or around 2005 through in or around 2011, and became a managing employee and administrator of Serenity Center in 2008. On numerous occasions, SMITH would falsify documents, including patient records, group progress notes, and other medical documentation, to make it appear as though social workers had provided services and/or treatments to patients, despite the fact that the treatments had not been provided. On September 2, 2014, SMITH was sentenced to a 30-month term of imprisonment, a 2-year term of supervised release following his release from imprisonment, and restitution in the amount of $14,146,106.
• ANNA NGANG, age 56, of Houston, Texas. From in or around 2010 through in or around 2012, NGANG was employed by Shifa Texas as a therapist tasked with conducting group therapy sessions. At the direction of her supervisors, NGANG knowingly participated in the falsification of documents, including patient records, group progress notes, and other medical documentation, so that her supervisors could use the false documents to support false claims to Medicare. On September 2, 2014, NGANG was sentenced to a 10-month term of imprisonment and $52,308 in restitution.
According to documents filed in the case, the investigation into three community mental health centers - Shifa Community Mental Health Center of Baton Rouge, Serenity Center of Baton Rouge, and Shifa Community Mental Health Center of Texas - was opened in 2011, and since then has resulted in the convictions of seventeen (17) individuals employed by the facilities, including therapists, marketers, administrators, owners and the medical director. Over a period of approximately seven years, the companies billed Medicare for partial hospitalization program services for the mentally ill that were unnecessary or never provided. The companies, collectively, submitted more than $258 million in claims to Medicare during this period. Medicare paid approximately $43.5 million on those claims.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney for the Middle District of Louisiana J. Walter Green, Special Agent-in- Charge Mike Fields of the Dallas Region of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG), Special Agent-in-Charge Michael Anderson of the FBI’s New Orleans Division, and Louisiana State Attorney General James Buddy Caldwell made the announcement.
The case is being investigated by HHS-OIG, the FBI, and the Medicaid Fraud Control Unit of the Louisiana Attorney General’s Office, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Louisiana. The case is being prosecuted by Trial Attorneys Abigail Taylor and Dustin M. Davis of the Criminal Division’s Fraud Section and Assistant United States Attorney Shubhra Shivpuri of the U.S. Attorney’s Office for the Middle District of Louisiana.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Baton Rouge Businessman Pleads Guilty to Environmental Crime and Obstruction of JusticeRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced the conviction of another defendant in connection with a wide ranging investigation into corruption and fraud involving compliance with federal environmental laws.
Earlier today, ROGER J. DIES, age 55, of Zachary, Louisiana, pled guilty before U.S. District Judge Shelly D. Dick to failing to report third party wastewater discharges in violation of the Clean Water Act, in violation of Title 33, United States Code, Section 1319(c)(2)(A), and obstruction of justice, in violation of Title 18, United States Code, Sections 1503 and 2. DIES also admitted to the forfeiture allegations contained in the Indictment, which was previously returned by a federal grand jury in December of 2013. DIES faces a maximum sentence up to 13 years in prison and substantial fines.
According to the written plea agreement entered into between DIES and the United States, DIES owned and operated Baton Rouge Tank Wash (BRTW), a business focused on washing the interior of tanks that hauled chemical and food-grade loads aboard trucks. BRTW was permitted to discharge wastewater resulting from the tank washes into the municipal sewer system, subject to certain requirements and limitations. From in or about March of 2009, however, through September of 2012, DIES failed to notify DPW that he had begun discharging third party wastewater, despite knowing that notification was required by his permit. DIES also failed to submit monthly and daily logs reflecting all wastewater discharged from the facility. DIES was asked about the nature of his business, on numerous occasions, and he routinely misled and/or made false representations, intended to conceal the fact that BRTW was accepting substantial quantities of third party wastewater. Then, in late 2012, as a federal grand jury investigation into the matter was underway, DIES provided the grand jury with false documents that had been created with the goal of disguising BRTW’s third party wastewater business. As the investigation continued, in February of 2013, DIES provided the grand jury with false testimony in which he represented that he had produced all documents that were responsive to the subpoenas, when, in fact, he knew that numerous responsive documents had not been produced.
U.S. Attorney Green stated, “This office is committed to investigating and prosecuting criminal violations of the federal environmental laws. Such laws are in place to protect health and promote safety across our region, and compliance with the laws should not be disregarded as an administrative burden or tossed aside in an effort to maximize profit. We will continue to work with our law enforcement partners to identify and prosecute fraudulent conduct, including in this important area of the law.”
“EPA and its regulatory partners depend on accurate self-reporting to help ensure compliance with the Clean Water Act,” said Ivan Vikin, Special Agent-in-Charge of EPA’s criminal enforcement program in Louisiana. “Despite orders to stop, the defendant continued his illegal actions and falsified reports to cover his tracks. This case demonstrates that those who knowingly put public health at risk can expect to face the consequences in court.”
“The individual charged in this case avoided paying over $24,000 in sewer user fees by under reporting the amount of pollutants discharged to the city’s sewage collection system,” said Louisiana Department of Environmental Quality Secretary Peggy Hatch. “We take issue with any individual or business who side-steps compliance by under reporting in the name of profit. We will continue to work with our federal partners to ensure compliance and keep the playing field level for the people and businesses out there who willing to doing it right.”
This ongoing operation 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 Assistant United States Attorneys Corey R. Amundson, who serves as Chief of the Criminal Division, and Alan A. Stevens, who serves as a Deputy Chief.
Louisiana Psychiatrist and Five Others Sentenced in $258 Million Medicare Fraud SchemeRead the Press Release
BATON ROUGE, LA – A Louisiana psychiatrist was sentenced in federal court in Baton Rouge yesterday to serve 86 months in prison for his role in a $258.5 million Medicare fraud scheme involving partial hospitalization psychiatric services.
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, Special Agent in Charge Mike Fields of the Dallas Region of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG), Special Agent in Charge Michael Anderson of the FBI’s New Orleans Division and Louisiana State Attorney General James Buddy Caldwell made the announcement.
ZAHID IMRAN, M.D., 56, of Baton Rouge, pleaded guilty on May 13, 2014, to count one in a superseding indictment charging him with conspiracy to commit health care fraud. In addition to his prison term, IMRAN was sentenced to serve two years of supervised release and ordered to pay $23.8 million in restitution, jointly and severally with his conspirators. IMRAN will also be ordered to forfeit an additional $23.8 million as illegal proceeds of the fraudulent scheme.
According to documents filed in the case, in 2011 law enforcement opened an investigation into three community mental health centers – Shifa Community Mental Health Center of Baton Rouge (Shifa), Serenity Center of Baton Rouge (Serenity) and Shifa Community Mental Health Center of Texas (Shifa Texas) – and has resulted in 17 convictions of individuals employed by the facilities, including therapists, marketers, administrators, owners and the medical director. The companies billed Medicare for partial hospitalization program services for the mentally ill that were unnecessary or never provided over a period of approximately seven years. The companies, collectively, submitted more than $258 million in claims to Medicare for partial hospitalization program services during this period. Medicare paid approximately $43.5 million on those claims.
IMRAN served as Shifa’s medical director and co-owner of Serenity Center and Shifa Texas. As part of the scheme, IMRAN would admit mentally ill patients to the facilities, some of whom were inappropriate for partial hospitalization. IMRAN would then re-certify these patients’ appropriateness for the program, in an effort to continue to bill Medicare for services. To support the fraudulent Medicare billing, IMRAN and others would falsify patient treatment records to reflect services on dates where no such services were provided.
