Western District of Louisiana

SHREVEPORT, La: United States Attorney Stephanie A. Finley announced today that a year-long undercover investigation resulted in 15 being charged for distributing cocaine and methamphetamine in the Mansfield area. Federal and local law enforcement officials arrested 12 so far in connection with these charges.

The charges and arrests are part of the Organized Crime Drug Enforcement Task Force (OCDETF) “Operation Limpiar Casa.” The FBI, the DEA, the Desoto Parish Sheriff’s Office, the Mansfield Police Department, and the Tri-Parish Task Force which includes DeSoto, Sabine and Red River Parishes, participate in the OCDETF program and conducted the operation.

The defendants face a variety of federal and state charges. Two federal indictments and 10 state arrest warrants to date have been returned.

A federal grand jury returned the first “Operation Limpair Casa” indictment Sept. 4, 2012, charging Bartholomew Claiborne, 25, of Mansfield, with 14 counts of distributing cocaine. Claiborne, who was an elected member of the Desoto Parish School Board, is scheduled to plead guilty to one count of distributing cocaine at 9 a.m. Feb. 7, 2013, in Shreveport. Claiborne faces up to 20 years in prison if convicted.

A federal grand jury returned a second indictment Jan. 24, 2013, charging Laquon Ashton, 25, of Arlington, Texas; Seneca Colbert, 32; Brian Davis, 37; and Janette Ashton, 53, all three of Mansfield, with multiple counts including conspiracy and distribution of cocaine. Laquon Ashton and Janette Ashton are also charged with conspiracy and distribution of methamphetamine. The defendants each face 5 to 40 years in prison if convicted.

State distribution of cocaine arrest warrants related to the operation were also obtained for Malcolm Flowers, 24; Johnathan Mcintyre, 23; Curtis Jones, 27; Dominique D. Sanders, 24; Preston Malone, 32; Roderick Canada, 23; Demarcus Green, 24; Mark C. Harris, 42; Roynell O’neal, 23; and James Turner, 37, all of Mansfield.

Federal and local law enforcement officers began making arrests in connection with the case this morning. There are currently 13 defendants in custody. The defendants facing federal charges had their initial appearances before U. S. Magistrate Mark L. Hornsby at 11:00 a.m. this morning.

The following individuals are still being sought by law enforcement: Malcolm Flowers, Roderick Canada, and Roynell Oneal. Anyone with information as to their whereabouts should contact the Desoto Parish Sheriff’s Department at (318) 872-3956, or DeSoto Parish Crime Stoppers at (800) 505-STOP.

The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.

United States Attorney Stephanie Finley stated, “The U.S. Attorney’s Office, along with our federal, state, and local partners, is committed to keeping our communities safe. Breaking up this drug distribution ring is a huge step in countering the flow of these illegal substances into the community,” Finley said. “I want to thank all the agencies who have partnered with us on this operation and who continue to work to enforce both federal and state narcotics laws.”

An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

First Assistant U.S. Attorney Alexander Van Hook is prosecuting the case.

ALEXANDRIA, La: United States Attorney Stephanie A. Finley announced today that Isaac Hashi, 32, of San Diego, Calif., was sentenced on Wednesday to 18 years in prison for stabbing a federal prison guard with a makeshift knife.

Hashi pleaded guilty on Nov. 16, 2012, to one count of assaulting a prison guard and possessing contraband, which was a four-inch makeshift plexiglass knife. Hashi stabbed the guard multiple times on Nov. 4, 2009 while incarcerated at the U.S. Penitentiary in Pollock. Hashi is serving a prison term at the Pollock Penitentiary for assault after throwing hot oil on a deportation official’s face on Jan. 11, 2008, at the Columbia Care Center in South Carolina.

In addition to the 18-year sentence, he will be required to serve three years of supervised release, which he will serve after the 17-year sentence is completed for the earlier assault charge.

“Federal prison guards play a vital role in our public safety efforts. Neither the FBI or our office takes likely anyone who attempts to impede their work,” Finley said. “We hope this sentence sends a strong message that assaulting a prison guard is a serious crime that has severe consequences.”

The FBI-Alexandria, Louisiana, Resident Agency conducted the investigation. Special Assistant U.S. Attorney Robert J. France prosecuted the case.

ALEXANDRIA, La: United States Attorney Stephanie A. Finley announced today that Dianne Handy, 43, of Alexandria, La., pleaded guilty Wednesday before U.S. District Judge Dee D. Drell to defrauding more than $57,894 from Leglue Nissan where she was office manager.

Handy pleaded guilty to one count of bank fraud involving credit card transactions she processed through Peoples State Bank. According to court documents, Handy fraudulently caused Leglue Nissan in Alexandria to issue refunds to her own credit cards more than 72 times between July 2009 and July 2011 for a total of $57,894. As office manager, Handy was responsible for handling the dealership’s daily cash deposits, processing credit card transactions and making salary payments.

Handy faces a maximum penalty of 30 years in prison, a $1 million fine or both, and five years of supervised release for the count of bank fraud. Handy is scheduled to appear April 3, 2013, for sentencing in U.S. District Court in Alexandria.

The U.S. Secret Service, Baton Rouge Office, conducted the investigation. Assistant United States Attorney Howard Parker is prosecuting the case.

LAFAYETTE, La: United States Attorney Stephanie A. Finley announced today that Larry Wayne Bruce, 60, of Leesville, pleaded guilty Tuesday before U.S. District Judge Richard T. Haik to two counts of failure to pay taxes.

