Eastern District of Louisiana

U.S. Attorney Kenneth A. Polite announced that RICKY P. TEMPLET, age 53, of Mandeville, was indicted today for Theft of Government Funds and Aggravated Identity Theft.

According to court records, this investigation was initiated by the United States Department of Veterans Affairs (“VA”), Office of Inspector General (“VA-OIG”) after the VA determined TEMPLET was fraudulently obtaining VA benefits. The VA-OIG determined that TEMPLET had become his mother’s VA Fiduciary the day before his mother passed away in 2013.  As a VA Fiduciary, TEMPLET was obligated to notify the VA when his mother passed away. After his mother’s death, TEMPLET received and deposited sixteen U.S. Treasury checks totaling approximately $26,441. TEMPLET was arrested by Special Agents with the VA-OIG at the St. Tammany Parish Jail.  He will appear before a U.S. Magistrate Judge on Friday morning.   

U. S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.

If convicted, TEMPLET faces a maximum penalty of ten years imprisonment, followed by up to three years of supervised release, and a $250,000 fine as to Counts 1-16 and he faces a mandatory consecutive sentence of two years as to the Aggravated Identity Theft charge (Count 17).

U.S. Attorney Polite praised the work of the United States Department of Veterans Affairs, Office of Inspector General.  The prosecution of this case is being handled by Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba.

U.S. Attorney Kenneth A. Polite announced that SHIMEKA MILTON-FLAX, age 36, of Hammond was sentenced today after previously pleading guilty to preparing fraudulent tax returns. 

U.S. District Judge Jane Triche Milazzo sentenced MILTON-FLAX to five years of probation and ordered her to pay $251,259 in restitution to the Internal Revenue Service (“IRS”).

According to court records, MILTON-FLAX knowingly prepared materially false tax returns for two individuals in that the return reported business losses and expenses that were completely fictitious in order to fraudulently inflate the tax refund received from the Internal Revenue Service.  In total, Special Agents of the IRS confirmed that the defendant prepared and filed at least 48 fraudulent tax returns for 17 clients.   

U.S. Attorney Polite praised the work of the Internal Revenue Service – Criminal Investigations.  Assistant United States Attorney G. Dall Kammer was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that JOHNNY BAHAM, age 53, of Mandeville, was sentenced today after previously pleading guilty to stealing the United States mail.

According to court records, BAHAM was employed as a contract letter carrier in Mandeville.  A federal investigation revealed that in December 2014, BAHAM stole first class mail containing two $75 Master Card gift cards from his mail route.

U.S. District Judge Eldon E. Fallon sentenced BAHAM to three years’ probation, $150 in restitution, and a $250 fine.

U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service, Office of Inspector General in investigating this matter.  Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that ROBERT BECKMANN, age 54, of Durham, North Carolina, and his company, BECKMANN TECHNOLOGIES, INC. (BTI), were each sentenced today.

U.S. District Judge Kurt D. Engelhardt sentenced BECKMANN to four years of probation, with the first four months to be served on home detention, and fine $5,000 after previously pleading guilty to criminal copyright infringement.  BTI was sentenced to five years of organization probation and fined $75,000 after pleading guilty to conspiracy to commit criminal copyright infringement and to violate the Digital Millennium Copyright Act.

According to court documents, BECKMANN owned BECKMANN TECHNOLOGIES, INC. a company that, among other things, sold remanufactured parts for Mercedes-Benz automobiles. Between about 2001 and July 2012, BECKMANN TECHNOLOGIES, INC., in conjunction with “Company A,” located in Harahan, Louisiana, “Company B,” located in Rancho Palos Verdes, California, and an individual in the United Kingdom, “J.C.,” produced and sold unauthorized, non-authentic versions of the Mercedes-Benz Star Diagnostic System (SDS), a hand-held computer containing proprietary, confidential software.  The SDS is used by mechanics to diagnose problems with and assure the safety of Mercedes-Benz vehicles employing electronic control systems.

BECKMANN TECHNOLOGIES, INC. was responsible for creating hardware for the fake SDS units, including a “black box,” while Company A, with assistance from BECKMANN TECHNOLOGIES, INC., and others obtained, modified, and duplicated the authentic SDS software so that it would operate on ordinary laptop computers and without Mercedes-Benz’s authorization or license.  After learning that Mercedes-Benz had notified J.C. that his conduct was in violation of civil and/or criminal laws, representatives of BECKMANN TECHNOLOGIES, INC., Company A, and Company B discussed a plan to have J.C. “go underground and off the radar” and continue working on making fake SDS.

The “real” SDS sold for between $8,300 and $22,000 each, while the fake SDS sold for up to $11,000, depending on market factors.  In total, Company A and Company B sold at least 795 fake SDS.  BECKMANN plead guilty to selling and distributing once such device; BECKMANN TECHNOLOGIES, INC. was charged with its role in the development, manufacture, and distribution of the fake SDS.

U.S. Attorney Polite praised the work of the Cyber Task Force of the FBI’s New Orleans Division in investigating this matter.  Assistant U.S. Attorney Jordan Ginsberg and Senior Counsel Evan Williams of the Criminal Division’s Computer Crimes and Intellectual Property Section (CCIPS) were in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that TREY MITCHELL, age 24, of New Orleans, was sentenced today for attempted distribution of heroin using a cell phone smuggled into the Orleans Parish Prison.

U.S. District Judge Kurt D. Engelhardt sentenced MITCHELL, a “career offender” under the U.S. Sentencing Guidelines, to 188 months in prison, 3 years of supervised release following his prison term, and a $100 special assessment.  The judge ordered that the sentence run consecutive to the state sentences that MITCHELL is already serving for charges of home invasion, drug distribution, and firearms charges.  MITCHELL is also awaiting sentencing in the “Wildside Gangsters” indictment in state court in New Orleans for charges of racketeering and conspiracy to distribute heroin.

According to court documents, MITCHELL had been involved in a conspiracy to distribute heroin in New Orleans since January 2011.  In July 2012 and again in August 2012, MITCHELL was arrested for drug trafficking and firearms charges, only to be bonded out of jail to commit additional crimes.  In November 2012, MITCHELL committed a home invasion and was again arrested and held in the Orleans Parish Prison, where he remained until his federal indictment in this case.  His brother and co-defendant in this case, TERENCE TAYLOR, then obtained MITCHELL’s ‘dope’ phone and continued his heroin enterprise from outside jail.  In September 2013, after pleading guilty to his state charges, MITCHELL used a smuggled cell phone to call TAYLOR from the parish prison to direct him to give heroin to another inmate who was being released from prison and needed to “get back on his feet.”  These calls were intercepted on a court-authorized wiretap of TAYLOR’s cell phones.  In October 2015, Judge Engelhardt sentenced TAYLOR to a prison term of 324 months (27 years) for conspiracy to distribute heroin and distribution of heroin resulting in an overdose death.

U.S. Attorney Polite praised the work of the DEA New Orleans Police Department High-Intensity Drug Trafficking Area group, the FBI, and the ATF, with the assistance of the St. Tammany Sheriff’s Office, the St. Bernard Sheriff’s Office, and the Louisiana State Police in investigating this matter.  Assistant United States Attorney Michael B. Redmann is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that JUAN CARLOS FERRERA-RAMIREZ, age 44, a native of Honduras, pled guilty today to a one-count Indictment for illegal reentry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).

According to court documents, FERRERA-RAMIREZ was previously removed from the United States on June 24, 2013. FERRERA-RAMIREZ was later found in the Eastern District of Louisiana on December 2, 2015 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.

FERRERA-RAMIREZ faces a maximum term of imprisonment of two years, as well as a fine of $250,000. U.S. District Court Judge Sarah S. Vance set sentencing for May 4, 2016.

U.S. Attorney Polite praised the work of Immigration and Customs Enforcement agents in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that DAMIAN R. RODRIGUEZ, age 38, of Harahan, pled guilty today to conspiracy to transfer identification documents, in violation of 18 U.S.C. § 1028(f).

