Eastern District of Louisiana

U.S. Attorney Kenneth A. Polite announced that ROBERT SWAN, age 53, of Ponchatoula, was sentenced today for his role in sexual exploiting children, including receiving images depicting the sexual victimization of children.

U.S. District Judge Stanwood R. Duval, Jr. sentenced SWAN to 327 months imprisonment, followed by supervised release for life, and a $100 special assessment.  Additionally, SWAN is also required to register as a sex offender pursuant to the Sex Offender Registration Notification Act.

According to court document, on January 30, 2013, investigators with the State of Louisiana Department of Justice – Cyber Crime Unit, executed a search warrant on SWAN’S residence.  The search was based on evidence obtained by law enforcement that between about November 30, 2012, and December 1, 2012, SWAN distributed, by making publicly available in the shared folder of his peer-to-peer program, videos depicting the sexual victimization of children between the ages of two and ten.  Agents seized fifteen separate digital devices, including two computers and thirteen digital storage drives.

While reviewing materials seized in the search, agents found digital evidence that in about January 2010, SWAN and his associate, THOMAS MIDDLETON, forced a then-three year-old girl to engage in sexually explicit conduct, which SWAN recorded.  MIDDLETON was convicted in the Western District of Kentucky for his role in the offense.

Additionally, agents found that between about May 2010 and January 2013, SWAN had downloaded, saved, and catalogued over 500,000 images and videos – one of the largest collections of child pornography found in the State of Louisiana –depicting children as young as four-weeks old being forced to engage in sexually explicit conduct.  Titles of many of the videos were consistent with the content of the videos.  

Because of SWAN’S prior conviction in 1987 for lewd and lascivious assault of a minor in Escambia County, Florida, SWAN faced an enhanced sentence. 

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”

U.S. Attorney Polite praised the work of the State of Louisiana Department of Justice – Cyber Crime Unit in investigating this matter.  Assistant United States Attorney Jordan Ginsberg was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that KRISTEN KOENIG, a/k/a KRISTEN BARNES, age 41, of Denham Springs, pled guilty today to one count of bank fraud.

According to court records, KOENIG was hired to do accounting work for a Jefferson Parish business. From September of 2011 through July of 2014, KOENIG embezzled $601,822.90 from her client by forging her name on company checks and manipulating internal computer/accounting records.

KOENIG faces a sentence of up to thirty years in prison, up to $250,000 in fines, and up to three years of supervised release.  U.S. District Judge Jay C. Zainey set sentencing on April 19, 2016.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation, along with assistance from the Internal Revenue Service and the Jefferson Parish Sheriff’s Office in investigating this matter.  Assistant United States Attorney Edward J. Rivera 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, appeared today before United States Magistrate Judge Karen Roby after being arrested on a criminal complaint which charged them with violations of the Lacey Act (16 U.S.C. § 3372), smuggling goods from the United States (18 U.S.C. § 554), and conspiracy (18 U.S.C. § 371). 

According to court records, from March 25, 2015 through the present, CHIU and COTTRELL conspired to purchase and smuggle unpermitted turtles, including Diamondback Terrapins. 

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 is ten years imprisonment, a $250,000 fine, and a three year term of supervised release.  A detention hearing is scheduled for next week.

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 today’s unsealing of a two-count Indictment charging CRAIG JAMES, age 37, of Houston, LAZANDY DANIELS, age 39, and LEON JACKSON, JR., age 41, both of New Orleans, with conspiracy to distribute 5 kilograms or more of a mixture or substance containing cocaine hydrochloride (“powder cocaine”) and 28 grams or more of a mixture or substance containing cocaine base (“crack cocaine”).  JAMES and DANIELS are also charged with possessing with intent to distribute 28 grams or more of a mixture or substance containing cocaine base. 

If found guilty of the lead conspiracy charge, each defendant faces a mandatory minimum of ten years of imprisonment, a maximum life sentence, a $10,000,000 fine, and at least five years of supervised release.  

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

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

U.S. Attorney Kenneth A. Polite announced that a federal jury has convicted former Houston Police Officer NOE JUAREZ, age 47, of conspiracy to distribute five kilograms or more of cocaine hydrochloride and conspiracy to possess firearms in furtherance of a drug trafficking offense.

According to evidence presented at trial, Juarez, a veteran Houston Police officer, became involved with an international drug conspiracy that reached into the Eastern District of Louisiana. The conspiracy, spearheaded by brothers Efrain and Sergio Grimaldo, distributed thousands of kilograms of cocaine throughout the United States. The drugs were supplied to the conspiracy by the Los Zetas drug cartel. Juarez played a pivotal role by providing law enforcement sensitive information, including running license plates and sharing police tactics and activities with conspirators. Juarez further supplied vehicles, body armor, and semi-automatic handguns and assault rifles to the conspirators, some of which ended up among senior cartel leaders in Mexico.

The conspiracy to distribute cocaine conviction carries a sentence of ten years to life imprisonment, followed by a minimum of five years of supervised release, and up to a $10,000,000 fine.  The conspiracy to possess firearms in furtherance of a drug trafficking offense carries a maximum penalty of twenty years imprisonment, followed by a maximum of three years of supervised release, and a $250,000 fine.  U.S. District Judge Sarah S. Vance set sentencing on April 20, 2016.

“A once proud member of the Houston Police Department, Noe Juarez breached his oath to protect and serve by providing weapons and other resources to known violent drug traffickers,” stated U.S. Attorney Polite. “This conspiracy’s conduct resulted in drugs and firearms ending up on the streets of Houma, Louisiana.  Today’s guilty verdict ensures that Juarez will now face a lengthy jail sentence for his crimes.  In addition, this prosecution reaffirms our commitment to fighting violence and corruption in Southeast Louisiana.”

“Law enforcement officers take an oath to work for the public good. The crimes committed by Noe Juarez are a slap in the face to the vast majority of law enforcement across the globe who are dedicated to taking down violent drug trafficking organizations. Those who commit such crimes are not worthy to stand among the ranks of the good men and women who wear their badges with pride in order to protect the citizens of this great country,” said DEA Special Agent in Charge Keith Brown.

U.S. Attorney Polite praised the work of the Drug Enforcement Administration (“DEA”) offices in New Orleans and Houston, the Federal Bureau of Investigation (“FBI”) in Houston, and the Houston Police Department Internal Affairs Division in investigating this matter and thanked the U.S. Attorney’s Office for the Southern District of Texas for their assistance. Agents who assisted in the prosecution team included case agents William Johnson, DEA, and Jose Garcia, FBI, with assistance from agents and officers from DEA, Homeland Security Investigations (“HSI”), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and the Houston Police Department Internal Affairs Proactive Unit.  Assistant United States Attorneys John F. Murphy, Theodore Carter, and James Baehr were in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that NASER YOUSEF GHEITH, a/k/a “Nick,” age 37, from San Francisco, California, pled guilty yesterday to one count of conspiracy to distribute and possession with intent to distribute 500 grams or more of methamphetamine. 

According to court documents, GHEITH was a member of a methamphetamine distribution ring that extended from California to Louisiana and Germany.  The seizures in this case included approximately two pounds of methamphetamine recovered in Texas from a vehicle that was en route from San Francisco to New Orleans, as well as shipments of methamphetamine that were intercepted in Cologne, Germany, by the German Customs Investigation Bureau (the Zollkriminalamt or ZKA). 

GHEITH is the second of three defendants to have pled guilty in this case.  Previously, CHRISTOPHER BYRON FRITCHIE pled guilty to conspiracy to distribute 50 grams or more of methamphetamine.  Sentencing for CHRISTOPHER BYRON FRITCHIE is set for April 20, 2016.  A third defendant, RYAN ERNST NYBERG, is still at large and is believed to be residing in Germany.

GHEITH faces a mandatory minimum term of twenty years in prison and maximum of life imprisonment, followed by a minimum of ten years supervised release, and a maximum fine of $20,000,000.  There is also a mandatory $100.00 special assessment associated with this guilty plea.  U.S. District Judge Stanwood R. Duval, Jr. set sentencing for April 20, 2016.