Bruce pleaded guilty to one count of the pending indictment for admitting to his failure to pay the proper amount of payroll taxes owed to the Internal Revenue Service while working as a financial officer at Express Marketing Incorporated in Leesville from 2003 to 2007. Bruce admitted it was his responsibility to pay the payroll taxes withheld from EMI employees, and also admitted to taking more than $190,000 in excess of his salary from EMI.

Bruce also pleaded guilty to another count of the pending indictment, where he admitted to not paying his personal taxes from 2005 until he left the company in 2007.

Bruce could face up to five years in prison, a fine of $250,000 or both with three years of supervised release on the first count, and he could face up to one year in prison, $25,000 in fines or both with one year supervised release for the other charge. Sentencing has not been scheduled.

The Internal Revenue Service conducted the investigation. Assistant U.S. Attorney Myers Namie prosecuted the case.

SHREVEPORT, La: United States Attorney Stephanie A. Finley announced today that Curtis Roller, 56, of Jonesboro, was indicted Thursday by a federal grand jury for 11 counts of wire fraud after obtaining Federal Emergency Management Agency grants and four counts of making false statements on workers compensation forms.

According to the indictment, from Jan. 1, 2002 to Dec. 31, 2010, Roller submitted false information on grant applications he sent to FEMA so Louisiana and Arkansas fire departments he wrote grants for were eligible to receive the funds. Roller is accused of inflating population data, agency coverage areas and numbers of responded calls on the FEMA grant applications. He also is accused of overstating the type of calls responded to, under-reporting the size of budgets and increasing the scope of their needs on the applications.

It is further alleged in the indictment that Roller asked those awarded the FEMA grants to purchase equipment from his two companies, Louisiana Firefighters Services and a vehicle manufacturing company in Smyrna, Ga. It is against FEMA rules and policies for a grant writer to financially benefit from money awarded.

Also as part of the indictment, Roller was accused of not reporting income on his workers compensation form when he filed for benefits from Oct. 29, 2007 to March 28, 2008. At the time, he was employed at the U.S. Postal Service when he filed his claim. He did not report that he was receiving income from his job as a fire chief of the Ward 4 Fire Protection District in the Jonesboro area. He also received income as owner of his fire services and vehicle manufacturing companies.

If convicted, Roller faces a maximum penalty of 20 years in prison, a $250,000 fine, or both on each count of wire fraud and a maximum penalty of five years in prison, a $250,000 fine or both for each count of false statements.

Roller will appear for arraignment in U.S. District Court in Monroe at a date and time to be scheduled by the Court.

An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

The U.S. Department of Homeland Security, U.S. Postal Service/Office of Inspector General, and the U.S. Department of Labor/Office of Inspector General conducted the investigation. Assistant U.S. Attorney Earl Campbell is prosecuting the case.

More than $400,000 worth of illegal hormones sold

SHREVEPORT, La: United States Attorney Stephanie A. Finley announced today that Dr. Linda Camille Bunch Wells, 53, of Monroe, was sentenced Thursday to 27 months in federal prison and ordered to forfeit $200,000 in criminal proceeds for importing and distributing adult growth hormones.

In June 2010, Wells was charged in a 21-count indictment with conspiracy, distribution, and facilitation and receipt of smuggled hGH. She was administering the growth hormones at the Northeast Louisiana Anti-Aging and Wellness Center in Monroe from July 2003 until July 2008. The hormones were part of a so-called anti-aging program for patients. Most of the hormones administered were illegally imported into the U.S. Wells and her business partners would buy the drugs overseas, and the packages would be labeled non-medial products in order to pass through U.S. Customs.

Under federal law, growth hormones may only be used for the treatment of specified diseases. Although Wells was only held accountable for distributing $200,000 in illegal growth hormones, evidence at sentencing revealed that the company administered more than 26,926 units of the hormones over the five-year period totaling more than $406,000 in sales.

“We will prosecute those who circumvent the law to provide controlled substances to patients for personal gain, ”U.S. Attorney Stephanie A. Finley said. “Those involved in this operation knowingly obtained these hormones illegally and released them into the community with no concern for the safety of those who were taking them.”

The Food and Drug Administration/Office of Criminal Investigations and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Earl Campbell prosecuted the case.

More than $600,000 stolen from Medicare based on false claims

SHREVEPORT, La: United States Attorney Stephanie A. Finley announced today that Godspower Joseph Essang, 35, of Houston, Texas, was sentenced today, to 37 months in federal prison with three years supervised release for Medicare fraud.

Essang was also ordered to pay $613,096 in restitution to Medicare. Judge Maurice S. Hicks immediately remanded Essang into the custody of the U. S. Marshal’s Service to begin serving his sentence.

Essang was sentenced based on his Sept. 28, 2012, guilty plea to one count of health care fraud. During the guilty plea hearing, Essang admitted owning and operating Shalom Equipment, a durable medical equipment company, located on Woodward Avenue in Shreveport. Shalom engaged in the business of providing what were referred to as “ortho kits,” which were braces for various parts of the body. Essang admitted paying individuals to provide him with their Medicare beneficiaries and physicians information. He then used this identifying information to file false claims with Medicare for providing the “ortho kits” to Medicare beneficiaries who did not need, were not prescribed and/or did not receive the items. Essang admitted that between Aug. 12, 2007 and Oct. 21, 2008, he filed approximately 736 claims, billing Medicare for $1,223,255. Medicare actually paid out $613,096 on the claims.

“Mr. Essang’s scheme was designed to defraud a program whose sole purpose is providing medical services to the elderly and the disabled,” U.S. Attorney Stephanie A. Finley stated. “His actions defrauded the program and, ultimately, U.S. taxpayers. This office will continue to vigorously pursue charges against those who steal from such programs.”

