Middle District of Louisiana
Press releases recorded for this federal judicial district.
Gavin Guilty PleaRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr. announced today that JEANNE L. GAVIN, age 61, of Baton Rouge, pled guilty before Chief U.S. District Judge Brian A. Jackson to 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. As a result, the defendant faces up to two years in prison, a $200,000 fine, and one year of supervised release following imprisonment. Sentencing is scheduled for September 12, 2013.
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 owing taxes for individual, partnership, and corporate taxpayers.
During today’s hearing, 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.
U.S. Attorney Cazayoux 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.
Matthews SentencedRead the Press Release
BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced that BRENDA MATTHEWS, age 59, was sentenced to 12 months and 1 day imprisonment for making false claims to an agency of the United States and two counts of identity theft. The Court also ordered restitution in the amount of $117,656.
MATTHEWS’ sentence this morning follows her guilty plea to the charges at her rearraignment on October 25, 2012. She admitted that, in July and August 2009, she filed 20 tax returns for tax year 2008 fraudulently claiming refunds based on First Time Homebuyer Credits. The returns prepared by MATTHEWS listed the names and Social Security numbers of others who had allegedly purchased homes, when in fact, the homes had not been purchased. In some instances, MATTHEWS used the Social Security numbers of people who did not know their identities were being used to file fraudulent tax returns. In all, the fraudulent returns, which reported the taxpayers as having no income, generated refunds in excess of $117,656.
“IRS Criminal Investigation continues to aggressively pursue the perpetrators of identity theft schemes,” stated Damon Rowe, Acting Special Agent-in-Charge, IRS-Criminal Investigations. “Identity theft continues to be a top priority for IRS.”
The investigation of this matter was conducted by the IRS-Criminal Investigations. The case was prosecuted by Assistant United States Attorney Susan C. Amundson.
Babin SentencedRead the Press Release
BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced yesterday that U.S. District Court Chief Judge Brian A. Jackson sentenced Tara S. Babin, age 38, of Denham Springs, Louisiana, to a term of imprisonment of 17 months and 2 years supervised release after imprisonment. Babin had previously pled guilty to one count of wire fraud.
Between March 2009 and April 2011, Babin systematically embezzled funds belonging to her employer, a local doctor. As the office manager, Babin had access to her employer’s merchant account and electronic payment machine. To execute her wire fraud scheme, Babin used the office electronic payment machine to transmit credit/refund requests to her employer’s electronic payment contractor. Once the electronic payment contractor received the fraudulent credit/refund requests, it would wire funds from her employer’s merchant account into bank and credit card accounts belonging to Babin. Through this scheme, Babin unlawfully obtained $113,718.92 in funds belonging to her employer.
This matter was investigated by the United States Attorney’s Office for the Middle District of Louisiana and the Federal Bureau of Investigation. The matter was prosecuted by Assistant United States Attorney Chris Dippel.
Case SentencedRead the Press Release
BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced today that U.S. District Court Chief Judge Brian A. Jackson sentenced Brad J. Case, age 30, of Baton Rouge, Louisiana, to a term of imprisonment of 96 months and 20 years supervised release after imprisonment. Case had previously pled guilty to one count of distribution of child pornography.
On May 8, 2011, Case distributed 25 images of child pornography to an undercover Special Agent with the Federal Bureau of Investigation (FBI) through the internet using a peer-to-peer file sharing program. The FBI was able to trace the source of the child pornography to an apartment located in Baton Rouge and rented by Case. On October 12, 2011, the FBI executed a search warrant at Case’s apartment and seized, among other things, a computer belonging to Case. A forensic examination of Case’s computer revealed several hundred images and numerous videos depicting child pornography.
This matter was investigated by the United States Attorney’s Office for the Middle District of Louisiana and the Federal Bureau of Investigation. The matter was prosecuted by Assistant United States Attorney Chris Dippel.
Parkman Thompson SentencingRead the Press Release
BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced today that SANDRA PARKMAN THOMPSON, 58, of New Orleans, Louisiana, was sentenced to 18 months in prison and ordered to pay $129,330 in restitution for her convictions on health care fraud and conspiracy to pay and receive illegal remunerations.