IMRAN’s lengthy sentence follows the sentences imposed last week on five other defendants in the case, including several recreational therapists and an office administrator. Last week, Chief U.S. District Court Judge Brian A. Jackson sentenced the individuals as follows:
• SEDRA J. SIGNATER, age 48, of Baton Rouge, Louisiana. According to court documents, from 2008 forward, SIGNATER worked as an administrator at Shifa. On numerous occasions, SIGNATER would falsify documents, including patient records, group progress notes, and other medical documentation, to make it appear as though Shifa social workers had provided services and/or treatments to patients, despite the fact that the treatments had not been provided. On August 21, 2014, SIGNATER was sentenced to 3-year term of imprisonment, a 2-year term of supervised release following his release from imprisonment, and restitution in the amount of $23.8 million.
• ROBERT E. BOOKER, age 35, JUNE M. DURIO, age 50, JAMES J. MYER, age 42, and NANCY N. REED, age 45, all of Baton Rouge. At the direction of their supervisors, BOOKER, DURIO, MYER, and REED knowingly participated in the falsification of documents, including patient records, group progress notes, and other medical documentation, so that their supervisors could use the false documents to support false claims to Medicare. On August 22, 2014, each defendant was sentenced to serve a 2-year term of probation.
The case is being investigated by HHS-OIG, the FBI and the Medicaid Fraud Control Unit of the Louisiana Attorney General’s Office, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Louisiana. The case is being prosecuted by Trial Attorneys Abigail Taylor and Dustin M. Davis of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Shubhra Shivpuri of the Middle District of Louisiana.
U.S. Attorney Green stated: “This case illustrates the enormity of this country’s healthcare fraud epidemic which is estimated to cause tens of billions of dollars in financial losses each year. In addition to financial losses, such fraud exposes patients to unnecessary medical treatments and compromises the integrity of their medical records by falsifying their medical status, treatments, and other important information. My great appreciation to the prosecutors and agents who worked tirelessly on this important matter. We will continue to devote the necessary resources to track down and aggressively pursue those who engage in health care fraud.”
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Baton Rouge Woman Sentenced to Lengthy Prison Term for Her Role in Multi-million Dollar Medicare Fraud SchemeRead the Press Release
BATON ROUGE, LA – An owner and operator of community mental health centers in Baton Rouge, Louisiana, and Houston, Texas, was sentenced today to serve more than eight years in prison for her role in an extensive Medicare fraud scheme. Chief U.S. District Court Judge Brian A. Jackson sentenced HOOR NAZ JAFRI, age 54, of Baton Rouge, Louisiana, to one hundred and two (102) months in federal prison, to be followed by a three-year term of supervised release. JAFRI was also ordered to pay restitution in the amount of $43,528,584 and will be required to forfeit all proceeds from the fraudulent scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney for the Middle District of Louisiana Walt Green, Special Agent in Charge Mike Fields of the Dallas Region of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG), Special Agent in Charge Michael Anderson of the FBI’s New Orleans Division, and Louisiana State Attorney General Buddy Caldwell made the announcement. JAFRI had previously pled guilty to Count One of a Superseding Indictment, charging her with conspiracy to commit health care fraud, in violation of Title 18, United States Code, Section 1349, and Count Eleven, charging her with conspiracy to pay and receive health care kickbacks, in violation of Title 18, United States Code, Section 371.
According to documents filed in the case, the investigation into three community mental health centers - Shifa Community Mental Health Center of Baton Rouge, Serenity Center of Baton Rouge, and Shifa Community Mental Health Center of Texas - was opened in 2011, and since then has resulted in the convictions of seventeen (17) individuals employed by the facilities, including therapists, marketers, administrators, owners and the medical director. Over a period of approximately seven years, the companies billed Medicare for partial hospitalization program services for the mentally ill that were unnecessary or never provided. The companies, collectively, submitted more than $258 million in claims to Medicare during this period. Medicare paid approximately $43.5 million on those claims.
JAFRI was an owner of all three facilities and a marketer for Shifa and Serenity in Baton Rouge. JAFRI was also part owner of two affiliated residential facilities; patients who lived at these apartments were required to attend the programs at Shifa and Serenity, regardless of whether these patients actually needed or desired the services. As a marketer for Shifa and Serenity, JAFRI caused patients to be admitted to the facilities who were inappropriate for the services. JAFRI directed administrators and therapists at these facilities to falsify records for treatment that patients did not in fact receive. JAFRI also authorized $1,500 per week to be paid in cash to a recruiter in Houston, Texas so that the recruiter would direct patients to attend the partial hospitalization program at Shifa Texas. The recruiter, in turn, paid each patient $75 per week to attend the program.
The case is being investigated by HHS-OIG, the FBI, and the Medicaid Fraud Control Unit of the Louisiana Attorney General’s Office, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Louisiana. The case is being prosecuted by Trial Attorneys Abigail Taylor and Dustin M. Davis of the Criminal Division’s Fraud Section and Assistant United States Attorney Shubhra Shivpuri of the U.S. Attorney’s Office for the Middle District of Louisiana.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Tax Preparer Sentenced to Federal Prison for Filing False Tax Returns and Identity TheftRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced that Senior U.S. District Judge James J. Brady sentenced SHYWANDA UNDERWOOD, age 39, of Clinton, Louisiana, yesterday for filing false and fraudulent tax returns and identity theft. The defendant was sentenced to 24 months imprisonment, 2 years of supervised release following imprisonment, an order to pay $287,658 in restitution, and an order to forfeit $14,389 in illegal proceeds.
The defendant was sentenced after being convicted of scheming to defraud the IRS from January 2011 through June 2011 by submitting approximately 76 false tax returns which sought refunds totaling approximately $375,000. In the returns, by misrepresenting the taxpayers’ income and falsely claiming various credits, among other means, the defendant fraudulently claimed that the taxpayers were entitled to significant refunds from the IRS. With respect to some of the false returns, the defendant filed the returns using the means of identification of individuals who had not authorized her to use their identities.
U.S. Attorney Green stated: “Our office will continue to aggressively pursue those who steal other individuals’ identities and submit false tax returns in an effort to line their own pockets.”
Gabriel L. Grchan, Special Agent-in-Charge of IRS – Criminal Investigation, stated, “Shywanda Underwood was sentenced related to her involvement in a scheme of identity theft and tax fraud. For her participation in this scheme, Ms. Underwood received 24 months to serve in federal prison. IRS - CI wants the would-be-criminals out there to understand that tax fraud does not pay.”
This investigation was conducted by IRS - Criminal Investigations and the United States Secret Service. The matter is being prosecuted by Assistant United States Attorney Cam T. Le.
Operators of Healthcare Company Convicted of 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 convicted of 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 since 2003.
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.
Yesterday, on July 29, 2014, EBERE pled guilty before Chief U.S. District Judge Brian A. Jackson to conspiracy to commit health care fraud, in violation of Title 18, United States Code, Section 1349. EBERE faces up to ten (10) years in federal prison and a fine of $250,000, or twice the gross gain or gross loss derived from her offense. EBERE will also be required to forfeit the proceeds of her crime. In her plea agreement with the United States, 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 Medical, she submitted approximately $800,000 in enteral nutrition related claims alone. Judge Jackson scheduled EBERE’s sentencing for November 20, 2014.