“Durable medical equipment fraud is a major problem that costs taxpayers billions in lost and wasted dollars,” said William W. Root, Assistant Special Agent in Charge, U.S. Department of Health and Human Services. “Today’s sentencing is the culmination of a concerted and joint effort by our Inspector General’s Office, the U.S. Attorney’s Office and the Federal Bureau of Investigation to quickly bring to justice those who prey on our elderly for financial gain.”

The FBI and the U. S. Department of Health and Human Services, Office of the Inspector General, conducted the investigation. Assistant U.S. Attorney C. Mignonne Griffing prosecuted the case.

ALEXANDRIA, La.: United States Attorney Stephanie A. Finley announced today that U.S. District Judge Dee D. Drell sentenced former federal inmate Jose Rueperto Alaniz, 39, of Wichita Falls, Texas, to 24 months in prison with three years supervised release and Diana Castillo, 31, also of Wichita Falls, Texas, to three months in prison with three years supervised release for attempting to smuggle heroin into the U.S. Penitentiary in Pollock. The sentence was handed down yesterday in federal court in Alexandria.

Investigation of the case revealed that Castillo visited Alaniz on May 22, 2010, in the Pollock Penitentiary visiting room. Prison officials observed Alaniz remove something from Catillo’s waistband. They then saw Alaniz place the object in his own jumpsuit. A search of Alaniz later revealed two small packages of approximately 74.8 grams of black tar heroin.

At the time, Alaniz was in prison for violating supervised release relating to a distribution of cocaine charge and left the prison Sept. 29, 2010 after completing time served for that offense. He will now return to federal prison to serve time for the contraband charge.

The FBI, Alexandria, Louisiana Resident Agency conducted the investigation. Senior Litigation Counsel Joseph G. Jarzabek and Special Assistant U.S. Attorney Robert J. France prosecuted the case.

Alexandria, La.: United States Attorney Stephanie A. Finley announced that James Lamar Kelly, age 62, of Sikes, La., was sentenced today to a total of 41 months in prison for his convictions on four felony counts related to his firing shots at a Louisiana Army National Guard helicopter. U. S. District Judge Dee D. Drell also sentenced Kelly to three years supervised release at the completion of his prison term and forfeiture of the firearm.

Kelly was convicted by a jury in September 2012 of three counts of endangering the safety of the pilot of a Louisiana Army National Guard helicopter in flight, committing an act of violence against the pilot, and using a deadly and dangerous weapon to forcibly assault, resist, oppose, impede, intimidate and interfere with the pilot. Kelly was also sentenced for his conviction of theft of United States mail.

Testimony at trial showed that on August 2, 2010, the Louisiana State Police and the Winn Parish Sheriff’s Office were conducting a marijuana eradication program detail in Winn Parish. Louisiana Army National Guard (LANG) Counter-Drug Task Force helicopters based at Camp Beauregard in Pineville were assisting in this program by providing pilots and helicopters for the Louisiana State Police to conduct aerial surveillance. The LANG Counter Drug Task Force is funded and staffed by the U.S. Department of Defense. A Louisiana State Trooper was in each helicopter to make observations of areas where it was suspected marijuana was being cultivated. At about 3:00 p.m., on Shell Road near Sikes, La., one of these helicopters was fired upon by a person on the ground. The pilot took evasive action and immediately left the area. He landed at the airport in Natchitoches and inspected the helicopter for damage. No bullet holes were noted. Neither the pilot nor the Trooper on board was injured. Soon thereafter, Louisiana State Police Troopers, Winn Parish Sheriff’s Deputies, and a Louisiana Wildlife and Fisheries Agent located and arrested James Lamar Kelly without incident. They also recovered the 9 mm semi-automatic handgun that Kelly used to shoot at the helicopter.

While at Kelly’s house, Troopers noted a large amount of undelivered mail in various vehicles parked in Kelly’s yard. Kelly was working for a private contractor who had a contract to deliver mail to more than 160 U.S. Postal Service customers on a rural route in Winn Parish. Kelly admitted to U.S. Postal Service, Office of Inspector General Special Agents that instead of delivering this and other mail on his route, he brought it back to his house where he kept it until he either placed it in a dumpster or burned it. Kelly admitted that he had been doing this for approximately four years. Kelly entered a guilty plea to the theft of mail charge on August 23, 2012, but went to trial on September 11, 2012 for the charges of firing shots at the helicopter.

U.S. Attorney Finley stated, “Firing shots at any aircraft are not actions to be taken lightly. Kelly’s acts endangered both those on the aircraft and those on the ground. This Army National Guard helicopter pilot was performing an important mission in assisting the State Trooper on board and State Police Troopers and Winn Parish Sheriff’s Deputies on the ground in their drug eradication program. Luckily, no one was hurt by the defendant’s dangerous and illegal conduct. Kelly’s prison sentence reflects the seriousness of his offense.”

This case was investigated by the Louisiana State Police, Region II in Alexandria, the United States Postal Service, Office of Inspector General Office, and the FBI. It was prosecuted by Assistant United States Attorney Robert W. Gillespie Jr.

LAKE CHARLES, La.: United States Attorney Stephanie A. Finley announced today that Edward Rodriguez, 39, an inmate at Pollock USP, was sentenced today to an additional two years in prison for assaulting a Bureau of Prison employee.