On August 21, 2012, THOMPSON was convicted after a jury trial on 13 counts of health care fraud and one count of conspiracy to pay and receive illegal remunerations. The convictions arose as a result of THOMPSON’s participation in a scheme to defraud involving the Baton Rouge-based company known as Lobdale Medical Services which was owned by Beatrice and Young Anyanwu. As part of the scheme to defraud, THOMPSON and others procured the names and personal information of Medicare beneficiaries in and around the New Orleans area and delivered these names to Dr. Anthony Jase, a co-defendant in the prosecution who currently is awaiting sentencing, 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.
THOMPSON, along with the Anyanwus, also participated in a conspiracy to pay and receive illegal remuneration for the durable medical equipment billed by Lobdale. The Anyanwus paid THOMPSON and others a kickback for every claim for power wheelchairs and other durable medical equipment items that were submitted to, and paid by, Medicare. The kickback was based on a percentage of the reimbursement value of the equipment to the price of the particular item, thereby providing an incentive to recruit beneficiary claims for the most expensive models of durable medical equipment.
Dr. Anthony Stephen Jase pled guilty to the health care fraud scheme to defraud on October 31, 2012, and is awaiting sentencing. Beatrice and Young Anyanwu pled guilty to the health care fraud scheme to defraud as well as the illegal remuneration conspiracy on August 14, 2012, and were sentenced on February 1, 2013.
U.S. Attorney Donald J. Cazayoux, Jr., stated, “This is another victory for the good guys and the American taxpayers, as we attempt to stymie the attempts at pilfering our Medicare system.” “
Judge Brady called Parkman's actions ‘pure greed’ and this greed is what propels Medicare fraud in our community,” said Assistant Special Agent in Charge William Root. “Hopefully her sentence today sends an important message to others contemplating this type of fraud.”
The investigation of THOMPSON and AUGUSTUS was conducted by the Department of Health and Human Service, 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, J. Christopher Dippel, Jr., and Reginald E. Jones.
Johnson - Pogue IndictmentRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr. announced today that a Federal Grand Jury returned an indictment charging GLENN KELLY JOHNSON, age 71, of Brookhaven, Mississippi, with conspiracy to use interstate facilities to carry on a bribery scheme, four counts of actually using telephones to promote his bribery scheme, and one count of making false statements to an agent of the Federal Bureau of Investigation who was investigating the scheme to bribe an employee of the Louisiana Department of Health and Hospitals, in violation of Title 18, United States Code, Sections 371, 1952(a)(3), and 1001(a)(2).
Also indicted was ALAN FORREST POGUE, a former employee of the Louisiana Department of Health and Hospitals, Office of Public Health, Center for Environmental Services, Onsite Wastewater Program (“OWP”). POGUE, a resident of Covington, Louisiana, age 52, was charged with one count of conspiracy to use interstate facilities to carry on a bribery scheme with JOHNSON. During the period 2008 through 2011, POGUE was employed as a Sanitation Program Coordinator (“Sanitarian”) for the OWP and his duties included inspection of residential and commercial septic tank systems. JOHNSON was a Denham Springs, Louisiana, licensed installer of individual sewage treatment systems (also known as “septic tanks”) during the period 2008 through 2011. JOHNSON operated a Denham Springs business known as Stafford Concrete.
According to the indictment, POGUE supplied JOHNSON with OWP lists of names of Louisiana citizens who were applying for permits to install individual sewage treatment systems. In return, JOHNSON made cash payments to POGUE. POGUE and JOHNSON used their office and personal cellular telephones to contact each other in order to arrange meetings where they could exchange septic tank applicant information for cash. Beginning sometime in or about May 2009, and continuing through June 2011, POGUE and JOHNSON met on a bi-weekly basis, approximately 100 times, for the purpose of exchanging septic tank applicant information for cash. According to the Indictment, JOHNSON paid POGUE approximately $50,000 during the period May 2009 through June 2011.
