Eastern District of Louisiana

U.S. Attorney Kenneth A. Polite announced that SERGIO GRIMALDO aged 34, a citizen of Mexico, pled guilty today to conspiracy to possess and distribute 5 kilograms or more of cocaine.  GRIMALDO’s organization distributed hundreds of kilograms of cocaine throughout United States, to include Jackson, Mississippi, Pensacola, Florida, New York City, New York, and Houma, Louisiana.

According to court documents, in September 2009, Drug Enforcement Administration Agents seized cocaine hydrochloride in Houma, Louisiana and in April of 2010, the Drug Enforcement Administration conducted a controlled purchase of cocaine hydrochloride from the defendant in Beaumont, Texas.

GRIMALDO was extradited from Mexico in July 2014, based on a warrant from the Eastern District of Louisiana.  EFRAIN GRIMALDO, co-defendant and the brother of SERGIO GRIMALDO, was convicted of the same offense following a jury trial and was sentenced to 405 months imprisonment.

GRIMALDO faces a maximum sentence of life imprisonment and a fine of up to $10 million.  U.S. District Judge Sarah S. Vance set sentencing for  January 20, 2016.

U.S. Attorney Polite praised the work  of the Drug Enforcement Administration New Orleans Office, DEA Houston HIDTA Task Force, Terrebonne Parish Sheriff’s Office, Louisiana State Police Troop C, Houma Police Department and Lafourche Parish Sheriff’s Office in investigating this matter.  Assistant U.S. Attorneys John F. Murphy and Theodore R. Carter III are in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that KENNETH JOHNSON, SR., age 52, of Stone Mountain, Georgia, was sentenced today after previously pleading nolo contendere (no contest) to conspiring to pay kickbacks in a federal debris removal contract and two counts of filing false tax returns with the Internal Revenue Service.

U.S. District Judge Stanwood R. Duval sentenced JOHNSON to 3 years probation that included one year of home incarceration.  In addition to the term of imprisonment, JOHNSON was also ordered to pay $113,771 in restitution to the Internal Revenue Service.

"We are pleased with the sentence handed down against Mr. Johnson today,” said Jerome R. McDuffie, Special Agent in Charge, IRS Criminal Investigation. “Quite often crimes of greed include more than concealing income from the IRS. This investigation is a prime example of how Special Agents of IRS Criminal Investigation work with the FBI, the Department of Defense, and the United States Attorney's Office to bring individuals involved in fraud to justice. Mr. Johnson sought to exploit the tragedy of Hurricane Katrina for personal gain.  We will continue to work tirelessly with our law enforcement partners to stop those individuals who scheme and conspire with each other to benefit themselves to the detriment of other citizens and their government. "

According to court documents, the U.S. Army Corps of Engineers hired Phillips and Jordan, a national construction firm, to manage the removal of storm debris from the City of New Orleans after Hurricane Katrina devastated the metro area.  After they were awarded the contract, Phillips and Jordan hired Company A, a local solid waste management company to assist with the debris removal project. Shortly after securing the contract, Company A hired ANTHONY PENN, a local businessman, to manage the debris removal project for them.  After some time on the job, PENN approached the owners of Company A and asked if they would consider hiring his brother-in-law, KENNETH JOHNSON, as a sub-tier subcontractor to work on the project.  The owners of Company A accepted the recommendation and hired JOHNSON’s company, KCJ Enterprises, as a sub-tier subcontractor.  Sometime thereafter, PENN asked JOHNSON to provide him with a cut of the revenue that KCJ Enterprises was receiving from Company A as a reward for steering the contract to him.  JOHNSON agreed to the scheme and wired a total of $236,461.55 in kickback payments to PENN from July 12, 2006 to February 8, 2008.