Edward Rodriguez assaulted a USP Pollock officer while the officer was engaged in the performance of his duties. Rodriguez was standing in front of the officer’s station when he assaulted another inmate. The inmate ran into the officer’s station for protection. An officer went to his aid, and Rodriguez shoved the officer in the chest before turning around and fleeing from the officer’s station.

Rodriguez is currently serving a 154-month term of imprisonment for aiding and abetting armed bank robbery, and aiding and abetting the use of a firearm during a crime of violence.

The investigation was conducted by the FBI and the Special Investigative Services for The Bureau of Prisons at Pollock. The case was prosecuted by Senior Litigation Counsel Joseph G. Jarzabek and Special United States Attorney Seiji Ohashi.

SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that Nobryan McGee, 24, of Plain Dealing, La., pled guilty on Wednesday to traveling across state lines and failing to register as a convicted sex offender. In March 2006, McGee was convicted in Benton, La. of simple rape, and in May of 2012, McGee relocated from Caddo Parish to Hot Springs, Ark., without properly registering as a sex offender in Louisiana and Arkansas.

Failure to Register as a Sex Offender and Traveling Across State Lines carries a maximum term of 10 years in prison, a $250,000 fine, or both. McGee will be sentenced by U.S. District Judge S. Maurice Hicks on May 15, 2013 at 1:30 p.m.

The case was investigated by Deputy United States Marshall T.C. Bloxom and is being prosecuted by Assistant United States Attorney Earl M. Campbell.

LAFAYETTE, La.: United States Attorney Stephanie A. Finley announced today that Jason Daniel Scott, 30, of New Iberia, La., was sentenced to serve 235 months in federal prison for possession of child pornography. The sentence was handed down this week by U.S. District Judge Richard T. Haik in federal court in Lafayette, La. In addition to the prison term, the judge also sentenced Scott to 10 years of supervised release, following confinement.

Scott pleaded guilty in July of 2012, to receiving child pornography. According to court documents previously filed with the court, an undercover investigation revealed that the defendant was using Limewire to receive child pornography. Limewire is an internet peer to peer site used to trade files among members and is regularly used to distribute child pornography. Pursuant to a search warrant executed at Scott’s residence, a forensic examination of his computer revealed that Scott received a video via the internet on July 14, 2010, which contained a prepubescent child engaging in sex with an adult. There were
11 videos found on Scott’s computer, all including prepubescent children engaging in sexual activities with adult men.

U.S. Attorney Finley stated, “Child pornography is one of the most disturbing crimes in this country. The children in these videos are victimized by being sexually exploited, and they are re-victimized as the images are distributed over and over again. The U.S. Attorney's Office, along with our federal state and local law enforcement partners, have made these prosecutions a priority and will continue our efforts to protect children.”

The case was investigated by Homeland Security Investigations (HSI). The case was prosecuted by Assistant United States Attorney John Luke Walker.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-DHS-2ICE. This hotline is staffed around the clock by investigators.

LAFAYETTE, La.: United States Attorney Stephanie A. Finley announced today that Jose Luis Regalado, aka “Tito,” 34, a member of a drug trafficking organization based out of Vermilion Parish, was sentenced yesterday by U.S. District Judge Elizabeth E. Foote, to serve 20 years in federal prison, followed by five years of supervised release. The sentence was the result of Regalado pleading guilty on September 11, 2012, to Conspiracy to Possess with Intent to Distribute Methamphetamine and Cocaine.

Regalado and 11 co-defendants were indicted in June of 2009 on a variety of drug trafficking and firearms charges, along with unlawful use of communication facilities. Evidence revealed that this drug trafficking organization was responsible for the movement and sale of methamphetamine and cocaine from Mexico into the United States, and distribution throughout the Acadiana area. Regalado and his co-conspirators possessed and distributed kilos of methamphetamine and cocaine. The defendant admitted that he formed this drug organization, along with another co-conspirator, and was a decision maker in the organization, but could not speak English, so his brother began dealing with the Americans. Regalado had a source of supply in Arizona and developed a secondary source of supply for the conspiracy in Houston. The defendant's couriers were often armed with weapons while transporting the illegal substances. Regalado acknowledged that he was specifically responsible for the distribution of approximately 10 kilograms of methamphetamine and approximately 5 kilograms of cocaine.

United States Attorney Stephanie A. Finley stated, “Drug trafficking of any kind is a threat to our communities. This defendant was a part of a dangerous organization dealing in illegal narcotics in the Acadian area. The U. S. Attorney’s Office, along with the Drug Enforcement Administration and local and state law enforcement agencies, will continue to work in partnership to stem the flow of drugs into our neighborhoods. We are committed to holding drug dealers, from the couriers to the leaders, accountable to keep our communities safe.”

This case was investigated by the Drug Enforcement Administration (DEA), Lafayette, La. Post of Duty, the Vermilion Parish Sheriff’s Office and the Lafayette Metro Narcotics Task Force and was prosecuted by United States Attorney Stephanie A. Finley.

Defendant Ordered to Pay $175,923.93

LAFAYETTE, La.: United States Attorney Stephanie A. Finley announced today that the former owner of Rest Assure Home Medical Equipment, located in Rayne, La., was sentenced to five years probation and was ordered to pay $175,923.93 in restitution for health care fraud related to Medicare reimbursements. The sentence was handed down yesterday in federal court in Lafayette by U.S. District Judge Elizabeth E. Foote.