If convicted, JOHNSON and POGUE face up to five years imprisonment for Count One- conspiracy to use interstate facilities to promote a bribery scheme. JOHNSON also faces five years imprisonment for the conduct alleged in Counts Two through Five-unlawful use of telephones, and another five years for Count Six- making false statements to an FBI agent. POGUE faces a total of five years imprisonment and JOHNSON faces a total of 30 years imprisonment. Each defendant faces a fine up to $250,000 for each count on which they may be convicted, and forfeiture of all property, real or personal, which constitutes or is derived from proceeds traceable to the offenses charged as Counts One through Five of the Indictment, including but not limited to, at least $50,000, said amount being the proceeds obtained through bribery.
United States Attorney Cazayoux stated, “We will continue to be vigilant, along with our law enforcement partners, such as the FBI and Louisiana Inspector General in this case, for public corruption at any level of government. We cannot, and will not, tolerate situations, such as here, where a businessman seeks to gain an unfair advantage in the marketplace by bribing low-level public employees.”
Louisiana State Inspector General Stephen Street commented, “Rooting out corruption of this sort is the very reason OIG was created. Public officials taking bribes is absolutely intolerable. We will continue to relentlessly pursue those who abuse the public trust and hold them criminally accountable wherever possible. As always, we appreciate and value our partnership with Mr. Cazayoux and his staff.”
“Although public corruption in any context has no acceptable threshold, these acts affecting the environment and public health are particularly repugnant to the citizenry,” said Michael Anderson, FBI Special Agent-in-Charge.
The investigation of this matter was conducted by the Baton Rouge Resident Agency of the Federal Bureau of Investigation and the Louisiana Office of the Inspector General. The case is being prosecuted by Assistant United States Attorney Rene I. Salomon.
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.
Katelyn & Claire, Inc and Alex T, Inc Guilty PleaRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr. announced today that KATELYN & CLAIRE, INC. and ALEX T, INC., both doing business as Quality Express, pled guilty before United States District Court Chief Judge Brian A. Jackson to conspiracy to launder monetary instruments and multiple counts of failure to file Currency Transaction Reports. The corporations also agreed to forfeit to the United States $992,462.40, which were funds involved in the charged offenses.
Quality Express, which is located on Foster Drive in Baton Rouge, Louisiana, offered check cashing, currency exchanges and money transfers. Between March 2010 and April 2011, an undercover agent, working at the direction of the DEA and IRS, provided more than $275,000 in United States currency to agents of Quality Express to be exchanged or transferred so that it could be more easily concealed and avoid detection by law enforcement. The money was represented to be drug proceeds.
To further conceal the currency exchanges and transfers, Quality Express and its agents failed to file Currency Transaction Reports that would have reflected the receipt of United States Currency, on six separate occasions, in amounts ranging from $12,000 to $90,000. The defendants believed that the money was proceeds from drug trafficking.
United States Attorney Donald J. Cazayoux, Jr. stated, “This plea along with the nearly one million dollar money forfeiture here should send a clear message to any businesses, which attempt to help drug dealers and any other criminals launder the proceeds of their illegal actions, that we will not tolerate these acts in the Middle District of Louisiana.”
Damon Rowe, Acting IRS Special Agent-in-Charge, stated that “avoiding currency reporting requirements is a criminal violation of federal law under the Bank Secrecy Act. Deliberately avoiding these requirements is a form of money laundering; and IRS Criminal Investigation will work closely with the U.S. Attorney’s Office, and our law enforcement counterparts, to forcefully investigate these conspiracies.”
DEA Acting Assistant Special Agent-in-Charge Tony James stated, “The DEA, in conjunction with the IRS and local law enforcement agencies, will continue to pursue entities that lauder drug trafficking funds in order to fully dismantle drug trafficking organizations’ ability to pollute the city of BR with drugs.”