According to court documents, RODRIGUEZ conspired with two other individuals to sell a social security card and birth certificate to a confidential informant working with Special Agents of the Department of Homeland Security. 

RODRIGUEZ faces a maximum term of imprisonment of fifteen years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment.   U.S. District Judge Sarah S. Vance set sentencing for June 15, 2016.

U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Homeland Security Investigations, in investigating this matter.  Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that FREDDIE ROSS, JR., age 37, of New Orleans, who performs under the stage name BIG FREEDIA, was charged in a one-count Bill of Information with theft of government funds.

According to the Bill of Information, between about 2010 and continuing until December 2014, ROSS stole money to which he was not entitled from the United States Department of Housing and Urban Development.  Although the amount was not specified in the Bill of Information, ROSS was charged with stealing more than $1,000, making his crime a felony. 

If convicted, ROSS faces a maximum term of imprisonment of not more than ten years in prison, followed by up to three years of supervised release, and a $250,000 fine.

United States Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.

The case was investigated by agents with the United States Department of Housing and Urban Development – Office of the Inspector General and the Federal Bureau of Investigation, with assistance from the Housing Authority of New Orleans.  The case is being prosecuted by Assistant United States Attorneys Jordan Ginsberg and Maria Carboni.

WASHINGTON – Deputy Attorney General Sally Q. Yates, Assistant Attorney General Karol V. Mason of the Office of Justice Programs (OJP), and U.S. Attorney Kenneth A. Polite today announced that New Orleans, Louisiana, St. Louis, Missouri, and Milwaukee will join ten existing sites which have adopted crime-fighting strategies as part of the Violence Reduction Network (VRN). The initiative is a comprehensive approach to reducing violent crime that complements the Attorney General’s Smart on Crime Initiative and leverages existing Justice Department resources in communities around the country.

“It has been only a year-and-a-half since we launched the first Violence Reduction Network,” said Deputy Attorney General Sally Quillian Yates.  “In just that short period of time, the partnerships we have built through VRN have helped to reduce crime rates.  These results could only have happened through the kind of creative collaboration promoted through the VRN.”

“We thank the Department of Justice and OJP in particular, for its continued commitment to improving our local law enforcement efforts,” stated U.S. Attorney Polite.  “By providing strategic, technical, and training expertise to NOPD, VRN will help improve public safety in the Greater New Orleans area.”
Today’s announcement was made before an audience of U.S. Attorneys, police chiefs, local leaders from the new and existing VRN sites and department officials. Through VRN, the Justice Department enlists tactical and operational expertise available from the Bureau of Justice Assistance, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, the Drug Enforcement Administration, the Executive Office of the United States Attorneys, the Office of Community Oriented Policing Services and the Office on Violence Against Women. 

In 2014, VRN was launched in Camden, Chicago, Detroit, Wilmington, and Oakland and Richmond, California.  In September 2015, VRN was expanded to Compton, California; Flint, Michigan; Little Rock and West Memphis, Arkansas; and Newark, New Jersey. 

VRN’s core components include customized training and technical assistance; a strategic site liaison to guide the coordination of Justice Department resources; tools to enhance information sharing, including peer-to-peer exchanges; community practice collaboration among existing sites and an annual summit in September.

In addition to the announcement about the three new VRN sites, the Deputy Attorney General also announced the Police-Prosecutor Partnership, which is soliciting proposals to encourage out-of-the-box collaborations between law enforcement agencies and prosecutors’ offices.  This grant solicitation encourages proposals that build on evidence-based crime-fighting models – focusing on reducing violence, sharing intelligence, and engaging the community – by merging and maximizing the expertise of law enforcement officers and prosecutors. The new solicitation is posted athttps://www.bja.gov/funding.aspx.

U.S. Attorney Kenneth A. Polite announced that JESSICA HENDERSON BERTHELOT, age 28, of Ponchatoula, was indicted yesterday for Bank Fraud, Attempted Bank Fraud, and Aggravated Identity Theft.

According to the court records, the investigation was initiated on September 17, 2015 by the Tangipahoa Parish Sheriff’s Office and the United States Postal Inspection Service after determining that BERTHELOT was stealing mail from residential mailboxes on the north shore.    

Postal inspectors determined BERTHELOT stole approximately 1428 items of mail, including negotiable instruments.  According to court records, BERTHELOT cashed and attempted to cash the stolen checks at various federally insured financial institutions on the north shore.  BERTHELOT was also indicted with aggravated identity theft for forging the signatures of several victims on the stolen checks. 

U. S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.

If convicted, BERTHELOT faces a maximum penalty of thirty years imprisonment, followed by up to five years of supervised release, and a $250,000 fine.

U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service and the Tangipahoa Parish Sheriff’s Office.  The prosecution of this case is being handled by Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba.

U.S. Attorney Kenneth A. Polite announced that JACQUELINE RAY, 60, of Biloxi, Mississippi, pled guilty as charged today to a Bill of Information which charged her with one count of stealing over one million dollars from Ochsner Clinic Federal Credit Union in connection with bank larceny during her employment there.

According to the Bill of Information, RAY was employed by Ochsner Clinic Federal Credit Union (OCFCU), as the credit union manager and had been employed at OCFCU for nearly thirty years.  From 2007 to 2013, RAY stole at least one million dollars by creating numerous fictitious loans on the books of OCFCU. RAY created approximately 149 fictitious loans.

No loan documentation existed on any of the fictitious loans.  RAY controlled the day-to-day operation of OCFCU.  These fictitious accounts were all coded in the OCFCU data processing system so that no statement of account would be generated, thus hiding RAY’S fraudulent scheme

The proceeds from the fictitious loan would be stolen from the OCFCU in the form of a check drawn on the OCFCU and deposited in accounts controlled by RAY, or converted to cash.

RAY also made false deposits into a local bank to make it appear that she had money in accounts she controlled, when she really did not.  RAY would steal cash from these falsely inflated accounts.

RAY faces a possible maximum sentence of ten years imprisonment, and/or a fine of $250,000 and up to three years of supervised release, as well as restitution for the money taken.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the National Credit Union Administration in investigating this matter.  Assistant United States Attorney Carter K. D. Guice, Jr. of the Fraud Unit is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that KENNETH MIXON, age 31, of New Orleans, pled guilty yesterday to conspiracy to distribute and to possess with the intent to distribute heroin.

MIXON is facing a maximum sentence of twenty years in prison and a possible fine up to $1,000,000.  U.S. District Judge Ivan L.R. Lemelle set sentencing on May 25, 2016.

U.S. Attorney Polite praised the work of the Drug Enforcement Administration and the New Orleans Police Department in investigating this matter.  Assistant United States Attorney Brandon S. Long is responsible for the prosecution.

U.S. Attorney Kenneth A. Polite announced that a federal jury has convicted TIMOTHY JONES, a/k/a “Lucci,” “King Lucci,” “Lucci Loco,” age 25, from Memphis, for his role in sex trafficking two minors into the New Orleans area for the purposes of those minors engaging in prostitution.  The jury convicted JONES on all eight counts with which he was charged, including conspiracy to commit sex trafficking, sex trafficking two minor females through the use of force, fraud, and coercion, transporting a minor across state lines for the purpose of her engaging in prostitution.

“As proven at trial, Jones engaged in the sex trafficking of minors and used violence as a means of coercion,” stated U.S. Attorney Polite.  “He will now spend at least 15 years in prison for his reprehensible actions.”

According to evidence presented at trial, in early December 2013, JONES met and began recruiting Minor Victim 1, a 17-year-old female from Baton Rouge, to work for him in prostitution, performing numerous “dates” per day, based on quotas he set for her.  For approximately three weeks, Minor Victim 1 worked for him, before escaping the New Orleans  area. 

In early January 2014, JONES and a co-conspirator recruited Minor Victim 2, a sixteen-year-old female, in Memphis and coerced her to work for him in prostitution.  JONES then took Minor Victim 2 to Louisville, Kentucky, to work in prostitution.  Thereafter, JONES transported Minor Victim 2 to New Orleans to work for him in prostitution.  Minor Victim 2 worked for JONES until February 11, 2014, when a United States Marshals Task Force recovered her and arrested JONES at a hotel in downtown New Orleans.