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 faces a maximum possible sentence of five (5) years in prison and a fine of $250,000. HIVES will also be required to forfeit the proceeds of her crime. In her plea agreement, HIVES admitted that she received illegal kickbacks from EBERE to induce HIVES to refer Medicare beneficiaries to EBERE and Golden Medical. Judge Jackson scheduled HIVES’s sentencing for November 7, 2014.
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.
Business Manager Sentenced to Prison for FraudRead the Press Release
United States Attorney Walt Green announced today the sentencing of RENEE ELISE BEARD, 50, of Addis, Louisiana. BEARD previously pled guilty on December 2, 2013 to wire fraud in violation of Title 18, United States Code, Section 1343.
BEARD was sentenced today by United States District Judge James J. Brady to 27 months imprisonment and a term of 2 years on supervised release following imprisonment. BEARD was also sentenced to pay restitution in the amount of $295,587 to the victim of her fraud. Additionally, BEARD was ordered to forfeit $251,596 to the United States, said funds being the property which was derived from her scheme to defraud.
BEARD was the manager of business operations for Campbell Companies, a local business engaged in the development and management of commercial real estate and multi-family residential properties. BEARD was responsible for bookkeeping, management of financial operations, and administration of the company's payroll. BEARD enjoyed unlimited access to Campbell’s accounting and payroll systems, bank accounts, and computer systems. During the years 2008 through 2012, BEARD was authorized to initiate and execute online banking transactions for the purpose of disbursing payroll to Campbell’s employees, including payments to herself. BEARD used her position as Campbell’s business manager to make numerous transfers from a Campbell Companies’ business bank account to her personal bank accounts which exceeded the salary to which she was entitled. As a result of making unauthorized transfers of funds from the bank account of Campbell to her personal bank accounts, BEARD fraudulently obtained approximately $251,596 to which she was not entitled. BEARD used wire communications in order to execute her scheme.
United States Attorney Green stated: “Corporate fraud is inexcusable and is too often perpetrated by insiders who abuse the trust afforded to them. It is often the honest employees who are left to feel the greatest financial brunt of such wrongdoing. Our office will continue to aggressively pursue such matters.”
This case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Rene I. Salomon.
Baton Rouge Tax Preparer Convicted for Her Role in Fraudulent Tax Return SchemeRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced Friday that MALETICA V. FERGUSON, age 37, of Geismar, Louisiana, pled guilty on Wednesday, July 16, 2014, before Chief U.S. District Judge Brian A. Jackson to a Bill of Information for aiding and assisting in the preparation of false tax returns. As a result of her conviction, FERGUSON faces a maximum term of imprisonment of three (3) years, a fine of up to $527,538, and the costs of prosecution.
This case was 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 tax fraud schemes.
According to the factual basis presented in connection with her guilty plea, FERGUSON operated The Best Tax Service (BTS), an income tax preparation business in Baton Rouge, Louisiana. FERGUSON prepared and submitted twenty-six (26) false tax returns to the IRS for the 2010 and 2011 tax years. In the returns, by misrepresenting the taxpayers’ income and falsely claiming various credits and deductions, among other means, the defendant fraudulently claimed that the taxpayers were entitled to significant refunds from the IRS. As a result of her scheme, FERGUSON caused a loss $263,769 to the taxpayers of the United States.
U.S. Attorney Green stated: “Filing false tax returns is a serious crime that hurts innocent taxpayers. This office will continue to aggressively pursue criminals who intend to defraud the United States. The U.S. Attorney’s Office and the IRS are serious about investigating these crimes and prosecuting those who engage in this type of conduct.”
IRS Criminal Investigation Special Agent-in-Charge Gabriel Grchan stated: “Falsely claiming refundable tax credits that are established to help legitimate taxpayers is a crime and is punishable under the law. IRS Criminal Investigation will not stand by while individuals like FERGUSON use tax preparation businesses as a tool to defraud the government and victimize taxpayers.”
The case is being prosecuted by Assistant United States Attorney Cam T. Le.
Illegal Alien with Assault Style Shotgun Sentenced to Almost Three Years in PrisonRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that JUAN FLORES-FLORES, also known as Luis Carlos Flores and Luis Carlos Valdez, age 30, of Mexico, was sentenced this morning by Chief U.S. District Judge Brian A. Jackson to thirty-three (33) months in prison for being an illegal alien in possession of an assault style shotgun.
Today’s sentence stems from a burglary investigation by the Baton Rouge City Police Department on January 11, 2014. While investigating a burglary complaint, the police identified the defendant’s vehicle as matching the description of a vehicle seen in the vicinity of two reported burglaries. Police stopped the vehicle, observed the assault style shotgun in plain view, and arrested the defendant. The shotgun had been reported stolen from a burglarized pawn shop. The defendant, a resident of Mexico, was illegally in the United States, having been previously removed from this country on at least three prior occasions.
U.S. Attorney Green stated: “This office will continue to work with our federal, state, and local partners to remove illegal guns from our streets.”
This matter was investigated by U.S. Immigration and Customs Enforcement (ICE), through their Baton Rouge Enforcement and Removal Operations Office, and the Baton Rouge City Police Department. The case is being prosecuted by Assistant United States Attorney Lyman E. Thornton III.
Hedge Fund Manager Convicted in Multi-million Dollar Investment FraudRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced today that JAMES R. HOLDMAN, age 59, of Zachary, Louisiana, pled guilty yesterday before U.S. District Judge James J. Brady to multiple counts of mail fraud based on his engaging in a scheme which defrauded investors out of millions of dollars. HOLDMAN had been scheduled for trial next week. As a result of his convictions, HOLDMAN faces a maximum term of imprisonment of forty (40) years and millions in fines and restitution to his victims.
HOLDMAN operated a hedge fund called Greenwing Capital Management, LLC. 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 as well as 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 Capital 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 millions of the victim investors’ 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.
Felon Who Disregarded Brave Message Sentenced to Lengthy Federal and State Prison TermsRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced today that Chief U.S. District Judge Brian A. Jackson sentenced DEVONTAE LEE, age 21, of Baton Rouge, Louisiana, to 54 months imprisonment and 3 years of supervised release. The sentence results from LEE’s federal conviction for possessing a firearm while a felon on October 17, 2013.
LEE was also convicted and sentenced last week to 10 years imprisonment on a similar charge based on the same conduct in the Nineteenth Judicial District Court. LEE may also face more prison time in state court based on unrelated conviction for unauthorized entry of an inhabited dwelling.
On April 3, 2013, LEE attended the BRAVE Project’s first “call-in” meeting with several local law enforcement leaders, including the District Attorney, the East Baton Rouge Parish Sheriff, the Baton Rouge Police Chief, and the United States Attorney, as well as community leaders, a crime victim, and a resource counselor. At the meeting, this coalition of law enforcement and community partners personally addressed LEE and other individuals responsible for chronic criminal conduct and/or suspected of having ties to groups associated with violent crime. The coalition repeatedly asked LEE and others to stop the violence, offered significant resources to those who would agree, and warned that those who continued to commit crimes would be prosecuted.
Six months later, on October 7, 2013, two Baton Rouge Police Officers contacted LEE, a convicted felon, and discovered that he possessed a loaded pistol which had been reported stolen. On January 16, 2014, in federal court, LEE pled guilty before Chief Judge Jackson to possession of a firearm by a convicted felon. At today’s sentencing hearing, prior to imposing the 54-month sentence, the Court noted LEE’s significant criminal history and remarked that LEE had not taken advantage of repeated opportunities to turn his life around.