THANG MINH TRAN, also known as Tommy, had previously pled guilty to conspiracy to launder monetary instruments and money laundering. TRAN was one of the operators of Quality Express, and he used the business to facilitate the money laundering. Former Quality Express employees THAHN NGUYEN, also known as Money, and SON NGUYEN, also known as Tattoo, previously pled guilty to distribution of MDMA, more commonly known as Ecstasy.
This investigation was conducted by the United States Drug Enforcement Agency and the Internal Revenue Service. The Baton Rouge Police Department, West Baton Rouge Sheriff’s Office, East Baton Rouge Sheriff’s Office, Ascension Parish Sheriff’s Office and Gonzales Police Department assisted in the investigation. The case was prosecuted by Assistant United States Attorneys Jennifer M. Kleinpeter and J. Lane Ewing, Jr.
Anderson SentencingRead the Press Release
BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced that RAMON ANDERSON, age 54, was sentenced to 84 months imprisonment on charges of possession of a gun by a convicted felon and failure to register as a sex offender under the Sex Offender Notification and Registry Act (known as SORNA). ANDERSON was also sentenced to 5 years supervised release after imprisonment.
ANDERSON’S sentence this morning follows a jury trial on the gun charge in June 2012 and a guilty plea in July 2012 on the failure to register charge. At trial, officers of the Baton Rouge Police Department described how a routine traffic stop in September 2008 for a driving infraction led to ANDERSON’S arrest for felon in possession of a firearm. After a three-day trial in which ANDERSON denied possessing the firearm, the jury convicted ANDERSON of the gun charge.
Following the gun trial, ANDERSON later pled guilty to the charge of failure to register as a sex offender. He admitted that he had been previously convicted of rape in Mississippi in 1985 and had been living unregistered in a Baton Rouge apartment complex since early January 2011. ANDERSON came to the attention of authorities in March 2011 based upon a tip to Louisiana State Probation and Parole. The state probation officer provided the information to East Baton Rouge Sheriff’s Office deputies who were also members of the Marshals-led Sex Offender Locate and Arrest Team (SOLAT) in Baton Rouge. Authorities investigating ANDERSON’S failure to register learned that the defendant had also falsely registered a relative’s address in Franklin County, Mississippi, during the same time period.
ANDERSON was required to register as a sex offender in Louisiana within 3 days of moving to Louisiana pursuant to SORNA, also known as the AdamWalsh Act. The registration process would have notified ANDERSON’S neighbors of his address and status as a sex offender.
United States Attorney Cazayoux remarked, “ANDERSON’S upward departure in this case sends a message to unregistered sex offenders and felons who unlawfully possess firearms that their crimes will not be perceived as mere paperwork violations. The 84-month sentence should be a wake-up call to sex offenders who live unregistered in our district, as well as to felons who unlawfully possess firearms.”
The investigation of this matter was conducted by the U.S. Marshals Service, the East Baton Rouge Parish Sheriff’s Office, the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Baton Rouge Police Department. The case was prosecuted by Assistant United States Attorneys Susan Amundson, Chris Dippel, and Cam Le.
Holdman IndictedRead the Press Release
BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced today that a Federal Grand Jury returned an indictment on February 27, 2013 charging JAMES R. HOLDMAN with 18 (eighteen) counts of mail fraud for his role in executing a fraudulent investment scheme.
According to the indictment, HOLDMAN operated a hedge fund called Greenwing Capital Management, LLC. As the owner and operator of the fund, HOLDMAN solicited and received millions of dollars in investment funds from the victim investors. The indictment alleges that from approximately February 2008 to October 2008, HOLDMAN concealed a failed investment plan by falsely representing to the victim investors that their investments were earning positive rates of return when, in fact, HOLDMAN had lost over 98% of their funds.
The indictment alleges by making these false representations, HOLDMAN was able to conceal his failed investment plan and defraud the victim investors into keeping their remaining money with Greenwing Capital or investing more money in it, thereby allowing HOLDMAN to continue receiving money in the form of fees for his own personal use and benefit. In order to continue to conceal his fraud, HOLDMAN continued to put the victim investors’ money at risk in an attempt to recoup his losses.
