Middle District of Louisiana
Press releases recorded for this federal judicial district.
Second Baton Rouge Man Sentenced in Connection with Fraudulent Scheme to Develop Fitness FacilityRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced that RONALD JOSEPH OLAH, JR., age 35, of Baton Rouge, Louisiana, was sentenced today by U.S. District Judge James J. Brady to serve eight (8) months incarceration in a halfway house and two (2) years of probation for his role in a fraudulent scheme to secure financing for a new fitness facility in Baton Rouge.
The sentence arises from an investigation into fraud in connection with an effort by OLAH and others to develop a new gym in Baton Rouge, to be called Powerhouse Gym of Baton Rouge. On May 30, 2013, OLAH and a co-defendant, Matthew Scott Bernard, were charged by a federal grand jury with bank fraud, making false statements to a bank, and wire fraud. The indictment alleged that in 2011, while attempting to secure financing for a new gym that they sought to develop, OLAH and Bernard made numerous false representations to two local banks regarding their personal financial resources, their incomes, and the financial condition of an existing gym that OLAH was operating at the time. The indictment alleged that the defendants obtained loans from two different banks, and an out-of-state investor, based on their false statements. Bernard pled guilty to bank fraud on August 14, 2013, and OLAH pled guilty to wire fraud on November 5, 2013.
OLAH appeared before Judge Brady today for sentencing, and was sentenced to serve eight (8) months incarceration in a halfway house, two (2) years of probation, to pay restitution in the amount of $575,242.82, and to pay a special assessment of $100. Finally, as part of his sentence, OLAH has been ordered to forfeit an additional $325,343 in proceeds from the fraudulent scheme.
OLAH’s co-defendant, Bernard, was previously sentenced to serve forty-one (41) months in federal prison for his role in the scheme.
The investigation of this matter was conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Criminal Chief of the Criminal Division.
Violent Felon Sentenced to 105 Months in PrisonRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced today that U.S. District Court Judge James J. Brady sentenced MELVIN TROSCLAIR, age 35, of Baton Rouge, Louisiana, to a term of imprisonment of 105 months and three years of supervised release after imprisonment. His sentence was based on his conviction for possessing a firearm while a convicted felon, in violation of Title 18, United States Code, Section 922(g).
At the sentencing hearing, the Court stated that Trosclair was a danger to the community and cited his extensive criminal history and propensity for violence as reasons for imposing the lengthy prison sentence.
This matter arose from events on April 17, 2012. On that day, Deputy United States Marshals arrived at a residence on North 28th Street in Baton Rouge, Louisiana in order to arrest Trosclair on an outstanding warrant for armed robbery. When Deputy Marshals entered the residence they discovered Trosclair in possession of a loaded pistol and body armor. A Special Agent with the Bureau of Alcohol, Tobacco, Firearms, and Explosives quickly responded to the scene and initiated an investigation, which resulted in this federal prosecution.
U.S. Attorney Green stated: “Aggressively pursuing violent offenders will continue to be a top priority for this office. Felons armed with loaded firearms and protected with body armor pose a clear danger to the safety of our communities.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the United States Marshals Service. The matter was prosecuted by Assistant United States Attorney Chris Dippel.
State Audit Director Convicted of Theft from A Federally-funded EntityRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today a 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).
DELRICE J. AUGUSTUS, age 34, of Baton Rouge, Louisiana, pled guilty this morning before U.S. District Judge Shelly Dick to a Superseding 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 forfeiture. Augustus 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. A sentencing date has not yet been set.
As required by the Plea Agreement, Augustus has resigned his position 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.
At today’s hearing, Augustus admitted to using his official position to defraud DCFS out of between $120,000 and $200,000 through the following three schemes.
• 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.
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.
U.S. Attorney Green stated: “This case is a great illustration of federal and state agencies successfully working together to root out public corruption. Federal funding is often distributed through state and local entities and the integrity of that distribution network and those entrusted to protect it is vitally important. Our office, together with our federal, state, and local partners, will continue to aggressively battle public corruption wherever found.”
Louisiana Inspector General Stephen Street commented: “The most disappointing thing about this case is the position of high trust held by Mr. Augustus within DCFS. He took full advantage of that trust to steal money from the taxpayers. Today’s guilty plea should send a clear message that the law enforcement community has zero tolerance for this sort of corruption, and will continue working together relentlessly to bring about criminal consequences for it. I want to again acknowledge and thank LSP Colonel Mike Edmonson, U.S. Attorney Walt Green, and FBI Special Agent in Charge Michael Anderson for the outstanding work done by their respective staffs on this case.”
Colonel Mike Edmonson, Louisiana State Police Superintendent, stated: “There are no boundaries when it comes to federal, state, and local law enforcement working together to fight corruption at any level. The public demands that people in trusted positions are kept to and held to a higher standard of integrity. Violations of the public trust must be dealt with swiftly and directly.”
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.
Baton Rouge Attorney Charged with Receiving Child Pornography over A Three Year PeriodRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today the filing of a Bill of Information charging WILLIAM STEVEN MANNEAR, age 62, of Baton Rouge, Louisiana, with receiving child pornography, in violation of Title 18, United States Code, Section 2252(a)(2).
If convicted, the defendant faces a mandatory minimum of 5 years imprisonment and up to 20 years imprisonment, a period of supervised release following imprisonment of up to life, a fine of up to $250,000, restitution to any victims, and forfeiture of property facilitating his criminal activity.
The Bill of Information alleges that the defendant knowingly received child pornography using a computer for approximately three years during the period of August 2009 through September 2012.
This matter was investigated by the Federal Bureau of Investigation, the East Baton Rouge Parish Sheriff’s Office, and the Naval Criminal Investigative Service. The matter is being prosecuted by Assistant United States Attorney Chris Dippel.
NOTE: A Bill of Information is a charge by the U.S. Attorney that offenses have been committed by a defendant. The defendant is presumed innocent until and unless proven guilty at trial or through a guilty plea.
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 CHRIS E. WILLIAMS, age 28, of Baton Rouge, Louisiana, yesterday 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).
Under the federal sentencing guidelines, the defendant’s sentence was enhanced based on his status as a career offender. The defendant was afforded that status based on having 3 prior felony adult convictions for crimes of violence, along with 8 other convictions.
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.
Tate and Merritt Indictment Sex Trafficking ChargesRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a Federal Grand Jury returned an indictment last week against JEREMIE J. TATE, of Zachary, Louisiana, and ROXANNE R. MERRITT, of Greenwell Springs, Louisiana, on sex trafficking charges, including conspiring to use interstate facilities in aid of racketeering, in violation of Title 18, United States Code, Section 371, using interstate facilities in aid of racketeering, in violation of Title 18, United States Code, Section 1952, and enticing another to travel interstate for prostitution, in violation of Title 18, United States Code, Section 2422(a).
TATE and MERRITT are both in custody. TATE was apprehended last Friday night by the U.S. Marshal’s Fugitive Task Force and the Federal Bureau of Investigation in Houston, Texas. TATE is expected to have an initial appearance today in the Southern District of Texas before being transferred to the Middle District of Louisiana for prosecution.
The indictment alleges that, from in or about November 2012 through in or about November 2013, TATE and MERRITT conspired together and with others to use interstate facilities, such as telephones and the internet, to promote and manage TATE’s prostitution business which involved multiple prostitutes, including a minor female. The indictment alleges further that TATE enticed a prostitute who worked for him to travel from Baton Rouge to Las Vegas to engage in prostitution. As part of his prostitution business, TATE allegedly used intimidation and manipulation to ensure that he received most of the proceeds earned by his prostitutes.
If convicted, TATE faces up to 50 years imprisonment, a $1,250,000 fine, forfeiture of the proceeds from his crimes and facilitating property, restitution, and up to 5 years of supervised release following a term of imprisonment. If convicted, MERRITT faces up to 15 years imprisonment, a $750,000 fine, restitution, and up to 3 years of supervised release following a term of imprisonment. TATE and MERRITT are currently in federal custody following their arrest.
U.S. Attorney Green stated: “Sex trafficking is one of the highest priorities of this office and the entire U.S. Department of Justice. We will continue to aggressively pursue such matters, along with our dedicated federal, state, and local partners and the Human Trafficking Task Force for the Middle District of Louisiana.”
This investigation is being conducted by the United States Attorney’s Office, the Federal Bureau of Investigation, Louisiana Attorney General’s Office, and the Louisiana State Police, with assistance from the East Baton Rouge Sherriff’s Office, Baton Rouge Police Department – Narcotics, the U.S. Marshal’s Office and other law enforcement agencies. The matter is being prosecuted by Assistant United States Attorney Reginald E. Jones.
NOTE: An Indictment is a determination by a grand jury that probable cause exists to believe that offenses have been committed by a defendant. The defendant is presumed innocent until and unless proven guilty at trial.
State Audit Director Charged with Federal Program FraudRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that DELRICE J. AUGUSTUS, age 34, 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).
AUGUSTUS is the Director of the Bureau of Auditing and Compliance Services for the Louisiana Department of Children and Family Services (DCFS). He is currently on leave from his position. DCFS leadership has cooperated fully with the investigation.
If convicted, AUGUSTUS 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 will be held on a date to be determined.
The Bill of Information alleges that, during the period from 2010 through March 2014, while serving as Audit Director of a state agency receiving over a billion dollars annually in federal funds, AUGUSTUS fraudulently misused 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.
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.
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.
Con Man Convicted of Wire Fraud Using Fake $20,000,000 Trust AccountRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced that last Friday, JOHNATHAN E. WILLIAMS, age 34, of Baton Rouge, Louisiana, pled guilty before Chief U.S. District Judge Brian A. Jackson to wire fraud in connection with a multiyear fraud scheme. WILLIAMS faces up to twenty (20) years in prison, three (3) years of supervised release following imprisonment, a fine of up to $250,000, and forfeiture of the proceeds of the fraud.
At Friday’s hearing, WILLIAMS admitted that from 2008 through 2011, he defrauded numerous victims to obtain money that he could use to fund his gambling activity and other personal expenses. To accomplish his scheme, WILLIAMS would solicit and obtain money from victims by falsely representing that he had a substantial trust fund, containing millions of dollars, to which he would gain full control upon reaching a certain age. WILLIAMS would also falsely represent that he worked for a flooring company and that he needed money on a short-term basis in order to place orders for supplies. One of the victims was a man named J.O., in Florida, who began sending money to WILLIAMS and one of his associates in February of 2009. In June of 2009, in response to the victim’s concerns about repayment, WILLIAMS knowingly faxed the victim a false and fictitious letter, on an attorney’s letterhead, falsely representing that WILLIAMS had a trust fund containing “in excess of $20 million.” The letter induced the victim to continue sending money to accounts that WILLIAMS, ultimately losing approximately $300,000 in the scheme. In total, as he admitted today in Court, WILLIAMS defrauded his victims out of more than $500,000.
U.S. Attorney Green stated: “This office, together with the FBI and our other federal, state, and local partners, will continue to aggressively pursue those who engage in significant and sophisticated fraud schemes by preying on the good will of others. In addition to the direct impact on its victims, such frauds dissuade some who might otherwise lend a helping hand to someone truly deserving.”
The ongoing investigation is being conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Criminal Chief of the Criminal Division.
President Obama Nominates Two to Serve as U.S. AttorneysRead the Press Release
WASHINGTON, DC - Today, President Obama nominated Deirdre M. Daly and James Walter Frazer Green to serve as U.S. Attorneys.
“These fine attorneys have extensive legal experience and a shared commitment to public service,” President Obama said. “I am thrilled that they will continue their service by pursuing justice on behalf of the American people as United States Attorneys.”
Deirdre M. Daly: Nominee for United States Attorney for the District of Connecticut
Deirdre M. Daly has served as the First Assistant United States Attorney in the District of Connecticut since 2010 and as the Acting United States Attorney since May 2013. Previously, Daly was a partner with the Connecticut law firm Daly & Pavlis LLC from 2001 to 2010 and with the New York law firm Gage & Pavlis from 1997 to 2001. She served as an Assistant United States Attorney in the Southern District of New York from 1985 to 1997 and began her law career as a law clerk for Judge Lloyd F. MacMahon of the United States District Court for the Southern District of New York from 1984 to 1985. Daly received her J.D. in 1984 from Georgetown University Law Center and her B.A. in 1981 from Dartmouth College.
James Walter Frazer Green: Nominee for United States Attorney for the Middle District of Louisiana
James Walter Frazer Green has served as First Assistant United States Attorney in the Middle District of Louisiana since 2010 and as the Acting United States Attorney since July 2013. Previously, Green served as Deputy Criminal Chief in the Middle District of Louisiana from 2002 to 2010 and as an Assistant United States Attorney in the District of Nevada from 1998 to 2000. He has also been a member of the United States Marine Corps Reserve since 1989, where he currently holds the rank of Colonel and serves as the Officer-in-Charge of the Environmental Services Division. He has also served as a United States Marine Corps Judge Advocate since 1994. Green received his J.D. in 1993 from Tulane Law School and his B.A. in 1989 from Louisiana State University.