U.S. Attorney Polite praised the work of the Drug Enforcement Administration (DEA).   The DEA New Orleans Division Office investigated this case with assistance from the DEA Frankfurt, Germany Country Office and the DEA San Francisco Division Office.  Assistance was also provided by the German Customs Investigation Bureau (the Zollkriminalamt or ZKA) and the Texas Department of Public Safety.  Assistant United States Attorneys Matthew Payne and Maria Carboni are in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that RAINER WITTICH, age 66, of River Ridge, and his Harahan, Louisiana-based aftermarket auto parts distributor, THE BRINSON COMPANY (“TBC”), were each sentenced today after previously pleading guilty to criminal copyright infringement and conspiracy to commit criminal copyright infringement and to violating the Digital Millennium Copyright Act, respectively .

United States District Judge Nannette Jolivette Brown sentenced WITTICH and TBC to five years of probation.  In addition, TBC was ordered to forfeit $150,000 and assist the victim, Daimler AG (parent company of Mercedes-Benz), in compiling a list of all customers to whom it provided the infringing devices or software, and WITTICH was ordered to pay a $3,000 fine.

According to court documents, WITTICH owned TBC, which sold replacement parts and diagnostic equipment for Mercedes-Benz vehicles. According to TBC’s plea agreement, beginning in about 2001, in conjunction with two other companies, TBC began developing, manufacturing and selling non-authentic versions of the Mercedes-Benz Star Diagnostic System (SDS), a portable tablet-type computer that contains proprietary software created by Mercedes-Benz to diagnose and repair its automobiles and that requires a code or “license key” to access. TBC admitted that, without authorization, it obtained Mercedes-Benz SDS software and updates, modified and duplicated the software, and installed the software on laptop computers (which served as the SDS units).

TBC further admitted that, not later than June 2010, it began purchasing software for the non-authentic SDS units as well as updates and “patches” for the software from an individual in the United Kingdom. TBC admitted that, after Mercedes-Benz notified the United Kingdom-based individual that his conduct was in violation of the law, representatives of TBC and the co-conspirator companies discussed plans to have him “go underground and off the radar” and continue to provide assistance and support in the production of non-authentic SDS units.

A genuine SDS unit sold for up to $22,000, and purchasers of the SDS paid Mercedes-Benz several thousands of dollars per year to receive regular software updates. According to TBC’s plea agreement, a non-authentic SDS unit sold for up to $11,000. TBC admitted that, in total, it sold approximately 725 non-authentic SDS devices, and that one of its co-conspirators sold at least 95 devices.

The case was investigated by the Cyber Task Force of the FBI’s New Orleans Division.  The case was prosecuted by Assistant United States Attorneys Jordan Ginsberg and Myles Ranier and Senior Counsel Evan Williams of the Criminal Division’s Computer Crimes and Intellectual Property Section.

U.S. Attorney Kenneth A. Polite announced that DOMINGO HERRERA-VEGA, a/k/a “Herrera Domingo,” age 38, 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 October 20, 2015, HERRERA-VEGA was found in the United States after having been officially deported and removed on or about May 1, 2014.

HERRERA-VEGA 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 Nannette Jolivette Brown set sentencing for February 11, 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 CHRISTOPHER ORGERON, age 33, of Harvey, was indicted today for crimes involving the sexual exploitation of children.

According to today’s Indictment, beginning at an unknown time and continuing to on or about June 25, 2015, ORGERON knowingly received child pornography images and videos depicting the sexual victimization of minors.  ORGERON was arrested and taken into federal custody today at his place of employment in Westwego by special agents with the U.S. Department of Homeland Security, Homeland Security Investigations. 

If convicted, ORGERON faces a mandatory minimum sentence of five years and a maximum penalty of up to twenty years imprisonment, followed by up to a lifetime term of supervised release, and a $250,000 fine.

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.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc for more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

U.S. Attorney Polite praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations in investigating this matter.  The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U.S. Attorney Brian M. Klebba.

U.S. Attorney Kenneth A. Polite announced that CLARA AITCH, age 39, and WENDY ERVIN, age of 42, both of New Orleans, were sentenced today after previously pleading guilty to conspiracy to commit wire fraud relating to the fraudulent applications they made or caused to be made to the Gulf Coast Claims Facility (“GCCF”) for financial assistance during the aftermath of the Deepwater Horizon oil spill.

U.S. District Judge Susie Morgan sentenced both AITCH and ERVIN to serve three years on probation, and ordered to pay a special assessment of $100.  Additionally, ERVIN was ordered to pay $17,300 in restitution to the GCCF and AITCH was ordered to pay $18,500 in restitution to the GCCF.

THREASA ADDERLEY, age 64, who previously pled guilty to conspiracy to pay and receive illegal kickbacks, was also sentenced today. U.S. District Judge Susie Morgan sentenced ADDERLEY to serve five years on probation, with the special condition that she serve twelve months of home confinement.  ADDERLEY was also ordered to pay $48,500 in restitution to Medicare and a special assessment of $100.

AITCH, IRWIN, and ADDERLEY were indicted along with 18 other defendants in a 26-count indictment charging approximately $30,052,295 in Medicare and BP fraud.

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.  In November, 2010, AITCH and ERVIN conspired with others to apply for disaster assistance funds, and represented that they were employees of LACE, a reception hall owned and operated by Lisa Crinel, when, in truth, AITCH and ERVIN were full time employees of Abide Home Care Services, Inc., Crinel’s company.

Also, according to court documents, ADDERLEY, was one of the physicians who entered into a sham contract with ABIDE to act as a medical consultant for the home health care agency. As such, she was required to submit monthly documentation detailing the services she provided to or on behalf of Abide. The agreements called for ADDERLEY to meet with Abide supervisors, at least annually, and to measure and evaluate overall performance of Abide. Quarterly meetings were also to be held to evaluate and discuss the ongoing home health program. ADDERLEY was also to perform in-services or educational programs to Abide and to review charts to determine if Abide was meeting expected outcomes. However, ADDERLEY never gave any in-service of any kind at Abide and never met with Abide supervisors to measure and evaluate the performance of personnel. ADDERLEY routinely compromised her medical judgment by certifying ineligible Medicare beneficiaries for home health provided by Abide who did not meet requirements for services because the patients were neither homebound nor medically in need of the services. Over the period covered by the Indictment, Abide paid ADDERLY more than $48,000 of Medicare funds for medically unnecessary home health billing.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter.  Assistant U. S. Attorneys Patrice Harris Sullivan, Sharan Lieberman and Andre Lagarde are in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that JAMIE PLAISANCE, age 38, of Raceland, was sentenced today after previously pleading guilty to a one-count Indictment charging him with possession of child pornography.

U.S. District Judge Martin L.C. Feldman sentenced PLAISANCE to 121 months imprisonment, followed by a life term of supervised release, and ordered that he continue to register as a sex offender. 

On March 16, 2015, special agents with the U.S. Department of Homeland Security, Homeland Security Investigations arrested PLAISANCE during the execution of a federal search warrant at his Raceland home.  Agents found PLAISANCE in possession of several items, including an Apple I-Touch and cellular phones that contained images depicting the sexual victimization of prepubescent children.  PLAISANCE appeared in federal court on March 17, 2015, and was detained by a United States Magistrate Judge.  PLAISANCE pled guilty to the Indictment on August 19, 2015.

According to court records, in 2006, PLAISANCE was sentenced in federal court to 37 months imprisonment for possession of materials involving the sexual exploitation of minors.        

"Child sexual abuse is one of the most heinous crimes HSI investigates as it steals the innocence of children and leaves lasting scars on victims," said Raymond R. Parmer Jr., Special Agent in Charge of HSI New Orleans. "Criminals who possess child pornography further victimize the innocent by sharing the evidence of these terrible crimes, and as such these cases will continue to be one of the agency's highest priorities." 

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.  For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."           

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

WASHINGTON – A New Orleans man was sentenced today to 41 months in prison for his role in a coupon counterfeit ring using the Silk Road online marketplace, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana.