Dorothy Cole, age 60, of Rayne, La., was charged by Bill of Information on June 20, 2012, with five counts of health care fraud. According to court documents filed at Cole’s guilty plea on September 18, 2012, she was the owner and president of Rest Assure Home Medical Equipment. Rest Assure Home Medical Equipment provided durable medical equipment, such as power wheelchairs and scooters to Medicare beneficiaries. Beginning in August of 2007 and continuing through April of 2009, Cole billed Medicare for a more expensive type of wheelchair but provided her customers with cheaper scooters that were not reimbursable by Medicare and less expensive wheelchairs that were reimbursed by Medicare at a lower rate.

During the guilty plea hearing, Cole acknowledged that she submitted false claims to Medicare and obtained $175,923.93 in Medicare reimbursements to which she was not entitled.

U.S. Attorney Finley stated: “Dorothy Cole violated the law when she collected money from Medicare under false pretenses. Medicare is designed to help Americans, age 65 and older, and younger people, with disabilities. This type of fraud undermines the system and hurts those who are in need of its benefits. Medicare fraud results in the losses of millions of dollars every year. Our office is dedicated to prosecuting those who engage in this type of fraud.”

The case was investigated by the Department of Health & Human Services, Office of Inspector General, and the FBI-Lafayette Resident Agency, and is being prosecuted by Assistant U.S. Attorney Kelly P. Uebinger.

LAFAYETTE, La.: United States Attorney Stephanie A. Finley announced today that the former manager for Beauregard Ranch & Tractor Supply, located in DeRidder, La., was sentenced yesterday in federal court in Lafayette by U.S. District Judge Elizabeth E. Foote, to five years probation. Arnold Russell Williams, 53, of Singer, La., was also ordered to pay restitution in the amount of $135,228.84. The sentence was handed down as a result of Williams pleading guilty on September 13, 2012, to wire fraud charges related to his embezzlement of funds associated with customer accounts.

Williams, along with his wife, Janet L. Williams, was charged in February of 2006, with conspiracy to commit wire fraud and aggravated identity theft. As manager of Beauregard Ranch & Tractor Supply (BRATS) during August 2, 2000 through January 8, 2001, Arnold Williams, along with the assistance of his wife, Janet, used customer account information to submit false electronic account information and invoices to Farm Plan Credit Financial (The Plan). Some of the BRATS customers used Farm Plan Credit accounts, which were provided by Farm Plan Credit Financial, as a means to make credit purchases for John Deere equipment. After Arnold Williams submitted the false information, The Plan would then reimburse BRATS directly by electronically wiring funds into the BRATS’ bank account for false credit charges that were submitted. When the customers received their billing statements, they contacted BRATS and were informed by Arnold Williams that they had been billed by mistake due to a computer error. BRATS customers told investigators that they did not order any of the items for which they were billed, did not ask for quotes or prices for any of the items, and did not receive any items for which their accounts were billed.

The case was investigated by the FBI-Lake Charles Resident Agency and prosecuted by U.S. Attorney Stephanie A. Finley.

Defendant Ordered to Pay $269,282.00 in Restitution

LAFAYETTE, La.: United States Attorney Stephanie A. Finley announced today that Hazel A. Broussard, 52, of Duson, La., was sentenced this week to two years in prison followed by three years of supervised release for mail fraud. U.S. District Judge Richard T. Haik also ordered the defendant to pay $269,282 in restitution to the United States.

Broussard entered a plea of guilty on July 18, 2012, to one count of mail fraud. According to documents filed with the court, Broussard received Social Security Administration (SSA) benefits over a 27 year period to which she was not entitled. The SSA benefits were intended for her uncle, whom she lived with in Lafayette during the last few weeks of his life. After her uncle’s death, Broussard failed to inform the SSA, causing the SSA to keep sending the checks. As a result of her scheme, Broussard fraudulently obtained $269,282 from the SSA.

United States Attorney Finley stated, “Abuse of Social Security disability benefits hurts those who are truly in need of assistance because they are injured or are no longer able to work. This type of fraud is unacceptable, and the U.S. Attorney’s Office, along with the Office of Inspector General, is committed to aggressively pursuing criminals who steal from the Social Security Administration.”

The case was investigated by Special Agent Dirk Bergeron of the Office of Inspector General, Social Security Administration, Baton Rouge Resident Agency, and was prosecuted by Assistant United States Attorney Joseph T. Mickel.

LAFAYETTE, La.: United States Attorney Stephanie A. Finley announced today that Greg Williams, 44, of Lafayette, La., an Assistant District Attorney for the 15th Judicial District, pled guilty to a one- count Bill of Information charging Williams with Conspiracy to Commit Bribery. His secretary, Denease Curry, 46, of Broussard, La., also pled guilty to a separate one-count Bill of Information charging her with Misprision of a Felony, that is, failure to report the bribery scheme.

The following admissions were made by Williams and Curry in their factual stipulations entered during the guilty plea hearings in open court before Magistrate Judge Patrick J. Hanna:

The District Attorney's Office had previously established a process by which select individuals could receive what was referred to as “immediate 894 pleas” on OWI cases. In order to qualify for the “immediate 894 plea,” the charged individuals had to provide certifications at the time of the plea that they had completed all legal prerequisites, including community service, a substance abuse program, and a driver safety program. If the District Attorney authorized the “immediate 894 plea,” their case was not placed on any docket, and they were allowed to plea at a time and place different than the normal OWI docket. Following the entry of the “immediate 894 plea,” the judge would immediately grant the 894 motion dismissing the conviction, which served as an acquittal, thereby enabling those OWI defendants to immediately reinstate their driving privileges.