Tax Preparer Sentenced to over Six Years in Prison for Filing Hundreds of False Tax ReturnsRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced that today, U.S. District Judge Shelly D. Dick sentenced ASHLEY D. RICKS-STAMPLEY, of Baton Rouge, Louisiana, to 81 months imprisonment for wire fraud and aggravated identity theft. RICKS-STAMPLEY was also sentenced to serve three years of supervised release following her release from imprisonment and ordered to pay restitution in the amounts of $699,734.89 to the Internal Revenue Service (IRS), and $11,138 to the Louisiana Department of Revenue.
During her guilty plea hearing last year, RICKS-STAMPLEY admitted that she schemed to defraud the IRS by submitting hundreds of false tax returns in the names of other individuals for the purpose of receiving thousands of dollars in tax refunds. RICKS-STAMPLEY accomplished the scheme by fraudulently obtaining the names and personal identifying information, including social security numbers, of individuals without their knowledge or consent. Using the information, RICKS-STAMPLEY submitted false income tax returns to the IRS and the Louisiana Department of Revenue electronically via an internet tax program. The applications falsely represented that the individuals had worked for various companies during 2010 and 2011 and were eligible for income tax refunds. In fact, these individuals had not worked for or earned wages from the companies reflected in the fraudulent tax returns, nor had the victims authorized RICKS-STAMPLEY to submit any such returns on their behalf.
From in or about September 2011 through in or about July 2012, RICKS-STAMPLEY filed approximately 563 false federal returns claiming refunds totaling approximately $733,685. Additionally, RICKS-STAMPLEY filed over 56 false Louisiana State tax returns claiming refunds totaling approximately $14,625. In total, RICKS-STAMPLEY filed over 600 false federal and state tax returns falsely claiming refunds totaling approximately $748,310. As a result of her scheme, RICKS-STAMPLEY actually received more than $700,000.
United States Attorney Walt Green stated: “This sentence should send a clear message that the Louisiana Department of Revenue, IRS Criminal Investigation, and the U.S. Attorney’s Office will investigate and prosecute tax fraud and identity theft to the fullest extent of the law. During our annual tax filing season, this sentence should serve as a deterrent to others contemplating such criminal acts.”
“IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority,” stated Gabriel L. Grchan, Special Agent-in-Charge of IRS – Criminal Investigation, New Orleans Field Office. “We are pleased with today’s sentencing of Ashley Ricks-Stampley, and thank the United States Attorney’s Office for their partnership in our continued efforts to put an end to identity theft and the victimization of our nation’s taxpayers.”
“Tax fraud is a nationwide problem that requires solutions at the federal, state, and local levels,” said Louisiana Secretary of Revenue Tim Barfield. “We appreciate the opportunity to work with the IRS and the Justice Department to identify, investigate, and prosecute the perpetrators of fraud.”
This investigation was conducted by IRS - Criminal Investigations Division and Louisiana Department of Revenue - Criminal Investigations Division. The matter is being prosecuted by Assistant United States Attorney Reginald E. Jones.
Baton Rouge Man Sentenced to Forty-one Months for Threatening Former United States Attorney Jim LettenRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced that the defendant, GERALD ESTRADE, 57, of Baton Rouge, LA, was sentenced today by U. S. District Judge James J. Brady to a term of imprisonment of 41 months and a three year term of supervised release following his release from federal prison.
ESTRADE previously plead guilty to threatening to kill the former United States Attorney for the Eastern District of Louisiana, James “Jim” Letten, and his family, with the intent to retaliate against him on account of his official duties, in violation of Title 18, United States Code, Section 155(a)(1).
On January 7, 2013, ESTRADE, while a patient in the Baton Rouge General Behavioral Health Unit, advised Baton Rouge General’s Chief of Security, and former BRPD Chief, Jeff LeDuff, that if he was released, he would take all of his remaining money from his bank account, travel to New Orleans, buy a gun, go to Mr. Letten’s house, hide behind a big oak tree in Mr. Letten’s front yard, and kill Mr. Letten and his dog, Rico, in front of Mr. Letten’s daughter. ESTRADE told Chief LeDuff that he wanted to kill Mr. Letten in retaliation for his failure to help him when he reached out to him from prison in 2005.
Chief LeDuff immediately advised former United States Attorney Letten and the FBI of the threat because he believed that Mr. Letten’s life was in serious danger.
Later that same day, ESTRADE was interviewed by two FBI agents. ESTRADE repeatedly stated that his intent was to travel to New Orleans and kill former United States Attorney Letten and his family. ESTRADE also advised that he had gone to Mr. Letten’s residence in 2001 and spoke to Mr. Letten briefly in his yard. ESTRADE further advised that he had sent a letter threatening Mr. Letten to the FBI in 2005 or 2006, while he was incarcerated in Allan Correctional Center. ESTRADE stated that after he sent this letter, FBI agents came to the prison to interview him and thereafter he experienced a lot of problems. ESTRADE advised that he intended to kill Mr. Letten in retaliation for the problems that Mr. Letten caused him as a result of the 2005 letter.
U.S. Attorney Walt Green stated, “All threats against public officials will be thoroughly investigated and vigorously prosecuted by this office to the full extent of the law. Our public officials should not have to live in fear for doing their jobs.”
“We thank the FBI and the U.S. Attorney’s Office in the Middle District of Louisiana for their outstanding efforts in prosecuting this case,” stated Kenneth Allen Polite, Jr., U.S. Attorney for the Eastern District of Louisiana. “Threats against public servants in an effort to impede the administration of justice cannot and will not be tolerated.”
FBI SAC Michael J. Anderson stated, “Threats of such violence are never tolerated, but those threats that could interfere with vital law enforcement functions must be swiftly addressed to prevent any chilling effects on those charged with carrying out their public safety duties.”
This investigation was handled by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Jennifer M. Kleinpeter, who serves as a Deputy Criminal Chief, and Assistant United States Attorney J. Christopher Dippel, Jr.
Annual African American Heritage Celebration at the Baton Rouge Federal CourthouseRead the Press Release
BATON ROUGE, LA - Chief Judge Brian A. Jackson, Judge James J. Brady and Judge Shelly D. Dick of the United States District Court for the Middle District of Louisiana and the agencies of the federal courthouse will host the Nineteenth Annual Federal Courthouse African American History Month Program at 1:00 p.m. on February 26, 2014, in Courtroom 1, on the third floor of the federal courthouse.
The featured guest speaker will be civil rights pioneer A. P. Tureaud, Jr. Tureaud sued to become the first African-American student admitted to Louisiana State University’s undergraduate campus. Musical entertainment will be provided by local soloist Earl Taylor.
Members of the public and the press are invited to attend. For further information, please contact Michael Jefferson, Assistant United States Attorney, at (225) 389-0443.
Convicted Felon Sentenced to 15 Years for Illegal Possession of FirearmsRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced that MICHAEL WAYNE DAVIS, JR, age 27, of Baton Rouge, Louisiana, was sentenced today by U.S. District Court Chief Judge Brian A. Jackson to serve 180 months in federal prison and three years of supervised release after imprisonment. The sentence results from DAVIS’S conviction for possession of firearms by a convicted felon, in violation of Title 18, United States Code, Section 922.
On February 9, 2012, Baton Rouge Police Officers found DAVIS and the firearms in a bedroom of the house they had entered to execute an arrest and search warrant.
At sentencing, Judge Jackson noted DAVIS’S extensive criminal history, including his prior convictions for burglary and unauthorized entry of an inhabited dwelling, Judge Jackson found DAVIS to be an armed career criminal and subject to a mandatory sentencing enhancement.
This matter was investigated by the Baton Rouge Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant United States Attorney Lyman E. Thornton III.
Baton Rouge Woman Sentenced to over Five Years in Prison for Filing False Tax Returns with Stolen IdentitiesRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced that yesterday, U.S. District Judge Shelly D. Dick sentenced MONA R. HILL, age 32, of Baton Rouge, Louisiana, to 65 months imprisonment for wire fraud and aggravated identity theft. HILL was also sentenced to serve three years of supervised release following her release from imprisonment and ordered to pay the Internal Revenue Service (IRS) $491,268 in restitution.
During her guilty plea hearing last year, HILL admitted that she schemed to defraud the IRS by submitting hundreds of false tax returns in the names of other individuals for the purpose of receiving thousands of dollars in tax refunds. HILL accomplished the scheme by fraudulently obtaining the names and personal identifying information, including social security numbers, of individuals without their knowledge or consent. Using the information, HILL submitted false income tax returns to the IRS electronically via an internet tax program. The applications falsely represented that the individuals had worked for various companies during 2011 and were eligible for income tax refunds. In fact, these individuals had not worked for or earned wages from the companies reflected in the fraudulent tax returns, nor had the victims authorized HILL to submit any such returns on their behalf.
From in or about January 2012 through in or about July 2012, HILL submitted approximately 488 false tax returns, falsely claiming refunds totaling approximately $661,258. As a result of her scheme, HILL actually received nearly $500,000.
United States Attorney Walt Green stated: “This sentence should send a clear message that identity theft will not be tolerated. Our office will continue to aggressively pursue and prosecute those who would steal other individuals’ identities and submit false tax returns in an effort to line their pockets.”
Gabriel L. Grchan, Special Agent-in-Charge of IRS – Criminal Investigation, stated, “We are pleased with the sentence the Court imposed on Mona Hill. Identity theft is a growing problem, and can make honest taxpayers face a more difficult time obtaining their lawful refund. The IRS is vigilant in our investigation of these schemes and will continue to work with the United States Attorney’s Office to combat this type of criminal conduct."
This investigation was conducted by IRS - Criminal Investigations Division. The matter is being prosecuted by Assistant United States Attorney Shubhra Shivpuri.
Former Sorrento Police Chief Convicted of Making False Statements in Civil Rights InvestigationRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced that EARL L. THERIOT, age 65, of Sorrento, Louisiana, pled guilty today before Chief U.S. District Judge Brian A. Jackson to making false statements to an FBI Special Agent in connection with a criminal civil rights investigation. THERIOT faces up to five (5) years in prison, three (3) years of supervised release following imprisonment, and a fine of up to $250,000.
At today’s hearing, THERIOT 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 also admitted to later 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.
On February 7, 2014, THERIOT resigned as Chief of Police as required by the Plea Agreement with the United States Attorney’s Office.
United States Attorney Green stated: “This office, along with our federal, state, and local partners, are dedicated to conducting thorough and complete investigations into credible allegations of police corruption and civil rights violations. Those who seek to obstruct such efforts by making false statements to federal investigators will face severe consequences. My special appreciation to Sheriff Jeff Wiley of the Ascension Parish Sheriff’s Office, District Attorney Ricky Babin of the 23rd Judicial District, and the FBI who worked seamlessly with my office to ensure justice was done.”
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 Attorney Chris Dippel.
Colorado Man Indicted for Flying More Than 70 Pounds of Cocaine to Baton RougeRead the Press Release
BATON ROUGE, LA - Acting United States Attorney Walt Green announced today the indictment of a Colorado man charged with attempting to transport more than seventy (70) pounds of cocaine through Baton Rouge on a private aircraft.
A federal grand jury has returned a two-count indictment charging VINCENT SALZANO, also known as Vincenzo Salzano, age 55, of Aurora, Colorado, with 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, and possession with the intent to distribute five (5) kilograms or more of cocaine, in violation of Title 21, United States Code, Section 841(a)(1). If convicted of both counts, SALZANO faces a maximum sentence of life imprisonment and up to $20,000,000 in fines. SALZANO also faces the forfeiture of the airplane involved in the criminal activity and any proceeds derived from such activity.
The indictment arises from SALZANO’s arrest this past fall at the Baton Rouge Metropolitan Airport. The indictment alleges that on October 7, 2013, SALZANO met with other individuals and boarded a private plane that SALZANO controlled and that had been flown to Atlanta at SALZANO’s direction. The following day, SALZANO allegedly flew from Atlanta to the McAllen, Texas area, where he deplaned, left the airport, and obtained approximately 30 packaged bundles of cocaine. SALZANO and another individual then allegedly re-boarded the plane, carrying the cocaine and intending to travel back to Atlanta. According to the indictment, SALZANO’s plane stopped in Baton Rouge for fuel, at which point SALZANO was contacted by law enforcement agents and arrested.
The ongoing investigation is being conducted by the United States Attorney’s Office, the U.S. Department of Homeland Security – Homeland Security Investigations, U.S. Customs and Border Protection, and the Louisiana State Police, with assistance from the West Baton Rouge Parish Sheriff’s Department, the Federal Aviation Administration, and other law enforcement agencies. The matter is being prosecuted by Assistant United States Attorneys Alan A. Stevens and James P. Thompson.
NOTE: An indictment is a determination by a grand jury that probable cause exists to believe that offenses have been committed by a defendant. The defendant is presumed innocent until and unless proven guilty at trial.
Child Sex Trafficker Sentenced to Nine Years ImprisonmentRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Walt Green announced today that U.S. District Judge James Brady sentenced ERICK BANKS, age 32, of Baton Rouge, Louisiana, to 108 months imprisonment for conspiring to traffic a child in the commercial sex trade. BANKS was also sentenced to five years supervised release after imprisonment and ordered to pay the victim $1,200 in restitution.
During his guilty plea hearing last year, BANKS admitted that in January 2011, he enticed the victim, a 15 year old girl, to engage in acts of prostitution. Several days earlier, the victim ran away from a Baton Rouge home for teenage girls. BANKS placed several ads on an online service often utilized by those in the commercial sex trade. BANKS used the moniker “Sinsational” or “Blonde Bunny” to describe the victim in the 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.