U.S. Attorney Green stated: “This office will continue to join with our federal, state, and local partners in executing the BRAVE project, which includes aggressively pursuing at all levels those offenders who unfortunately fail to heed the BRAVE message.”
District Attorney Moore stated: “While everyone involved would much rather see those individuals turn away from crime and become productive members of society, law enforcement will fulfill the promises made during the BRAVE call-in sessions.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Baton Rouge Police Department. The case is being prosecuted by Assistant United States Attorney Chris Dippel and Assistant United States Attorney Alan Stevens who serves as a Deputy Chief of the Criminal Division.
Prairieville Man Sentenced to Forty Years in Prison for Distributionand Receipt of Child PornographyRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that U.S. District Court Judge Shelly D. Dick sentenced CLINTON D. SMITH, age 43, of Prairieville, Louisiana, to 480 months in prison and 10 years of supervised release following imprisonment. While serving his term of supervised release, SMITH will be required to register as a sex offender, and his access to computers, minors, and the internet will be restricted. SMITH had previously pled guilty in February 2014 to distribution and receipt of child pornography.
According to the factual basis presented in connection with his guilty plea, between November 25, 2012 to February 20, 2013, SMITH distributed 49 images and 15 videos of child pornography and received 80 images of child pornography. Many of the images depicted prepubescent minors, and several depicted violent, sadistic, or masochistic conduct. At sentencing, the Court considered evidence of SMITH’s history of prior sexual abuse of several child victims and his role in the production of pornographic images.
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 Green stated: “The United States Attorney’s Office has always prioritized its efforts in this critical area of crimes against children. We will continue to work closely with the FBI, and all federal, state, and local law enforcement, to protect the children in this district as part of this important national initiative. This sentence should serve as a deterrent to those who mean harm to our children.”
This case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Cam T. Le and Special Assistant U.S. Attorney John Brad Casey.
Former Shaw Executive Convicted of Insider TradingRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced today that a former executive of the Shaw Group has pled guilty to engaging in insider trading. The conviction is the result of an ongoing federal investigation into the use of pre-merger confidential information regarding the 2012 acquisition of Shaw by Chicago Bridge and Iron Company (CB&I).
SCOTT DAVID ZERINGUE, age 48, of Baton Rouge, Louisiana, pled guilty today before Chief Judge Brian A. Jackson to one count of conspiracy to commit securities fraud in violation of Title 18, United States Code, Section 371. ZERINGUE also agreed to forfeit proceeds derived from the offense.
In the Spring of 2012, Shaw began considering a potential merger. 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. As a result of the announcement, Shaw’s stock price rose substantially.
At today’s proceeding, ZERINGUE admitted that, prior to the public announcement, he received confidential inside information regarding the impending merger which he passed on to a family member with the understanding that the family member would trade in Shaw stock based on such information. Thereafter, ZERINGUE and the family member both used the inside information obtained by ZERINGUE to purchase Shaw stock and stock options. As a result of the insider trading, ZERINGUE and the family member made over $750,000 in profits.
ZERINGUE faces a sentence of up to 5 years imprisonment, a fine of up to $250,000, and up to 3 years of supervised release following imprisonment.
U.S. Attorney Green stated: “Insider trading undermines the level playing field that is essential to the integrity and fair functioning of the stock market. We will continue to aggressively investigate and prosecute individuals who exploit confidential company information for personal gain at shareholder expense.”
This matter is being investigated by the United States Secret Service, the Federal Bureau of Investigation (FBI), and the Internal Revenue Service, Criminal Investigations. It is being prosecuted by Assistant United States Attorney J. Christopher Dippel, Jr., and Senior Litigation Counsel M. Patricia Jones.
The investigation is continuing. Anyone with information concerning pre-merger insider trading of Shaw stock is urged to contact Special Agent Moe Hattier of the FBI at 225-291-5159 or Special Agent Kevin Bodden of the U.S. Secret Service at 225-925-5436.
Operation Road Block 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 Road Block, an extensive investigation into a drug trafficking network operating in the Baton Rouge region.
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 eight individuals have been charged:
• Wilbert Mathes, age 38, of Zachary, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of cocaine; possession of firearms by a convicted felon; unlawful use of a communications facility; and forfeiture. If convicted, Mathes faces a mandatory minimum of 5 years and up to 86 years imprisonment, 4 years of supervised release following imprisonment, forfeiture of criminal proceeds and property used to facilitate his crimes, and a $7,250,000 fine. He has been arrested and is detained pending trial.
• Joell Leggins, 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 cocaine; possession with the intent to distribute cocaine; unlawful use of a communications facility; and forfeiture. If convicted, Leggins faces a mandatory minimum of 10 years and up to 156 years imprisonment, 4 years of supervised release following imprisonment, forfeiture of criminal proceeds and property used to facilitate his crimes, and a $14,250,000 fine. He is currently a fugitive.
• Marcus Thornton, age 38, 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. If convicted, Thornton faces a mandatory minimum of 5 years and up to 64 years imprisonment, 4 years of supervised release following imprisonment, forfeiture of criminal proceeds and property used to facilitate his crimes, and a $7,250,000 fine. He is currently incarcerated on unrelated state charges and will be transported to federal court for his initial appearance at a later date.
• Damond Reynard Lockett, age 40, of Port Allen, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; possession with the intent to distribute cocaine; unlawful use of a communications facility; and forfeiture. If convicted, Lockett faces a mandatory minimum of 5 years and up to 68 years imprisonment, 4 years of supervised release following imprisonment, forfeiture of criminal proceeds and property used to facilitate his crimes, and a $6,500,000 fine. He has been arrested and is detained pending trial.
• Lamont Jackson, age 39, of Baton Rouge, 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. If convicted, Jackson faces a possible sentence of 32 years imprisonment, 4 years of supervised release following imprisonment, forfeiture of criminal proceeds and property used to facilitate his crimes, and a $1,750,000 fine. He has been arrested and is under pretrial supervision pending trial.
• Broderick D. Mathes, age 37, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; possession with the intent to distribute cocaine; possession of firearms by a convicted felon; unlawful use of a communications facility; and forfeiture. If convicted, Mathes faces a mandatory minimum of 5 years and up to 80 years imprisonment, 4 years of supervised release following imprisonment, forfeiture of criminal proceeds and property used to facilitate his crimes, and a $7,000,000 fine. He has been arrested and is detained pending trial.
• Robert Williams, age 37, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; and forfeiture. If convicted, Williams faces a possible sentence of 20 years imprisonment, 3 years of supervised release following imprisonment, forfeiture of criminal proceeds and property used to facilitate his crimes, and a $1,000,000 fine. He has been arrested and is under pretrial supervision pending trial.
• Caprice Morgan, age 28, of Baton Rouge, Louisiana, is charged with misprision of a felony. If convicted, Morgan faces a possible sentence of 3 years imprisonment, 1 year of supervised release following imprisonment, and a $250,000 fine. She has been arrested and is under pretrial supervision pending trial.
U.S. Attorney Green stated: “This indictment continues our battle against the drug trafficking organizations that plague our community. We will continue to work closely with our federal, state, and local partners to take drug dealers off the streets of Baton Rouge. I greatly appreciate the hardworking team of agents and prosecutors who contributed to this important operation.”