JONES required Victim 1 and Victim 2 to give him all of the money they earned from engaging in prostitution.  JONES advertised prostitution dates with Victim 1 and Victim 2 using an online classified website and also forced them to solicit prostitution dates on Bourbon Street and on Chef Menteur Highway.  JONES “paid” Minor Victim 1 a total of $10 for her work. JONES instructed both victims on how much to charge for sex, how to solicit “dates,” and how to avoid detection by law enforcement.  He also instructed them to steal credit cards, wallets, cash, and other valuables from customers. Other females testified at trial that JONES exploited them in a similar manner.

JONES used a variety of means to control his victims, whom he knew were minors.  JONES beat Victim 1 and Victim 2 to punish them for disrespecting him or not earning enough money.  He also slapped and punched them to keep them from leaving him.  Further, while in front of Minor Victim 1 and Minor Victim 2, JONES brutally beat other females who worked for him as prostitutes as a means of threatening and intimidating his minor victims into complying with his demands.  

JONES faces a mandatory minimum term of imprisonment of fifteen years and a maximum sentence of life in prison for his crimes.  Sentencing before Judge Martin L.C. Feldman has been scheduled for June 29, 2016, at 1:30 pm.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation – New Orleans Division and the United States Department of Homeland Security – Homeland Security Investigations, with cooperation from the FBI’s Memphis Field Office in investigating this matter.  Assistant United States Attorneys Jordan Ginsberg and Jonathan L. Shih were in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that TRACY C. HARTMAN, 49, of Slidell, was sentenced today for lying to federal agents.

U.S. District Judge Martin L.C. Feldman sentenced HARTMAN to three years probation.  Additionally, HARTMAN was ordered to pay $9,443 in restitution to the Small Business Administration (SBA) which is the amount of money lost by the SBA while the loan was suspended.

According to court documents, on October 21, 2015, HARTMAN pled guilty to one count of a Bill of Information for making false statements to an agency of the United States.  According to the Bill of Information, on January 4, 2006, HARTMAN and her husband were approved for a SBA Disaster loan in the amount of $182,700, resulting from Hurricane Katrina damages.

HARTMAN and her husband defaulted on the SBA disaster loan.  As a result of the loan default, in or about June 2010, the SBA began garnishment proceedings for Mr. Hartman’s payroll checks from St. Bernard Parish. In or about December 2011, the SBA stopped receiving the HARTMAN’s garnishment payments from St. Bernard Parish.  A letter, purporting to be from the SBA, was received by St. Bernard Parish claiming the debt had been paid and to stop the garnishment. The letter was a forgery and was not prepared by the SBA.  On or about April 20, 2012, HARTMAN made a false statement to federal authorities that she did not know the origin of the fraudulent letter which was hand delivered to the St. Bernard Parish government by her husband on or about November 29, 2011.  After further investigation, it was determined that HARTMAN composed the letter.

U.S. Attorney Polite praised the work of the Small Business Administration, Office of Inspector General in investigating this matter.  Assistant United States Attorney Carter K. D. Guice, Jr. of the Fraud Unit was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that MARCUS BRUMFIELD, age 31, of Hammond, was sentenced today after pleading guilty to charges of possession with the intent to distribute twenty-eight grams or more of cocaine base, felon in possession of a firearm, and possession of a firearm in furtherance of a drug trafficking crime.

U.S. District Judge Sarah S. Vance sentenced BRUMFIELD to 264 months in prison to be followed by 4 years of supervised release.

According to court documents, on August 27, 2013, Officers with the Hammond Police Department arrested BRUMFIELD, who was previously convicted of a felony, after finding him in a vehicle with 1.4 ounces of cocaine base, and a stolen Glock, .45 caliber handgun. 

U.S. Attorney Polite praised the work of the Drug Enforcement Administration and the Hammond Police Department in investigating this matter.  Assistant United States Attorney Andre’ Jones was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that DON RAINES, age 34, TRAVON PITTS, age 28, and BARON SMITH, age 36, all of Tangipahoa Parish, have been charged in a superseding Bill of Information with participating in the October 9, 2015 murders of QUANDELL BEARD and ELLIOT SMITH in Tangipahoa Parish.  Count One charges RAINES and PITTS with committing second degree murder by using a firearm during the course of a drug trafficking crime.  Count Two charges SMITH with committing first degree murder as a result of the same firearms offense. 

RAINES, PITTS and SMITH are currently in federal custody and have been detained without bond.  Trial in this matter is currently set before U.S. District Judge Lance M. Africk on April 4, 2016.

All three defendants face a sentence of up to life in prison, a fine of up to $250,000 and up to five years of supervised release.  

United States Attorney Polite reiterated that the Bill of Information is merely a charged and that the guilt of the defendants much be proven beyond a reasonable doubt.

U.S. Attorney Polite praised the work of the Tangipahoa Parish Sheriff’s Office and the United States Drug Enforcement Administration in investigating this matter.  Assistant United States Attorney Maurice E. Landrieu, Jr. is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that KE LIAN ZHAO, age 50, of Kenner, pled guilty to employing unauthorized aliens at his restaurant, LA JUMBO CHINA BUFFET (“JUMBO BUFFET”), and JUMBO BUFFET pled guilty to two counts of making false statements to federal agents.

According to court documents, from a time unknown but prior to August 2011 and continuing through March 2015, ZHAO knowingly and unlawfully hired or recruited three aliens for employment in the United States, knowing the aliens were unauthorized, as defined by section (h)(3) of Title 8, United States Code, Section 1324a.  After hiring the unauthorized aliens, ZHAO continued to employ them in the United States, knowing that it was unlawful to employ such aliens.

During this time frame, JUMBO BUFFET knowingly and willfully provided materially false, fictitious, or fraudulent statements or representations to agents of the United States Department of Homeland Security (“DHS”) in response to a Notice of Inspection and administrative subpoena, requesting an inspection of I-9 Forms. When DHS agents requested information about the employees of JUMBO BUFFET working at the restaurant on or about January 16, 2013, JUMBO BUFFET provided false and fictitious documents showing that it only employed Asian workers during this period. In fact, witness interviews, surveillance, and other admissible evidence, including statements from a company representative with authority to bind the company, confirm that JUMBO BUFFET employed Hispanic workers, who were unauthorized aliens as defined by Title 8, United States Code, Section, 1324a(h)(3), and unlawfully employed them at the restaurant.

Further, on or about September 26, 2013, JUMBO BUFFET, knowingly and willfully provided materially false, fictitious, or fraudulent statements or representations to agents of the United States Department of Labor’s Wage and Hour Division (“WHD”) in response to a Request for Information dated September 18, 2013, notifying JUMBO BUFFET, of the existence of a Fair Labor Standards Act investigation. JUMBO BUFFET did not pay its workers according to the Fair Labor Standards Act. Some employees worked six days a week, for approximately 12 hours per day and did not receive overtime pay or minimum wage. When WHD investigators requested payroll information from JUMBO BUFFET, the company altered payroll documents to make it look as if it had complied with minimum wage and overtime pay requirements, when witness statements, surveillance, and other evidence show that employees worked in excess of a 40 hour work week, without being paid overtime, and were not paid minimum wage.

ZHAO faces a possible penalty of up to six months imprisonment, a fine of up to $3,000 per alien and a special assessment of $100.  JUMBO BUFFET faces a possible fine of up to $500,000 and a special assessment of $400.  Additionally, ZHAO and JUMBO BUFFET may be found to be jointly and severally liable for $52,305.78 in restitution. U.S. District Judge Jane Triche Milazzo set sentencing for May 19, 2016.

U.S. Attorney Polite praised the work of the U.S. Department of Labor, Wage and Hour Division, the U.S. Department of Labor, Office of Inspector General, the United States Department of Homeland Security, and the Federal Bureau of Investigation in investigating this matter.   Assistant United States Attorney Sharan E. Lieberman is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that DAI VAN TRAN, age 33, of New Orleans, was sentenced yesterday for attempting to possess with intent to distribute almost two kilograms of ethylone.