FBI Special Agent-in-Charge Michael J. Anderson stated, “Those individuals who prey on a vulnerable investing public, especially during such challenging economic times, will continue to be held fully accountable.”
U.S. Attorney Donald J. Cazayoux, Jr. stated, “Prosecuting those who commit investment fraud in the district will continue to be a priority as we strive to protect the public and to deter wrongdoers.”
The case is being prosecuted by Assistant U.S. Attorney Shubhra Shivpuri. The joint investigation is being conducted by the Federal Bureau of Investigation, the Louisiana Office of Financial Institutions, the Texas State Securities Board, and the Securities and Charities Division of the Mississippi Office of the Secretary of State.
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.
Simon Guilty PleaRead the Press Release
BATON ROUGE, LA – United States Attorney Donald J. Cazayoux announced that INGRID J. SIMON, age 49, of Baton Rouge, pled guilty today before U.S. District Judge James J. Brady to using interstate facilities in aid of racketeering (bribery), in violation of Title 18, United States Code, Section 1952. SIMON faces up to five years in prison and a $250,000 fine. The sentencing date has not been set.
SIMON’s conviction is based on her taking and soliciting cash bribes on approximately thirty (30) occasions while working as a clerk at the Baton Rouge City Court from 2007 through 2010. During today’s hearing, SIMON admitted that she would take and solicit cash in exchange for causing traffic matters to be dismissed. As part of the scheme, SIMON would cause the City Court computer records to falsely reflect that the matters had been dismissed at the request of the prosecutor.
U.S. Attorney Cazayoux stated, “Our office, together with our federal, state, and local partners, will continue to aggressively and tenaciously root out public corruption wherever found. Our citizens deserve a criminal justice system based on the merits alone, free from the inequality and injustice that comes from corruption. Our local and state courts are full of many honest employees whose good work should not be overshadowed by such corruption.”
This investigation of SIMON was conducted by the Federal Bureau of Investigation. The matter is being prosecuted by Assistant United States Attorney Corey R. Amundson, who serves as the Senior Deputy Chief of the Criminal Division.
Nauman SentencingRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr., announced that ANGELIA NAUMAN, age 52, of Zachary, Louisiana, was sentenced today by U.S. District Chief Judge Brian J. Jackson to a term of imprisonment of twenty-seven (27) months.
NAUMAN had previously pled guilty to bank fraud in connection with a multi-year scheme to defraud Industrial Cooling Tower Services, Inc. (“Industrial Cooling”) located in Greenwell Springs, Louisiana. While working as the company’s office manager from 2007 through late 2010, NAUMAN admitted to embezzling $437,941.73. To execute the scheme, the defendant drafted checks payable to herself and forged the signature of company owners. NAUMAN then made false entries into Industrial Cooling’s ledgers that intentionally created the false impression that the checks were for legitimate expenses and payable to legitimate vendors.
At today’s sentencing, the Court found that NAUMAN’s fraudulent scheme caused a loss to Industrial Cooling of $437,941.73 and ordered that she pay this amount in restitution. Following her release from imprisonment, NAUMAN will also be required to serve a two-year term of supervised release.
This investigation was conducted by United States Secret Service Special Agent Kevin Bodden. The case is being prosecuted by Assistant United States Attorneys Frederick A. Menner, JR.
Black History Month ProgramRead the Press Release
BATON ROUGE, LA - Chief Judge Brian A. Jackson and Judge James J. Brady of the United States District Court for the Middle District of Louisiana and the agencies of the federal courthouse will host the Eighteenth Annual Federal Courthouse African American History Month Program at 11:00 a.m. on February 22, 2013, in Courtroom 1, on the third floor of the federal courthouse.
The featured guest speaker will be civil rights pioneer Ruby Bridges. Musical entertainment will be provided by soloist Daisha Badon.
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.Leeper SentencedRead the Press Release
BATON ROUGE, LA— United States Attorney Donald J. Cazayoux, Jr., announced that WAYNE A. LEEPER, III, age 44, of Metairie, Louisiana, was sentenced on Thursday, January 31, 2013 by United States District Court Judge James J. Brady to forty-eight (48) months of imprisonment. LEEPER was also ordered to repay the Louisiana Workforce Commission (LWC) $96,966 in restitution.