Joseph Shepard, the Assistant Special Agent-in-Charge of the New Orleans Division of the U.S. Drug Enforcement Administration, stated: “This operation is the result of a successful collaborative effort by federal, state, and local law enforcement to pursue justice. This indictment should serve as a reminder that DEA, along with its partners, remains deeply committed to aggressively and swiftly pursuing those who violate the federal drug laws.”
This operation is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the U.S. Drug Enforcement Administration, the Baton Rouge City Police Department, the East Baton Rouge Sheriff’s Office, the West Baton Rouge Parish Sheriff’s Office, the Louisiana State Police, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). This matter is being prosecuted by Assistant United States Attorney Jennifer Kleinpeter who serves as a Deputy Chief in the Criminal Division.
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.
Third Former State Corrections Official Pleads Guilty to Civil Rights ViolationRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green and Acting Assistant United States Attorney General Jocelyn Samuels announced today that a third former state corrections official has pled guilty to civil rights violations related to the beating of an inmate at the Louisiana State Penitentiary in Angola, Louisiana.
MARK SHARP, age 33, of Amite, Louisiana, has pled guilty to one count of deprivation of rights under color of law, in violation of Title 18, United States Code, Section 242, and one count of making a false statement to the FBI, in violation of Title 18, United States Code, Section 1001.
SHARP’s charges were based on his conduct while employed as a captain at the Louisiana State Penitentiary in Angola. According to the factual basis filed in connection with his guilty plea, on January 24, 2010, SHARP joined in a search to apprehend an inmate who had escaped from his assigned location. After the inmate was captured, SHARP and two other officers – Kevin Groom and C.B. -- were ordered to escort the inmate, who was handcuffed behind his back, to the prison’s medical unit. The three officers got into the bed of a truck with the inmate. SHARP admitted that, during the drive to the medical unit, he repeatedly struck the inmate with an asp baton. SHARP also saw C.B. kick the inmate in his head and shoulder area. SHARP then lied to the Federal Bureau of Investigation during the federal civil rights investigation of the beating.
Two other former state corrections officials have been charged and convicted in connection with the inmate beating. Kevin Groom and Jason Giroir have both been charged and pled guilty to falsifying records in a federal investigation and making false statements to the FBI. They await sentencing.
SHARP faces up to 15 years imprisonment, a fine up to $500,000, and up to 3 years of supervised release following a term of imprisonment.
This matter is being handled by the United States Attorney’s Office for the Middle District of Louisiana, the Civil Rights Division of the U.S. Department of Justice, and the Federal Bureau of Investigation. It is being prosecuted by Trial Attorney AeJean (Angie) Cha of the Civil Rights Division and Assistant United States Attorney Robert W. Piedrahita.
State Auditor Pleads Guilty to Theft from A Federal ProgramRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today another conviction in the ongoing federal and state investigation into corruption at the Bureau of Auditing and Compliance Services for the Louisiana Department of Children and Family Services (DCFS). The DCFS has cooperated fully and provided valuable assistance with the investigation.
COREY S. POLK, age 33, of Baton Rouge, Louisiana, pled guilty today before Judge James J. Brady to a Bill of Information charging him with theft from a federally funded entity, in violation of Title 18, United States Code, Section 666(a)(1)(A), and POLK admitted to the forfeiture allegation. He faces up to 10 years imprisonment, up to three years of supervised release following imprisonment, a fine up to $250,000, restitution to the victim, and forfeiture of the proceeds of his criminal activity. His sentencing date has not yet been set.
POLK was employed with DCFS’s Bureau of Auditing and Compliance Services, which was responsible for safeguarding assets against theft and unauthorized use, for ensuring that transactions were properly authorized and recorded, and for ensuring compliance with management policies and federal and state laws and regulations. During the period he was employed with this department, DCFS received over a billion dollars annually in federal funds.
At today’s hearing, POLK admitted to submitting fraudulent reimbursement receipts to receive money for official state travel that did not occur. The fake receipts that were submitted were signed both by POLK and by DCFS Audit Director, Delrice Augustus, who pled guilty to his involvement in the scheme on May 28, 2014. When the requested amount of reimbursement would be received, POLK and Augustus would split the fraudulent payments. POLK also admitted to using state purchase cards to pay for hotel suites in New Orleans for personal use and not for official state business. A third DCFS state auditor involved in this scheme, Kaneasha L. Goston, pled guilty June 19, 2014.
U.S. Attorney Green stated: “The United States Attorney’s Office, along with our state and federal partners, are committed to safeguarding all types of programs that are taken advantage of by fraudsters. This case is a great example of federal and state agencies working together effectively.”
This matter is being handled by the United States Attorney’s Office, the Louisiana State Police, the Louisiana Inspector General’s Office, and the Federal Bureau of Investigation. This matter is being prosecuted by Assistant United States Attorney Corey R. Amundson, who serves as the First Assistant and Chief of the Criminal Division, and Special Assistant United States Attorney J. Brad Casey.
State Auditor Pleads Guilty to Theft from A Federal ProgramRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today another conviction in the ongoing federal and state investigation into corruption at the Bureau of Auditing and Compliance Services for the Louisiana Department of Children and Family Services (DCFS). DCFS leadership has cooperated fully with the investigation and provided valuable assistance.
KANEASHA L. GOSTON, age 38, of Baton Rouge, Louisiana, pled guilty yesterday afternoon before U.S. District Judge James J. Brady to theft from a federally-funded entity, in violation of Title 18, United States Code, Section 666(a)(1)(A). She faces up to 10 years imprisonment, a fine up to $250,000, forfeiture of the proceeds from the offense, restitution, and up to 3 years of supervised release following a term of imprisonment. A sentencing date has not yet been set.
GOSTON was employed with DCFS’s Bureau of Auditing and Compliance Services which was responsible for safeguarding assets against theft and unauthorized use; ensuring that transactions were properly authorized and recorded; and ensuring compliances with management policies, as well as federal and state laws and regulations. During the period she was employed with this department, DCFS received over a billion dollars annually in federal funds.
At yesterday’s hearing, GOSTON admitted to submitting fraudulent reimbursement receipts to receive money for official state travel that did not occur. The fake receipts which were submitted were signed both by GOSTON and by DCFS Audit Director, Delrice Augustus, who also recently pled guilty as part of this scheme. When the requested amount of reimbursement would be received, GOSTON and Augustus would split the fraudulent payments. Augustus has been charged and pled guilty for his role in this and related fraudulent conduct.
U.S. Attorney Green stated: “Public corruption will continue to be a priority for this office, particularly when such corruption involves officials responsible for the proper handling of millions in federal funds. In waging this fight, we are encouraged by the active cooperation and assistance provided by the DCFS leadership in this investigation. The vast majority of public servants at DCFS are honest and hardworking individuals who despise corruption. All public servants should be vigilant against corruption and report wrongdoing immediately.”
Louisiana Inspector General Stephen Street commented: “Those who abuse positions of trust in order to steal from the taxpayers should know that the risk of criminal prosecution is high. This guilty plea is the latest example of that.”
This matter is being handled by the United States Attorney’s Office, the Louisiana State Police, the Louisiana Inspector General’s Office, and the Federal Bureau of Investigation. This matter is being prosecuted by Assistant United States Attorney Corey R. Amundson and Special Assistant United States Attorney J. Brad Casey.