As part of the investigation, it was determined that JOHNSON filed false tax returns with the IRS for tax years 2007 and 2008 in an effort to conceal the kickback scheme and to avoid paying taxes on his income from the debris removal work.  As a result, JOHNSON avoided paying $113,771.00 in federal taxes.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigations, the United States Department of Defense, and the Internal Revenue Service in investigating this matter.  The case was prosecuted by Assistant U.S. Attorneys Spiro G. Latsis and Theodore R. Carter, III.

U.S. Attorney Kenneth A. Polite announced that RAY WOODRUFF, age 21,  and  FRANKIE HOOKFIN, age 24, both of Waggaman, pled guilty today to conspiring to distribute a kilogram or more of heroin and 280 grams or more of crack cocaine and to murdering a man to further their group’s drug trafficking activities.

WOODRUFF and HOOKFIN each pled guilty to two counts of the Superseding Indictment, which charged twelve defendants with drug trafficking, a variety of weapons offenses, and six shootings resulting the death of four people and the injury of two others.  Count 1 charged WOODRUFF and HOOKFIN with conspiring to distribute a kilogram or more of heroin and 280 grams or more of crack cocaine, which carries a mandatory minimum sentence of at least ten years up to life in prison.  WOODRUFF and HOOKFIN also pled guilty to Count 12, charging them and two others with causing the death of a man through the use of firearms, which is punishable by any term of years up to life in prison.  U.S. District Judge Lance M. Africk set sentencing on December 10, 2015.

“Violent offenders have no place on our streets,” stated U.S. Attorney Polite.  “If you terrorize our communities through drug trafficking and gun violence, just as these defendants did, then you risk being in jail for the rest of your life.”

According to court documents, WOODRUFF and HOOKFIN were part of a drug trafficking organization that moved significant quantities of heroin and cocaine base on the West Bank.  Beginning in 2012, the group engage in a series of violent acts, beginning with a drive by shooting into a another vehicle where the driver and his front seat passenger were shot with an AK-47 while two young children, who were not hit, were in the back seat.  The group is alleged to have participated in five additional shootings, two of which ended in death.  WOODRUFF and HOOKFIN pled guilty to the murder of Emeal Washington and admitted to their participation in the murder of Doreatha Richardson, in addition to two other shootings.  In addition to the shootings, members of the group are charged with weapon and drug conspiracies, in addition to several substantive distribution counts.

HARRY SMOOT, ISAAC SMITH, RICHARD THOMAS, TERRELL WADE, LANCE SINGLETON, and CHRISTOPHER BROWN have previously pled guilty and are awaiting sentencing.  TERRENCE KELLEY and CLIFFORD SONNIER are scheduled for trial on September 28, 2015.  JOEQUELL LEWIS and ANDRE ADDISON are scheduled for trial on October 26, 2015.

The Superseding Indictment 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, are in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced today that, as part of President Obama’s commitment to building trust and transparency between law enforcement and the communities they serve, the Justice Department has awarded a $232,000 grant to the New Orleans Police Department to expand the use of body-worn cameras and explore their impact.

Attorney General Loretta E. Lynch announced that the Justice Department has awarded grants totaling more than $23.2 million to 73 local and tribal agencies in 32 states.  The body-worn camera pilot program announced in May 2015 includes $19.3 million to purchase body-worn cameras, $2 million for training and technical assistance and $1.9 million to examine the impact of their use.  The grants, awarded by the department’s Office of Justice Programs (OJP), build on President Obama’s proposal to purchase 50,000 body-worn cameras for law enforcement agencies within three years.

“This vital pilot program is designed to assist local jurisdictions that are interested in exploring and expanding the use of body-worn cameras in order to enhance transparency, accountability and credibility,” said Attorney General Lynch.  “The impact of body-worn cameras touches on a range of outcomes that build upon efforts to mend the fabric of trust, respect and common purpose that all communities need to thrive.”

“We thank the DOJ and OJP for this grant award in support of NOPD’s reform efforts.  Body-worn cameras are essential to protecting, and building trust between, our law enforcement officers and the public they serve.”