Beau Wattigney, 30, previously pleaded guilty to conspiracy to commit wire fraud and conspiracy to commit trademark counterfeiting before U.S. District Judge Ivan L.R. Lemelle of the Eastern District of Louisiana.  Judge Lemelle sentenced Wattigney and immediately remanded him into custody.

In connection with his plea, Wattigney admitted that between May 2012 and November 2014, he used the online monikers PurpleLotus, GoldenLotus and CouponKing to sell counterfeit coupons for various goods and services on the Silk Road, a covert online marketplace largely for illicit goods.  Wattigney admitted that he created and manufactured the fraudulent coupons with the assistance of several co-conspirators and that they designed the coupons to look like original print-at-home manufacturers’ coupons by using the companies’ trademarks.  According to the plea agreement, Wattigney sold over $1 million worth of counterfeit coupons and victimized more than 50 United States-based businesses. 

The FBI’s Philadelphia Division investigated the case, with assistance from the FBI’s New Orleans Field Office.  Senior Counsel Marie-Flore Johnson and Robert Wallace of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jordan Ginsberg of the Eastern District of Louisiana prosecuted the case.

A New Orleans man was sentenced today to 41 months in prison for his role in a coupon counterfeit ring using the Silk Road online marketplace, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Polite Jr. of the Eastern District of Louisiana.

Beau Wattigney, 30, previously pleaded guilty to conspiracy to commit wire fraud and conspiracy to commit trademark counterfeiting before U.S. District Judge Ivan L.R. Lemelle of the Eastern District of Louisiana.  Judge Lemelle sentenced Wattigney and immediately remanded him into custody.

In connection with his plea, Wattigney admitted that between May 2012 and November 2014, he used the online monikers PurpleLotus, GoldenLotus and CouponKing to sell counterfeit coupons for various goods and services on the Silk Road, a covert online marketplace largely for illicit goods.  Wattigney admitted that he created and manufactured the fraudulent coupons with the assistance of several co-conspirators and that they designed the coupons to look like original print-at-home manufacturers’ coupons by using the companies’ trademarks.  According to the plea agreement, Wattigney sold over $1 million worth of counterfeit coupons and victimized more than 50 United States-based businesses. 

The FBI’s Philadelphia Division investigated the case, with assistance from the FBI’s New Orleans Field Office.  Senior Counsel Marie-Flore Johnson and Robert Wallace of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jordan Ginsberg of the Eastern District of Louisiana prosecuted the case.

U.S. Attorney Kenneth A. Polite announced that PAMELA PARKER, 55, a resident of New Orleans and former employee of a regional office of the U.S. Department of Veterans Affairs (the “VA”), pled guilty today to one count of demanding an illegal gratuity.

In the fall of 2014, LSU School of Nursing sought to apply for a highly competitive federal grant, which was designed to transition veterans into nursing careers. According to court documents, the VA assigned PARKER to determine if the VA should partner with LSU to strengthen LSU’s grant application. PARKER admitted that, during her meetings with LSU’s representatives, she demanded things of personal value to her in exchange for her assistance on LSU’s grant proposal. PARKER, a Registered Nurse herself, demanded, among other things, that LSU give her a Doctor of Nursing Science degree.

“Today’s guilty plea is the most recent – but not the last – example of our commitment to fighting public corruption,” said U.S. Attorney Polite.

PARKER faces statutory penalties of up to two years in prison, a $250,000 fine, and one year of supervised release. U.S. District Judge Martin L.C. Feldman set sentencing for May 4, 2016.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorney Marquest J. Meeks is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that GRAEGG L. HOLMES, age 42, of New Orleans, was charged today in a two-count Indictment with wire fraud related to the BP Oil Spill.

According to the Indictment, HOLMES is charged with filing a fraudulent application for relief relating to the April 20, 2010 explosion and fire which occurred on the Deepwater Horizon, an oil rig in the Gulf of Mexico where British Petroleum (BP) had been drilling a well.  After the disaster, BP established the Gulf Coast Claims Facility (GCCF) to administer, mediate, and settle claims of individuals and businesses for losses incurred as a result of the Deepwater Horizon incident.  The GCCF began receiving and processing such claims in August 2010.  The GCCF required any individual filing a claim to submit valid documentation as proof of loss or reduction in earnings due to the oil spill.  HOLMES created false documentation related to a non-existent catering business that HOLMES claimed lost money because of the Deepwater Horizon Disaster. The loss to BP from the fraudulent claims totals $33,900.

If convicted, HOLMES faces a possible maximum sentence of ten years imprisonment on each count, to be followed by three years of supervised release and restitution to the GCCF.

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 reiterated that the Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter.  Assistant U. S. Attorney Patrice Harris Sullivan is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that ALEX JAVIER HERNANDEZ-MEJIA, a/k/a “Alex A. Fernandez,” a/k/a “Alex Hernandesmejia,” and a/k/a “Alex Javier Mejia Henandez,” age 21, a citizen of Honduras, was charged today in a one-count Bill of Information with illegal reentry of a removed alien.

According to the Bill of Information, HERNANDEZ-MEJIA reentered the United States on or about November 9, 2015, after having been previously removed therefrom on or about April 22, 2014.  

If convicted, HERNANDEZ-MEJIA faces a maximum term of imprisonment of two years, a fine of up to $250,000, one year supervised release after imprisonment, and a $100 special assessment.

U. S. Attorney Polite reiterated that a Bill of Information 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, Immigration and Customs 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 TYRONE TAYLOR, age 47, of New Orleans, was sentenced today after having previously pled guilty to possession with intent to distribute 100 grams or more of heroin and a quantity of cocaine hydrochloride, as well as possession of a firearm in furtherance of a drug trafficking crime.

U.S. District Judge Eldon E. Fallon sentenced TAYLOR to serve 120 months in prison, followed by four years of supervised release, and a $200 special assessment

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

U.S. Attorney Kenneth A. Polite announced that MARINA ARNEDO ROJAS-ZAYED, age 34, a resident of Ocean Springs, Mississippi, was sentenced today after previously pleading guilty to one count of making false statements to an agency of the United States.

U.S. District Judge Jane Triche Milazzo sentenced ROJAS-ZAYED to three years probation, a $500 fine, a $100 special assessment, and 200 hours of community service.

According to court records, from on or about July 2012 until on or about August 2013, ROJAS-ZAYED represented before the New Orleans Immigration Court that she was a licensed attorney in the state of Alabama, when in truth she knew she was not a licensed attorney. During hearings before the New Orleans Immigration Court, she appeared and assumed the role of attorney for aliens, albeit fraudulently. When Immigration Judges referred to ROJAS-ZAYED as “counsel,” she did not dispel the judges of this notion or attempt to correct the record. Additionally, ROJAS-ZAYED entered her notice of appearance on behalf of aliens in approximately 42 immigration cases before at least five different Immigration Courts in the United States. Specifically, she submitted numerous documents to the Immigration Courts indicating she was a licensed attorney, although she is not.

U.S. Attorney Polite praised the work of Homeland Security Investigations (HSI) in investigating this matter.  Assistant United States Attorney Julia K. Evans was in charge of this prosecution.

U.S. Attorney Kenneth A. Polite announced that CINDY DANDRIDGE, age 43, of Marrero, pled guilty today to theft of government funds.

According to court documents, DANDRIDGE owned a home in Marrero. In September and October 2010, DANDRIDGE executed application documents with the Home Elevation Mitigation Grant Program (“HMGP”), with the understanding that the grant monies would be used to elevate her home.

In January 2011, DANDRIDGE received federal HMGP grant monies totaling $50,000 and deposited these federal funds into her personal bank accounts. However, instead of using the monies to elevate her home, DANDRIDGE used the grant monies to pay for personal expenses. 

The maximum penalty for theft of government funds is ten years imprisonment and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim.  U.S. District Judge Mary Ann Vial Lemmon set sentencing for April 13, 2016. 