Federal Jury Convicts Felon of Stealing and Selling over Thirty Firearms from A Port Allen Gun ClubRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced that a federal jury returned unanimous verdicts of guilty yesterday afternoon against JOSEPH D. MELANCON, age 45, of Lafayette, Louisiana, for conspiring to steal firearms, possess and sell stolen firearms, and possess firearms by a convicted felon; stealing from a licensed federal firearms dealer; and possessing firearms as a convicted felon.
As a result of his convictions, and his apparent status as an armed career criminal under federal law, MELANCON faces up to life in prison, a fine up to $750,000, restitution to victims, and forfeiture of the proceeds of his criminal activity. His sentencing date has not been set.
According to evidence presented during the four day trial before U.S. District Judge Shelly Dick, MELANCON and Dustin Ray burglarized the Hunter’s Run Gun Club in Port Allen, Louisiana, on the night of April 13, 2012, and stole over thirty (30) firearms. MELANCON had previously worked at the Gun Club and used that knowledge to avoid security measures. Later, with the assistance of Jeremy Smothers, MELANCON sold firearms stolen from the Gun Club to others, including David Narcisse, Jr., a convicted felon.
Dustin Ray, age 31, of New Iberia, Louisiana, pled guilty to conspiring to steal firearms, possess stolen firearms, and possess firearms as a convicted felon; stealing from a licensed federal firearms dealer; and possessing firearms as a convicted felon. He awaits sentencing.
Jeremy J. Smothers, age 32, of New Iberia, Louisiana, pled guilty to conspiring to possess, sell, and dispose of stolen firearms. He awaits sentencing.
David J. Narcisse Jr., age 31, of Lafayette, Louisiana, pled guilty to possession of a firearm by a convicted felon. He awaits sentencing.
U.S. Attorney Walt Green stated: “Stopping violent, career criminals from stealing, possessing, and selling guns to other criminals is critically important to the safety of our community. I am proud of the prosecutors and agents who worked diligently on this important matter and look forward to our office’s continued vigilance against armed felons.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the West Baton Rouge Sheriff’s Office, and the Lafayette Parish Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorneys Reginald E. Jones and Robert W. Piedrahita who serves as Litigation Counsel.
Third Former State Corrections Official Charged in Inmate BeatingRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced today that a third former state corrections official has been charged with civil rights violations related to the beating of an inmate at the Louisiana State Penitentiary in Angola, Louisiana.
Mark Sharp, age 33, of Amite, Louisiana, has been charged in a Bill of Information with deprivation of rights under color of law, in violation of Title 18, United States Code, Section 242, and making false statement, in violation of Title 18, United States Code, Section 1001. If convicted, Sharp faces up to 15 years imprisonment, a fine up to $500,000, and up to 3 years of supervised release following a term of imprisonment. His initial appearance and arraignment will be held on a date to be determined.
Sharp is charged based on his alleged conduct while employed as a correctional officer at the Louisiana State Penitentiary in Angola. The Bill of Information alleges that Sharp willfully deprived an inmate of a right, secured, and protected by the United States Constitution, to be free from cruel and unusual punishment. On January 24, 2010, Sharp allegedly struck an inmate with an asp baton, while the inmate was handcuffed with his hands behind his back, resulting in bodily injury to the inmate. Sharp then allegedly lied to the Federal Bureau of Investigation during its investigation of the beating.
Two other former state corrections officials have been charged and convicted in connection with the inmate beating. Kevin Groom and Jason Giror have both been charged and pled guilty to falsifying records in a federal investigation and making false statements to the FBI. They await sentencing.
This matter was investigated by the FBI and is being prosecuted by Assistant United States Attorney Robert W. Piedrahita.
NOTE: A Bill of Information is an accusation by the United States. The defendant is presumed innocence unless adjudicated guilty at trial or through a guilty plea.
Third State Auditor Charged with Federal Program FraudRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced today that federal corruption charges has been filed against a third state auditor in the ongoing federal and state investigation into the Bureau of Auditing and Compliance Services for the Louisiana Department of Children and Family Services (DCFS). DCFS leadership has cooperated fully with the investigation.
Today’s Charges
COREY S. POLK, age 33, of Baton Rouge, Louisiana, has been charged in a Bill of Information with federal program fraud, in violation of Title 18, United States Code, Section 666(a)(1)(A). If convicted, Polk faces up to 10 years imprisonment, a $250,000 fine, forfeiture of the proceeds from the offense, restitution, and up to 3 years of supervised release following a term of imprisonment. His initial appearance and arraignment will be held on a date to be determined.
Polk is charged based on his alleged conduct while employed as a managing auditor in the Special Investigations and External Audit Unit within DCFS’ Bureau of Audit and Compliance Services. In that role, Polk was responsible for handling special investigations, including those involving allegations of fraud and theft by individuals employed by DCFS, a state agency which receives over a billion dollars ($1,000,000,000) in federal funding annually.
The Bill of Information alleges that Polk and his supervisor, Audit Director Delrice Augustus, fraudulently misused government purchasing cards to obtain items for personal use, including hotel stays during Mardi Gras and NBA All-Star Weekend, and created and used fraudulent documents to request and receive reimbursement from the State of Louisiana for official travel that did not occur. Polk would allegedly sign the fraudulent reimbursement requests as the requesting employee, and Augustus would sign as the approving supervisor. The State would then pay the requested amount which Polk and Augustus would split.
Other Defendants
Two other state auditors have been previously charged in this investigation. Augustus, who served as the Director of the Bureau of Auditing and Compliance Services, was charged and pled guilty on May 28, 2014, to federal program fraud involving between $120,000 and $200,000. Kaneasha Goston, a former auditor within the Bureau of Auditing and Compliance Services, has been charged in a separate Bill of Information with federal program fraud and is scheduled for an initial appearance and arraignment on June 19, 2014.
The matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Louisiana State Police, the Louisiana Inspector General’s Office, and the Federal Bureau of Investigation. The matter is being prosecuted by Assistant United States Attorney Corey R. Amundson who serves as Chief of the Criminal Division and Special Assistant United States Attorney J. Brad Casey.
NOTE: A Bill of Information is an accusation by the U.S. Attorney’s Office. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Federal Jury Convicts Owner of Healthcare Company in Multi-million Dollar Fraud SchemeRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced that a federal jury returned unanimous verdicts of guilty this afternoon against AHAOMA BONIFACE OHIA, age 60, of Missouri City, Texas, on all seven counts of wire fraud charged in the indictment against him.
The verdict follows a four day jury trial before U.S. District Judge Shelly Dick who remanded Ohia into custody pending sentencing. As a result of his convictions, Ohia faces up to 140 years in prison, up to three years of supervised release following imprisonment, a fine up to $1.75 million, restitution to victims, and forfeiture of the proceeds of his criminal activity. His sentencing date has not yet been set.
Ohia was convicted of engaging in a multi-million dollar scheme to defraud Medicare from January 2007 through February 2009 through his company, All-Star Medical Supplies. The evidence at trial established that Ohia would cause All-Star to submit claims to Medicare for durable medical equipment purportedly provided to Medicare beneficiaries, which falsely and fraudulently represented that (1) the equipment was medically necessary, (2) the equipment had been ordered for the beneficiaries by a physician, and (3) that All-Star had in fact provided the beneficiaries with the equipment reflected in the claims. In some cases, Ohia would then cause All-Star to provide the beneficiaries with equipment that was different, and far less expensive, then the equipment for which Ohia had sought reimbursement from Medicare. In other cases, All-Star did not provide any equipment at all.