On January 27, 2011, in five separate transactions, the victim engaged in sexual activity in exchange for money. Each of these transactions was coordinated by BANKS and occurred in a hotel in Baton Rouge. The victim was paid approximately $1,200, all of which BANKS took from her.
Acting United States Attorney Walt Green stated: “We will not tolerate the sexual exploitation and trafficking of vulnerable, young teenagers, and hope this significant sentence serves notice to others inclined to engage in such despicable conduct. We appreciate the strong work of the FBI and the Baton Rouge Police Department and commend the Middle District Human Trafficking Task Force for its efforts in educating law enforcement and the public in general about this issue. We are also inspired by the courage of the victim in this case and hope it inspires other victims of sex trafficking to come forward.”
This investigation was conducted by the FBI and Baton Rouge Police Department. The matter is being prosecuted by Assistant United States Attorneys Frederick A. Menner, Jr. and Susan C. Amundson.
Bernard SentencingRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Walt Green announced that MATTHEW SCOTT BERNARD, age 44, of Baton Rouge, Louisiana, was sentenced today by U.S. District Judge James J. Brady to serve forty-one (41) months in federal prison for his role in a fraudulent scheme to secure financing for a new fitness facility in Baton Rouge.
The sentence arises from an investigation into fraud in connection with an effort by BERNARD and others to develop a new gym in Baton Rouge, to be called Powerhouse Gym of Baton Rouge. On May 30, 2013, BERNARD and a second individual, Ronald Joseph Olah, Jr., were charged by a federal grand jury with bank fraud, making false statements to a bank, and wire fraud. The indictment alleged that in 2011, while attempting to secure financing for a new gym that they sought to develop, BERNARD and Olah made numerous false representations to two local banks regarding their personal financial resources, their incomes, and the financial condition of an existing gym that Olah was operating at the time. The indictment alleged that BERNARD and Olah obtained loans from two different banks based on their false statements.
On August 14, 2013, BERNARD pled guilty to bank fraud. On November 5, 2013, BERNARD’S co-defendant, Olah, pled guilty to wire fraud in connection with a related scheme in which Olah took many of the same documents that BERNARD and Olah had used to defraud the banks, and knowingly sent them to an investor in Washington, in another attempt to secure financing for the new gym.
BERNARD appeared before Judge Brady this morning for sentencing, and was sentenced to serve 41 months in federal prison, to pay restitution in the amount of $249,899.82, and to pay a special assessment of $100. Following his release from prison, BERNARD will be required to serve a 3-year term of supervised release. Finally, as part of his sentence, BERNARD will be ordered to forfeit an additional $249,899.82 in proceeds from the fraudulent scheme. BERNARD’S co-defendant, Mr. Olah, is awaiting sentencing.
Acting United States Attorney Walt Green stated, “This prosecution sends a strong message to those who would defraud the businesses in our community. This office remains committed to fighting fraud and white collar crime, regardless of how the defendants intend to spend their criminal proceeds.”
The investigation of this matter was conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Criminal Chief of the Criminal Division.
Dies IndictmentRead the Press Release
BATON ROUGE, LA - Acting United States Attorney Walt Green announced the indictment of another defendant in connection with a wide ranging and ongoing investigation into corruption and fraud involving compliance with federal environmental laws.
A federal grand jury has returned a thirteen-count indictment charging ROGER J. DIES, age 55, of Zachary, Louisiana, with five counts of violating the Clean Water Act, one count of scheming to falsify and conceal material facts, four counts of obstruction through the creation of false documents, one count of witness tampering, one count of obstruction of justice, one count of making false statements to a federal criminal investigator, and a forfeiture allegation. If convicted, DIES faces a maximum sentence up to 127 years in prison and over $2,000,000 in fines.
According to the indictment, DIES owned and operated Baton Rouge Tank Wash (BRTW), a business focused on washing the interior of tanks hauling 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.
The indictment alleges that DIES illegally discharged into the municipal sewer system approximately 6,306,660 gallons of wastewater generated by industrial processes at various offsite industrial facilities in exchange for approximately $371,000. The indictment further alleges that DIES discharged wastewater which significantly and regularly exceeded the permitted toxicity and contamination limits. According to the indictment, DIES attempted to conceal his illegal activities by creating false documents, tampering with a witness, obstructing a grand jury proceeding, and making false statements to a federal criminal investigator.
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 and Alan A. Stevens.
NOTE: An indictment is a determination by a grand jury that probable cause exists to believe that offenses have been committed by a defendant. The defendant is presumed innocent until and unless proven guilty at trial.
Sabine SettlementRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Walt Green and Louisiana State Attorney General James “Buddy” Caldwell announced today that the United States and the State of Louisiana have reached a civil settlement with defendants, SABINE OPTICAL LABORATORIES, INC. d/b/a THE VISION CENTER (“SABINE”), DR. CARL CARNAGGIO, SR., DR. CARL CARNAGGIO, JR. and LORI CARNAGGIO (collectively “SABINE DEFENDANTS”) and Cypress Optical Laboratory, LLC, a SABINE-affiliated company. According to the terms of the settlement, SABINE paid $1,200,000 to the United States and the State of Louisiana, $819,960 of which constitutes the federal share and $380,040 of which constitutes the state share of costs reimbursed to the Medicaid program, which is a Federal-State matching entitlement program providing medical assistance for certain individuals and families with low incomes and resources.
The settlement concludes a two-and-a-half-year investigation into a major health care fraud “whistle blower” or “qui tam” law suit filed in March 2011 by a former SABINE employee under the qui tam provision of the Federal and State False Claims Acts. This provision allows a private person, known as a “relator,” who has information concerning the submission of false or fraudulent claims to government programs such as Medicaid, to bring a lawsuit on behalf of the United States and the State of Louisiana and receive a portion (between 15-25 percent) of any recovered damages. The lawsuit remains under seal during the investigation until the Court orders otherwise.
The settlement resolves allegations that from August 2005 through April 30, 2012, the SABINE DEFENDANTS violated the Federal and State False Claims Acts (and unlawfully enriched themselves) by improperly billing Medicaid for services performed by an unauthorized provider using the Medicaid provider number of another provider, for adjustment and dispensing services that were never performed, for worthless services due to an excessive number of Medicaid patients being seen in one day, and for lenses that were never made.
In September 2012, the Court ordered a partial lift of the seal enabling the United States, the State of Louisiana, and the SABINE DEFENDANTS to engage in extensive discussions and negotiations which ultimately led to the signing of the Settlement Agreement. The SABINE DEFENDANTS fully cooperated during all stages of the process. The Settlement Agreement is neither an admission of liability by the SABINE DEFENDANTS nor a concession by the United States or the State of Louisiana regarding the merits of the claims. Also, in accord with the terms of the Settlement Agreement, the qui tam lawsuit has been dismissed with prejudice as to the Relator and the State of Louisiana, with prejudice as to the United States as to those elements that are coextensive with the Covered Conduct identified in the Settlement Agreement, but without prejudice as to the United States as to any conduct that falls outside the scope of the Covered Conduct.
Acting United States Attorney Walt Green stated, “Our office has made fighting health care fraud a top priority in this district, through criminal and civil prosecutions against those who violated federal health care laws. This case demonstrates our steadfast commitment to this mission. By using available federal civil remedies such as the False Claims Act—the particular remedy used in this case—we not only recover millions of dollars from those who have unlawfully enriched themselves at the expense of our nation’s taxpayers, but we send a clear and strong message to would-be fraudsters and those who would seek to play fast and loose with this nation’s health care laws and programs that we will not allow them to profit from their unlawful and fraudulent schemes.”
Attorney General Buddy Caldwell said, “This case serves as a successful example of ensuring that those who attempt to abuse our Medicaid program reap the consequences of their actions. We’re pleased that hundreds of thousands of dollars will be returned to Louisiana’s Medicaid fund and pay for programs that serve some of our most vulnerable citizens.” Caldwell added, “In addition to protecting Medicaid and Louisiana taxpayers, we are committed to sustaining a pro-business environment where those who cheat do not profit at our citizens’ expense, or at the expense of businesses that play fair.”
The investigation of the “whistle blower” or “qui tam” lawsuit was conducted by the United States Attorney’s Office for the Middle District of Louisiana, headed by Assistant United States Attorney, James L. Nelson, who serves as the office’s Affirmative Civil Enforcement and Civil Health Care Fraud Coordinator, with the assistance of Celia Bailey, the office’s Health Care Fraud Paralegal Specialist, and Michelle Martin, the office’s ACE Investigator; the Louisiana Department of Justice Medicaid Fraud Control Unit (MFCU), headed by Assistant Attorney General Nick Diez, with the assistance of MFCU Investigator Virginia Brandt; and the Baton Rouge Office of the United States Department of Health and Human Services, Office of the Inspector General, headed by now-retired by Bill Root, Resident-Agent-in-Charge (RAC) and presently by RAC Barbara Alleman, with the assistance of OIG Investigator Michele Louviere.
Touissant SentencingRead the Press Release
BATON ROUGE, LA – Acting United States Attorney J. Walter Green announced that JOSEPH T. TOUSSAINT, age 33, of Baton Rouge, Louisiana, who was convicted of being a felon in possession of a firearm, was sentenced today by Chief Judge Brian A. Jackson.
On January 7, 2012, officers responded to a Baton Rouge apartment complex in reference to an armed robbery. After being positively identified, TOUSSAINT was arrested and a search warrant was obtained for his residence. A search of TOUSSAINT’S residence revealed a loaded 12 gauge shotgun in between mattresses in a bedroom.
At sentencing, Judge Jackson concluded that TOUSSAINT used the shotgun in connection with the robbery. Noting TOUSSAINT’S extensive criminal history, including his prior convictions for burglary, illegal use of a weapon, and unauthorized entry of an inhabited dwelling, Judge Jackson found TOUSSAINT to be an armed career criminal and sentenced him to 180 months in prison and four years of supervised release.
Acting United States Attorney Walt Green stated, “Violent crimes and firearm related offenses are and will remain a top priority of the United States Attorney’s Office. We congratulate our BRAVE partners for their hard work and their dedication to make this a safer community.”
East Baton Rouge Parish District Attorney Hillar C. Moore stated, “The results in this investigation demonstrate the close coordination of our BRAVE partners in identifying, arresting, and prosecuting violent offenders who commit crimes in the 70805 area of Baton Rouge.”
The investigation of TOUSSAINT was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the East Baton Rouge Parish Sheriff’s Office as part of the Baton Rouge Area Violence Elimination (BRAVE) project. The BRAVE project is designed to reduce or eliminate violent crimes by targeting gang-related violence and criminal offenses occurring in, or associated with, the most violent areas within Baton Rouge. The Baton Rouge Police Department, East Baton Rouge Sheriff’s Office, Louisiana State Probation and Parole, Louisiana State Police, ATF, FBI, DEA, U.S. Marshals, local community partners, researchers from Louisiana State University, the Mayor-President’s Office, the East Baton Rouge Parish District Attorney’s Office, and the United States Attorney’s Office for the Middle District of Louisiana have all joined together to support and coordinate the BRAVE initiative. This case is being prosecuted by Assistant U.S. Attorney Reginald E. Jones.
JASE SentencingRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Walt Green announced today that DR. ANTHONY STEPHEN JASE, 44, of New Orleans, Louisiana, was sentenced to 15 months in prison and ordered to pay $360,293 in restitution for his convictions on health care fraud.
On October 21, 2011, JASE pled guilty to two counts of health care fraud before Judge James J. Brady, for involvement in two nearly identical schemes to defraud Medicare. The first conviction arose from JASE’s association with a Baton Rouge-based company known as Lobdale Medical Services, which was owned by Beatrice and Young Anyanwu. As part of the scheme to defraud, Sandra Parkman Thompson and others procured the names and personal information of Medicare beneficiaries in and around the New Orleans area and delivered these names to JASE, who then signed false and fraudulent prescriptions for power wheelchairs and other durable medical equipment for which the Medicare beneficiaries had no medical need. Thompson subsequently delivered the fraudulent prescriptions to the Anyanwus, who submitted claims to Medicare through Lobdale Medical Services for the medically unnecessary equipment. The total billings to Medicare by Lobdale Medicare Services exceeded $1,000,000. The second conviction arose from JASE’s involvement with a New Orleans-based durable medical equipment company known as Psalms 23-DME, which also paid Thompson to deliver prescriptions for wheelchairs and other durable medical equipment. JASE wrote prescriptions for beneficiaries whom he had never seen and who had no need for the equipment that was prescribed them. As a result, Psalms 23-DME billed Medicare for claims totaling $230,963 using JASE’s provider number.
Beatrice and Young Anyanwu pled guilty to the health care fraud scheme to defraud Medicare as well as the illegal remuneration conspiracy on August 14, 2012, and were sentenced on February 1, 2013. Sandra Parkman Thompson was convicted after a jury trial on August 20, 2012, and was sentenced on March 14, 2013.
Acting U.S. Attorney Walt Green stated, “This case is a great example of how federal and state law enforcement work together on a daily basis to stamp out health care fraud by doctors and others who abuse our health care system in our state.”