LEEPER had previously pled guilty to wire fraud and aggravated identity theft. While employed as an operations manager with a dental supply company from approximately November 2009 until May 2010, LEEPER fraudulently obtained the personal identifying information of numerous co-workers and applied for Louisiana Unemployment Insurance (UI) benefits in their names. As office manager, he enjoyed access to employee’s personnel files, which included information such as their date of birth and social security numbers. LEEPER also obtained the personal identifying information of unwitting friends and family members and applied for UI benefits in their names.
LEEPER executed his scheme to defraud by supplementing their unlawfully obtained identifiers with fictitious information regarding their place of employment and address. The addresses listed for these individuals, and for the most part, their employers, were addresses controlled by LEEPER or vacant addresses. UI funds would be wired to a debit card account created by Chase. Leeper would have the debit card sent to an address controlled by him. LEEPER would then use the funds obtained, including making numerous cash withdrawals at automatic teller machines, and using the cards at retail establishments for his own personal benefit. In total, LEEPER submitted approximately $102,219 in unemployment insurance claims to the LWC.
This investigation was conducted by United States Department of Labor, Office of Inspector General. The case was prosecuted by Assistant United States Attorney Shubhra Shivpuri.
Ndangoh SentencedRead the Press Release
BATON ROUGE, LA— United States Attorney Donald J. Cazayoux, Jr., announced that TERENCE NDANGOH, age 25, of Baton Rouge, Louisiana, was sentenced by United States District Court Chief Judge Brian A. Jackson to twenty-one (21) months of imprisonment. NDANGOH was also ordered to repay victims $138,239 in restitution
NDANGOH had previously pled guilty to wire fraud involving a fake internet business purporting to sell frozen chicken feet and other food items to prospective wholesale buyers. NDANGOH collected more than $138,000 from victims who placed orders for the frozen products which were never fulfilled.
According to the Indictment, NDANGOH created Frozen Foods to advertise the sale of food items on the internet. Frozen Foods was not licensed or registered to do business in Louisiana, and neither NDANGOH nor Frozen Foods possessed or had access to the items purportedly for sale.
In addition to creating a fictitious internet company, NDANGOH also transmitted phony licenses, permits and other business certificates to potential buyers to make Frozen Foods look like a legitimate Louisiana-based business. Once purchase details were finalized, NDANGOH emailed the buyer purchasing documents with wiring instructions. The buyer then wired a deposit for the purchase to NDANGOH. NDANGOH never fulfilled the orders or made arrangements to fulfill the orders, despite having received payment for the goods.
This investigation was conducted by United States Customs Enforcement’s Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney J. Lane Ewing, Jr.
Calmes Denied New TrialRead the Press Release
BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced that United States District Judge Lance Africk today denied a new trial request of KEVIN PAUL CALMES, 40, of Denham Springs, Louisiana. CALMES had filed a request for new trial claiming the discovery of new evidence. Judge Africk, in a 6 page opinion, rejected CALMES’ request for a new trial. Judge Africk also ordered KEVIN CALMES to report to jail on Tuesday, February 6, 2013 to begin service of his 30 month term of imprisonment in the custody of the United States Bureau of Prisons.
KEVIN CALMES and CALMES MOTORSPORTS were sentenced for their convictions on August 1, 2012 by a Baton Rouge jury. KEVIN PAUL CALMES was convicted of money laundering, one count of failure to file required reports of cash transactions, and three counts of structuring transactions in order to evade cash reporting requirements. CALMES MOTORSPORTS was convicted of one count of failure to file required reports of cash transactions and three counts of structuring transactions in order to evade cash reporting requirements.
KEVIN PAUL CALMES was sentenced to a 30 month term of imprisonment, two years of supervised release, and forfeiture of all property involved in, or used to facilitate, the money laundering and structuring transactions, including forfeiture of $24,927.99 associated with the sale of two particular motorcycles.