U.S. Attorney Polite praised the work of the Department of Homeland Security, Office of Inspector General in investigating this matter. Assistant United States Attorney Richard R. Pickens, II is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that KELVIN PROVOST, age 38, of Hammond, pled guilty today to conspiracy to distribute and to possess with the intent to distribute 500 grams or more of a mixture or substance containing cocaine hydrochloride (“powder cocaine”) and 28 grams or more of a mixture or substance containing cocaine base (“crack cocaine”). 

According to court records, in September 2014, PROVOST made two separate sales of crack cocaine to an undercover government source.  Then, in November 2014, PROVOST and two other named defendants were traveling along Interstate 12 from Houston, TX, to Hammond, when law enforcement performed a traffic stop on their car.  During the stop, officers recovered from PROVOST and his associates approximately 330 grams of powder cocaine, which PROVOST had just purchased from sources in Houston.  PROVOST admitted during the traffic stop that he had previously made two other trips to Houston for purposes of obtaining similar quantities of powder cocaine. 

PROVOST is facing a mandatory minimum sentence of five years in prison, a maximum sentence of forty years in prison, and a possible fine up to $5,000,000.  U.S. District Judge Mary Ann Vial Lemmon will sentence PROVOST on April 14, 2016.

U.S. Attorney Polite praised the work of the Drug Enforcement Administration, Louisiana State Police, and Iowa Louisiana Police Department in investigating this matter.  Assistant United States Attorney Brandon S. Long is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that EVELYN ODOMS, age 65, of New Orleans, was sentenced today after previously pleading guilty to aiding and abetting health care fraud.

U.S. District Judge Susie Morgan sentenced ODOMS to three years probation, a special assessment of $100, and restitution in the amount of $2,055.

On March 12, 2015, ODOMS was indicted along with 18 other defendants in a 26-count indictment charging approximately $30,052,295 in Medicare fraud and the BP fraud.

According to court documents, Abide billed Medicare for providing home health services to a patient at Abide for about five years.  During that time period, ODOMS, a licensed practical nurse, was supposed to teach the patient how to treat and handle different diagnoses.  But ODOMS never observed the patient exhibit symptoms of the diagnoses and never taught the patient about the diagnoses.  ODOMS falsely documented services she was supposed to provide to the patient, documentation that Medicare relied upon to regulate Medicare providers.  Abide relied on ODOMS’s compromised independent medical observations and ethics to participate in the ongoing health care fraud scheme perpetrated by Abide and Odoms’s co-defendants. 

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter.  Assistant U.S. Attorneys Patrice Harris Sullivan, Sharan Lieberman, and Andre Lagarde are in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that THOMAS EUGENE, age 54, of New Orleans, was sentenced today after previously pleading guilty to one count of bank robbery.

U.S. District Court Judge Sarah S. Vance sentenced EUGENE to serve 160 months  imprisonment, to be followed by three years of supervised release,  restitution in the amount of $5,269, and a $100 special assessment.

According to the court documents, on February 25, 2009, EUGENE entered the Iberia Bank located in the Pan-American building at 601 Poydras Street in New Orleans, and approached a teller with a note demanding money.  The teller gave EUGENE all the $10s, $20s, and $100s from her drawer which an audit by the bank later determined was $5,269.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. Assistant U.S. Attorney Emily K. Greenfield was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that NOE FRANCISCO MARADIAGA-MIRANDA, a/k/a Isaac Lisboa Morales, a/k/a Noe Francisco Maradiaga, a/k/a Noe Francisco, a/k/a Isaac Lisboa, age 34, a Honduran citizen, pled guilty today to falsely representing as his own a Social Security Number in order to obtain employment.

According to the court documents, from on or about April 30, 2012, until on or about September 15, 2015, MARADIAGA-MIRANDA falsely represented that Social Security Number XXX-XX-5102 was assigned to him by the Commissioner of Social Security to obtain employment when in truth and in fact it was not.

MARADIAGA-MIRANDA faces not more than five years of imprisonment, to be followed by three years of supervised release, and a $250,000 fine.  U.S. District Judge Sarah S. Vance set sentencing on April 20, 2016.

U.S. Attorney Polite praised the work of the Immigration and Customs Enforcement in investigating this matter.  Assistant U.S. Attorney Emily K. Greenfield is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that WALTER OIL & GAS COMPANY, a Texas corporation residing in Houston, Texas, pled guilty today to a one-count Bill of Information which charged the company with failing to provide notification to the National Response Center of a hazardous discharge, in violation of Title 33, United States Code, Section 1321(b)(5).  This charge relates to WALTER OIL & GAS COMPANY’s oil and gas production in the Grand Isle area of the Gulf of Mexico. As part of the guilty plea, the company agrees to pay a total monetary penalty of $400,000 and serve a two-year term of probation. If accepted by the Court, the $400,000 monetary penalty will be divided as follows: $320,000 to the United States Treasury, $40,000 to the Louisiana Department of Environmental Quality, $30,000 to the Louisiana State Police Emergency Services Unit and $10,000 to the Southern Environmental Enforcement Network.

According to court documents, WALTER OIL & GAS COMPANY operated a subsea well for the purpose of extracting oil and gas, which would then be sent to the offshore platform identified as Grand Isle 115, by means of a submersed pipeline. WALTER OIL & GAS COMPANY was tasked with ensuring that all material extracted from their subsea wells or introduced into the production pipeline, was managed properly and did not enter the waters of the United States. During oil and gas exploration and production, a paraffin plug sometimes develops which slows the flow in the pipeline connected to the subsea well and offshore platform. An ensuing investigation revealed that in February 2014, personnel on the Grand Isle platform pushed hydrate inhibitor (MXU 5-2684) and paraffin solvent (MC P-3810) by way of a service line, to return the flow in the pipeline to an optimal level. The attempt to clear the plug was unsuccessful and a pipeline remediation plan was developed, which included the recovery of the pipeline to the surface for the removal of  any paraffin plugs. On March 31, 2014, while conducting the pipeline remediation project, a portion of the MXU 5-2684 material leaked into the Gulf of Mexico by way of a malfunctioning release valve.  The chemical components of MXU 5-2684 are Xylene, Quarternary Ammonium Chloride, Ethylbenzene and Isopropyl  Alcohol, which are defined by federal statute as hazardous substances. A sufficient quantity of MXU 5-2684 leaked that WALTER OIL & GAS COMPANY was required to provide notice to the National Response Center. No notification was provided and no attempts to remedy the spilled waste were conducted. On April 1, 2014 the pipeline remediation project was continued but was unsuccessful and personnel left open a connection that allowed the MXU 5-2684 to leak into the Gulf of Mexico. Had the connection been closed rather than left open to leak, another day of work to remedy the situation would have cost approximately $200,000.

“Our federal and state law enforcement partners are committed to protecting our environment,” stated U.S. Attorney Polite.  “We will continue to demand that businesses not illegally pollute the waterways that sit at the center of our culture and economy.”

“The Coast Guard Investigative Service places high priority on the protection of our delicate maritime environment.  We will continue to work hand in hand with our law enforcement partners to pursue those who, by their actions, place that environment at peril,” Said William Hicks, Acting Special Agent in Charge of the Coast Guard Investigative Service Gulf Region office in New Orleans, LA.

“Developing domestic sources of energy must be done responsibly, safely and without threatening public health or the environment,” said Daniel Pflaster, Acting Special Agent in Charge of EPA’s criminal enforcement program in Louisiana.  “The defendant failed to report illegal discharges of production waste fluids believed to be extremely toxic to aquatic environments, and this type of illegal activity compromises the hard work that state, local and federal partners have invested to restore the Gulf of Mexico.  Today’s plea agreement demonstrates that when companies damage the environment and mislead government officials, they will be held accountable for their actions.”

“The Louisiana Department of Environmental Quality will not tolerate the bypassing of state and federal laws for personal, professional or monetary gain,” DEQ Secretary Peggy Hatch said.  “We will continue to aggressively prosecute any business, corporation or individual found to be in violation of environmental regulations.”

United States District Judge Nannette Jolivette Brown set formal sentencing for March 10,  2016.