U.S. District Judge Martin L.C. Feldman sentenced TRAN to 36 months imprisonment, three years of supervised release, and a special assessment of one hundred dollars.

According to court records, on March 19, 2014, the United States Postal Inspection Service in New Orleans identified an International Express Mail parcel from China addressed to a local restaurant that contained approximately two kilograms of ethylone powder.  Ethylone, a drug similar to MDMA (“ecstasy” or “molly”), is an isomer of butylone, which was prohibited as a Schedule I drug controlled substance earlier in 2014.  Postal Inspectors removed the ethylone from the intercepted parcel and replaced it with two kilograms of a decoy non-drug powder in anticipation of making an undercover delivery of the parcel on the following day.  TRAN eventually appeared at the restaurant and received the parcel.

U.S. Attorney Polite praised the work of the United States Postal Inspection Service and the Tactical Diversion Squad of the DEA New Orleans Field Division in investigating this matter.  Assistant United States Attorney Michael B. Redmann was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that HARRY SMOOT, age 29, of Avondale, was sentenced today to life in federal prison by United States District Judge Lance M. Africk.    

SMOOT pled guilty to being the leader and source of supply for a twelve member offshoot of the larger Harvey Hustlers group that was involved in the distribution of heroin and crack cocaine, as well as a conspiracy to possess firearms in furtherance of drug trafficking.  As part of his plea, SMOOT admitted to his role in three murders, including a vicious double murder of a couple whose children, who were unharmed, were in the backseat of their vehicle when the shooting occurred and a seventy-four year old woman whose grandson was the target of the attack.  During the sentencing hearing today, family members of the victims had the opportunity to address SMOOT about the pain that the loss of the victims had caused to them and their families.  After hearing the testimony and overruling SMOOT’s arguments that the murders were not premeditated, Judge Africk sentenced SMOOT to serve the rest of his life in federal prison, emphasizing that in the federal system there is no parole.  SMOOT was also ordered to pay restitution to the victims’ families.

Several members of SMOOT’s drug trafficking organization, including three other individuals who have collected admitted responsibility for four murders, are to be sentenced in the coming weeks.

“Today’s sentencing ensures that a violent murderer and drug trafficker will remain off of our streets for the rest of his life,” stated U.S. Attorney Polite.

This case is a product of an ongoing investigation into the violent acts in furtherance of the drug trafficking by the Harvey Hustler gang and its various offshoots on the West Bank.  It represents the continued coordinated effort of the federal and state law enforcement authorities within the Multi-Agency Gang (“MAG”), including the United States Attorney’s Office, the Jefferson Parish District Attorney’s Office, Special Agents of the Federal Bureau of Investigation, and officers of the Jefferson Parish Sheriff’s Office.

Assistant United States Attorneys Greg Kennedy, David Haller, and Myles Ranier and Special Assistant United States Attorney Collin Sims, who is a former Assistant United States Attorney and the Criminal Chief at the St. Tammany Parish District Attorney’s Office, were in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that HARDELL MACK, age 44, a resident of LaPlace, was sentenced today after previously pleading guilty to a conspiracy to defraud the Gulf Coast Claims Facility (“GCCF”) in the aftermath of the BP oil spill.

U.S. District Judge Sarah S. Vance sentenced MACK to 12 months and one day incarceration and ordered restitution in the amount of $65,300, to be paid jointly and severally with his co-defendant.

According to court documents, beginning in or about September 2010, MACK and his co-defendant recruited claimants, requested their personal information, and submitted or caused to be submitted fraudulent GCCF claim forms generated online and transmitted to the GCCF.  The claim forms falsely stated that the claimants worked as non-owner captain/deckhands on a shrimp boat in Venice, Louisiana, and suffered economic loss.  Based on the fraudulent documentation, the GCCF issued approximately $65,300 to undeserving individuals.  MACK and his co-defendant shared in the claims proceeds.

This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (“NCDF”), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill.  If you have knowledge of fraud, waste, abuse or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at disaster@leo.gov, or in writing to National Center for Disaster Fraud, Baton Rouge, LA  70821-4909.

U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service and the U.S. Secret Service in investigating this matter.  Assistant U. S. Attorney Julia K. Evans was in charge of this prosecution.

U.S. Attorney Kenneth A. Polite announced that ALEJANDRO D. RODRIGUEZ, age 36, of Kenner, pled guilty today to conspiracy to transfer identification documents and to transferring identification documents, in violation of 18 U.S.C. § 1028(f) and 42 U.S.C. § 408(a)(7)(C), respectively.  

According to court documents, RODRIGUEZ, with the assistance of two other individuals, sold authentic social security cards and birth certificates to a confidential informant working with Special Agents of the Department of Homeland Security. 

RODRIGUEZ faces a maximum term of imprisonment of fifteen years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment.   U.S. District Judge Sarah S. Vance set sentencing for June 1, 2016.   

U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Homeland Security Investigations, in investigating this matter.  Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that ALEX JAVIER HERNANDEZ-MEJIA, age 22, a citizen of Honduras, pled guilty today to a one-count Bill of Information for illegal reentry of removed alien.

According to the Bill of Information, on or about November 9, 2015, HERNANDEZ-MEJIA was found in the United States after having been officially deported and removed on or about April 22, 2014.

HERNANDEZ-MEJIA faces a maximum term of imprisonment of two years and a fine of $250,000, one year supervised release after imprisonment, and a $100 special assessment.   U.S. District Judge Sarah S. Vance set sentencing for April 6, 2016.

U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter.   Assistant United States Attorney Irene González is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that JEYSEE BARAHONA-FLORES, age 30, a native of Honduras, was sentenced today on a one-count Indictment for illegal entry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).

U.S. District Judge Jane Triche Milazzo sentenced BARAHONA-FLORES to time served, which was five months.  According to court documents, on October 6, 2015, the defendant was encountered by federal agents outside of a residence in Kenner.   BARAHONA-FLORES had previously been removed from the United States on September 23, 2011.

U.S. Attorney Polite praised the work of the Immigration and Customs Enforcement agency in investigating this matter.  Assistant United States Attorney Jon Maestri was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that CHANDORELL MILES, age 33, of New Orleans, pled guilty today to conspiracy to commit wire fraud relating to fraudulent applications she made to the Gulf Coast Claims Facility (GCCF) for financial assistance in the aftermath of the Deepwater Horizon oil spill in the Gulf of Mexico.

According to court documents, the GCCF made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion.  The GCCF required individuals to verify loss of income.  Beginning in or about September 2010, MILES, assisted by her co-conspirators who posed as claimants, completed claim forms with false representations, created false and fraudulent documentation to support the claim forms, and wired all of the aforementioned documents to the GCCF’s office in Dublin, Ohio. The representations in the claim forms included false representations that the claimants were employed at different businesses in the New Orleans metropolitan area at the time of the oil spill. The false documentation included earnings statements falsely purporting to be from the employers. Based on these false representations, the GCCF paid MILES and her co-conspirators emergency benefits totaling approximately $406,400.00.

MILES faces a maximum term of imprisonment of five years, a fine of $250,000 and three years of supervised release following any term of imprisonment. U.S. District Judge Nannette Jolivette Brown set sentencing for April 21, 2016.

This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill.  If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at disaster@leo.gov or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.

U.S. Attorney Polite praised the work of the United States Secret Service, New Orleans Field Office in investigating this matter.  Assistant United States Attorney Loan AMimi@ Nguyen is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that JUAN ALBERTO SANCHEZ-ROMERO, age 25, a citizen of Mexico, was sentenced after previously pleading guilty to a one-count Bill of Information for violations of the Federal Gun Control Act. 

U.S. District Judge Nannette Jolivette Brown sentenced SANCHEZ-ROMERO to time served followed by one year of supervised release, and a $100 special assessment. SANCHEZ-ROMERO will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.