Beginning in 2010, Williams and Curry became aware that Barna Haynes, the former office administrator and secretary to the District Attorney for the 15th Judicial District, and another individual, (hereafter referred to as co-conspirator #1) were utilizing the “immediate 894 plea” sessions to provide favorable dispositions of OWI cases for individuals who were willing to pay co-conspirator #1. Williams served as the prosecuting attorney in all of the “immediate 894 sessions” conducted for co-conspirator #1’s “clients,” and Curry assisted in coordinating those sessions. Both Williams and Curry were aware that the individuals were paying co-conspirator #1 for being allowed to plead in the “immediate 894 sessions.” Williams and Curry also were aware that co-conspirator #1 was not licensed to practice law.

Curry was regularly contacted by Barna Haynes to help coordinate the “immediate 894 sessions.” At the request of Barna Haynes, Curry would contact the district judge’s chambers for the purpose of setting the session, give the judge’s staff the names of the OWI defendants who were to plead guilty, and obtain a date and time for the upcoming session. Curry would contact co-conspirator #1 informing him of the date and time for the “immediate 894 session.” Curry prepared the OWI files for the “immediate 894 sessions” and would regularly see and interact with co-conspirator #1. On the day of the “immediate 894 session,” co-conspirator #1 would escort his “client” to Assistant District Attorney Greg Williams’ office, and Williams would explain to the “client” what he or she could expect to occur during the “immediate 894 session.”

In 2010, co-conspirator #1 began giving gifts to Curry. That same year, Barna Haynes took an extended medical leave of absence from the District Attorney’s Office. Nevertheless, Haynes continued to coordinate the “immediate 894 sessions” for coconspirator #1’s “clients.” Because of Haynes absence, both Haynes and co-conspirator #1 turned to Curry for additional assistance in coordinating the “immediate 894 sessions.” During this period, co-conspirator #1 began making a series of $200 cash payments to Curry. After the initial payment from co-conspirator #1, Curry spoke to Barna Haynes of her concerns about the payment. Barna Haynes informed Curry that she was also receiving payments from co-conspirator #1. Curry received approximately eight payments from coconspirator #1 totaling $1,600.

In 2010 and 2011, co-conspirator #1 gave Williams a series of gifts and a cash payment as a reward for his participation in the “immediate 894 sessions.” The gifts included an autographed New Orleans Saints hat, bicycles and clothing for Williams and family members. In December 2011, co-conspirator #1 gave Williams a cash payment of $500. This occurred in Williams’ office at the District Attorney’s Office.

At sentencing, Williams faces a term of imprisonment of up to five years, a fine of up to $250,000, or both, and a term of supervised release of not more than three years, following confinement, and Curry faces a term of imprisonment of up to three years, a fine of up to $250,000.00, or both, and a term of supervised release of not more than three years, following confinement. Sentencing will be scheduled at a later date.

U.S. Attorney Finley stated, “There is no place for this kind of activity in the criminal justice system. Both Williams and Curry were entrusted with the responsibility of ensuring that justice was served as it related to the OWI cases. They grossly violated that trust. My office, along with the FBI, will continue to investigate and prosecute corruption in the Western District of Louisiana.”

Special Agent in Charge of the Federal Bureau of Investigation, New Orleans Division, Michael Anderson, stated, “Given the high degree of authority and discretion of any District Attorney’s Office in resolving criminal charges and the associated impacts on victims, the FBI remains fully committed to rooting out corruption that obstructs that process in any way.”

For additional details regarding Williams’ and Curry’s guilty pleas, see attached copies of each defendant’s Plea Agreement and Factual Basis.

The case is being investigated by lead agent Doug Herman, with the FBI, and is being prosecuted by Assistant U.S. Attorneys John Luke Walker and Richard Willis.

SHREVEPORT, La.: United States Attorney Stephanie A. Finley announced that Alcides Roman, age 53, of Ocoee, Florida, was sentenced Monday to 41 months in prison and 3 years supervised release for defrauding $340,000 from individuals in Louisiana seeking business loans. The sentence was handed down by United States District Judge Tom Stagg. Roman was also ordered to pay $340,000 to his victims.

In November 2007, Roman, doing business as Amstar Investment Properties, procured wire transfers of money from two different advanced fee contracts. The first transfer involved a wire transfer of $200,000 by an individual looking for financing on several properties in Alabama and Florida. Roman represented that he could secure financing in the amount of $26 million for an advance fee of $200,000. The individual sent the money as requested but never received the financing or a refund on the fee as promised. The investigation revealed a second set of victims in Texas who also sent money in November of 2007.

Roman pleaded guilty to wire fraud in September 2012. He is to report to the Bureau of Prisons on February 25, 2013.

The case was investigated by the FBI-Shreveport Resident Agency, and was prosecuted by Senior Litigation Counsel Joseph G. Jarzabek.

Deadline for grant proposals is March 11, 2013

United States Attorney Stephanie A. Finley announced today that the Department of Justice (DOJ), the Office of Justice Programs (OJP), and the Bureau of Justice Assistance (BJA) is seeking applications for funding of grants under the Violent Gang and Gun Crime Reduction Program, also known as Project Safe Neighborhoods. This program furthers the Department of Justice’s mission and violent crime reduction strategy by providing support to state, local and tribal efforts to reduce gun and gang-related violent crime. Contingent on the availability of funds, grant awards totaling $300,000 are possible in the Western District of Louisiana to fund new and current comprehensive gun crime reduction strategies and gang violence reduction strategies. The deadline to apply is March 11, 2013.

The 2013 Competitive Grant Announcement can be found at http://www.bja.gov/Funding/13PSNsol.pdf.

Various types of single or multi-grantee grant applications are welcome including those that address the following:

1. Gang violence and gun violence reduction, deterrence, prevention, community outreach, and education;
2. Enforcement, adjudication, and supervision programs;
3. Prisoner Reentry Programs; or
4. Other innovative related projects.