The grants, which require a 50/50 in-kind or cash match, can be used to purchase equipment and require that applicants establish a strong implementation plan and a robust training policy before purchasing cameras.  Each agency awarded a grant is responsible for developing a plan for long-term storage, including the cost of storing data.

In addition to funds to help purchase body-worn cameras and train officers in their use, grants under the Bureau of Justice Assistance’s (BJA’s) Smart Policing Initiative will support police departments in Miami, Milwaukee and Phoenix as they examine the impact of body-worn cameras on citizen complaints, internal investigations, privacy, community relationships and cost effectiveness.  Each of these three departments will partner with a research institution to gain insight on the merits of deploying body-worn camera programs.

WASHINGTON, DC—Today, U.S. Attorney General Loretta Lynch announced Office of Community Oriented Policing Services (COPS Office) funding awards to two cities in the Eastern District of Louisiana, aimed at creating, and in some cases protecting, 17 law enforcement positions. Over $107 million will be awarded nationally, through the COPS Hiring Program (CHP), including $2,095,846.

The list of this year’s grantees includes:

New Orleans Police Department:   $1,875,000 to fund 15 officers

Bogalusa Police Department:         $   220,846 to fund 2 officers

Total Funding Awarded:                 $2,095,846

“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “These grants are not simply about putting more officers on the street, they are about expanding the capacity of law enforcement agencies to engage in community policing.”

"I thank the COPS Office for its continued support of law enforcement efforts in our District,” state U.S. Attorney Polite.  “These grant awards will help improve public safety in two important cities in Southeast Louisiana."

CHP provides grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides salaries and benefits for officer and deputy hires for three years.

Priority consideration was given this year to agencies that selected any of the Building Trust focus areas or School Based Policing through School Resource Officers.  All applicants were encouraged to refer to the report of the President's Task Force on 21st Century Policing for suggested actions to incorporate into their proposed community policing strategy.

The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has invested over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 127,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.

For the entire list of grantees and additional information about the 2015 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.

U.S. Attorney Kenneth A. Polite announced three separate criminal matters, charging United States Postal employees for theft of mail.

According to a four-count Indictment, on or about July 18, 2015, and again on or about July 22, 2015, ANISHA GALLIN, age 27, stole the contents of four first-class letters.

A second one-count Indictment alleges that, in or about December 2013, O’NEIL EDWARDS, age 27, stole two $100 gift cards from mail sent from Las Vegas to Belle Chasse.

Lastly, a three-count Bill of Information charges that, on or about July 9, 2014, JOSHUA GRESHAM, age 27, removed $370 in cash from three greeting cards while on his postal route.

If convicted, each defendant faces a maximum term of imprisonment of five years, followed by three years of supervised release, a maximum fine of $250,000, and restitution, as to each count.

U.S. Attorney Polite reiterated that the Indictments and Bill of Information merely contain charges and that the guilt of each defendant must be proven beyond a reasonable doubt.

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 is in charge of prosecuting all three matters.

U.S. Attorney Kenneth A. Polite announced that ADRIAN RIVERA-MENDOZA, age 35, a citizen of Mexico, was charged today in a one-count Indictment with illegal reentry into the United States after having been previously deported.

According to the Indictment, ADRIAN RIVERA-MENDOZA was encountered by Immigration & Customs Enforcement agents in the Eastern District of Louisiana on June 29, 2015, after records showed he had been previously deported from the United States to Mexico on October 29, 2012.

If convicted, ADRIAN RIVERA-MENDOZA 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 Immigration & Customs Enforcement.  Assistant U.S. Attorney Emily K. Greenfield is in charge of the prosecution.

U.S. Attorney, Kenneth A. Polite announced that ERIN PITRE, age 36, of Cut Off, pled guilty today to a one-count Bill of Information with possession of images and videos depicting the sexual exploitation of children under the age of twelve years old.