FBI Special Agent in Charge Michael Anderson stated, "Addressing betrayals of the public's trust in the health care system by physicians continues to be the FBI's top priority in its ongoing fight against health care fraud."
The investigation of JASE was conducted by the Department of Health and Human Services, Office of Inspector General, the Federal Bureau of Investigation, and the Louisiana Department of Justice. The case was prosecuted by Assistant United States Attorneys Catherine M. Maraist and René I. Salomon of the Middle District of Louisiana and Patrice Sullivan of the Eastern District of Louisiana.
Estrade Guilty PleaRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Walt Green announced that the defendant, Gerald Estrade, 56, Baton Rouge, LA, pled guilty today, on the morning of trial, before the Honorable James J. Brady for threatening to murder a former federal law enforcement officer in violation of federal law. An Indictment was returned on January 10, 2013, formally charging Estrade with this offense.
Estrade was charged with threatening to kill the former United States Attorney for the Eastern District of Louisiana, James “Jim” Letten, and his family, with the intent to retaliate against him on account of his official duties, in violation of Title 18 U.S.C. 155(a)(1).
On January 7, 2013, Estrade, while a patient in the Baton Rouge General Behavioral Health Unit, advised Baton Rouge General’s Chief of Security, and former BRPD Chief, Jeff LeDuff, that if he was released, he would take all of his remaining money from his bank account, travel to New Orleans, LA, buy a gun, go to Mr. Letten’s house, hide behind a big oak tree in Mr. Letten’s front yard, and kill Mr. Letten and his dog, Rico, in front of Mr. Letten’s daughter. Estrade told Chief LeDuff that he wanted to kill Mr. Letten in retaliation for his failure to help him when he reached out to him from prison in 2005.
Chief LeDuff immediately advised former United States Attorney Letten and the FBI of the threat because he believed that Mr. Letten’s life was in serious danger.
Later that same day, Estrade was interviewed by two FBI agents. Estrade repeatedly stated that his intent was to travel to New Orleans and kill former United States Attorney Letten and his family. Estrade also advised that he had gone to Mr. Letten’s residence in 2001 and spoke to Mr. Letten briefly in his yard. Estrade further advised that he had sent a letter threatening Mr. Letten to the FBI in 2005 or 2006, while he was incarcerated in Allan Correctional Center. Estrade stated after he sent this letter, FBI agents came to the prison to interview him and thereafter he experienced a lot of problems. Estrade advised that he intended to kill Mr. Letten in retaliation for the problems that Mr. Letten caused him as a result of the 2005 letter.
At sentencing, Estrade faces a maximum penalty of a term of imprisonment of ten (10) years, a $250,000 fine, or both, and a mandatory special assessment of $100.
Acting U.S. Attorney Walt Green stated, “All threats against public officials will be thoroughly investigated and vigorously prosecuted by this office to the full extent of the law. Our public officials should not have to live in fear for doing their jobs.”
“We thank the FBI and the U.S. Attorney’s Office in the Middle District of Louisiana for their outstanding efforts in prosecuting this case,” stated Kenneth Allen Polite, Jr., U.S. Attorney for the Eastern District of Louisiana. “Threats against public servants in an effort to impede the administration of justice cannot and will not be tolerated.”
FBI SAC Michael J. Anderson stated, “Threats of such violence are never tolerated, but those threats that could interfere with vital law enforcement functions must be swiftly addressed to prevent any chilling effects on those charged with carrying out their public safety duties.”
This investigation is being handled by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Jennifer M. Kleinpeter, who serves as a Deputy Criminal Chief, and Assistant United States Attorney J. Christopher Dippel, Jr.
Vaughn SentencingRead the Press Release
BATON ROUGE, LA - Acting United States Attorney Walt Green announced the sentencing of a former Operations Manager in connection with a wide ranging and ongoing investigation into corruption and fraud involving compliance with federal environmental laws.
U.S. District Judge James J. Brady sentenced MICHAEL J. VAUGHN, age 33, of Addis, Louisiana, to 12 months incarceration at a federal half-way house, a five year term of probation, forfeiture of approximately $23,000, and restitution to the victims in an amount to be determined.
The defendant’s sentence is the result of his pleading guilty to making false statements within the jurisdiction of the federal government and conspiring to defraud the U.S. Environmental Protection Agency and to violate the Safe Drinking Water Act. Such convictions stem from actions he took while serving as the Operations Manager of FAS Environmental Services, a transportation and disposal company based in Belle River, Louisiana. In that role, the defendant oversaw all operations and employees at the company.
While working as the FAS Operations Manager, the defendant took over $22,000 in kickbacks during 2011 and 2012 from a wastewater brokerage firm in exchange for illegally using an FAS injection well in Belle River to dispose of over 380,000 gallons of industrial wastewater in violation of the Federal Safe Water Drinking Act. As part of the scheme, the defendant and his fellow conspirators created and used over 100 false documents, including manifests and work orders, in addition to submitting false reports to regulators in Baton Rouge. Such false and fraudulent documents were designed to conceal the scheme from federal and state government officials and the brokerage firm’s unsuspecting clients.
FAS ownership was unaware of the defendant’s scheme, which resulted in the misuse of FAS resources to the sole benefit of the defendant personally and his fellow conspirators. FAS has cooperated fully throughout the investigation and terminated the defendant’s employment with the company upon learning of the scheme.
Acting U.S. Attorney Green stated: “Prosecuting corporate fraud and violations of our nation’s environmental laws continues to be a high priority for this office. We look forward to continuing to work with our very able federal, state, and local partners to aggressively pursue such important matters.”
Ivan Vikin, Special Agent-in-Charge of EPA’s criminal enforcement program in Louisiana, stated: “One of EPA’s primary missions is to ensure that federal laws protecting human health and the environment are enforced fairly and effectively. Violators who submit false information and illegally dispose of waste into injection wells undermine the government’s efforts to protect the public and the environment. These illegal actions cannot and will not be tolerated. EPA and its partner agencies will vigorously pursue those who knowingly falsify official information and place the public at potential risk.”
Secretary Peggy Hatch of the Louisiana Department of Environmental Quality stated: “Breaking the law and disregarding Louisiana’s environmental regulations can have serious consequences. With federal and state governments aggressively working together to enforce federal and state environmental laws, we can provide the citizens of Louisiana with a better environment and quality of life.”
This ongoing investigation is being conducted by this 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 case is being prosecuted by Assistant United States Attorney Corey R. Amundson who serves as the Senior Deputy Chief of the Criminal Division.
Beasley SentencingRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Walt Green announced today that U.S. District Judge James J. Brady sentenced KIAMANI A. BEASLEY, age 28, of Jeanerette, Louisiana, to 12 months and a day imprisonment and 12 months of supervised release following imprisonment. The sentence results from BEASLEY’s conviction for embezzlement from a federally funded entity in violation of Title 18, United States Code, Section 666.
BEASLEY’s conviction stems from actions she took while serving as Finance Director of the Louisiana Association of Community Action Partners (LACAP), a non-profit organization which receives funding from the federal government’s American Recovery and Reinvestment Act Program. LACAP was established to organize and strengthen the forty-two (42) private and public Community Action Agencies (CAAs) in Louisiana. CAAs were established to address the effects and causes of poverty and to increase self-sufficiency among the poor. CAAs implemented many educational and health-oriented programs funded by the federal government. As Finance Director of LACAP, BEASLEY was responsible for overseeing the financial integrity of the organization, including the accounting and distribution of federal funds.
BEASLEY admitted that, while working for LACAP, she used her position of trust to embezzle $50,858, which funds were to be used for computer software training and weatherization services. BEASLEY further admitted to using the funds for her personal entertainment.
The investigation of this matter was conducted by the U.S. Department of Energy Office of Inspector General and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Reginald E. Jones.
Jackson SentencingRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Walt Green announced that LINDA M. JACKSON, age 51, of Plaquemine, Louisiana, was sentenced today by Chief U.S. District Judge Brian A. Jackson to serve sixty (60) months in federal prison for her role in a two-year health care fraud scheme that she perpetrated in the Baton Rouge area.
JACKSON previously pled guilty, on February 28, 2012, to a conspiracy to commit health care fraud. In her plea agreement, the defendant had admitted that she worked with others to defraud the Medicare program over a two-year period of time, from April 2007 through April 2009. During her scheme, JACKSON operated a company in Plaquemine, Louisiana called A&A Durable Medical Supply (“A&A”), and used the company to submit numerous false reimbursement claims to Medicare for items that JACKSON had never provided. JACKSON also admitted that she furthered the scheme by preparing and completing false documents, such as delivery tickets and physician order forms, and by directing other A&A employees to prepare similar false documents. Through her false claims, JACKSON attempted to obtain more than $2.2 million from Medicare.
At this morning’s sentencing, in addition to being sentenced to serve 60 months in prison, LINDA JACKSON was ordered to pay restitution in the amount of approximately $297,523. She was ordered to serve a two-year term of supervised release following her release from imprisonment. She will also be ordered to forfeit an additional $297,523 in proceeds from her health care fraud scheme. At the conclusion of the sentencing, the Court ordered JACKSON to begin serving her sentence immediately and remanded JACKSON to the custody of the United States Marshal.
Other defendants convicted and sentenced as a result of the investigation into A&A Durable Medical Supply include UNIECESCO SMITH and EUNICE SPARROW, both of Plaquemine, Louisiana, who were sentenced in June 2012 to serve federal prison terms of 14 months and 12 months and 1 day, respectively, for their roles in this health care fraud scheme.
Acting United States Attorney Walt Green stated, “This is another in a long line of successful prosecutions – and lengthy prison sentences – for health care fraud in our district. This office remains committed to protecting the integrity of our health care system, and we will continue to work with our federal and state law enforcement partners to enforce the federal health care laws. This sentence should serve as a deterrent for others who would attempt to defraud Medicare for their own personal greed.”
“Today’s 60-month sentence places greedy Medicare providers on notice,” said Special Agent–in-Charge Mike Fields, United States Department of Health and Human Services, Office of Inspector General, Office of Investigations, Dallas Regional Office. “Our special agents and their law enforcement partners will vigorously investigate health care providers who cheat and loot the Medicare Trust Fund.”
The investigation of this matter was conducted by the U.S. Department of Health and Human Services’ Office of Inspector General, the Federal Bureau of Investigation, and the Louisiana Attorney General’s Office, with valuable assistance from the Social Security Administration’s Office of Inspector General. The case was prosecuted by Assistant United States Attorneys Alan Stevens and Chris Dippel. The case was brought as part of the Medicare Fraud Strike Force, supervised by the U.S. Attorney’s Office for the Middle District of Louisiana and the Criminal Division’s Fraud Section.
Walker Bill of InformationRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Walt Green announced today the filing of a Bill of Information charging GREGORY MARTIN WALKER, 46, formerly of Baton Rouge, Louisiana with one count of wire fraud in violation of Title 18, United States Code, Section 1343.
According to the Bill of Information, 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 January 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.
As a result of his scheme to defraud, WALKER stands charged with one count of wire fraud. If convicted of a violation of Title 18, United States Code, Section 1343 carries a maximum term of 20 years imprisonment, a fine of up to $250,000, and a term of 3 years supervised release. The Bill of Information also notifies WALKER that he is subject to the forfeiture of all property, real or personal, which constitutes, or is derived from proceeds traceable to his wire fraud including, but not limited to at least $971,418, said amount being the proceeds obtained through the violation of Title 18, United States Code, Section 1343.
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.
Acting 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.”
NOTE: A Bill of Information is a determination that probable cause exists to believe that offenses have been committed by a defendant. The defendant is presumed innocent until and unless proven guilty at trial.
Wade SentencingRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Walt Green announced today that CHRISTOPHER BERNARD WADE, age 42, of Houston, Texas, was sentenced today by Chief U.S. District Judge Brian A. Jackson to serve 138 months in federal prison and five years of supervised release following his release from imprisonment. The sentence results from WADE’S conviction for possession with the intent to distribute five kilograms or more of cocaine, in violation of Title 21, United States Code, Section 841.
On May 3, 2012, WADE was stopped for a traffic violation on Interstate 10 near Grosse Tete, Louisiana. During a search of WADE’s vehicle, an Iberville Parish Sheriff’s Deputy located more than 15 kilograms of cocaine inside of the trunk. Special Agents with the U.S. Department of Homeland Security-Homeland Security Investigations were notified of the large drug seizure and assisted in the subsequent investigation. WADE later admitted that he intended to distribute the 15 kilograms of cocaine in New Orleans, Louisiana. At today’s sentencing, Chief Judge Jackson observed that although WADE had prior convictions involving drug and firearms offenses, he had “entered the big leagues” by trafficking more than 15 kilograms of cocaine.
“Today’s sentencing shows how effective the ongoing cooperation between Homeland Security Investigations and local law enforcement is in identifying and intercepting significant shipments of illegal drugs before they reach our streets,” said Raymond R. Parmer, Jr., Special Agent-in-Charge of HIS-New Orleans. “The Iberville Parish Sheriff’s Office and its Interstate Patrol Division were vital to this case, and criminals should be on notice that HSI will continue to work with its law enforcement partners to identify and seek prosecution of drug crimes.”