According to the court documents, on or about August 20, 2015, SANCHEZ-ROMERO, an alien present illegally in the United States, was found in possession of a firearm.

U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter.  Assistant United States Attorney Irene González was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that DOMINGO HERRERA-VEGA, a/k/a Herrera Domingo, age 38, a citizen of Honduras, was sentenced after previously pleading guilty to a one-count Bill of Information for illegal reentry of removed alien. 

U.S. District Nannette Jolivette Brown sentenced HERRERA-VEGA to time served to be followed by one year of supervised release, and a $100 special assessment.   HERRERA-VEGA will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.

According to court documents, on or about October 20, 2015, HERRERA-VEGA was found in the United States after having been officially deported and removed on or about May 1, 2014.  

U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter.  Assistant United States Attorney Irene González was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that MARCELINO OLAVE-GRANJA, age 46, a native of Colombia, pled guilty today to a one-count indictment for illegal reentry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).

According to court documents, OLAVE-GRANJA was previously removed from the United States on June 9, 1998. OLAVE-GRANJA was later found in the Eastern District of Louisiana on June 11, 2015 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.

OLAVE-GRANJA faces a maximum term of imprisonment of two (2) years, as well as a fine of $250,000.  United States District Court Judge Susie Morgan set sentencing for April 13, 2016.

U.S. Attorney Polite praised the work of United States Customs and Border Protection agents in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.

WASHINGTON – A federal grand jury sitting in New Orleans returned an indictment on Jan. 29 against two Tangipahoa Parish, Louisiana residents, charging them with federal crimes related to filing false income tax returns using stolen identities, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana announced today.  The indictment was unsealed today after the last defendant was arrested.

Alicia Washington aka Alicia Keith, 40, and Jackie Chaney aka Jackie Scott, 47, were charged with one count of a multi-prong conspiracy to defraud the United States and to commit theft of public money, wire fraud and aggravated identity theft; five counts of wire fraud and 11 counts of aggravated identity theft. Washington was arrested Thursday and Chaney was arrested today.

As alleged in the indictment, Washington and Chaney conspired together and with others to prepare false tax returns using stolen identities.  Washington is alleged to have obtained several Electronic Filing Identification Numbers and used them to electronically file false tax returns with the Internal Revenue Service (IRS) that requested tax refunds.  Washington, Chaney and others received the fraudulently obtained tax refunds in the form of U.S. Treasury checks or on prepaid debit cards in the names of other individuals.  It is further alleged that Washington and Chaney conspired with others to convert the U.S. Treasury checks into cash.       

If convicted, Washington and Chaney face a statutory maximum sentence of five years in prison for the conspiracy charge, 20 years in prison for each count of wire fraud and a mandatory two years in prison for each count of identity theft, which will be imposed in addition to any other term of imprisonment they receive.  They also face substantial monetary penalties, supervised release, and restitution.

Acting Assistant Attorney General Ciraolo and U.S. Attorney Polite commended special agents of IRS Criminal Investigation, who investigated the case and Assistant U.S. Attorney Hayden Brockett of the Eastern District of Louisiana and Trial Attorney Lauren Castaldi of the Tax Division, who are prosecuting this case.

An indictment merely alleges that crimes have been committed and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.

Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.

U.S. Attorney Kenneth A. Polite announced that JASON PAYNE, age 37, a resident of Youngstown, Ohio, was sentenced yesterday for conspiring to distribute more than a kilogram of heroin.

U.S. District Judge Carl J. Barbier sentenced PAYNE to 140 months in prison, five years of supervised release following his prison term, and a $100 special assessment.

According to court documents, a series of court-authorized wiretaps on the cell phones of New Orleans area heroin dealers led Drug Enforcement Administration agents to identify co-defendant FREDRICK DOUGLAS BROOKS III as a Houston-based heroin trafficker who was distributing kilogram quantities of heroin in New Orleans and other markets through drug and bulk cash couriers.  PAYNE was identified as a major customer in Ohio and indicted in New Orleans as part of the conspiracy.  PAYNE acknowledged in court documents that he had purchased 2 kilograms of heroin from BROOKS’ network in February 2014 and another 3 kilograms in April 2014.

U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney Michael B. Redmann was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that JARVIS HARDY, age 26, a resident of New Orleans, was charged in an eight-count Indictment attempted murder of a federal law enforcement officer (Count One); discharging one firearm during and in relation to a crime of violence and a drug trafficking crime (Count Two); possessing a second firearm in furtherance of a drug trafficking crime (Count Three);  possession with intent to distribute 28 grams or more of cocaine base (“crack”) (Count Four); and four counts of distribution of quantities of cocaine base (“crack”) (Counts 5-8).

According to court documents, on January 26, 2016, agents and task force officers with the Drug Enforcement Administration (DEA) executed a search warrant for 5300 Douglas Street and an arrest warrant for HARDY.  During the execution of the warrants, DEA Task Force Officer Stephen C. Arnold, was shot multiple times by HARDY.  Following the shooting, investigating agents recovered two firearms from HARDY’s residence, as well as amounts of cocaine base (“crack”).  The execution of the warrants followed an extended investigation of HARDY by the DEA that included multiple undercover purchases of cocaine base.

If convicted, HARDY faces a maximum term of imprisonment of twenty years, a fine of $250,000 and five years of supervised release following any term of imprisonment as to Count One; for the firearm charges in Counts Two and Three, HARDY faces a consecutive minimum term of imprisonment of five years up to life imprisonment for one firearm count and a consecutive minimum term of imprisonment of twenty-five years to life imprisonment for the second firearm count, each count also carries a potential fine of $250,000 and five years of supervised release; as to Count Four, HARDY faces a minimum term of imprisonment of five years and a maximum term of forty years, a potential fine of $5,000,000 and four years of supervised release; as to Counts 5-8, HARDY faces  as to each count, a maximum term of imprisonment of twenty years, a fine of $1,000,000 and three years of supervised release.       

U. S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.  

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation, the Drug Enforcement Administration, the New Orleans Police Department, and the Jefferson Parish Sheriff’s Office in investigating this matter.  Assistant U. S. Attorneys William J. Quinlan, Jr. and David Haller are in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that MARVIN LOPEZ-PINEDA, age 29, a citizen of Honduras, was sentenced today after previously pleading guilty to illegal reentry of removed alien. 

U.S. District Judge Carl J. Barbier sentenced LOPEZ-PINEDA to time served, followed by one year of supervised release, and a $100 special assessment. LOPEZ-PINEDA will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.

According to court documents, on or about September 24, 2015, LOPEZ-PINEDA was found in the United States after having been officially deported and removed on or about May 30, 2014.  

U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter.  Assistant United States Attorney Irene González is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that DAMIEN WILSON, age 35, a resident of Chalmette, pled guilty today to violations of the Federal Controlled Substances Act.

According to court records, WILSON conspired with others known and unknown to possess with the intent to distribute and to distribute one kilogram or more of a mixture or substance containing a detectable amount of heroin, a Schedule I drug controlled substance.  WILSON was caught on video during two heroin transactions with a confidential source.  The government also developed evidence that WILSON was laundering his drug proceeds by purchasing dilapidated houses, renovating them, and selling them for a profit.  The government is seizing the houses and/or proceeds from their sale, as well as two vehicles that contained secret compartments used to transport narcotics. 

WILSON faces a sentence of at least twenty years to life because of his prior drug offenses, a fine of up to $20,000,000 and at least ten years of supervised release following any term of imprisonment.  U.S. District Judge Carl J. Barbier set sentencing for May 12, 2016.

U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter.  Assistant United States Attorney David Haller is in charge of the prosecution.

WASHINGTON – The Justice Department announced today that Granville Robinson, 27, of Memphis, Tennessee, pleaded guilty to one count of conspiring to commit sex trafficking and one count of sex trafficking for his role in scheme operated out of the Riviera Motel in New Orleans.  Six defendants have previously pleaded guilty in connection with the scheme, which used force and threats to compel multiple women to engage in prostitution for the defendants’ profit in New Orleans and elsewhere.    