U.S. Attorney Polite praised the work of the Criminal Investigation Division of the United States Environmental Protection Agency (“EPA-CID”), the Criminal Investigation Division of the Louisiana Department of Environmental Quality (“LDEQ-CID”), and the Coast Guard Investigative Service Gulf Region (“CGIS).  The case is being prosecuted by Assistant United States Attorney Jon Maestri.

U.S. Attorney Kenneth A. Polite, announced that ALEXANDER CASTRO, age 41, of Cape Coral, Florida, was indicted on Friday, December 18, 2015 by a federal grand jury for charges of conspiracy to distribute cocaine and other drug offenses.

According to the Indictment, in December 2015, CASTRO conspired to distribute and possess with intent to distribute five kilograms or more of cocaine.  CASTRO is also charged with possession with intent to distribute five kilograms or more of cocaine.  If convicted of the conspiracy charge, CASTRO will face a sentence of ten years to life imprisonment. 

U.S. Attorney Polite reiterated that the indictment is merely an allegation and that the guilt of the defendants must be proven beyond a reasonable doubt.

U.S. Attorney Polite praised the work of the U.S. Homeland Security Investigations and the Louisiana State Police.  Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.

Maryland-based splint supplier Dynasplint Systems Inc., and its founder and president, George Hepburn, have agreed to pay approximately $10.3 million to resolve allegations that they violated the False Claims Act by improperly billing Medicare for splints provided to patients in skilled nursing facilities, the Department of Justice announced today. 

“Health care companies and their principals who flout Medicare rules will be held accountable,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “Today’s settlement demonstrates our continuing vigilance to ensure that companies and individuals do not plunder taxpayer funded programs for their own enrichment.”

“The civil False Claims Act is a valuable weapon in our office’s arsenal to combat abuse of federal healthcare funds here in the Eastern District of Louisiana and nationwide,” said U.S. Attorney Kenneth Allen Polite Jr. of the Eastern District of Louisiana.  “The favorable resolution and settlement of the claims in this case serve as a reminder to all in the industry to stay vigilant for signs of waste and abuse by providers in our healthcare markets.”

The government alleged that Hepburn and Dynasplint knowingly mischarged Medicare for splints used by patients in Medicare-certified skilled nursing facilities.  Patients staying in skilled nursing facilities, or their insurers such as Medicare, pay a bundled payment to these facilities that cover all of a patient’s needs, including such items as splints, and thus no separate Medicare reimbursement for such devices is permitted.   To circumvent Medicare rules, defendants allegedly mispresented that patients were in their homes or other places that were not skilled nursing facilities.   

This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of more than $26.7 billion through False Claims Act cases, with more than $16.8 billion of that amount recovered in cases involving fraud against federal health care programs.

The settlement resolves allegations originally brought in a lawsuit filed by Meredith Deane, a former sales executive for Dynasplint, under the whistleblower, or qui tam, provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery.  The United States may intervene in such an action as it did here.  Ms. Deane will receive at least $1.98 million for the settlement.

In August 2013, the U.S. Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services (CMS) suspended payments to Dynasplint based upon credible allegations of fraud.  As part of the settlement, defendants are agreeing to forfeit all funds held by this payment suspension, approximately $8.5 million. 

“CMS’ highest priority is protecting people with Medicare benefits and taxpayers and the agency will continue to hold health care providers and suppliers accountable for following Medicare rules,” said Acting Administrator Andy Slavitt of HHS CMS.  “We are pleased to partner with the Department of Justice and law enforcement to safeguard patients, taxpayer funding and the integrity of our programs.”

The case was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the Eastern District of Louisiana and HHS’ Office of Inspector General. 

The lawsuit is captioned U.S. ex rel. Deane v. Dynasplint Health Systems, Inc. and George Hepburn, Case No. 10-cv-2085 (E.D. La.).  The claims resolved by this settlement are allegations only and there has been no determination of liability. 

U.S. Attorney Kenneth A. Polite announced that DOMINIEL TRINETTE JONES, age 26, of New Orleans, was charged today in a five-count Indictment for Conspiracy to Steal Federal Funds, Theft of Federal Funds, and Aggravated Identity Theft.

According to the Indictment, on or before September 11, 2014, JONES conspired with others, known and unknown to the Grand Jury, to unlawfully acquire two United States Treasury checks that did not belong to her. The refund checks were the property of the United States and payable to two actual taxpayers who were owed tax refunds. One check was payable to S.H. for the tax year 2011, in the amount of $25,476.00. The other check was payable to S.V. and J.V., in the amount of $33,754.64. 

At a time unknown, but prior to September 11, 2014, JONES, along with others, obtained two false Georgia driver’s licenses in the names of S.H., and J.V., the two taxpayers who were payees on the refund checks. JONES obtained these fake licenses for the purpose of opening bank accounts to deposit and steal the Treasury funds.

On or about September 11, 2014, using the fake driver’s license bearing the name S.H., JONES, opened a bank account at Woodforest National Bank located in Covington, in S.H.’s name, but deposited the $25,476.00 check later that day at a different branch in Gulfport. On or about September 22, 2014, JONES, traveled to the Woodforest National Bank, located in New Orleans, and withdrew $10,000 from the account bearing the name S.H. using the fake driver’s license. 

According to the allegations in the Indictment, on or about September 13, 2014, JONES and a co-conspirator, opened an account in the names of S.V. and J.V. at Woodforest National Bank located in LaPlace. JONES and the co-conspirator presented fraudulent Georgia driver’s licenses in the names of S.V. and J.V. to open the account. The same day, JONES, and the co-conspirator used the Treasury check payable to S.V. and J.V., in the amount of $33,754.64, as the initial deposit to open the account at the Woodforest National Bank.

If convicted of Conspiracy to Steal Federal Funds, JONES faces a maximum of five years imprisonment, a fine of not more than $250,000.00, supervised release of three years, and a special assessment of $100.00.

If convicted of Theft of Federal Funds, JONES faces a maximum of ten years imprisonment, a fine of not more than $250,000, supervised release of three years, and a special assessment of $100.00, as to each count.

If convicted of Aggravated Identity Theft, JONES faces a mandatory minimum of two year imprisonment in addition to any penalty on Counts Two or Three, as to each count.

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 Internal Revenue Service, Criminal Investigation in investigating this matter.  Assistant U.S. Attorney Sharan E. Lieberman is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that DWIGHT JOSEPH, JR., age 33, of New Orleans, was charged today in a two-count Indictment with possession of images and videos depicting the sexual exploitation of children under the age of twelve and failure to register as a sex offender.

Because of JOSEPH’S 2005 conviction in Lehigh County, Pennsylvania for dissemination of photo/film of child sex acts, if convicted, JOSEPH faces a mandatory minimum of ten years imprisonment and a maximum term of imprisonment of twenty years for possessing child pornography.  He also faces a maximum term of ten years imprisonment for failing to register as sex offender.  Additionally, JOSEPH faces up to a lifetime of supervised release and a $250,000 fine per count.  He can also be required to register as a sex offender.

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 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 Louisiana Attorney General’s Cybercrime Unit and the United States Marshal’s Service, with assistance from the United States Department of Homeland Security – Homeland Security Investigations in investigating this matter.   Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that DELRONE MOORE, age 38, of New Orleans, was charged in a four-count Indictment December 18, 2015, by a federal grand jury for charges of possession with intent to distribute methamphetamine and heroin and other drug charges.

According to the Indictment, on December 16, 2015, MOORE possessed, with intent to distribute, 50 grams or more of methamphetamine and 100 grams or more of heroin.  MOORE is also charged with distribution of heroin on both October 14, 2015, and November 12, 2015.  If convicted of the charge of possession with intent to distribute methamphetamine, the defendant will face a sentence of ten years to life imprisonment.

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

U.S. Attorney Polite praised the work of the Drug Enforcement Administration and the Jefferson Parish Sheriff’s Office.  Assistant United States Attorney Nicholas D. Moses is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that PAUL LEE, age 36, and GARRY GENTRY, age 31, both of New Orleans, were sentenced today for conspiring to distribute one kilogram or more of heroin.