CALMES MOTORSPORTS was a Denham Springs dealership which marketed and sold motorcycles and all-terrain vehicles to the public. KEVIN PAUL CALMES was the sales manager of CALMES MOTORSPORTS, L.L.C. In his role at the dealership, KEVIN PAUL CALMES negotiated and knowingly approved of sales with known drug traffickers, and took various actions to conceal their spending of large amounts of cash generated from narcotics trafficking.
At trial, the United States presented evidence that CALMES MOTORSPORTS, L.L.C. and KEVIN PAUL CALMES conspired with at least seven drug traffickers to launder proceeds of narcotics trafficking and to avoid filing reports of their use of cash greater than $10,000. The laundering of drug traffickers’ cash proceeds occurred between January 2000 and April 2009.
CALMES MOTORSPORTS, L.L.C. was sentenced to pay a fine of $500,000, placed on probation for three years, and ordered to forfeit property involved in, or used to facilitate, the money laundering and structuring transactions. As a condition of probation, the company was also sentenced to certain conditions which will monitor their finances and business operation.
The convictions and sentences are the result of a lengthy investigation by agents of the Internal Revenue Service-Criminal Investigations. The case was prosecuted by Assistant United States Attorneys Rene Salomon and Shubhra Shivpuri.
Banks Guilty PleaRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr., announced that ERICK BANKS, age 31, of Baton Rouge, Louisiana, pled guilty today before Chief United States District Court Judge Brian J. Jackson to one count of conspiracy to traffic a child in the commercial sex trade. BANKS faces a sentence of up to life imprisonment, five (5) years of supervised release following imprisonment, and a fine of $250,000. The sentencing date has yet to be scheduled.
At today’s hearing, BANKS admitted that on or about January 27, 2011, he enticed the victim, a 15 year old girl, to engage in acts of prostitution. Several days earlier, on or about January 20, 2011, 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 or about January 27, 2011, in five separate transactions, the victim engaged in sexual activity in exchange for money. Each of these transactions were coordinated by BANKS and occurred in a hotel in Baton Rouge. The victim was paid approximately $1,200 to $1,800, all of which she gave to BANKS.
U.S. Attorney Donald J. Cazayoux, Jr., stated, “We will continue to be committed to uncovering and prosecuting anyone despicable enough to traffic young teenage victims in the commercial sex trade. We appreciate the strong work of the FBI in this case, and we also commend the Middle District Human Trafficking Task Force for its efforts in educating law enforcement and the public in general about combatting this heinous crime.”
This investigation was conducted by FBI Special Agent Teneka Harris and is being prosecuted by Assistant United States Attorneys Frederick A. Menner, Jr. and Susan Amundson.
Estrade IndictmentRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr. announced that an Indictment was returned today against GERALD ESTRADE for threatening to murder a former federal law enforcement officer in violation of federal law. A complaint was filed and arrest warrant issued on January 8, 2013 and Estrade was taken into federal custody at that time.
Gerald Estrade, 56, Baton Rouge, LA is charged with threatening to kill the former United States Attorney for the Eastern District of Louisiana, James “Jim” Letten, and his family.
If convicted, 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. Additionally, he may be required to serve a term of supervised release of three (3) years.
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.
Boyette SentencedRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr., announced that RICHARD GLENN BOYETTE, age 48, of Zachary, Louisiana, was sentenced today by U.S. District Judge James J. Brady to a term of imprisonment of fifty-one (51) months.
BOYETTE had previously pled guilty to mail fraud in connection with a multi-year scheme to defraud Commercial Tire of Louisiana, Inc. (“Commercial Tire”), located in Baker, Louisiana, with offices in Scott and Hammond. While working as the company’s Controller, from 2001 through late 2010, BOYETTE admitted defrauding the company and its employees. To execute the scheme, the defendant (a) created and approved fraudulent payroll checks to himself, which he was not authorized to receive; (b) obtained fraudulent payroll checks and gained control over the funds; (c) created false entries in the company’s accounting records that falsely reflected that the fraudulent payroll checks had actually been issued to other employees; and (d) prepared and distributed fraudulent W-2s that concealed the stolen funds.