U.S. Attorney Green stated: “Today’s verdict should serve as a reminder that fraudsters will find no safe haven in the Middle District of Louisiana. My appreciation to all the prosecutors and agents who handled this important matter and who will continue to be tasked with aggressively pursuing those who defraud the Medicare program.”
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 Alan A. Stevens, who serves as a Deputy Chief of the Criminal Division, and Assistant U.S. Attorney Cam Le.
Owner of Louisiana Film Tax Credits Companies Sentenced for Wire FraudRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced today the sentencing of GREGORY MARTIN WALKER, 47, formerly of Baton Rouge, Louisiana. WALKER previously pled guilty on October 23, 2013, to wire fraud in violation of Title 18, United States Code, Section 1343.
WALKER was sentenced today by U.S. District Judge James J. Brady to 70 months imprisonment and a term of 3 years on supervised release following imprisonment. WALKER was also sentenced to pay restitution in the amount of $1,833,619.75 to the 24 victims of his fraud. Additionally, WALKER was ordered to forfeit $971,418 to the United States, said funds being the property which was derived from his scheme to defraud investors and purchasers of film tax credits.
In total, WALKER sold bogus tax credits with a face value of $3,823,441 to 24 investors and collected $2,560,670 from them.
WALKER was engaged in the business of buying and selling of Louisiana motion picture investor tax credits. WALKER owned and operated The Bishop, LLC, an entity which purported to own film tax credits for resale to others. WALKER represented to purchasers that he owned tax credits for various film productions, including Universal Soldier IV, El Gringo, Mama I Want to Sing, and Transit.
The State of Louisiana, Department of Economic Development, Office of Entertainment Industry Development (“LDED”) administered the Louisiana Motion Picture Incentive Act. In order to develop and promote film productions, the State of Louisiana offered tax credits for the production of movies within the State. Such tax credits can be used to pay the Louisiana income taxes of the film production companies, redeemed by the film production companies for a discounted price at the Louisiana Department of Revenue (“LDR”), or even sold to others who could use the tax credits to pay their Louisiana income tax liabilities. LDR was vested with the authority to disallow tax credits if the transferor of tax credits did not have rights to claim or use the tax credits at the time of their purported transfer.
Strategies for Investment, LLC (“SFI”) was a Baton Rouge business owned and operated by a local Certified Public Accountant (“CPA”). WALKER and The Bishop sold tax credits to SFI, which re-sold said credits to tax clients of the CPA. WALKER and The Bishop represented that they owned and controlled the tax credits which they sold to SFI.
From November 2011 through July 2012, WALKER marketed tax credits to the CPA who owned and operated SFI. From August 2011 through September 2013, WALKER also sold tax credits to other Louisiana taxpayers who sought tax credits to pay their Louisiana income tax liabilities.
Beginning in August, 2011, and continuing through in or about January, 2013, WALKER devised and executed a scheme to defraud purchasers of Louisiana film tax credits. WALKER falsely represented to purchasers that he owned certain tax credits, when in fact, he neither owned nor controlled such film tax credits. In order to carry out his scheme to defraud, WALKER forged the signatures of various individuals on tax credit purchase agreements and used interstate wires to complete his scheme.
WALKER sold purported tax credits to SFI on approximately 11 occasions between January 3, 2012 and June 20, 2012. SFI paid WALKER and The Bishop approximately $971,418 for the purchase of tax credits purporting to have a face value of $1,456,926. WALKER used the funds obtained through his scheme for his personal enrichment.
This matter was jointly investigated by the Federal Bureau of Investigation, the Louisiana Inspector General’s Office, and the United States Grand Jury for the Middle District of Louisiana. The case is being prosecuted by Assistant United States Attorney Rene I. Salomon. Additional assistance was provided by the Louisiana Department of Economic Development and the Louisiana Department of Revenue.
United States Attorney Green stated, “We will continue to safeguard all types economic programs that fall prey to fraudsters and ensure they are held accountable for their actions.”
FBI Special Agent-in-Charge Michael Anderson stated, “This conviction should convey a clear message to the public that schemes to defraud that interfere with legitimate government incentives to stimulate economic growth in Louisiana will not be tolerated.”
Louisiana Inspector General Stephen Street commented, “This sort of blatant fraud undermines the entire tax credit program and cannot be tolerated. We will continue working with the FBI and United States Attorney to make sure that those who engage in this sort of corruption face criminal consequences.”
Violent Felon Sentenced to over 22 Years in PrisonRead the Press Release
BATON ROUGE, LA –U.S. Attorney Walt Green announced that U.S. District Judge Shelly D. Dick sentenced CHRISTOPHER L. BROWN, age 35, of Baton Rouge, Louisiana, today to 270 months imprisonment and 5 years of supervised release following imprisonment for his role in a home invasion conspiracy aimed at stealing 12 kilograms of cocaine and killing anyone that stood in the way.
The defendant’s sentence arises from his guilty pleas in January 2014 for conspiring to possess with the intent to distribute five (5) kilograms or more of cocaine, in violation of Title 21, United States Code, Section 846; possessing firearms in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A); and possessing a firearm while a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1).
BROWN’s co-defendant, CHRIS E. WILLIAMS, was previously sentenced on April 30, 2014, to 270 months also.
U.S. Attorney Green praised the hard work of the Bureau of Alcohol, Tobacco and Firearms (ATF) and the East Baton Rouge Violent Crimes Unit. He also stated: “The U.S. Attorney’s Office and our federal, state, and local partners will continue to devote whatever resources are necessary to aggressively identify, investigate, and prosecute those violent career offenders who plague our streets, threaten our families, and destroy our neighborhoods.”
This investigation was conducted by the ATF and the East Baton Rouge Violent Crimes Unit which includes the Baton Rouge Police Department, East Baton Rouge Parish Sheriff’s Office, and Louisiana State Police. The matter is being prosecuted by Assistant United States Attorney Jennifer Kleinpeter who also serves as a Deputy Chief in the Criminal Division.
Tax Preparer Convicted of Preparing False Tax Returns over A Two Year PeriodRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced that LAKINDRA WILLIAMS, age 38, of Baton Rouge, Louisiana, pled guilty today before U.S. District Judge James J. Brady to aiding and assisting in the preparation of false federal tax returns in connection with a federal criminal tax investigation.
As a result of her conviction, the defendant faces up to 3 years in prison, a year of supervised release following imprisonment, and a fine up to $250,000. As part of her plea agreement, the defendant is also prohibited from preparing federal tax returns and from seeking employment with a tax preparation business. A sentencing date has not yet been set.
The defendant’s conviction arose from her work in 2008 and 2009 at a tax preparation business in Baton Rouge. At today’s hearing, the defendant admitted that, while working at the tax preparation business, she prepared numerous fraudulent federal individual income tax returns which reported inflated and fictitious itemized deductions, fictitious business activity, and fictitious and inflated business expenses. As a result of the scheme, the defendant defrauded the federal government out of nearly $100,000.
U.S. Attorney Green stated: “Protecting the taxpayer’s money against fraud is a top priority of this office and the entire U.S. Department of Justice.”
This matter is being handled by the United States Attorney’s Office for the Middle District of Louisiana, the Criminal Tax Division of the United States Department of Justice, and the Internal Revenue Service – Criminal Investigations. It is being prosecuted by Assistant United States Attorney Chris Dippel and Trial Attorney Kevin Lombardi.