U.S. District Judge Carl J. Barbier sentenced LEE to a term of imprisonment of 168 months and GENTRY to a term of 140 months.  Each defendant was also sentenced to a 5-year term of supervised release following imprisonment and a special assessment of one hundred dollars.

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 area through drug and bulk cash couriers.  LEE and GENTRY were two of the drug dealers who purchased wholesale quantities of heroin from Brooks’s network for 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 was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that MYRNA SHILOH, age 56, of New Orleans, was charged today in a two count Indictment with theft of public money and aggravated identity theft.

According to the court documents, SHILOH lived with Individual “A”.  Individual “A” was receiving Social Security Benefits until she died on May 16, 1998.  After she passed away, checks continued to be sent from the Social Security Administration to Individual “A’s” address in New Orleans.   SHILOH cashed the checks from February 3, 1999 to March 3, 2015 in the amount of $187,960. 

SHILOH forged the name of Individual “A” on the checks.  Bank records confirm the deposit of the forged checks into SHILOH’s account.  SHILOH changed her address after Hurricane Katrina in order to keep getting the checks.

If convicted on Count 1, SHILOH faces a possible maximum sentence of ten years imprisonment, to be followed by up to three years of supervised release, and/or a fine of $250,000.  If convicted on Count 2, SHILOH faces a possible consecutive sentence of two years imprisonment.

U.S. 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 Secret Service, Office of Inspector General 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 DONALD EALY, age 37, of New Orleans, pled guilty today to conspiracy to distribute and to possess with intent to distribute over one kilogram of heroin.  

EALY was one of eight defendants charged in a 21-count superseding Indictment on September 18, 2015.  According to court documents, this Indictment resulted from an FBI investigation into a heroin-trafficking organization operating primarily around Loyola Avenue and Harmony Street in Central City, New Orleans.  The sources of heroin for this organization traveled via Megabus from Houston to New Orleans, carrying half-kilogram quantities of heroin for distribution in the New Orleans area. 

EALY is facing not less than 10 years and a maximum of life imprisonment, as well as a possible fine of up to $10,000,000.  U.S. District Judge Carl J. Barbier will sentence EALY on March 31, 2016

U.S. Attorney Polite praised the work of the FBI in investigating this matter.  Assistant United States Attorney Brandon S. Long is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that MARVIN LOPEZ-PINEDA, age 29, a citizen of Honduras, pled guilty today to a one-count Bill of Information for illegal reentry of removed alien.

According to court records, 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.

LOPEZ-PINEDA 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 Carl J. Barbier set sentencing for February 4, 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.

WASHINGTON -- A former tax return preparer and resident of New Orleans, Louisiana, pleaded guilty today to one count of theft of public funds and one count of aggravated identity theft, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U. S. Attorney Kenneth A. Polite, Jr. for the Eastern District of Louisiana.  

Donald Stewart, 59, prepared tax returns under the business names Stewart’s Tax Service and Stewart LTD from approximately 2001 through 2008, before the Internal Revenue Service (IRS) suspended his Electronic Filing Information Number, according to court documents.  Stewart admitted that he used the means of identification of individuals, including their names and social security numbers, without lawful authority, to electronically file false federal income tax returns with the IRS that claimed income refunds.  From January 2011 through February 2012, Stewart caused approximately $37,809 in federal and state tax refunds in the names of others to be electronically deposited into bank accounts under his control.  Stewart also admitted to cashing or depositing U.S. Treasury checks totaling approximately $539,393 and payable to other individuals at a bank in the New Orleans area.  

U.S. District Judge Eldon E. Fallon set sentencing for March 17, 2006.  Stewart faces a statutory maximum sentence of 10 years in prison for the theft of public money charge and a mandatory term of two years in prison for the aggravated identity theft charge, which must run consecutive to any other prison term he receives.  As to each count, Stewart also faces a fine of $250,000, or twice the gross gain or loss caused by the offense and terms of supervised release.

Acting Assistant Attorney General Ciraolo and U.S. Attorney Polite thanked special agents of IRS-Criminal Investigation, who investigated the case and Assistant U.S. Attorney Hayden Brockett and Trial Attorney Lauren M. Castaldi of the Tax Division, who prosecuted the case.

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 JACQUELINE RAY, age 60, of Biloxi, Mississippi, was charged yesterday in a Bill of Information one count of stealing over $1 Million 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 a credit union manager and had been employed at OCFCU for nearly thirty years.  From around 2007 to 2013, RAY stole at least $1 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 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.

If convicted, 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.

The U.S. Attorney’s Office reiterated that a Bill of Information 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 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 MIGUEL MENDEZ-GUSMAN, age 36, a citizen of El Salvador, pled guilty today to a one-count Indictment for false claim to United States citizenship.

According to the Indictment, MENDEZ-GUSMAN falsely and willfully represented himself to be a citizen of the United States on or about July 28, 2015. 

MENDEZ-GUSMAN 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 Carl J. Barbier set sentencing for March 17, 2016.

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

U.S. Attorney Kenneth A. Polite announced that DERRICK JOSEPH DURAN, age 29, of Des Allemands, pled guilty today to a three-count Indictment charging him with mail fraud.

According to court documents, the Gulf Coast Claims Facility (GCCF) made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion that occurred on April 20, 2010.  The GCCF required individuals to verify loss of income.  On August 25, 2010, DURAN submitted a fraudulent application to the GCCF claiming that he worked as a deckhand on a fishing vessel during the year 2010, before the oil spill.  Documentation in support of DURAN’s claim included a falsified letter from a commercial fisherman indicating that DURAN had worked as a deckhand on his fishing vessel for a twelve month period before the spill, when in fact he had not.  Based on DURAN’s fraudulent application, the GCCF mailed checks totaling $28,000 to DURAN to which he was not entitled.  

DURAN faces a maximum prison term of twenty years, a $250,000 fine, three years of supervised release following imprisonment, and a $100 special assessment.  U.S. District Judge Jane Triche Milazzo set sentencing for March 17, 2016.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation 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 FRANK MIKE, JR., age 46, of New Orleans, was sentenced today after previously pleading guilty to an Indictment charging him with interstate transportation of a stolen 2010 Dodge Caravan van from Louisiana to Georgia.

U.S. District Judge Sarah S. Vance sentenced MIKE, who had been detained in jail on the charge for 20 months, to imprisonment for time served and to a three-year term of supervised release.  The Court ordered MIKE to pay restitution in the amount of $13,667.25 and a $100.00 special assessment.  MIKE will remain in custody due to a state parole revocation and a hold for a pending state court trial.

According to court records, on February 19, 2014, family members reported to the St. John the Baptist Parish Sheriff’s Department that Kenneth and Lakeitha Joseph of Reserve, were missing.  A relative also indicated that she loaned her 2010 Dodge Grand Caravan to the Josephs but that the van had not been returned.  On February 27, 2014, the missing 2010 Dodge Grand Caravan was recovered by the Fulton County Police Department in College Park, Georgia, at an apartment complex.  Investigators discovered that van had been parked at the Travelodge Hotel located in College Park.  On February 21, 2014, video surveillance at the Travelodge showed MIKE driving the van into the hotel parking lot.

In March 2014, the bodies of Kenneth and Lakeitha Joseph were found in the Intercoastal Waterway in New Orleans East. The New Orleans Parish Coroner determined that their deaths resulted from drowning.  Later forensic testing revealed that blood samples taken from the stolen van matched the DNA of both victims.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation, the Drug Enforcement Administration, the New Orleans Police Department, the St. John the Baptist Parish Sheriff’s Office, the Fulton County Police Department, the Orleans Parish District Attorney’s Office, and the St. John the Baptist Parish District Attorney’s Office in investigating this matter.  Assistant United States Attorney Michael B. Redmann was in charge of the prosecution.

WASHINGTON – Two doctors and a registered nurse were sentenced to prison today for their roles at the center of a $50 million health care fraud scheme in New Orleans.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Field Office, Special Agent in Charge CJ Porter of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) Dallas Regional Office and the Louisiana Attorney General’s Medicaid Fraud Control Unit made the announcement.