According to court documents, law enforcement officials executed a search warrant at PITRE’S residence on January 22, 2015, during which time they seized an external digital storage device that contained images and videos of child pornography.  A forensic examination of the device revealed that PITRE used peer-to-peer file sharing programs on his computer to search for, download, and store images and videos of children as young as two years-old engaging in sexually explicit conduct.  The forensic examination located approximately 185 images and 7 videos of children engaging in sexually explicit conduct that PITRE possessed.

PITRE faces a maximum term of imprisonment of not more than twenty years, followed by up to a lifetime of supervised release, and a $250,000 fine.  PITRE can also be required to register as a sex offender.  U.S. District Judge Mary Ann Vial Lemmon set sentencing for December 10, 2015. 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 Federal Bureau of Investigation is investigating this matter.  Assistant U.S. Attorney Jordan Ginsberg is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that NISIKA WEST, age 36, of Kenner,  was charged today in a six-count Indictment with theft of public money and aggravated identity theft.

According to the Indictment, between in or about March 2012 and May 2012, WEST knowingly stole money from the United States Department of the Treasury in the form of federal tax refunds by using stolen identities.

If convicted, WEST faces a maximum term of imprisonment of ten years, followed by three years of supervised release, a maximum fine of $250,000, and restitution, as to each of Counts 1 through 3.  As to Counts 4 through 6, the defendant faces a mandatory two years of imprisonment as to each count in addition to any sentence received for Counts 1 through 3.   

United States 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 Investigations.  Assistant United States Attorney G. Dall Kammer is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that JUAN VASQUEZ-ALVARADO, age 47, a citizen of Honduras, pled guilty today to a one-count Indictment charging him with illegal reentry of a removed alien.

According to the Indictment, VASQUEZ-ALVARADO reentered the United States on or about July 2, 2015, after having been previously removed on September 5, 2002.

VASQUEZ-ALVARADO 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 Carl J. Barbier set sentencing for October 29, 2015.

U.S. Attorney Polite praised the work of the U.S. Immigration and Customs Enforcement Agency 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 TREY MITCHELL, age 23, pled guilty today to attempted distribution of heroin, while co-defendants TERRELL DAVIS, age 24, and PERCY DEPRON, age 28, all of New Orleans, were sentenced for conspiracy to distribute heroin.

U.S. District Judge Kurt D. Engelhardt sentenced DAVIS to 151 months in prison, five years of supervised release following his prison term, and a $100 special assessment.  DEPRON was sentenced to 121 months in prison, five years of supervised release, and a $100 special assessment.

According to court documents, the investigation of this trafficking organization included multiple court-authorized wiretaps by the Drug Enforcement Administration (DEA) New Orleans Police Department High-Intensity Drug Trafficking Area group, including taps of cell phones used by dealers to communicate with suppliers, other co-conspirators, and customers.  DEA worked together with agents of the Federal Bureau of Investigation to conduct numerous undercover purchases of heroin, surveillance operations, searches, witness debriefings, records analyses, and other investigative techniques to uncover and dismantle the heroin trafficking activities of the group.

The investigation showed that the defendants had been using a residence in New Orleans East as a base of operations to meet with heroin suppliers, maintain a heroin stash, and provide heroin to other dealers.

Numerous daily heroin customers also called the ‘dope’ phones used by these defendants every day to order heroin.  Typically one of the dealers would answer these calls, ask the caller how much heroin he or she wanted to buy, and direct the caller to drive to a gas station or other commercial location in the New Orleans East neighborhood.  Through subsequent calls and then

visual contact between the customer and dealer, the dealer would direct the customer to rendezvous in a parking lot or on a side street near the commercial location to conduct the heroin sale.

According to the record, in July 2013, a court-authorized wiretap of the ‘dope’ phone used by defendant TERENCE TAYLOR intercepted a series of calls relating to the sale of heroin to a person who had recently been through treatment for heroin addiction, and who died later that day as a result of a heroin overdose.  Intercepted calls helped to demonstrate that TAYLOR negotiated this particular sale of heroin and that defendant MALCOLM BOLDEN subsequently met with the decedent to complete the sale.  Judge Engelhardt sentenced BOLDEN to 25 years in prison in June.