This investigation was conducted by the Iberville Parish Sheriff’s Office-Interstate Patrol Division and the U.S. Department of Homeland Security-Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Chris Dippel.
Thompson SentencingRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Walt Green announced that ADRIAN K. THOMPSON, age 35, of Baton Rouge, Louisiana, was sentenced today by U.S. District Court Judge James J. Brady to serve 84 months in federal prison and three years of supervised release after imprisonment. The sentence results from THOMPSON’S convictions for possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922, and possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924.
On November 29, 2011, Baton Rouge Police Officers responded to a complaint of shots fired near THOMPSON’S residence on Belfair Drive in Baton Rouge, Louisiana. After canvassing the neighborhood and speaking with witnesses, officers searched THOMPSON’S residence where they seized an AK-47 rifle, along with marijuana, cocaine, and illegal prescription drugs. Upon further investigation, Baton Rouge Police and Task Force Agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives determined that THOMPSON had been involved in a drug trafficking-related argument with another individual, and during the course of the dispute, THOMPSON fired his AK-47 rifle at least eleven times. At least two of the bullets THOMPSON fired struck an occupied home nearby.
This matter was investigated by the Baton Rouge Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant United States Attorney Chris Dippel.
Coats IndictmentRead the Press Release
BATON ROUGE, LA—The United States Attorney’s Office announced today that SCOTT E. COATS, age 44, of Baton Rouge, Louisiana, was indicted today for robbing the First NBC Bank in Denham Springs, LA, on August 16, 2013, in violation of Title 18, United States Code, Section 2113(a). COATS is charged with taking approximately $1500 during the robbery.
COATS was previously convicted in 2005 of robbing a Hancock Bank in Baton Rouge on November 1, 2003, and an AmSouth Bank in Denham Springs on November 5, 2003. COATS was sentenced in February 2005 to 84 months imprisonment and three years of supervised release for each robbery, to be served concurrently. In December 2011, while on supervised release, COATS’ release was revoked for violations of the terms of his supervision and he was sentenced to an additional 24 months imprisonment.
This investigation was conducted by the Denham Springs Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Jennifer M. Kleinpeter who also serves as Deputy Criminal chief.
SIRF ChargesRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Walt Green announced the filing of criminal charges against five (5) individuals accused of committing tax fraud, identity theft, and related crimes in the Baton Rouge area. Collectively, these five individuals are alleged to have submitted more than 1,000 fraudulent federal income tax returns, fraudulently claiming refunds totaling more than $1.4 million. The charges are the result of an initiative by the United States Attorney’s Office, the Internal Revenue Service’s Criminal Investigations Division, and the United States Department of Justice’s Tax Division, to combat stolen identity refund fraud and other tax fraud schemes.
The following individuals have been charged:
HOLLY GREEN, age 28, of Baton Rouge, Louisiana, was charged in a bill of information with making false claims and identity theft. The bill of information alleges that GREEN obtained the names and personal identifying information, including Social Security numbers, of numerous victims, and used that information to electronically file fraudulent federal tax returns in the victims’ names. GREEN directed the fraudulent refunds to be deposited onto debit cards that she controlled, or mailed to her, at which point she would cash the checks and gain control of the funds. From January 2012 through April 2012, GREEN submitted approximately 71 false tax returns, claiming refunds totaling approximately $123,155. If convicted of both counts, GREEN faces a maximum possible prison term of ten (10) years and fines totaling $500,000. GREEN also faces the forfeiture of the proceeds from the alleged scheme. The case is being prosecuted by Assistant United States Attorney Shubhra Shivpuri.
MONA HILL, age 32, of Plaquemine, was charged in a bill of information with wire fraud and aggravated identity theft. The bill of information alleges that HILL obtained the names and personal identifying information of numerous victims, and used that information to file fraudulent federal tax returns in the victims’ names. From January 2012 through July 2012, HILL submitted approximately 488 false tax returns, claiming refunds totaling approximately $661,258. If convicted, HILL faces up to twenty (20) years in prison on the wire fraud count, which would be followed by a mandatory, 2-year prison term as a result of the aggravated identity theft count. HILL also faces fines totaling $500,000 and forfeiture of the proceeds from the alleged scheme. The case is being prosecuted by Assistant United States Attorney Shubhra Shivpuri.
ASHLEY D. RICKS-STAMPLEY (RICKS), age 28, of Baton Rouge, was charged in a bill of information with wire fraud and aggravated identity theft. The bill of information alleges that RICKS obtained the names and personal identifying information of numerous victims and then used the information to submit false income tax returns in the victims’ names for the 2010 and 2011 tax years. According to the bill of information, RICKS submitted approximately 455 false tax returns and fraudulently obtained approximately $559,953 through her scheme. If convicted, RICKS faces up to twenty (20) years in prison on the wire fraud count, which would be followed by a mandatory, 2-year prison term as a result of the aggravated identity theft count. RICKS also faces fines totaling $500,000 and forfeiture of the proceeds from the alleged scheme. The case is being prosecuted by Assistant United States Attorney Reginald Jones.
KIMBERLY H. SCOTT, age 40, of Baton Rouge, was charged in a bill of information with theft of public funds. The bill of information alleges that SCOTT worked with another individual who had obtained the names and personal identifying information of numerous victims and used those stolen identities to file fraudulent tax returns. According to the bill of information, SCOTT allowed this other individual to use SCOTT’s bank account to receive the tax refunds that the fraudulent returns would generate. According to the charge, SCOTT allowed the fraudulent proceeds from approximately 74 false tax returns to be deposited into her bank account, totaling approximately $96,497, at which point SCOTT gained control of the funds. If convicted, SCOTT faces up to ten (10) years in prison and a $250,000 fine. SCOTT also faces the forfeiture of the proceeds from the alleged scheme. The case is being prosecuted by Assistant United States Attorney Reginald Jones.
On September 11, 2013, a federal grand jury returned an indictment charging SHYWANDA F. UNDERWOOD, age 39, of Baker, with four counts of making false claims for tax refunds and four counts of identity theft. The indictment alleges that while UNDERWOOD owned and operated a tax preparation business in Baker, she used W-2 forms for fictitious businesses to prepare and submit false tax returns, claiming tax credits and refunds to which the taxpayers were not entitled. The indictment also alleges that UNDERWOOD prepared and filed false tax returns using stolen identities, including individuals’ Social Security numbers. The indictment alleges that UNDERWOOD claimed fraudulent tax refunds totaling approximately $20,241. If convicted of all 8 counts in the indictment, UNDERWOOD faces a maximum possible prison term of forty (40) years and fines totaling $2,000,000. UNDERWOOD also faces the forfeiture of the proceeds from the alleged scheme. In addition to IRS Criminal Investigation, the case is being investigated by the United States Secret Service. The case is being prosecuted by Assistant United States Attorney Cam T. Le.
“Investigating refund fraud and identity theft is a priority for IRS Criminal Investigation,” said IRS Criminal Investigation Special Agent-in-Charge Gabriel Grchan. “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers. The recent charges in Baton Rouge should serve as a strong warning to those who are considering similar conduct. The IRS and the U.S. Attorney’s Office are serious about investigating these crimes and prosecuting those who engage in this type of conduct.”
Acting U.S. Attorney Green stated: “This office will continue to aggressively pursue criminals who commit identity theft and use those stolen identities to defraud the United States and line their own pockets. The filing of these five new cases is another important step in that important effort. Working with our federal, state, and local partners, our investigations of this type of crime in our district will continue.”
Gavin SentencingRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Walt Green announced today that Chief U.S. District Judge Brian A. Jackson sentenced JEANNE L. GAVIN, age 62, of Baton Rouge, Louisiana, to 12 months imprisonment, 12 months of supervised release following imprisonment, and a fine of $20,000. The sentence results from the defendant’s convictions for exceeding authorized access to a government computer, in violation of Title 18, United States Code, Section 1030, and engaging in a criminal conflict of interest, in violation of Title 18, United States Code, Section 205.
The defendant’s convictions stem from actions she took while serving as a Supervisory Internal Revenue Agent and Group Manager in the Baton Rouge office of the Internal Revenue Service. In that role, the defendant supervised approximately ten revenue agents responsible for determining federal tax liability and collecting taxes for individual, partnership, and corporate taxpayers.
The defendant admitted that, while working for the IRS, she engaged in a criminal conflict of interest with her IRS employment by owning and operating a private tax and accounting business which generated over $70,000. The defendant further admitted to using her position as an IRS Manager to improperly cause subordinates to access IRS databases on over 2000 occasions for the benefit of her private tax and accounting business.
Acting U.S. Attorney Green stated, “My office, together with our federal, state, and local partners, will continue to aggressively pursue instances of public corruption wherever found. Public confidence in our governmental institutions, particularly those agencies entrusted to tax collection, is vitally important. The criminal acts of a few undermine such confidence, while overshadowing the honest efforts of the vast majority of public servants. My great appreciation to the Office of Treasury Inspector General for Tax Administration (TIGTA) who worked tirelessly with our office and the Federal Bureau of Investigation (FBI) in this important matter.”
Inspector General J. Russell George of TIGTA stated, “As our voluntary system of tax administration relies heavily upon the public’s confidence in a fair tax system, IRS employees must conduct themselves with the highest level of integrity and their conduct must be above reproach. Our message is loud and clear: TIGTA will vigorously investigate and recommend criminal prosecution for any IRS employee who violates the law.”
This matter was investigated by this office, TIGTA, and the FBI. The case is being prosecuted by Assistant United States Attorney Corey R. Amundson who serves as the Senior Deputy Chief of the Criminal Division.
Williams and Lavan SentencingRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Walt Green announced that SONYA LEWIS WILLIAMS, 47, of Baton Rouge, Louisiana, was sentenced to 37months for her convictions on counts of health care fraud and money laundering.
The indictment arose from a health care fraud scheme involving two companies known as Fusion Services, L.L.C. (“Fusion”), and Grace Social Services, L.L.C. (“Grace”), which operated in Alexandria, Louisiana and the surrounding areas. WILLIAMS established the two companies for the purpose of using unlicensed social workers to visit Medicare beneficiaries in their homes several times a week to perform case management, counseling, and social interaction services. WILLIAMS submitted false claims for reimbursement from Medicare indicating that the beneficiaries had received individual, face-to-face psychotherapy from a licensed clinical social worker when no such services had been provided. Medicare paid Fusion and Grace approximately $349,715 as a result of the billings. Much of the profits were transferred from company bank accounts into WILLIAMS’ personal accounts.
In addition to the term of imprisonment, Chief Judge Brian A. Jackson ordered restitution in the amount of $1,223,471 to the Department of Health and Human Services/Centers for Medicare and Medicaid Services. This amount included the total profits from Fusion and Grace, as well as two identical companies that WILLIAMS operated in the Baton Rouge area, Alpha Social Services, L.L.C., and Breitling Investment Company, L.L.C.
This is the second sentencing involving WILLIAMS’ companies. On August 15, 2013, LILLIE LAVAN, age 57, of Pineville, Louisiana, was sentenced by Judge Jackson to 27 months imprisonment, followed by one year of supervised release, for her conviction on one count of health care fraud. LAVAN was a Licensed Clinical Social Worker who worked with Fusion in the Alexandria area. LAVAN participated in creating false and misleading medical records for Fusion indicating that Medicare beneficiaries had received individual, face-to-face psychotherapy when, in fact, no such services had been provided. Judge Jackson also ordered LAVAN to pay restitution in the amount of $115,010 to the Department of Health and Human Services/Centers for Medicare and Medicaid Services.
Acting United States Attorney Walt Green. stated, “Those who abuse our federal health care programs through fraud and corruption should understand our commitment to bring them to justice.”
Department of Health and Human Services Special Agent-in-Charge Mike Fields said, “Our office is committed to the relentless pursuit of those whose sole interest in health care is to raid the Medicare Trust Fund to satisfy their own greed.”
FBI Special Agent-in-Charge Michael Anderson said, “The continued close collaboration of federal law enforcement partners will ensure that justice will be fully served upon those individuals who seek to defraud the health care system.”
“Sonya Williams was sentenced today for her money laundering activities which were a result of a health care scheme,” said Gabriel Grchan, Special Agent-in-Charge IRS Criminal Investigation. “IRS will continue to work with the Health Care Fraud Strike Force to unravel such complex financial crimes and assist in the prosecution of those individuals who engage in illegal business practices.”
The investigation was conducted by the U.S. Department of Health and Human Services’ Office of Inspector General, the Federal Bureau of Investigation, and AdvanceMed, the Medicare Program Safeguard Contractor which assists with health care fraud investigations. The case was prosecuted by Assistant United States Attorneys Catherine M. Maraist and Leetra Harris.
Federal Grants AnnouncedRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Walt Green announced today that the Department of Justice, Office of Justice Programs, has recently awarded one grant to Louisiana State Police and two grants to Louisiana Commission on Law Enforcement.
Louisiana State Police was awarded $1,551,210 in funding for their DNA Backlog Reduction Program. This program focuses on reducing DNA sample turnaround time, increasing the throughput of public DNA laboratories, and reducing DNA backlogs. These improvements are critical in preventing future DNA backlogs and to help the criminal justice system use the full potential DNA technology.
Louisiana Commission on Law Enforcement received two grants totaling $361,931. Their Juvenile Accountability Block Program was awarded $266,152 and Paul Coverdell Forensic Science Improvement Program was awarded $95,779.