“Human traffickers facilitate a form of modern-day slavery that threatens the dignity of vulnerable individuals and violates the most basic standards of human decency,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “We will continue to vigorously pursue justice by prosecuting traffickers and protecting victims from this heinous crime that has no place in our society.”

“This defendant recruited vulnerable victims from the New Orleans community and brought other victims to New Orleans to engage in commercial sex trafficking,” said U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana.  “These crimes often pass without detection because victims live in fear from physical abuse, threats and other forms of coercion.  My office is committed to prosecuting individuals who manipulate victims into committing commercial sex acts and profit from this illegal conduct.”

“Granville Robinson is not only the ringleader of this gang, but also the most violent of the group,” said Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Division.  “In December 2015, the FBI New Orleans Division established the ‘Violent Crime Against Children and Human Trafficking Task Force,’ a stand-alone squad formed to specifically address the Human Trafficking threat in Louisiana.  We will continue to aggressively work with our federal, state, and local law enforcement partners to investigate these matters and bring people to justice.”

“Sex traffickers have complete disregard for humanity. They treat people as commodities solely for financial gain,” said Special Agent in Charge Raymond R. Parmer Jr. of Homeland Security Investigations (HSI) New Orleans.  “With this guilty plea, we have made our nation safer, ensuring this trafficker can't harm future victims.”

On Oct. 3 2014, Robinson and co-defendants Duane Phillips, Christopher Williams, Anthony Ellis and Laquentin Brown were charged in a second superseding indictment with sex trafficking conspiracy and varying counts of sex trafficking and transportation for prostitution.  An additional defendant, Kanubhai Patel, who owned the Riviera Motel where the sex trafficking scheme was based, was charged in the same indictment with benefitting financially from sex trafficking.  A seventh defendant, Zacchaeus Taylor, was charged separately on March 28, 2014.   

According to Robinson’s admissions during his plea hearing and other court documents, he enforced strict rules on the women he trafficked as part of his conspiracy.  These rules included requiring the women to earn a minimum amount each day, to provide him with all of their earnings and to seek his permission to stop prostituting for the night.  Robinson confiscated some women’s identification to make it harder for them to leave, and forced some to get tattoos signifying that they belonged to him.  When the women broke the rules or did not earn enough money, Robinson physically assaulted them.

Robinson acknowledged compelling and coercing more than 10 different women to engage in prostitution for his profit from 2012 through January 2014 in connection with the charged conspiracy.  Robinson admitting using force to punish and control the women, including one instance of punching and kicking a woman in the abdomen, knowing she was pregnant, to punish her for texting without his permission, and another instance of shoving a woman into a toilet tank hard enough to break it, then striking her repeatedly with a wooden board, to punish her for reportedly planning to escape.

Robinson and his co-defendants aided each other by posting bond for each other following arrests, monitoring the women and reporting to each other any violations of the rules the defendants imposed on the women and transporting women together from New Orleans to Texas, Tennessee, Maryland and Washington, D.C., for prostitution.  When two women tried to escape on one such trip, Robinson and a co-defendant found them, forced them into a car, and brought them back to New Orleans to continue prostituting.

Robinson and his co-defendants operated out of certain motels, including the Riviera, which generally did not report their activities to the police.  The defendants rented multiple rooms at the Riviera where women would meet prostitution clients, and paid the Riviera above-market rates to reflect the high traffic through the rooms.

Robinson is the seventh defendant to plead guilty in connection with this case.  On July 1, 2015, Patel pleaded guilty to benefitting financially from human trafficking.  In March and April 2015, Phillips, Williams, Ellis and Brown pleaded guilty to conspiracy to engage in sex trafficking by force, fraud and coercion.  Ellis and Brown also pleaded guilty to interstate transportation for prostitution.  On June 25, 2014, Taylor pleaded guilty to sex trafficking conspiracy and interstate transportation for prostitution.

At sentencing, currently scheduled for May 4, 2016, Robinson faces a minimum sentence of 15 years in prison and a maximum sentence of life in prison.  The plea agreement provides for a recommended sentence of 24 and a half years in prison.

This case was investigated jointly by the FBI’s New Orleans Division and HIS’s New Orleans Field Office, with assistance from the FBI’s Memphis Division.  This case is being prosecuted by Trial Attorney Christine M. Siscaretti and Special Litigation Counsel John Cotton Richmond of the Civil Right Division’s Human Trafficking Prosecution Unit, and Assistant U.S. Attorney Julia K. Evans of the Eastern District of Louisiana.

Seventh Defendant to Plead Guilty in Sex Trafficking Case 

The Justice Department announced today that Granville Robinson, 27, of Memphis, Tennessee, pleaded guilty to one count of conspiring to commit sex trafficking and one count of sex trafficking for his role in scheme operated out of the Riviera Motel in New Orleans.  Six defendants have previously pleaded guilty in connection with the scheme, which used force and threats to compel multiple women to engage in prostitution for the defendants’ profit in New Orleans and elsewhere.    

“Human traffickers facilitate a form of modern-day slavery that threatens the dignity of vulnerable individuals and violates the most basic standards of human decency,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “We will continue to vigorously pursue justice by prosecuting traffickers and protecting victims from this heinous crime that has no place in our society.”

“This defendant recruited vulnerable victims from the New Orleans community and brought other victims to New Orleans to engage in commercial sex trafficking,” said U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana.  “These crimes often pass without detection because victims live in fear from physical abuse, threats and other forms of coercion.  My office is committed to prosecuting individuals who manipulate victims into committing commercial sex acts and profit from this illegal conduct.”

“Granville Robinson is not only the ringleader of this gang, but also the most violent of the group,” said Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Division.  “In December 2015, the FBI New Orleans Division established the ‘Violent Crime Against Children and Human Trafficking Task Force,’ a stand-alone squad formed to specifically address the Human Trafficking threat in Louisiana.  We will continue to aggressively work with our federal, state, and local law enforcement partners to investigate these matters and bring people to justice.”

“Sex traffickers have complete disregard for humanity. They treat people as commodities solely for financial gain,” said Special Agent in Charge Raymond R. Parmer Jr. of Homeland Security Investigations (HSI) New Orleans.  “With this guilty plea, we have made our nation safer, ensuring this trafficker can't harm future victims.”

On Oct. 3 2014, Robinson and co-defendants Duane Phillips, Christopher Williams, Anthony Ellis and Laquentin Brown were charged in a second superseding indictment with sex trafficking conspiracy and varying counts of sex trafficking and transportation for prostitution.  An additional defendant, Kanubhai Patel, who owned the Riviera Motel where the sex trafficking scheme was based, was charged in the same indictment with benefitting financially from sex trafficking.  A seventh defendant, Zacchaeus Taylor, was charged separately on March 28, 2014.   

According to Robinson’s admissions during his plea hearing and other court documents, he enforced strict rules on the women he trafficked as part of his conspiracy.  These rules included requiring the women to earn a minimum amount each day, to provide him with all of their earnings and to seek his permission to stop prostituting for the night.  Robinson confiscated some women’s identification to make it harder for them to leave, and forced some to get tattoos signifying that they belonged to him.  When the women broke the rules or did not earn enough money, Robinson physically assaulted them.

Robinson acknowledged compelling and coercing more than 10 different women to engage in prostitution for his profit from 2012 through January 2014 in connection with the charged conspiracy.  Robinson admitted to using force to punish and control the women, including one instance of punching and kicking a woman in the abdomen, knowing she was pregnant, to punish her for texting without his permission, and another instance of shoving a woman into a toilet tank hard enough to break it, then striking her repeatedly with a wooden board, to punish her for reportedly planning to escape.

Robinson and his co-defendants aided each other by posting bond for each other following arrests, monitoring the women and reporting to each other any violations of the rules the defendants imposed on the women and transporting women together from New Orleans to Texas, Tennessee, Maryland and Washington, D.C., for prostitution.  When two women tried to escape on one such trip, Robinson and a co-defendant found them, forced them into a car, and brought them back to New Orleans to continue prostituting.