Second State Auditor Charged with Theft from A Federally-funded EntityRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that another state auditor has been charged in the ongoing federal and state investigation into corruption at the Bureau of Auditing and Compliance Services for the Louisiana Department of Children and Family Services (DCFS).
KANEASHA L. GOSTON, age 38, of Baton Rouge, Louisiana, is charged in a Bill of Information with theft from a federally-funded entity, in violation of Title 18, United States Code, Section 666(a)(1)(A), and forfeiture. If convicted, the defendant faces up to 10 years imprisonment, a fine up to $250,000, forfeiture of the proceeds of the offense, and up to 3 years of supervised release following imprisonment.
During the relevant period, the defendant was an auditor with the Bureau of Auditing and Compliance Services for the Louisiana Department of Children and Family Services (DCFS), a state agency which receives over a billion dollars ($1,000,000,000) in federal funding annually. The defendant and the other auditors were responsible for safeguarding assets against theft and unauthorized use; ensuring that transactions were properly authorized and recorded properly; and ensuring compliance with management policies, as well as federal and state laws and regulations.
The Bill of Information alleges that, while employed as a DCFS auditor, the defendant engaged in a scheme with the Director of the Auditing Bureau, Delrice Augustus, to create and use fraudulent documents to request and receive reimbursement from the State of Louisiana for official travel that did not occur. According to the Bill of Information, the defendant would sign the fraudulent reimbursement requests as the requesting employee, and Augustus would sign as the approving supervisor. The State would then pay the requested amount. Augustus pled guilty yesterday in connection with this scheme and others.
This matter is being handled by the United States Attorney’s Office, the Louisiana State Police, the Louisiana Inspector General’s Office, and the Federal Bureau of Investigation. The matter is being prosecuted by Assistant United States Attorney Corey R. Amundson, who serves as the Chief of the Criminal Division, and Special Assistant United States Attorney J. Brad Casey.
DCFS leadership has fully cooperated with the investigation and has provided valuable assistance throughout. Such assistance and cooperation is highly commendable and reflects a collective determination by law enforcement and DCFS leadership to root out the corruption identified in this matter.
Members of Drug Organization IndictedRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today the unsealing of a series of federal grand jury indictments in Operation I Spy, an extensive investigation into a drug trafficking network operating in the Baton Rouge region.
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 indicted:
• Ronrico Terrell, Sr., also known as “Ronrico Howard,” “Co,” “Shorty,” and “Rico,” age 38, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; distribution of cocaine; possession with the intent to distribute cocaine and cocaine base; unlawful use of a communications facility; possession of a firearm in furtherance of a drug trafficking crime; and forfeiture. If convicted, Terrell faces a mandatory minimum of 10 years and up to life imprisonment, up to 5 years of supervised release following imprisonment, forfeiture of criminal proceeds and property used to facilitate his crimes, and a $13,500,000 fine. He is in custody.
• Rahkeyah Howard, also known as “Boo,” 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; possession of a firearm in furtherance of a drug trafficking crime; and forfeiture. If convicted, she faces a mandatory minimum of 10 years and up to life imprisonment, up to 5 years of supervised release following imprisonment, forfeiture of criminal proceeds and property used to facilitate her crimes, and a $6,250,000 fine. She is in custody.
• Howard S. Golphin, age 35, of Pine Grove, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; possession with the intent to distribute cocaine and cocaine base; unlawful use of a communications facility; and forfeiture. If convicted, Golphin faces a mandatory minimum of 5 years and up to 84 years imprisonment, 4 years of supervised release following imprisonment, forfeiture of criminal proceeds and property used to facilitate his crimes, and a $10,250,000 fine. He is in custody.
• Danniesa Hughes Sanders, age 35, of Pine Grove, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base; possession with the intent to distribute cocaine and cocaine base; and forfeiture. If convicted, Sanders faces a mandatory minimum of 5 years and up to 80 years imprisonment, 4 years of supervised release following imprisonment, forfeiture of criminal proceeds and property used to facilitate her crimes, and a $10,000,000 fine. She is a fugitive.
• Johntha Rochon Williams, age 32, of Baton Rouge, Louisiana, is charged with distribution of cocaine and cocaine base and forfeiture. If convicted, Williams faces a mandatory minimum of 5 years and up to 60 years imprisonment, 4 years of supervised release following imprisonment, forfeiture of criminal proceeds and property used to facilitate his crimes, and a $6,000,000 fine. He is in custody.
• Bristen LaCour, also known as “Rudy,” age 24, of Baton Rouge, Louisiana, is charged with conspiracy to distribute cocaine base, distribution of cocaine base, and forfeiture. If convicted, LaCour faces up to 60 years imprisonment, 3 years of supervised release following imprisonment, forfeiture of criminal proceeds and property used to facilitate his crimes, and a $3,000,000 fine. He is in custody.
• Troy A. Bell, age 25, of Baton Rouge, Louisiana, is charged with conspiracy to distribute cocaine base, distribution of cocaine base, and forfeiture. If convicted, Bell faces up to 60 years imprisonment, 3 years of supervised release following imprisonment, forfeiture of criminal proceeds and property used to facilitate his crimes, and a $3,000,000 fine. He is in custody.
• Michael C. Finley, age 43, of Baton Rouge, Louisiana, is charged with distribution of cocaine base and cocaine and forfeiture. If convicted, Finley faces up to 60 years imprisonment, 3 years of supervised release following imprisonment, forfeiture of criminal proceeds and property used to facilitate his crimes, and a $3,000,000 fine. He is in custody.
• Eric O’Neal Selders, age 42, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine, possession with the intent to distribute cocaine, and forfeiture. If convicted, Selders faces up to 40 years imprisonment, 3 years of supervised release following imprisonment, forfeiture of criminal proceeds and property used to facilitate his crimes, and a $2,000,000 fine. He is in custody.
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, the dangerous drug dealer will find no safe haven within the federal criminal justice system. My great appreciation to the hardworking team of agents and prosecutors who contributed to this important operation.”
Joseph Shepard, the Assistant Special Agent-in-Charge of the New Orleans Division of the U.S. Drug Enforcement Administration, stated: “Simply put, today’s indictments are the result of a successful collaborative effort by federal, state, and local law enforcement to pursue justice. The indictments should also serve as a reminder that DEA, along with its partners, remains deeply committed to aggressively and swiftly pursuing those who violate the federal drug laws.”
Chief Carl Dabadie of the Baton Rouge City Police Department stated: “This operation reflects the close coordination and cooperation among federal, state, and local law enforcement in the fight against drugs and violence in the Baton Rouge region. We look forward to continuing the united front against crime.”
District Attorney Hillar Moore of the Nineteenth Judicial District stated: “Today’s announcement is yet another example of how the region’s strong federal, state, and local law enforcement partnerships are combating violent drug organizations at every level.”
This operation is being handled by the U.S. Attorney’s Office, the U.S. Drug Enforcement Administration, and the Baton Rouge City Police Department, with assistance from the East Baton Rouge Sheriff’s Office, the Livingston Parish Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the West Baton Rouge Parish Sheriff’s Office, the Ascension Parish Sheriff’s Office, the Gonzales Police Department, the Louisiana State Police, and the U.S. Marshals Service. These matters are being prosecuted by Assistant United States Attorney Cam Le.
NOTE: An indictment is an accusation by the Grand Jury. The defendants are presumed innocent until and unless adjudicated guilty at trial or through guilty pleas