The goal of the Juvenile Accountability Block program is to reduce juvenile offending through accountability-based programs focused on both the juvenile offender and the juvenile justice system. The underlying premise is that young people who violate the law should be held accountable for their actions through the swift, consistent application of graduated sanctions that are proportionate to the offenses, both as a matter of basic justice and as a way to combat juvenile delinquency and improve the quality of life in the nation’s communities.
The Coverdell funds are to be used to improve the quality and timeliness of forensic science and medical examiner services and/or to eliminate backlogs in the analysis of forensic evidence, including controlled substances, firearms examinations, forensic pathology, latent prints, questioned documents, toxicology, and trace evidence.
For more information about these grants, please contact the Office of Justice Program’s Office of Communications at 202-307-0703.
Operators of Louisiana Home Health Company SentencedRead the Press Release
WASHINGTON – The owner of South Louisiana Home Health Care Inc. and the director of nursing for the Louisiana home health agency were sentenced today for their roles in a Medicare fraud scheme involving the payment of kickbacks and the falsification of documents.
Acting Assistant Attorney General Mythili Raman of the Criminal Division; Acting U.S. Attorney Walt Green of the Middle District of Louisiana; Special Agent in Charge Mike Fields of the Dallas Region of the HHS 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.
Louis T. Age Jr., 64, owned and operated South Louisiana Home Health Care and operated this company along with his former wife, Verna Age, 60, who served as the company’s director of nursing. Louis Age and Verna Age, both of Slidell, La., were sentenced today by U.S. District Judge James J. Brady of the Middle District of Louisiana to 180 months and 60 months in prison, respectively, and ordered to forfeit $9.2 million and pay $17.1 in restitution.
After a jury trial in March 2013, Louis Age and Verna Age each were convicted of one count of conspiracy to commit health care fraud, and Louis Age also was convicted of one count of conspiracy to defraud the United States and to pay or receive illegal health care kickbacks. Verna Age previously was convicted of one count of conspiracy to defraud the United States and to pay or receive illegal health care kickbacks after a jury trial in October 2012.
According to evidence presented at trial, Louis Age and Verna Age paid kickbacks to patient recruiters to obtain Medicare beneficiary information. Nurses, including registered nurse Verna Age, then falsified qualification documents to make it appear that these beneficiaries qualified for home health services. The evidence also showed that Louis Age hired and paid kickbacks to medical doctors to sign fraudulent referrals and certifications for home health services that were not medically necessary. Louis Age and Verna Age then used the Medicare beneficiary information and false documents to bill Medicare for the medically unnecessary home health services. From 2005 through 2011, Medicare paid South Louisiana Home Health Care approximately $17.1 million based on these fraudulent home health care claims.
This case was investigated by the FBI, HHS-OIG and Medicaid Fraud Control Unit of the Louisiana State Attorney General’s Office and was brought as part of the Medicare Fraud Strike Force, under supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Louisiana. The case was prosecuted by Trial Attorneys David M. Maria and Abigail B. Taylor of the Fraud Section, with assistance from Trial Attorney Arunabha Bhoumik. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Chambers SentencedRead the Press Release
BATON ROUGE, LA – Acting United States Attorney J. Walter Green announced that another public official has been sentenced in Operation Blighted Officials. Chief U.S. District Judge Brian A. Jackson today sentenced RICHARD L. CHAMBERS, SR., age 68, of LaPlace, Louisiana, to 30 months imprisonment, 1 year of supervised release following imprisonment, a fine of $10,500, and forfeiture of $11,341. The defendant was sentenced after having pled guilty to racketeering based on his corrupt activity while Deputy Commissioner for the Louisiana Department of Insurance.
Today’s sentence results from the defendant’s involvement in two corrupt schemes in 2009 and 2010 while serving as Deputy Commissioner for the Louisiana Department of Insurance. In the first scheme, the defendant used his official position to steer insurance business from municipalities and other entities to an insurance agent in exchange for a split of the commissions. The defendant created the scheme and estimated that it would generate between $200,000 and $4,000,000 in commissions. In the second scheme, the defendant took $5,000 in cash bribes to use his official position to fraudulently secure $500,000 in private investor funding for a conceptual trash can cleaning product.
Acting U.S. Attorney Green stated: “This office, together with our federal, state, and local partners, will continue to aggressively pursue corrupt public officials who line their own pockets at the expense of the public trust. Such corruption undermines the dedicated and honest work performed by the vast majority of our public servants and will not be tolerated. Today’s sentence reflects the seriousness of public corruption, while also appropriately crediting a defendant who accepts responsibility and substantially cooperates with the investigation.”
This matter is part of Operation Blighted Officials, a long-running public corruption investigation conducted primarily by the United States Attorney’s Office and the Federal Bureau of Investigation. This matter was prosecuted by Assistant United States Attorney Corey R. Amundson who serves as the Senior Deputy Chief of the Criminal Division.
Status of Other Operation Blighted Officials Defendants
George L. Grace, Sr.: In March 2012, the former Mayor of St. Gabriel, Louisiana, was convicted by a federal jury following a six week trial of violating RICO, engaging in honest services wire and mail fraud, bribery, obstruction of justice, making false statements, and use of an interstate facility in aid of racketeering. U.S. District Judge Maurice Hicks sentenced Grace to 22 years imprisonment.
Thomas A. Nelson, Jr.: In June 2011, 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 imprisonment.
Maurice Brown: In February 2011, 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 imprisonment.
Frederick W. Smith: In October 2011, 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 7.5 years imprisonment.
Derek Lewis: In July 2011, 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: In July 2010, 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 probation, with a condition of having to spend 6 months in a half-way house.
Media Consultant IndictedRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Walt Green announced today that a Federal Grand Jury returned an indictment charging RAYMOND CHRISTOPHER REGGIE, 51, of Mandeville, Louisiana with five counts of wire fraud and six counts of money laundering, in violation of Title 18, United States Code, Sections 1343 and 1957.
According to the indictment, REGGIE was the owner and operator of an advertising firm that purchased and managed advertising for various car dealerships in southeast Louisiana. During the period January 2009 through July 2012, REGGIE executed a scheme to defraud the car dealerships for which he worked by submitting fictitious advertising expenses for payment by the dealerships. REGGIE falsely represented to the accounts payable administrators of the car dealerships that the advertising expenses were for services actually furnished. 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 129 checks totaling approximately $1,144,767 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. Once the funds were wired into Reggie’s bank account, he conducted multiple monetary transactions with the proceeds of his fraudulent activities.
If convicted, REGGIE faces up to 30 years imprisonment for each of the five counts of bank fraud and up to ten years imprisonment for each of the six counts of money laundering. REGGIE also faces fines of up to $2,750,000 and a term of five years of supervised release.
The Indictment also notifies REGGIE that should he be convicted, he must forfeit property, real or personal, which constitutes, or is derived from proceeds traceable to his wire fraud including, but not limited to at least $1,144,767, as well as all property, real or personal, involved in the money laundering offenses, or any property traceable to such property, including but not limited to at least $230,615.67, said amount being the value of the property involved in the money laundering offenses.
Acting United States Attorney Green stated, “Anyone who steals from their clients just to enrich themselves will be aggressively investigated and prosecuted by the United States Attorney’s Office.”
IRS Special Agent-in-Charge Gabriel Grchan stated, “This indictment is an example of the complex, white-collar cases our agency has a reputation for investigating. IRS-Criminal Investigations will continue to investigate individuals who engage in illegal schemes to steal money from others. Activities that involve money laundering will not be tolerated by anyone.”
NOTE: An indictment is a determination by a grand jury that probable cause exists to believe that offenses have been committed by a defendant. The defendant is presumed innocent until and unless proven guilty at trial.
Madden Sentenced to PrisonRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr., announced that ROY E. MADDEN, age 46, of Denham Springs, Louisiana, was sentenced today by U.S. District Judge James J. Brady to serve four (4) months in federal prison. MADDEN was also ordered to serve a two-year term of supervised release following his release from imprisonment.
MADDEN previously pled guilty to forging and counterfeiting the seal of a department and agency of the United States, namely, the United States Army Corps of Engineers, in violation of Title 18, United States Code, Section 506. MADDEN admitted that, while employed as an environmental consultant and having been engaged by a client to determine whether a particular parcel of property contained wetlands, MADDEN fraudulently altered and manipulated a Corps of Engineers letter so that it falsely indicated that the property did not contain wetlands. To make the document appear genuine, MADDEN included the USACE seal and the forged signature of a Corps official. MADDEN then provided the fraudulent letter to his client, knowing that the property contained wetlands. Relying on the fraudulent letter, the defendant’s client and another individual finalized a sale of the property. When MADDEN’s fraud was discovered, the transaction had to be rescinded.
This investigation was conducted by the Criminal Investigation Division of the Environmental Protection Agency and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Alan A. Stevens.
RAM Guilty PleaRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr. announced today the felony convictions of a wastewater brokerage firm and its two owners in connection with a wide ranging and ongoing federal and state investigation into corruption and fraud surrounding federal environmental laws.
RAM ENVIRONMENTAL SERVICES, INC., an entity incorporated in the State of Louisiana and doing business in Morgan City, Louisiana; RAYMOND MARCEL, JR., age 60, of Berwick, Louisiana; and CYRIL D. ROBICHEAUX, age 53, of Morgan City, Louisiana, each pleaded guilty today before U.S. District Judge James J. Brady to Bills of Information charging them with a conspiracy to defraud the U.S. Environmental Protection Agency and to violate the Safe Drinking Water Act.
As a result of their guilty pleas, MARCEL and ROBICHEAUX each face up to five years imprisonment, a $250,000 fine, a term of supervised release following imprisonment up to three years, and restitution. As part of its plea agreement, RAM has agreed to be sentenced to a three year term of probation, a $50,000 fine, and restitution as determined by the Court.
During today’s hearings, the defendants admitted that, in 2011 and 2012, they conspired with themselves and others to illegally discharge industrial wastewater at locations in Belle River, Louisiana, and Baton Rouge, Louisiana, and to otherwise obstruct the enforcement of the federal environmental laws through kickbacks, the creation and use of false documents, and other fraudulent means.
With regard to the Baton Rouge conduct, the defendants admitted that, in September 2012, they and others caused the illegal disposal of industrial wastewater at a site in Baton Rouge, Louisiana, and concealed such activity through the creation and use of false documents. The defendants admitted further that they undertook such fraudulent activity with the owner of the Baton Rouge site and further schemed with the site owner to lie to investigators regarding the disposals.
With regard to the Belle River conduct, the defendants admitted that, during 2011 and 2012, they paid over $22,000 in kickbacks to Michael J. Vaughn, the Operations Manager of FAS Environmental Services, a transportation and disposal company, in exchange for illegally using FAS’s injection well in Belle River to dispose of over 380,000 gallons of industrial wastewater. As part of the scheme, the defendants admitted that they and their fellow conspirators created and used over 100 false documents, including manifests and work orders, in addition to submitting false reports to regulators in Baton Rouge. Such false and fraudulent documents were designed to conceal the scheme from federal and state government officials, as well as the defendants’ unsuspecting clients.
U.S. Attorney Cazayoux stated, “Today’s convictions mark a continuation of this office’s long track record of holding to account those who violate federal criminal environmental laws. Our area is blessed to have a robust and largely law-abiding industrial presence. Unfortunately, there are some who seek economic benefit by refusing to adhere to federal environmental and safety laws. The people of this district can be assured that this office, together with our federal, state, and local partners, will continue to aggressively pursue such violators.”
“One of EPA’s primary missions is to ensure that federal laws protecting human health and the environment are enforced fairly and effectively,” said Ivan Vikin, Special Agent-in-Charge of EPA’s criminal enforcement program in Louisiana. “Violators who cause the submission of false information undermine the government’s efforts to protect the public and the environment. These illegal actions cannot and will not be tolerated. EPA and its partner agencies will vigorously pursue those who place the public at potential risk.”
“This case should serve notice that DEQ and its partners will continue to aggressively prosecute any company or individual who chooses to skirt state and federal regulations by avoiding the costs of handling, treating or disposing wastewater properly and legally,” said DEQ Secretary Peggy Hatch. “DEQ is proud of the collaborative work undertaken by the investigators to halt these illegal practices and bring the perpetrators to justice.”
Today’s charges were preceded by Vaughn, the former FAS Operations Manager, pleading guilty on May 29, 2013, to a Bill of Information charging him with conspiracy to defraud the U.S. Environmental Protection Agency and to violate the Safe Drinking Water Act, in violation of Title 18, United States Code, Section 371, making false statements within the jurisdiction of the federal government, in violation of Title 18, United States Code, Section 1001, and forfeiture. FAS ownership was unaware of the scheme involving the FAS injection well, which resulted in the misuse of FAS resources. FAS has cooperated fully throughout the investigation.
The sentencing dates for RAM, MARCEL, ROBICHEAUX, and Vaughn have not yet been set.
This ongoing investigation is being conducted by this 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 case is being prosecuted by Assistant United States Attorney Corey R. Amundson who serves as the Senior Deputy Chief of the Criminal Division.