At today’s sentencing, the Court found that BOYETTE’s fraudulent scheme caused a loss to Commercial Tire of more than $1.2 million. Accordingly, BOYETTE was ordered to pay restitution in the amount of $1,283,151. BOYETTE was also ordered to forfeit an additional $1,283,151 to the United States as proceeds of his crime. Following his release from imprisonment, BOYETTE will also be required to serve a two-year term of supervised release.
This investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Alan A. Stevens and James P. Thompson.
Beavers SentencedRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr., announced that RAYMOND L. BEAVERS, age 48, of Denham Springs, Louisiana, was sentenced today by U.S. District Judge James J. Brady to serve twelve months and one day in federal prison. BEAVERS was also ordered to pay $127,600 in restitution to the United States Coast Guard, and ordered to forfeit an additional $69,637.15 as proceeds of his offenses.
BEAVERS previously pled guilty to two counts of mail fraud arising out of a lengthy scheme to defraud the Coast Guard, from February 2007 through March 2008, while serving as the Supervisor of the United States Coast Guard’s Electronic Support Detachment (“ESD”) at the Eighth District in New Orleans, Louisiana. In connection with his guilty plea, BEAVERS admitted that he stole electronics equipment from the Coast Guard and sold the equipment, often using eBay and PayPal, for his own personal profit. The equipment had a value of more than $120,000.
“Today's sentencing demonstrates our commitment to fully prosecuting those who try to defraud the federal government and the American taxpayer,” said Capt. Jon Gage, commanding officer of Coast Guard Base New Orleans. “The illegal activity was uncovered and successfully prosecuted because of the staunch partnership between the Coast Guard Investigative Service, the U.S. Attorney's Office, and other federal agencies.”
U.S. Attorney Donald J. Cazayoux, Jr., stated, “We appreciate the work of the Coast Guard Investigative Service to uncover the defendant’s scheme. We will continue to work with our law enforcement partners to investigate and prosecute this type of criminal activity, especially when committed by those who occupy positions of public trust.”
This investigation was conducted by the United States Coast Guard Investigative Service and the U.S. Department of Homeland Security, Office of Inspector General, with assistance from the Louisiana State Police and the Walker Police Department.
The case is being prosecuted by Assistant United States Attorneys Alan A. Stevens and James P. Thompson.
Tax Fraud - Carr SentencedRead the Press Release
WASHINGTON – Jack Ray Carr of Baton Rouge, La., was sentenced yesterday to 78 months in federal prison for one count of corruptly interfering with the due administration of the Internal Revenue laws, four counts of filing false income tax returns, and one count of aiding and assisting in the preparation of a false income tax return, the Justice Department, Internal Revenue Service (IRS) and Treasury Inspector General for Tax Administration (TIGTA) announced. Additionally, Carr was sentenced to one year of supervised release.
On June 20, 2012, following a three-day jury trial in the Middle District of Louisiana, Carr was convicted on all six counts. The evidence at trial established that Carr, a home inspector, threatened violence against a federal agent, filed false documents and tax returns with the IRS, and attempted to pay his tax debt with fraudulent bonds, fictitious money orders, and a fake check. On three successive personal income tax returns, Carr falsely reported that his and his wife’s income was “$0.00,” despite earning hundreds of thousands of dollars in total during the 2001, 2002, and 2003 tax years. In 2009, on two tax returns, Carr falsely reported more than $100,000 of federal income tax withholdings based on fictitious IRS Forms 1099-OID attached to the tax returns that Carr filed in his own name and in the name of his wife. In doing so, Carr claimed more than $150,000 of fraudulent tax refunds from the U.S. government.
Kathryn Keneally, Assistant Attorney General of the Justice Department’s Tax Division, thanked the special agents of IRS - Criminal Investigation and TIGTA, who investigated this case. Assistant Attorney General Keneally also thanked Tax Division Trial Attorneys Justin Gelfand and Jason Poole who prosecuted this case.