Robinson and his co-defendants operated out of certain motels, including the Riviera, which generally did not report their activities to the police.  The defendants rented multiple rooms at the Riviera where women would meet prostitution clients, and paid the Riviera above-market rates to reflect the high traffic through the rooms.

Robinson is the seventh defendant to plead guilty in connection with this case.  On July 1, 2015, Patel pleaded guilty to benefitting financially from human trafficking.  In March and April 2015, Phillips, Williams, Ellis and Brown pleaded guilty to conspiracy to engage in sex trafficking by force, fraud and coercion.  Ellis and Brown also pleaded guilty to interstate transportation for prostitution.  On June 25, 2014, Taylor pleaded guilty to sex trafficking conspiracy and interstate transportation for prostitution.

At sentencing, currently scheduled for May 4, 2016, Robinson faces a minimum sentence of 15 years in prison and a maximum sentence of life in prison.  The plea agreement provides for a recommended sentence of 24 and a half years in prison.

This case was investigated jointly by the FBI’s New Orleans Division and HIS’s New Orleans Field Office, with assistance from the FBI’s Memphis Division.  This case is being prosecuted by Trial Attorney Christine M. Siscaretti and Special Litigation Counsel John Cotton Richmond of the Civil Right Division’s Human Trafficking Prosecution Unit, and Assistant U.S. Attorney Julia K. Evans of the Eastern District of Louisiana.

Robinson Plea Agreement

U.S. Attorney Kenneth A. Polite announced that ROBERT DURST, age 72, pled guilty today to being a felon in possession of a firearm. 

A judge in Los Angeles, California, signed an arrest warrant for DURST on March 11, 2015, for the 2000 murder of Susan Berman.  Agents of the Federal Bureau of Investigation (“FBI”), New Orleans Field Office, located DURST in a local hotel on March 14, 2015, where he had checked in under the alias “Everette Ward.”  A lawful search of DURST’s hotel room found him to be in possession of a loaded Smith and Wesson .38 caliber revolver, a realistic mask, and over $40,000 in cash.

DURST was indicted in April of this year in the Eastern District of Louisiana.  The indictment alleged that DURST possessed the firearm after having previously been convicted in 2004 of federal felony firearms offenses in the Eastern District of Pennsylvania.

DURST faces a maximum of ten years imprisonment, a fine of $250,000, not more than three years of supervised release, and $100 special assessment fee.  U.S. District Judge Kurt D. Engelhard set sentencing for April 27, 2016.

U.S. Attorney Polite praised the work of the Orleans Parish District Attorney’s Office, the FBI, the Los Angeles Police Department, and the Los Angeles County District Attorney’s Office in investigating this matter.  Assistant United States Attorneys Michael McMahon and Myles Ranier are in charge of the prosecution. 

U.S. Attorney Kenneth A. Polite announced that JASON C. DOYLE, age 38, of New Orleans, was sentenced today after previously pleading guilty to wire fraud and failing to pay taxes.  

U.S. District Judge Sarah S. Vance sentenced DOYLE to 30 months imprisonment, followed by two years of supervised release.   As part of the sentence, the Court also ordered DOYLE to pay $993,960.34 in restitution to the victims

According to documents, DOYLE operated, controlled, marketed and sold several restaurant franchises to willing investors. From 2010 through 2014, DOYLE defrauded three investors who paid him monies for a restaurant franchise. DOYLE defrauded the investors of monies totaling in excess of $888,000. These investor monies were paid to DOYLE with the understanding that DOYLE would furnish them with either a restaurant or the equipment and essentials necessary to open a restaurant establishment. Instead of using the investor funds to complete the promised restaurant project, DOYLE fraudulently diverted the monies for his own personal use.

In 2010, DOYLE also deducted federal taxes from his employees’ wages. However, he failed to pay over the collected employee taxes to the Department of Treasury, in violation of federal tax law.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigations Division in investigating this matter.  Assistant United States Attorneys Richard R. Pickens, II and Andre J. Lagarde were in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that SERGIO GALVEZ-VELAZQUEZ, age 40, a citizen of Mexico, pled guilty today to illegal use of a Social Security Number.

According to court documents, GALVEZ-VELAZQUEZ illegally obtained a Louisiana Identification Card from the Louisiana DMV office in Houma by using a Social Security number that did not belong to him. 

GALVEZ-VELAZQUEZ faces a maximum term of imprisonment of five years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment.  U.S. District Judge Sarah S. Vance set sentencing for May 4, 2016.

U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Homeland Security Investigations, in investigating this matter.  Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that MARCELLO ORDONEZ-RIVAS, age 37, a citizen of Honduras, pled guilty today to a one-count indictment with illegal reentry of a removed alien.

According to court documents, ORDONEZ-RIVAS was found in the United States on September 3, 2015, after having been previously deported on May 8, 2009. 

ORDONEZ-RIVAS faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.  U.S. District Judge Ivan L.R. Lemelle set sentencing on April 27, 2016.

U.S. Attorney Polite praised the work of the United States Department of Homeland Security in investigating this matter.  Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that RAVEN HUGHES, age 28, of Hammond, pled guilty today to mail fraud and aggravated identity theft for engaging in a multi-year tax fraud scheme.

According to court documents, HUGHES obtained the name and social security number of unsuspecting individuals and used that information without their knowledge or authorization to prepare false tax returns that claimed large tax refunds.  The refund checks were mailed to numerous Post Office Boxes throughout Louisiana that were opened by HUGHES, including HUGHES’s residence in Hammond.  Refund checks were also sent electronically via wire into one of HUGHES’s four bank accounts.  

Once the tax refund checks were received, HUGHES falsely endorsed the checks and cashed them.  HUGHES also arranged for some of the refunds to be transmitted electronically into bank accounts under her control.  In total, HUGHES caused not fewer than 148 federal income tax returns to be submitted in the names of at least 103 different individuals without their knowledge or authorization.  As a result of the conduct described above, between 2009 and 2012 HUGHES received approximately $199,050.

HUGHES faces a maximum term of imprisonment of not more than twenty years, followed by up to three years of supervised release, and a $250,000 fine for the count of mail fraud.  HUGHES also faces a mandatory consecutive two-year sentence for the commission of aggravated identity theft.  U.S. District Judge Susie Morgan set sentencing for May 18, 2016.

U.S. Attorney Polite praised the work of the Internal Revenue Service – Criminal Investigation in investigating this matter.  Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that ERIC COTTRELL, age 44, of Minden, Louisiana, and RAYMOND CHIU, age 72, of Foster City, California, were charged today in a three-count Indictment with conspiracy (18 U.S.C. § 371), violations of the Lacey Act (16 U.S.C. § 3372), and smuggling goods from the United States (18 U.S.C. § 554).

According to court records, from March 25, 2015 through the present, COTTRELL and CHIU conspired to purchase and smuggle unpermitted turtles, including Diamondback Terrapins.  Both men were arrested earlier this month and were released on bond.

If convicted, the maximum penalty as to the Lacey Act and conspiracy charges are five years imprisonment, a $250,000 fine, and a three year term of supervised release.  The maximum penalties as to the smuggling charge are ten years imprisonment, a $250,000 fine, and a three year term of supervised release.   

U. S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.

U.S. Attorney Polite praised the work of the U.S. Fish and Wildlife Service and Homeland Security Investigations in investigating this matter.  Assistant United States Attorney Gregory M. Kennedy is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that JEFFERY HOWARD, age 35, of Nicholson, Mississippi, was charged today in a one-count Indictment with use of interstate commerce facilities in the commission of murder-for-hire in violation of Title 18, United States Code, Section 1958(a).

According to court documents, as a result of a Federal Bureau of Investigation (“FBI”) Domestic Terrorism investigation, the New Orleans Joint Terrorism Task Force (“JTTF”) became aware of HOWARD, a known member of the Aryan Brotherhood, a violent white supremacy prison gang. HOWARD, who was allegedly involved in the trafficking of methamphetamine, sold drugs to an undercover law enforcement officer on numerous occasions. During one of the sales of drugs, HOWARD volunteered that he would be willing to commit a murder in exchange for money.  HOWARD later accepted payment to commit a murder.