Keith Guilty PleaRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr., announced that MATTHEW KEITH, age 36, pled guilty yesterday before Chief United States District Court Judge Brian Jackson to one count of conspiracy to commit wire fraud in connection with a scheme to defraud the State of Louisiana’s Motion Picture Industry Development Tax Credit Program (“Tax Credit Program.”) KEITH faces a sentence of up to five (5) years imprisonment, three (3) years of supervised release following imprisonment, and a fine of $250,000. The sentencing date has yet to be scheduled.
At today’s hearing, KEITH admitted that he owned and operated DMG Holdings, LLC and Louisiana Film Finishers, LLC, companies that provided technical services for the production of motion pictures. KEITH admitted, within a nine-day period beginning on June 10, 2009, he conspired with others, including an individual identified only as D.G., to transfer $1,000,000 D.G. received from an investor through four separate film production companies. These transfers created cancelled checks which D.G. later used as false documentation for $4,000,000 of motion picture productions.
The Louisiana Economic Development Office (“LED”) is a state entity which mission is to lead economic development for the State of Louisiana. LED operated the Motion Picture Industry Development Tax Credit Program (“Tax Credit Program”) which was designed to entice production companies to shoot films and video productions in Louisiana. The Tax Credit Program provided a 30% tax credit on qualified expenditures for the production of films in Louisiana. Once issued by LED, the tax credits were fully transferable.
Between June 10, 2009 and March 31, 2010, D.G. applied for, and received, tax credits from the LED for various movies. In total, $4,000,000 of the purported expenditures related to films was based upon the false expenditures created in the scheme described above. The tax credits issued by LED, based upon the false expenditures, totaled $1,200,000. KEITH’s role in the conspiracy resulted in the receipt of improperly obtained tax credits totaling $300,000.
This investigation was conducted by the FBI and the Louisiana State Inspector General’s Office and is being prosecuted by Assistant United States Attorney Frederick A. Menner, Jr.
United States Attorney to Leave OfficeRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr. announced today that a corporation and its two owners have been charged in connection with a wide ranging and ongoing federal and state investigation into corruption and fraud surrounding federal environmental laws.
RAM ENVIRONMENTAL SERVICES, INC., an entity incorporated in the State of Louisiana and doing business in Morgan City, Louisiana; RAYMOND MARCEL, JR., age 60, of Berwick, Louisiana; and CYRIL D. ROBICHEAUX, age 53, of Morgan City, Louisiana, have each been charged in Bills of Information with conspiracy to defraud the U.S. Environmental Protection Agency and to violate the Safe Drinking Water Act, in violation of Title 18, United States Code, Section 371. MARCEL and ROBICHEAUX are the owners and operators of RAM, a wastewater brokerage firm.
If convicted, MARCEL and ROBICHEAUX would face up to five years imprisonment, a $250,000 fine, a term of supervised release following imprisonment up to three years, and restitution to any victims. If convicted, RAM would face a fine up to $250,000, a term of probation up to five years, and an order of restitution to any victims.
Today’s charges allege that, in 2011 and 2012, the defendants conspired with themselves and others to illegally discharge industrial wastewater at locations in Belle River, Louisiana, and Baton Rouge, Louisiana, and to otherwise obstruct the enforcement of the federal environmental laws through kickbacks, the creation and use of false documents, and other fraudulent means.
With regard to the Baton Rouge conduct, the charges allege that, in September 2012, the defendants and others caused the illegal disposal of industrial wastewater at a site in Baton Rouge, Louisiana, and concealed such activity through the creation and use of false documents. According to the charges, the defendants undertook such fraudulent activity with the owner of the Baton Rouge site and further schemed with the site owner to lie to investigators regarding the disposals.
With regard to the Belle River conduct, the charges allege that, during 2011 and 2012, the defendants paid over $22,000 in kickbacks to Michael J. Vaughn (“Vaughn”), the Operations Manager of FAS Environmental Services, a transportation and disposal company, in exchange for illegally using FAS’s injection well in Belle River to dispose of over 380,000 gallons of industrial wastewater. As part of the scheme, the defendants and their fellow conspirators allegedly created and used over 100 false documents, including manifests and work orders, in addition to submitting false reports to regulators in Baton Rouge. Such allegedly false and fraudulent documents were designed to conceal the scheme from federal and state government officials, as well as the defendant corporation’s unsuspecting clients.
Today’s charges were preceded by Vaughn’s conviction on May 29, 2013. Vaughn, the former FAS Operations Manager, pled guilty before U.S. District Judge James Brady to a previously sealed Bill of Information charging him with conspiracy to defraud the U.S. Environmental Protection Agency and to violate the Safe Drinking Water Act, in violation of Title 18, United States Code, Section 371, making false statements within the jurisdiction of the federal government, in violation of Title 18, United States Code, Section 1001, and forfeiture. Vaughn is pending sentencing.
FAS ownership was unaware of the scheme involving the FAS injection well, which resulted in the misuse of FAS resources. FAS has cooperated fully throughout the investigation.
This ongoing investigation is being conducted by this 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 case is being prosecuted by Assistant United States Attorney Corey R. Amundson who serves as the Senior Deputy Chief of the Criminal Division.
United States Attorney to Leave OfficeRead the Press Release
BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced today that he will be relinquishing his post as United States Attorney for the Middle District of Louisiana effective July 1, 2013. After his resignation, he plans to join a private law practice in the Baton Rouge, Louisiana area.
“It has been an enormous privilege to serve the Middle District of Louisiana as its U.S. Attorney,” Cazayoux stated. “This office, with its wonderful women and men, represents the best of public service. Being part of our great justice system, with its many dedicated local, state and federal law enforcement personnel, has been an honor. While it is personally the right time to leave for my family and me, I do so with utmost humility and gratitude for this opportunity to serve, given to me by the President and the Attorney General, at the recommendation of Senator Landrieu.”
As U.S. Attorney, Cazayoux’s priorities have been protecting Americans from terrorism and threats to national security, combating violent crime, and fighting public corruption and fraud. Cazayoux has supervised the prosecution of financial, health care, and disaster fraud. Protecting the country’s vulnerable populations – children, the elderly, hate crime victims, and victims of human trafficking and exploitation – has also been a focus of Cazayoux.
Cazayoux joined District Attorney Hiller Moore and state and local law enforcement to curtail violent crime in the City of Baton Rouge through the Brave Initiative, a community-policing effort aimed to disrupt gang activity. The Organized Crime Drug Enforcement Task Force flourished during his tenure, with over ninety-eight defendants charged with drug trafficking offenses and over $1,455,000 in property and money seized in connection with these offenses.
The Health Care Strike Force, under Cazayoux’s leadership, indicted sixty-nine defendants for committing health care fraud offenses. Over $32,400,000 was ordered to be paid back to victims, including federal agencies.
Cazayoux oversaw the public corruption prosecution and conviction of several high-profile defendants. These include: Deputy Commissioner for the Louisiana Department of Insurance; Director of Governor’s Program on Abstinence; Program Manager for Governor’s Office of Safe and Drug Free Schools and Communities; Attorney for Municipal Police Employee’s Retirement System of Louisiana; Mayor of St. Gabriel and President of the National Conference of Black Mayors; Mayor of Port Allen; Mayor of White Castle; Mayor of New Roads; Port Allen Chief of Police; Port Allen City Council Member; and Baton Rouge City Court Clerk.
During his term, Cazayoux ensured that over $17,600,000 in criminal and civil collections were collected by the Civil Division and returned to victims of crimes, the United States Treasury and other federal agencies.
Cazayoux is also the Executive Director of the National Center for Disaster Fraud (“NCDF”), located in Baton Rouge, Louisiana. The National Center for Disaster Fraud currently coordinates disaster fraud prevention and investigations for all Presidential disaster declarations in the United States.
The Middle District of Louisiana is a nine-parish region that includes the following parishes: Ascension, East Baton Rouge, East Feliciana, Iberville, Livingston, Pointe Coupee, St. Helena, West Baton Rouge, and West Feliciana. The United States Attorney's Office is responsible for representing the federal government in virtually all of the litigation involving the United States in the Middle District of Louisiana, including all criminal prosecutions for violations of federal law, civil lawsuits against the government, and actions to collect judgments and restitution on behalf of victims and taxpayers.
Donald J. Cazayoux, Jr. is a native of New Roads, Louisiana. He earned his B.S. and M.A. from Louisiana State University and his J.D. from Georgetown University Law School in 1991. He was elected to the Louisiana House of Representatives from the 18th district in 1999 where he served until 2008. Cazayoux was elected to the U.S. House of Representatives, Louisiana’s 6th District, and served in Congress until January 2009. He was sworn in as the United States Attorney for the Middle District of Louisiana in June 2010.
Firearm Safety InitiativeRead the Press Release
BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced today that the United States Attorney’s Office has partnered with the Baton Rouge City Constable’s Office, East Baton Rouge Sheriff’s Office, Baton Rouge Police Department, Louisiana State Police, East Baton Rouge District Attorney’s Office, Louisiana Association of Sheriffs, Louisiana Association of Chiefs of Police, Louisiana District Attorneys Association, and Louisiana’s City Marshals and City Constables Association to develop an initiative to educate youth on firearm safety and awareness.
United States Attorney Donald J. Cazayoux, Jr. states, “Our state and local partners are confident that this campaign will be successful in helping to reduce the number of tragic firearm accidents involving our youth that occur simply because of the lack of education and understanding of the dangers and the devastating effects of firearms when they are not handled properly.”
The presentations can be conducted at any community event, summer camp or school camp and will focus on safety and awareness issues as well as instructions on what to do if a firearm is found. The basic philosophy taught is that upon encountering a firearm children should Stop, Don’t Touch, Leave the Area, and Tell an Adult. Presentations are conducted by POST/FBI Firearms Instructors and will utilize props and a ballistic shoot tank for a live fire demonstration.
The current community event schedule includes:
• Saturday, June 1, 2013 (10:00 – 4:00) “Obesity for the Birds” BREC Trail Walk/Community Against Drugs and Violence, Inc. (CADAV) Pre-Juneteenth Community Outreach Festival Howell Place Gym, 7716 Howell Boulevard, Baton Rouge
• Saturday, June 8, 2013 (9:00 – 1:00) Shady Grove First Missionary Baptist Church’s Annual Health Fair 16443 Plank Road, Baker
• Saturday, June 15, 2013 (1:00 – 5:00) Juneteenth Celebration Gus Young Park, 4200 Gus Young Avenue, Baton Rouge
• Saturday, June 29, 2013 (1:00 – 5:00) One Voice One Dream One Team 4th Annual Pack the Park SAIA BREC Park, 855 North Donmoor Avenue, Baton Rouge
• Saturday, July 27, 2013 (7:00 – 12:00) Project R.I.D.E., Inc. Back to School Seminar Louisiana State Fairgrounds, 17200 Airline Highway, Baton Rouge
• Saturday, December 7, 2013 (12:00) Community Against Drugs and Violence, Inc. (CADAV) Christmas Festival Scotlandville Elementary School, Pembroke at 75th Avenue, Baton Rouge
For more information or to schedule a presentation, contact Holly Sheets, Victim-Witness Coordinator for the United States Attorney’s Office, at 225-389-0443.
Vaughn Guilty PleaRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr. announced today the conviction of a former Operations Manager in connection with a wide ranging federal and state investigation into corruption and fraud surrounding federal environmental laws.
MICHAEL J. VAUGHN, age 33, of Addis, Louisiana, pled guilty this morning before U.S. District Judge James J. Brady to a previously sealed Bill of Information charging him with conspiracy to defraud the U.S. Environmental Protection Agency and to violate the Safe Drinking Water Act, in violation of Title 18, United States Code, Section 371, making false statements within the jurisdiction of the federal government, in violation of Title 18, United States Code, Section 1001, and forfeiture. As a result of his convictions, the defendant faces up to ten (10) years imprisonment, a $500,000 fine, forfeiture of the proceeds of the offenses, restitution to victims, and a three year term of supervised release following imprisonment. The sentencing date has not yet been set.
The defendant’s convictions stem from actions he took while serving as the Operations Manager of FAS Environmental Services, a transportation and disposal company based in Belle River, Louisiana. In that role, the defendant oversaw all operations and employees at the company.
During today’s hearing, the defendant admitted that, while working as the FAS Operations Manager, he took over $22,000 in kickbacks during 2011 and 2012 from a wastewater brokerage firm in exchange for illegally using an FAS injection well in Belle River to dispose of over 380,000 gallons of industrial wastewater in violation of the Federal Safe Water Drinking Act. As part of the scheme, the defendant further admitted that he and his fellow conspirators created and used over 100 false documents, including manifests and work orders, in addition to submitting false reports to regulators in Baton Rouge. Such false and fraudulent documents were designed to conceal the scheme from federal and state government officials and the brokerage firm’s unsuspecting clients.
FAS ownership was unaware of the defendant’s scheme, which resulted in the misuse of FAS resources to the sole benefit of the defendant personally and his fellow conspirators. FAS has cooperated fully throughout the investigation and terminated the defendant’s employment with the company upon learning of the scheme.
U.S. Attorney Cazayoux stated: “My office, together with our federal, state, and local partners, will always be vigilant and aggressive in enforcing federal criminal environmental laws, particularly where violations are accompanied by corporate fraud and corruption. The corruption of our environmental regulatory system presents serious and unacceptable economic and physical risks to everyone living and working in Louisiana, and it will not be tolerated.”