Dr. Barbara Smith, 67, of Metairie, Louisiana; Dr. Roy Berkowitz, 69, of Slidell, Louisiana; and Beverley Breaux, 67, of New Orleans, a registered nurse, were sentenced by U.S. District Judge Sarah S. Vance of the Eastern District of Louisiana to 80 months, 64 months and 50 months in prison, respectively.  Judge Vance also ordered Smith, Berkowitz and Breaux to pay $9,484,939, $4,952,816 and $2,057,179 in restitution, respectively. 

Evidence introduced at trial showed that the defendants and others carried out a home health care fraud scheme in and around New Orleans through multiple companies over the course of more than 10 years.  Smith and Berkowitz falsely certified that thousands of Medicare recipients were homebound and required nursing or therapy services to be provided in their homes.  Breaux falsely certified that these patients were homebound and falsely claimed to have treated patients that she had not seen.  From 2007 through 2014, the companies in this scheme submitted more than $56 million in claims to Medicare, the vast majority of which were fraudulent.  Medicare paid approximately $50.7 million on these claims.

This case was investigated by the FBI, HHS-OIG and the Louisiana Attorney General’s Medicaid Fraud Control Unit and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Louisiana.  Trial Attorneys William Kanellis and Antonio Pozos of the Fraud Section prosecuted this case.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,300 defendants who have collectively billed the Medicare program for more than $7 billion.  In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.  

To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.justice.gov/criminal-fraud/health-care-fraud-unit.

Two doctors and a registered nurse were sentenced to prison today for their roles at the center of a $50 million health care fraud scheme in New Orleans.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Field Office, Special Agent in Charge CJ Porter of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) Dallas Regional Office and the Louisiana Attorney General’s Medicaid Fraud Control Unit made the announcement.

Dr. Barbara Smith, 67, of Metairie, Louisiana; Dr. Roy Berkowitz, 69, of Slidell, Louisiana; and Beverley Breaux, 67, of New Orleans, a registered nurse, were sentenced by U.S. District Judge Sarah S. Vance of the Eastern District of Louisiana to 80 months, 64 months and 50 months in prison, respectively.  Judge Vance also ordered Smith, Berkowitz and Breaux to pay $9,484,939, $4,952,816 and $2,057,179 in restitution, respectively. 

Evidence introduced at trial showed that the defendants and others carried out a home health care fraud scheme in and around New Orleans through multiple companies over the course of more than 10 years.  Smith and Berkowitz falsely certified that thousands of Medicare recipients were homebound and required nursing or therapy services to be provided in their homes.  Breaux falsely certified that these patients were homebound and falsely claimed to have treated patients that she had not seen.  From 2007 through 2014, the companies in this scheme submitted more than $56 million in claims to Medicare, the vast majority of which were fraudulent.  Medicare paid approximately $50.7 million on these claims.

This case was investigated by the FBI, HHS-OIG and the Louisiana Attorney General’s Medicaid Fraud Control Unit and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Louisiana.  Trial Attorneys William Kanellis and Antonio Pozos of the Fraud Section prosecuted this case.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,300 defendants who have collectively billed the Medicare program for more than $7 billion.  In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.  

To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov. 

U.S. Attorney Kenneth A. Polite announced that NEMESSIS BATES, a/k/a “Nemo,” age 37, of Kenner, was sentenced today for his role in the conspiracy and murder-for-hire plot related to the death of Christopher “Tiger” Smith.

After a four-day jury trial beginning on June 4, 2015, a jury found BATES guilty solicitation to commit a crime of violence, use of interstate commerce facilities in the commission of murder-for-hire, causing death through the use of a firearm, and conspiracy to possess firearms.

U.S. District Judge Sarah S. Vance sentenced BATES to life imprisonment.  Additionally, BATES was sentenced to 240 months for solicitation to commit a crime of violence and conspiracy to possess firearms in furtherance of a crime of violence.  All sentences are to be served concurrently.  Judge Vance also imposed $10,644.10 in restitution. 

Co-defendant Aaron Smith previously pled guilty in this matter and is awaiting sentencing.  Co-defendant Walter Porter is expected to go to trial in 2016.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and detectives of the Jefferson Parish Sheriff’s Office in investigating this matter.  Assistant United States Attorneys Elizabeth Privitera and Gregory Kennedy are in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that FROILAN IGNACIO MIRANDA-RAMOS, age 30, of Gretna, was sentenced today after pleading guilty to four counts of transferring false Social Security Cards in violation of Title 18, United States Code, Section 1028(a)(2).

U.S. District Judge Sara S. Vance sentenced MIRANDA-RAMOS to time served.    MIRANDA-RAMOS will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.

According to court documents, MIRANDA-RAMOS sold counterfeit Social Security Cards on four separate occasions to confidential informants working with the Department of Homeland Security. 

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 was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that JACOBI BOYD, age 24,  of New Orleans, was sentenced today for his participation in a drug conspiracy and a conspiracy to possess and use firearms in connection with the drug trafficking activities of a local gang known as the “Young Melph Mafia” or “YMM.”  

U.S. District Judge Kurt D. Engelhardt sentenced BOYD to 480 months (40 years) of imprisonment, to be followed by five years of supervised release.  BOYD was sentenced to 480 months as to count 1 (the drug conspiracy) and 240 months to count 2 (a conspiracy to possesses firearms in furtherance of drug trafficking crimes), with the amounts to run concurrently.

BOYD was originally charged in a five-count Superseding Indictment with nine other YMM members, who frequented the area of the former Melpomene Housing Project. According to the factual basis filed in open court, BOYD and other YMM members participated in a wide ranging conspiracy to distribute street level quantities of crack cocaine in Central City and participated in several acts of violence against rival gangs, such as the 110ers.  The members of the YMM were associates of the members of the Allen family, who were also indicted and convicted in federal court last year.  Three members of the 110ers gang were convicted on January 29, 2015, in Orleans Parish Criminal Court for the Briana Allen shooting. He is the sixth member of the YMM to be sentenced thus far. The remaining defendants have been charged in a superseding indictment with additionally conspiring to commit RICO violations, including several murders and other acts of violence.

 “This is just another example of how serious the federal government is in helping turn the tide of violence that is occurring in New Orleans,” stated U.S. Attorney Polite.  “These local gangs have caused serious harm to the neighborhoods of this City, and the federal government will continue to work with local authorities to bring these individuals to justice.” “Removing BOYD and other Young Melph Mafia gang members from the community has been a top priority for ATF,” said ATF Special Agent in Charge Constance Hester.  “The success of this investigation is a direct result of the collaborative efforts between the New Orleans Police Department, the United States Attorney’s Office, and ATF.”  

 U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) in leading this investigation along with members of the NOPD led Multi-Agency Gang Unit (MAG UNIT).  Assistant United States Attorneys Edward J. Rivera and Maurice E. Landrieu, Jr. were in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that BAKEER RASHED, JR., age 33, of Houston was sentenced today after having pled guilty to one count of conspiring to distribute 500 grams or more of cocaine hydrochloride.

U.S. District Judge Ivan L.R. Lemelle sentenced RASHED to served 66 months incarceration, to be followed by 4 years of supervised release, and was ordered to pay a $100 special assessment.

According to the factual basis filed in open court, RASHED conspired to distribute more than 500 grams of cocaine hydrochloride from July 25, 2006, through February 19, 2007, with co-conspirators living in Louisiana. RASHED, who lived in Houston, was the point of contact for facilitating numerous drug deals.  

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the assistance of the St. Tammany Parish Sheriff’s Office in investigating this matter.  Assistant United States Attorney Edward J. Rivera was in charge of the prosecution.

WASHINGTON – Bollinger Shipyards will pay the United States $8.5 million and release contract claims to settle a False Claims Act action filed against it in the Eastern District of Louisiana, the Department of Justice announced today.  The False Claims Act suit alleges that Bollinger misrepresented the longitudinal strength of patrol boats it delivered to the Coast Guard that resulted in the boats buckling and failing once they were put into service.  Bollinger Shipyards is located in Lockport, Louisiana.