If convicted, HOWARD faces up to ten years imprisonment, a $250,000 fine, and a three year term of supervised release. 

U.S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.

U.S. Attorney Polite praised the work of the FBI New Orleans Division JTTF for investigating this matter. Assistant United States Attorney Gregory M. Kennedy is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that HECTOR ORLANDO RECATE REYES, age 30, a citizen of Honduras, was charged today in a one-count Indictment with illegal reentry of a removed alien.

According to the Indictment, RECATE-REYES reentered the United States after having been previously deported on August 8, 2012.  If convicted, RECATE-REYES faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.

U.S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.  

U.S. Attorney Polite praised the work of the United States Department of Homeland Security in investigating this matter.  Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that a federal jury convicted JORGE PERRALTA, age 33, of Pasadena, Texas, and PAUL NORRIS, age 57, of Houston, Texas, of a drug conspiracy charge, following a four-day trial. 

PERRALTA and NORRIS were convicted of conspiracy to distribute and possess with the intent to distribute cocaine and heroin.  According to the Indictment, beginning on a date unknown and continuing until on or about March 19, 2015, PERRALTA and NORRIS knowingly combined, conspired, confederated and agreed with persons known and unknown, to possess with the intent to distribute five kilograms or more of cocaine hydrochloride and one kilogram or more of heroin. 

The convictions of PERRALTA and NORRIS followed an Organized Crime Drug Enforcement Task Force (“OCDETF”) investigation by the Drug Enforcement Administration and Houston, Texas Police Department of a drug trafficking organization operating from Mexico into several of the United States, including Louisiana.

Both PERRALTA and NORRIS face a minimum term of imprisonment of ten years, a maximum term of life imprisonment, a fine of $10,000,000, a minimum of five years of supervised release after imprisonment, and a $100.00 special assessment.   U.S. District Judge Lance M. Africk set sentencing for May 19, 2016.                         

U.S. Attorney Polite praised the work of the Drug Enforcement Administration in New Orleans and Houston, Texas along with the Houston Police Department in investigating this matter.  Assistant United States Attorneys Andre’ Jones, Elizabeth Privitera, and Jeffrey Sandman were in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that O’NEIL EDWARDS, age 27, of New Orleans, was sentenced yesterday after previously pleading guilty to theft of mail matter by a postal employee.

U.S. District Court Judge Jay C. Zainey sentenced EDWARDS to one year of probation to include three months of home confinement.  EDWARDS was also ordered to pay $200 dollars in restitution and a fine of $1000. 

According to court records, in or about December 2013, EDWARDS, a United States Postal employee, stole two $100 gift cards from mail sent from Las Vegas, Nevada to Belle Chasse, Louisiana.

U.S. Attorney Polite praised the work of the U.S. Postal Service, Office of Inspector General for investigating this matter.  Assistant U.S. Attorney G. Dall Kammer was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that JAIRO JACIEL JIMENEZ-HERNANDEZ, age 29, a citizen of Mexico, was sentenced today after previously pleading guilty to a one-count indictment for illegal reentry of a removed alien.

U.S. District Judge Carl J. Barbier sentenced JIMENEZ-HERNANDEZ to time served and ordered him to serve one year of supervised release. Additionally, JIMENEZ-HERNANDEZ was ordered to pay a $5,000 fine and a $100 special assessment.  JIMENEZ-HERNANDEZ will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.

According to court documents, JIMENEZ-HERNANDEZ reentered the United States on or about August 30, 2015 after having been previously deported on May 17, 2012. 

U.S. Attorney Polite praised the work of the United States Immigration and Customs Enforcement Agency in investigating this matter.  Assistant U. S. Attorney Spiro G. Latsis was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that ERIC DE JESUS MENDOZA-MARTINEZ, age 20, a citizen of Mexico, pled guilty today to one count of possession of a firearm by an illegal alien.

According to court documents, MENDOZA-MARTINEZ, an illegal alien from Mexico, was stopped for a traffic violation on November 7, 2015.  During the traffic stop, it was discovered that MENDOZA-MARTINEZ had a Taurus .380 caliber pistol in his possession.   

If convicted, MENDOZA-MARTINEZ faces a maximum term of imprisonment of ten years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment.

U.S. Attorney Polite praised the work of the United States Department of Homeland Security in investigating this matter.  Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that STANLEY FULTON, age 40, a resident of New Orleans, was sentenced yesterday for conspiring to distribute more than a kilogram of heroin in the New Orleans area, after previously having been convicted in federal court for conspiracy to distribute heroin.

U.S. District Judge Carl J. Barbier sentenced FULTON to 240 months in prison, 10 years of supervised release following his prison term, and a $100 special assessment.

According to court documents, a series of court-authorized wiretaps on the cell phones of New Orleans area heroin dealers led Drug Enforcement Administration agents to identify co-defendant Fredrick Douglas Brooks III as a Houston-based heroin trafficker who was distributing kilogram quantities of heroin in the New Orleans market through drug and bulk cash couriers.  FULTON was one of the New Orleans drug brokers who purchased kilogram and multi-kilogram quantities of heroin from Brooks’ network for further distribution in New Orleans.

U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter.  Assistant United States Attorney Michael B. Redmann is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that BETH MARIE NGUYEN, age 38, of New Orleans, was sentenced today after having previously pled guilty to one count of conspiring to distribute and to possess with intent to distribute one kilogram or more of heroin. 

U.S. District Judge Carl J. Barbier sentenced NGUYEN to 36 months of incarceration, to be followed by 3 years of supervised release.

NGUYEN was one of twelve defendants charged in a 23-count indictment on July 25, 2014.  According to court documents, this indictment sprung from an investigation into a heroin-trafficking organization operating in New Orleans East.  This organization was responsible for distributing at least 15 kilograms of heroin in the New Orleans area.  As part of the arrests in this case, federal agents have seized from the twelve defendants approximately $1,200,000 in assets (a combination of vehicles, currency, jewelry, and real property) as proceeds made from the sale of heroin.

U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter.  Assistant United States Attorney Brandon S. Long was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that BENIAIH LEWIS, age 26, a resident of New Orleans, pled guilty today to failure to register as a sex offender in violation of the Sex Offender Registration and Notification Act.

According to court records, LEWIS was convicted of Possession of Child Pornography in violation of California Penal Code Section 311.11(a) on October 3, 2012, and, because of his conviction, LEWIS was required to register as a sex offender for life pursuant to the Sex Offender Registration and Notification Act.  LEWIS completed his last known sex offender registration form with the Fresno Police Department in California in 2013.  At some time after August 2013, LEWIS moved from California to Louisiana and failed to notify law enforcement authorities of his move to Louisiana.  On July 29, 2015, LEWIS was arrested at his residence by special agents with the U.S. Department of Homeland Security, Homeland Security Investigations and the U.S. Marshals Service.  LEWIS has been in federal custody since his arrest.

If convicted of the failure to register charge, LEWIS faces a maximum term of imprisonment of ten years, a fine of $250,000 and up to five years of supervised release.  U.S. District Judge Eldon Fallon will sentence LEWIS on April 28, 2016. 

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 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.

U.S. Attorney Polite praised the work of the U. S. Department of Homeland Security-HSI, the U.S. Marshals Service, and the Fresno California Police Department in investigating this matter.  Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that CARLOS BINDEL, age 30, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Bill of Information for illegal reentry of removed alien. 

U.S. District Judge Eldon E. Fallon sentenced BINDEL to time served, and ordered him to serve one year of supervised release and to pay a $100 special assessment.  BINDEL will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.

According to court documents, on or about October 20, 2015, BINDEL was found in the United States after having been officially deported and removed on or about February 21, 2008.  

U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter.  Assistant United States Attorney Irene González is in charge of the prosecution.