To apply, applicants must first register at www.Grants.gov. Once registered, applicants must submit applications through www.Grants.gov. Complete instructions on how to register and submit an application is at www.Grants.gov. The deadline to apply is March 11, 2013.

Applicants can contact the www.Grants.gov Customer Support Hotline for technical assistance with submitting an application at 800-518-4726 or 606-545-5035 or by e-mail to [email protected]. Applicants may also contact Robert W. Gillespie, Jr., Assistant U. S. Attorney and PSN and Anti-Gang Coordinator for the Western District of Louisiana, at (318) 676-3600 for additional information.

For more information regarding the Project Safe Neighborhoods Program, please visit the Western District of Louisiana U.S. Attorney's Office website at: http://www.usdoj.gov/usao/law/programs/projectsafe.html as well as www.psn.gov and http://www.ojp.usdoj.gov/BJA/grant/psn.html.

Acknowledges Receiving $55,000 in Bribes

LAFAYETTE, La.: United States Attorney Stephanie A. Finley announced today that Barna D. Haynes, 58, of Lafayette, La., the former office administrator and secretary to the District Attorney for the 15th Judicial District, pled guilty to a one count Bill of Information charging Haynes with Conspiracy. According to the Bill of Information, beginning in approximately March of 2008 and continuing until February 27, 2012, Haynes conspired to accept bribes from a co-conspirator in return for Haynes’ assistance in obtaining favorable resolutions of criminal cases pending in the 15th Judicial District.

The following are admissions made by Haynes in a factual stipulation during the guilty plea hearing in the open court before Magistrate Judge Patrick J. Hanna:

Haynes knew at the time she accepted the bribes that the co-conspirator was soliciting and receiving large payments from individuals with criminal cases pending with the District Attorney's Office. Haynes also knew that the co-conspirator has never been licensed to practice law. The cases for which Haynes received payments from the coconspirator involved a variety of crimes, both felonies and misdemeanors, the majority of which were Operating a Vehicle While Intoxicated (OWI) cases.

The Louisiana Code of Criminal Procedure Article 894 provides a procedure by which a person can initially plead guilty to a crime with the understanding that the conviction will be set aside if the person successfully completes certain requirements imposed during a probationary period.

The District Attorney's Office had previously established a process by which select individuals could receive what was referred to as “immediate 894 pleas” on OWI cases. In order to qualify for the “immediate 894 plea,” the charged individuals had to provide certifications at the time of the plea that they had completed all legal prerequisites, including community service, a substance abuse program, and a driver safety program. If the District Attorney authorized the “immediate 894 plea,” their case was not placed on any docket, and they were allowed to plea at a time and place different than the normal OWI docket. Following the entry of the “immediate 894 plea” the judge would immediately grant the 894 motion dismissing the conviction, which served as an acquittal, thereby enabling those OWI defendants to immediately reinstate their driving privileges.

Beginning in 2008, Haynes began placing OWI cases of the co-conspirator’s “clients” in the immediate 894 process without the District Attorney's knowledge and approval. Haynes would coordinate the scheduling and execution of special immediate 894 sessions with the District Court Judge and the assigned Assistant District Attorney. These special sessions were exclusively for the co-conspirator’s “clients.” Haynes also prepared the expungement paperwork associated with the co-conspirator's client's cases. In return for coordinating these 894 sessions, Haynes was paid $500 per case by the co-conspirator.

While the co-conspirator paid Haynes primarily to facilitate “immediate 894 pleas” in OWI cases, he also paid Haynes to facilitate the resolution of other cases including drug cases, other felony cases, and non-OWI misdemeanor cases. Haynes admitted that the bribe payments she received during the term of the conspiracy totaled $55,000. However, the prosecution contends that the bribe payments exceeded $70,000.

At sentencing, this defendant faces a term of imprisonment of up to five years, a fine of up to $250,000, or both, and a term of supervised release of not more than three years following confinement. Sentencing will be scheduled at a later date.

United States Attorney Finley stated, “Corruption in the District Attorney’s Office erodes public confidence in the fair prosecution and resolution of criminal cases and threatens to undermine our judicial system. My office, along with the FBI, is committed to aggressively investigating and prosecuting those who try to advance their personal agendas through bribery.”

For additional details regarding Haynes’ guilty plea, see attached a copy of the Plea Agreement.

The case is being investigated by lead agent Doug Herman with the FBI and is being prosecuted by Assistant U.S. Attorney John Luke Walker.

United States Attorney Finley is available for comment and can be reached at (337) 262-6618.

Shreveport, La.: United States Attorney Stephanie A. Finley announced today that a Massachusetts man was sentenced to serve 45 years in prison for his participation in an international criminal network, known as Dreamboard, which was dedicated to the sexual abuse of children and the creation and dissemination of graphic images and videos of child sexual abuse throughout the world.

David Ettlinger, aka "ee1," 35, of Newton, Mass., was sentenced by U.S. District Judge Maurice Hicks in the Western District of Louisiana. In addition to his prison term, Ettlinger was sentenced to lifetime supervised release.

“David Ettlinger will spend 45 years in prison for his role in a horrific international conspiracy to sexually exploit young children,” said Assistant Attorney General Breuer. “Ettlinger participated in a criminal online community that encouraged members to regularly produce content depicting extreme sexual abuse of children. The members of Dreamboard attempted to evade law enforcement by disguising their locations, but today's sentencing is a strong reminder that the department is dedicated to working with its law enforcement partners to track down child predators who seek to take advantage of our most vulnerable citizens.”