“Those who expect to do business with the government must do so fairly and honestly,” said Principal Deputy Assistant Attorney General Benjamin Mizer, head of the Justice Department’s Civil Division.  “We expect the utmost integrity and reliability from the contractors that design and build equipment that is essential to public safety and our national defense.”

In 2002, the U.S. Coast Guard contracted to lengthen the Coast Guard’s existing fleet of 110-foot patrol boats to 123 feet and to make other modifications.  Bollinger was the subcontractor that performed the 123-foot patrol boat design and conversion work.  An essential element of the conversion was that the modified boats have sufficient longitudinal strength to meet the performance requirements set forth in the contract.  The United States alleged Bollinger provided the Coast Guard with engineering calculations that falsely represented the longitudinal strength of the boats and was two times greater than their actual longitudinal strength.  The United States alleged Bollinger ran the calculations three times and only provided the Coast Guard with the highest and most inaccurate, of the three calculations.  The United States further alleged Bollinger also failed to follow the quality control procedures that were mandated by the contract that would have ensured against such engineering miscalculations.                     

The case was handled jointly by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office of the Eastern District of Louisiana. 

The case is captioned United States v. Bollinger Shipyards, et al. Case No. 2:12cv-00920 (E.D. La.).  The claims resolved by the settlement are allegations only, and there has been no determination of liability.

U.S. Attorney Kenneth A. Polite announced that WAYNE WILLIAMS, age 37, of River Ridge, pled guilty today a two-count Bill of Information charging him with wire fraud.

According to court records, WILLIAMS was responsible for selling security systems and services, and also for negotiating and signing customer contracts on behalf of ADT Security and Protection One.  WILLIAMS was compensated by his employers through commissions received on contracts he negotiated. 

WILLIAMS forged a customer’s signature on a $466,046.18 ADT Security equipment and installation services contract.  Without ADT Security’s knowledge, the defendant secretly executed a separate contract with the customer in which only $109,148.93 was charged.  The defendant received approximately $73,576.72 in commissions from ADT Security as a result of the fraudulent contract.

With regard to Protection One, WILLIAMS forged a purported customer’s signature on an $80,240.48 Protection One equipment and installation services contract.  The defendant received approximately $2,353.99 in commissions from Protection One as a result of this fraudulent contract.

With respect to each count, WILLIAMS faces a maximum term of imprisonment of twenty years incarceration, three years of supervised release after any term of imprisonment, and a $250,000 fine.  U.S. District Judge Jay C. Zainey set sentenced on March 8, 2016.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter.  Assistant United States Attorney G. Dall Kammer is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that CHEERY WAY, INC., and ELAINE CHIU, age 60, a resident of San Francisco, California, were charged today in a one-count Bill of Information with a felony violation of the Clean Air Act.

According to the Bill of Information, on or about April 2, 2011, in the Eastern District of Louisiana, CHEERY WAY, INC., and CHIU did knowingly fail to notify and report to the Louisiana Department of Environmental Quality the demolition of the Mississippi Queen Riverboat, a facility, which contained regulated asbestos containing material, to wit: wall and ceiling tiles, at least ten days prior to the start of the demolition as required by the Clean Air Act, in violation of Title 42, United States Code, Section 7413(c)(2)(B) and Title 40, Code of Federal Regulations, Section 61.145(b). 

If convicted, CHEERY WAY, INC., faces a maximum term of probation of five years and a fine of $500,000.  If convicted, CHIU, 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 the Bill of Information 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 Environmental Protection Agency-Criminal Investigation Division and the Louisiana Department of Environmental Quality-Criminal Investigation Division in investigating this matter.   Assistant United States Attorney Emily K. Greenfield is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that MARINICA MIREL COTOI, age 37, of Romania, was sentenced today after  previously pleading guilty to one count of bank fraud.

U.S. District Judge Nannette Jolivette Brown sentenced COTOI to 8 months of incarceration, followed by two years of supervised release.   Additionally, COTOI was ordered to pay restitution to the victim banks and is subject to deportation following completion of his incarceration.

According to court documents, in January 2015, the U.S. Secret Service and the Louisiana Financial Crimes Task Force began investigating the unauthorized collection of debit card numbers through the installation of “skimming devices” on various ATM machines and the subsequent illegal use of fake debit cards.  In March of this year, COTOI and another man rented a hotel room in Covington.  Shortly thereafter, COTOI was captured on surveillance video using fake debit cards to withdraw funds from three local bank accounts. COTOI later admitted that he illegally entered the United States.

U.S. Attorney Polite praised the work of the U.S. Secret Service and the Louisiana Financial Crimes Task Force with the assistance of the St. Tammany Parish Sheriff’s Office in investigating this matter.  Assistant United States Attorneys Edward Rivera and Carter Guice were in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that PERRY WILSON, a/k/a “Yummy,” age 24, and TYRONE BURTON, a/k/a “Man Man,” age 21, both of New Orleans, were sentenced today after having previously pled guilty to federal firearm and drug violations.  

U.S. District Judge Susie Morgan sentenced WILSON and BURTON to 108 months of imprisonment and 60 months of imprisonment, respectively.  Additionally, both defendants will serve four years of supervised release following imprisonment.

WILSON and BURTON were two of twelve defendants charged with conspiring to distribute cocaine base in the St. Roch neighborhood.  In addition, all twelve defendants were charged with conspiring to possess firearms in furtherance of their drug trafficking crimes.  Three defendants were also charged with conspiring to violate the Racketeer Influenced Corrupt Organization Act, as well as substantive acts of violence.

To date, nine defendants charged in this case have pled guilty to various charges.  Co-defendant ANDREALIE LEWIS was previously sentenced to 48 months of incarceration; ERVIN SPOONER was previously sentenced to 108 months of incarceration; TRE CLEMENTS was previously sentenced to 96 months; ROMALIS PARKER was previously sentenced to 70 months; TYONE BURTON was previously sentenced to 121 months of incarceration; and NYSON JONES was previously sentenced to 87 months of incarceration.  MORRIS SUMMERS, age 25, will be sentenced on December 16, 2015. Three defendants were convicted following trial and pending sentencing as well: DELOYD JONES, a/k/a “Puggy,” age 23; BYRON JONES, a/k/a/ “Big Baby,” age 25; and SIDNEY PATTERSON, a/k/a “Duda Man,” age 24.

According to court documents and evidence presented at trial, the defendants were members and associates of the “Ride or Die” gang, which they also referred to as “R.O.D.”  The Ride or Die gang was initially formed in or about 2007 and continued to exist through in or about 2013.  During the course of the federal investigation into the gang, agents learned that the defendants used a house, located at 1632 Mandeville Street, among other locations, as a base of operations to package, sell, and store narcotics, as well as store firearms.

U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives as part of the metro area’s Multi-Agency Gang Unit (MAG) in investigating this matter.  As an integral component of NOLA FOR LIFE’s Group Violence Reduction Strategy, the

MAG Unit consists of a partnership with New Orleans Police Department (NOPD); Orleans Parish District Attorney’s Office (DA); Orleans Parish Sheriff’s Office (OPSO); Louisiana State Police (LSP); Parole Board of the Louisiana Department of Corrections; United States Attorney’s Office (USAO); Federal Bureau of Investigation (FBI); Drug Enforcement Administration (DEA); United States Marshal’s Service (USMS); and the United States Probation & Parole Office for the Eastern District of Louisiana.  Assistant United States Attorneys Nolan D. Paige, Marquest Meeks and Special Assistant United States Attorney Brian Ebarb were in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that ERIC de JESUS MENDOZA-MARTINEZ, age 19, from Honduras, was charged today in a one-count Indictment with being an illegal alien in possession of a firearm.

According to the Indictment, MENDOZA-MARTINEZ, an alien illegally and unlawfully present in the United States, was encountered by Department of Homeland Security/Homeland Security Investigations agents and found to be in possession of a .380 semi-automatic pistol.

If convicted, MENDOZA-MARTINEZ faces a maximum term of imprisonment of ten years, a fine of $250,000 and three years of supervised release following any term of imprisonment.

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 U.S. Department of Homeland Security/Homeland Security Investigations in investigating this matter.   Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.