“One of EPA’s primary missions is to ensure that federal laws protecting human health and the environment are enforced fairly and effectively. To do that, we must receive accurate and honest tests and measurements,” said Ivan Vikin, Special Agent-in-Charge of EPA’s criminal enforcement program in Louisiana. “Violators who submit false information undermine the government’s efforts to protect the public and the environment. These illegal actions cannot and will not be tolerated. EPA and its partner agencies will vigorously pursue those who knowingly falsify official information and place the public at potential risk.”
Secretary Peggy Hatch of the Louisiana Department of Environmental Quality stated: “This is an example of local, state and federal agencies working together to keep Louisiana’s environment clean. We are working together so people will think twice and make better decisions when it comes to skirting the environmental laws in order to make money or save money.”
This ongoing investigation is being conducted by this 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 case is being prosecuted by Assistant United States Attorney Corey R. Amundson who serves as the Senior Deputy Chief of the Criminal Division.
Emile SentencingRead the Press Release
BATON ROUGE, LA- United States Attorney Donald J. Cazayoux, Jr. announced today that NAEEMAH EMILE, age 47, of Baton Rouge, Louisiana was sentenced by United States District Court Chief Judge Brian A. Jackson to twenty-eight (28) months of imprisonment.
EMILE previously pled guilty to money laundering and possession with the intent to distribute and distribution of “crack” cocaine and hydrocodone. In connection with her guilty plea, EMILE admitted that on May 2, 2012, EMILE and Beverly A. Smith traveled together to a local bank, where EMILE provided one of the tellers with a large bag containing $28,000 and seventy-nine (79) grams of “crack” cocaine. EMILE, who had an account at this bank, requested the teller to convert the $28,000 into a cashier’s check. That day, instead of using cash to pay for a new car they intended to purchase, they planned to pay for it with a cashier’s check so that this transaction would not be reported to the Internal Revenue Service. When the teller found the “crack” cocaine in the large bag given to her by EMILE, the police were called and the two women were taken into custody. During the investigation, law enforcement agents learned that EMILE had allowed Smith to use her residence to store “crack” cocaine and cash Smith made selling “crack” to various customers.
On July 6, 2012, during the execution of a search warrant at EMILE’s residence, in Baton Rouge, Louisiana, law-enforcement agents found Smith trying to flush approximately 18 grams of “crack” cocaine down the toilet. EMILE was in the kitchen at the time.
On July 16, 2012, during an undercover transaction, law enforcement agents purchased a small quantity of hydrocodone from EMILE and Smith, at the latter’s residence, in Baton Rouge, Louisiana.
U.S. Attorney Donald J. Cazayoux, Jr. stated, “This case demonstrates our continued efforts to stymie the drug trade and preventing drug traffickers from using and hiding their drug profits.”
“Federal laws that regulate the reporting of financial transactions are in place to detect and stop illegal activities. IRS Criminal Investigation is committed to enforcing these laws and eliminating the laundering of illegal profits,” stated Special Agent in Charge, Gabriel Grchan, IRS Criminal Investigation.
Tony James, Acting Assistant Special Agent in Charge, Drug Enforcement Administration likewise, stated, “The DEA, in conjunction with other federal, state, and local law enforcement agencies will continue to pursue those violating federal drug trafficking and money laundering laws.”
The investigation of this matter was conducted by the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, and the Baton Rouge City Police Department. The case was prosecuted by Assistant United States Attorneys Robert Piedrahita and Lane Ewing.
Bernhard SentencingRead the Press Release
BATON ROUGE, LA—The United States Attorney’s Office announced that today JAMES M. BERNHARD, III, age 37, of Baton Rouge, Louisiana, was sentenced by United States District Court Chief Judge Brian A. Jackson to twenty-seven (27) months of imprisonment. BERNHARD was also ordered to pay a fine of $10,000. BERNARD will also be required to serve a two-year term of supervised release following his release from prison.
BERNHARD had previously pled guilty to wire fraud involving a scheme to defraud his employer, a Baton Rouge law firm, from December of 2010 to December of 2011. In connection with his guilty plea, BERNHARD admitted that, while employed as an attorney at the firm, he used his authority over the firm’s trust account to fraudulently transfer money to third parties under his control and to others to whom the defendant owed money. For instance, on or about January 7, 2011, BERNHARD caused $93,750 to be wired from the law firm’s trust account at Fidelity Bank to an account that the defendant controlled at Iberia Bank. In total, the defendant obtained approximately $453,123 from his fraudulent scheme.
This investigation was conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Alan A. Stevens.
Windham SentencingRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr., announced that CYNTHIA D. WINDHAM, age 49, currently of Henderson, Texas, was sentenced today by U.S. District Chief Judge Brian A. Jackson to a term of imprisonment of thirty (30) months. WINDHAM was also ordered to pay restitution in the amount of $217,347.91 and serve a two-year term of supervised release following her release from federal prison.
WINDHAM previously pled guilty to bank fraud in connection with a multi-year scheme to defraud Strategic Case Management, LLC (“Strategic”), located in Baton Rouge, as well as two local banks. While working as the company’s office manager from 2007 through 2009, WINDHAM stole more than 120 checks made payable to her employer, fraudulently endorsed the checks, and gained control over the funds. WINDHAM also stole more than 60 checks that her employer had issued to various third parties, fraudulently altered the checks so that they would appear to be payable to herself, and deposited the checks into her own accounts. WINDHAM admitted that she obtained more than $200,000 through her fraudulent scheme.
U.S. Attorney Donald J. Cazayoux, Jr. stated, “We hope this sentence sends a clear signal to those who would defraud small businesses in our community that they will be prosecuted and face substantial punishment for their crimes.”
This investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Cam T. Le.
Schaltre SentencingRead the Press Release
BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced today that TIMOTHY R. SCHLATRE, 35, of Denham Springs has been sentenced for his creation and execution of a scheme to defraud life insurance companies, including New York Life and Lincoln Financial. District Court Judge James J. Brady sentenced SCHLATRE for his convictions of mail fraud and money laundering. SCHLATRE was sentenced to the Bureau of Prisons to serve a term of 57 months imprisonment and pay restitution of $1,424,931.12 to the victims of his offenses. SCHLATRE was ordered to repay fraudulently obtained commissions of $908,098.17 to New York Life and $516,832.95 to Lincoln Financial. He also was sentenced to a term of 2 years supervised release and ordered to pay a special assessment of $200. Additionally, Judge Brady ordered SCHLATRE to forfeit the gross proceeds of his crimes, including a Cadillac Escalade and $1,424,931.12.
Along with SCHLATRE, the United States Attorney has also charged and convicted JASON PAUL AUSTIN, 32, of Walker, JODI MARIE AUSTIN, 34, of Walker, RICKY J. AUSTIN, 49, of Denham Springs, JIMMY O. CASSELS, 33, of Denham Springs, TODD D. CUMMINGS, 34, of Walker, and DENA A. GAUDET, 33, of Denham Springs; each has been convicted of Conspiracy to Commit Mail Fraud. Each of Schlatre’s co-conspirators, except for Ricky J. Austin, has already been sentenced to a term of probation.
The Bill of Information to which SCHLATRE pled guilty and was sentenced alleges that SCHLATRE used his position as a life insurance agent for New York Life and Lincoln Financial to devise a scheme to defraud the insurers for the purpose of fraudulently obtaining commission payments. SCHLATRE executed the fraud by selling life insurance policies based on false statements and representations. Specifically, SCHLATRE recruited individuals and persuaded them to submit false information to the companies regarding the applicant’s net worth and annual income, thereby defrauding New York Life and Lincoln Financial into approving the policies and issuing the commission payments to SCHLATRE to which he was not entitled. Because the policy values were so large, the applicants could not afford to make the premium payments. In order to accomplish his scheme, SCHLATRE further agreed to provide the premium payments on behalf of the applicants. This process, known as “rebating,” was prohibited by both company’s policies as well as state law. In order to conceal the fact that he was the source of the premiums, SCHLATRE deposited money directly into the individual applicant’s bank account. SCHLATRE further misrepresented the source of the premium payments by falsely declaring that he was not paying or allowing the rebating of any premiums.
SCHLATRE was sentenced for defrauding New York Life and Lincoln Financial into issuing life insurance policies in excess of $100 million dollars. This resulted in the receipt of commissions to which he was not entitled of approximately $1,424,931.12.
United States Attorney Donald J. Cazayoux, Jr. stated, “Today, the ringleader of this insurance scheme which caused a loss of almost of one and a half million dollars has received a fair and just sentence. Further, I applaud the outstanding investigative efforts of the state and federal agents which have resulted in seven federal convictions in this case.”
“This investigation should be a clear reminder that federal law enforcement's reach into white collar crime extends beyond traditional health care, investment and corporate fraud to bring those responsible to justice,” stated FBI Special Agent-in-Charge Michael J. Anderson.
“People who conspire to create elaborate insurance fraud schemes run a very high risk of prosecution,” stated Damon Rowe, Acting Special Agent-in-Charge, IRS Criminal Investigation. “IRS is committed to working diligently with the Department of Justice to dismantle these organizations.”
Louisiana State Inspector General Stephen Street stated, “Hopefully this sends a message that there is a price to be paid for engaging in fraud schemes. Mr. Schlatre did so, and will now be held accountable.”
The investigation of this matter was conducted by the Federal Bureau of Investigation, the Internal Revenue Service - Criminal Investigation, and the Louisiana Office of Inspector General. The Louisiana Department of Insurance assisted in the investigation. The case was prosecuted by Assistant United States Attorneys Rene I. Salomon and Jay Thompson.
Garcia Guilty PleaRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr., announced that DANIEL GARCIA, age 36, pled guilty today before United States District Court Judge James Brady to one count of conspiracy to commit wire fraud in connection with a scheme to defraud the State of Louisiana’s Motion Picture Industry Development Tax Credit Program (“Tax Credit Program.”) GARCIA faces a sentence of up to five (5) years imprisonment, three (3) years of supervised release following imprisonment, and a fine of $250,000. The sentencing date has yet to be scheduled.
At today’s hearing, GARCIA admitted that he owned and operated DMG Holdings, LLC and Louisiana Film Finishers, LLC, companies that provided technical services for the production of motion pictures. GARCIA admitted, within a nine-day period beginning on June 10, 2009, he conspired with at least one other individual to transfer $1,000,000 he received from an investor through four separate film production companies. These transfers created cancelled checks which he later used as false documentation for $3,000,000 of motion picture productions.
The Louisiana Economic Development Office (“LED”) is a state entity which mission is to lead economic development for the state of Louisiana. LED operated the Motion Picture Industry Development Tax Credit Program (“Tax Credit Program”) which was designed to entice production companies to shoot films and video productions in Louisiana. The Tax Credit Program provided a 30% tax credit on qualified expenditures for the production of films in Louisiana. Once issued by LED, the tax credits were fully transferable.
Between February 10, 2009 and March 31, 2010, GARCIA applied for, and received, tax credits from the LED for various movies. In total, $3,000,000 of the purported expenditures related to films were based upon the false expenditures created in the scheme described above. GARCIA admitted that he was not entitled to $900,000 of the tax credits he received for these films.
U.S. Attorney Donald J. Cazayoux, Jr., stated, “We will continue our commitment to prosecuting anyone abusing the Tax Credit Program. Those who misuse this program, through fraud and deceit, undermine the purpose of the Tax Credit Program and will be investigated and prosecuted to the fullest extent of the law. We appreciate the work of the FBI and the Louisiana State Inspector General’s Office in this case and the cooperation of the LED.”
Louisiana State Inspector General Stephen Street commented, “This sort of blatant thievery unfairly mars the whole Tax Credit Program, and cannot be tolerated. We are committed to working with the FBI and United States Attorney to root this sort of corruption out wherever it may exist.”
This investigation was conducted by the FBI and the Louisiana State Inspector General’s Office and is being prosecuted by Assistant United States Attorney Frederick A. Menner, Jr.
Beasley Guilty PleaRead the Press Release
BATON ROUGE, LA – United States Attorney Donald J. Cazayoux announced that the KIAMANI A. BEASLEY, 27, of Jeanerette, Louisiana, pled guilty today before United States District Court Judge James J. Brady to defrauding the Louisiana Association of Community Action Partners, a non-profit organization which receives funding from the federal government’s American Recovery and Reinvestment Act Program. BEASLEY faces a sentence of up to ten (10) years imprisonment and a fine of up to $250,000.
Louisiana Association of Community Action Partners was established to organize and strengthen the forty-two (42) private and public Community Action Agencies (CAAs) in Louisiana. CAAs were established to address the effects and causes of poverty and to increase self-sufficiency among the poor. CAAs implemented many education and health programs funded by the federal government. As Finance Director of Louisiana Association of Community Actions Partners, BEASLEY was responsible for overseeing the financial integrity of the organization, including the accounting and distribution of federal funds.
At today’s hearing, BEASLEY admitted that on multiple occasions from September 5, 2011 until on or about November 2, 2011, she used her position of trust to embezzle $50,858 which were to be used for computer software training and weatherization services.
The investigation of this matter was conducted by the U.S. Department of Energy Office of Inspector General and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Reginald E. Jones.