United States Attorney Finley said, “Sexual abuse is a growing problem around the world, and it has devastating consequences for the victimized children. Child pornography on the internet is another growing problem. In addition to the abuse these children suffer, images of the abuse circulate worldwide across the internet for many years, repeating the abuse. Children should not be victims. This sentence sends a strong message to people who abuse children that they will pay a heavy price for their actions. My office, along with our federal, state and local partners, remains committed to protecting children by aggressively pursuing, prosecuting and punishing those who seek to exploit them.”

“The sexual abuse of an innocent child by a teacher is one of the most heartbreaking violations of trust imaginable,” said HSI New Orleans Special Agent in Charge Parmer. “Investigating and prosecuting the perpetrators of these horrendous crimes is one of our highest priorities and today's sentencing ensures this predator will never again have the opportunity to harm another child.”

On August 15, 2012, Ettlinger pleaded guilty to one count of engaging in a child exploitation enterprise. Evidence presented in court revealed that Ettlinger, a former elementary school teacher in Newton, Mass., had been an active member of Dreamboard, an online child pornography bulletin board, since 2009.

Ettlinger was charged in an indictment unsealed on August 3, 2011. The charges against Ettlinger are the result of Operation Delego, an ongoing investigation launched in December 2009 that targeted individuals around the world for their participation in Dreamboard. Dreamboard was a private, members-only, online bulletin board that was created and operated to promote pedophilia and encourage the sexual abuse of very young children, in an environment designed to avoid law enforcement detection.

A total of 72 individuals, including Ettlinger, have been charged as a result of Operation Delego. To date, 57 of the 72 charged defendants have been arrested in the United States and abroad. Forty-five individuals have pleaded guilty, and one was convicted after trial. Forty-two of the 45 individuals who have pleaded guilty for their roles in the conspiracy have been sentenced to prison and have received sentences ranging between 10 years to life in prison. Three defendants have received life sentences, to include the one defendant who was convicted at trial. Fifteen of the 72 charged individuals remain at large and are known only by their online identities. Efforts to identify and apprehend these individuals continue. Operation Delego represents the largest prosecution to date in the United States of individuals who participated in an online bulletin board conceived and operated for the sole purpose of promoting child sexual abuse, disseminating child pornography and evading law enforcement.

Ettlinger and other Dreamboard members traded graphic images and videos of adults molesting children 12 years-old and under, often violently, and collectively created a massive private library of images of child sexual abuse. The international group prized and encouraged the creation of new images and videos of child sexual abuse.

Dreamboard members employed a variety of measures designed to conceal their criminal activity from detection by law enforcement. Members communicated using aliases or "screen names," rather than their actual names. Links to child pornography posted on Dreamboard were required to be encrypted with a password that was shared only with other members. Members accessed the board via proxy servers, which routed internet traffic through other computers so as to disguise a user's actual location and prevent law enforcement from tracing internet activity. Dreamboard members also encouraged the use of encryption programs on their computers, which password-protect computer files to prevent law enforcement from accessing them in the event of a court-authorized search.

Membership was tightly controlled by the administrators of the bulletin board, who required prospective members to upload child pornography portraying children 12 years of age or younger when applying for membership. Once they were given access, members were required continually to upload images of child sexual abuse in order to maintain membership. Members who failed to follow this rule would be expelled from the group.

Operation Delego involved extensive international cooperation to identify and apprehend Dreamboard members abroad. Through coordination between ICE; the Department of Justice; Eurojust, the European Union's Judicial Cooperation Unit; and dozens of law enforcement agencies throughout the world, 20 Dreamboard members across five continents and 14 countries have been arrested to date outside the United States, including two of the five lead administrators of the board. Those countries include Canada, Denmark, Ecuador, France, Germany, Guatemala, Hungary, Kenya, the Netherlands, the Philippines, Qatar, Serbia, Sweden and Switzerland. Numerous foreign investigations related to Operation Delego remain ongoing. The location and arrest of Dreamboard members abroad have led to the capture and investigation of other global targets.

Evidence obtained during the operation revealed that at least 38 children across the world were suffering sexual abuse at the hands of the members of the group. Efforts by federal, state, local and international law enforcement to locate and identify the victims of sexual abuse and exploitation by Dreamboard members are ongoing.

Operation Delego is a spinoff investigation from leads developed through "Operation Nest Egg," the prosecution of another online group dedicated to the sharing and dissemination of child pornography. Operation Nest Egg was a spinoff investigation developed from leads related to another international investigation, "Operation Joint Hammer," which targeted transnational rings of child pornography trafficking.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

The case is being prosecuted by Assistant U.S. Attorney John Luke Walker of the Western District of Louisiana and Trial Attorney Keith Becker of CEOS. The Criminal Division's Office of International Affairs provided substantial assistance. The investigation was conducted by ICE-Homeland Security Investigations, the Child Exploitation Section of ICE's Cyber Crime Center, CEOS, CEOS's High Technology Investigative Unit and 35 ICE offices in the United States and 11 ICE attaches offices in 13 countries around the world, with assistance provided by numerous local and international law enforcement agencies across the United States and throughout the world.

The investigation was part of Operation Predator, a nationwide ICE initiative to identify, investigate and arrest those who prey on children, including human traffickers, international sex tourists, Internet pornographers and foreign-national predators whose crimes make them deportable.

ICE encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-DHS-2ICE. This hotline is staffed around the clock by investigators.

United States Attorney Stephanie Finley is available for comment and can be reached at (337) 262-6618.