Court documents also show that TAYLOR’s brother, TREY MITCHELL, had been selling heroin prior to MITCHELL’s state arrest and incarceration beginning in November 2012.  At that point, TAYLOR took custody of a ‘dope’ phone formerly used by MITCHELL and began serving many of MITCHELL’s heroin customers.  MITCHELL also attempted to direct heroin sales from jail through the use of cellular phones that had been smuggled into the jail.  Some of these telephone calls over MITCHELL’s smuggled jail cell phone were intercepted during the court-authorized wiretap investigation of TAYLOR.

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 U.S. Attorneys Michael B. Redmann and Mark A. Miller are in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that AVA SMITH, age 21, of Harvey, pled guilty yesterday for delay or destruction of mail.

According to court records, on December 16, 2014, the Office of Inspector General for the United States Postal Service (“Postal OIG”) received information that a significant amount of First Class and Standard mail had been discarded.  It was determined that the mail was to be delivered on December 8, 2014, by postal carrier SMITH.  A review of the discarded mail revealed 573 pieces of First Class Mail, 142 pieces of Standard Mail, and 30 pieces of Non-Profit Mail.  The First Class Mail included bank and insurance statements/invoices, credit card and other bills/statements.

SMITH faces a maximum penalty of five years imprisonment, followed by up to three years of supervised release, and a $250,000 fine.  U.S. District Judge Susie Morgan set sentencing on December 16, 2015.

U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service, Office of Inspector General in investigating this matter.  The prosecution of this case is being handled by Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba.

WASHINGTON – A resident of Hammond, Louisiana, was sentenced today to serve 33 months in prison to be followed by three years of supervised release for his role in a triple-object conspiracy to defraud the United States, to commit theft of public money, and mail fraud, announced 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.

Cedrick Mitchell, aka Skeet, 40, pleaded guilty on June 17 to one count of a triple-object conspiracy to defraud the United States, to commit theft of public money, and mail fraud.  U.S. District Judge Jay C. Zainey of the Eastern District of Louisiana imposed today’s sentence and set a later date to determine Mitchell’s the restitution amount that Mitchell will have to pay to the Internal Revenue Service (IRS).

According to court documents, Mitchell and his co-defendants conspired to file false federal income tax returns using stolen identities.  The conspirators used stolen names and social security numbers to prepare false tax returns that claimed tax refunds.  The refund checks were mailed to addresses in Louisiana, including to post office boxes that were opened and controlled by the conspirators.  The conspirators then falsely endorsed and cashed the checks.  Mitchell also deposited refund checks from the U.S. Treasury into a bank account under his control.

The indictment also charged Corey Lewis, aka Coco, 37; Angela Chaney, 43; Craig Lewis, 40; Brad Lewis, aka Bird, 32; Thaddeus Richardson, 49; and Martin Jackson Sr., 48, with conspiracy.  In addition, Corey Lewis, Chaney, Richardson and Jackson Sr. were charged with various counts of theft of public money.  Chaney was also charged with six counts of mail fraud and five counts of aggravated identity theft.  Corey Lewis was additionally charged with three counts of aggravated identity theft.  All of the defendants in this case have pleaded guilty to various charges and are awaiting sentencing.

Acting Assistant Attorney General Ciraolo and U.S. Attorney Polite commended special agents of IRS-Criminal Investigation and the U.S. Postal Inspection Service, who investigated the case, and Assistant U.S. Attorneys Hayden Brockett and Dall Kammer and Trial Attorney Lauren Castaldi of the Tax Division, who are prosecuting the case.

U.S. Attorney Kenneth A. Polite announced that LARRY WILLIAMS, age 34, of New Orleans, pled guilty yesterday to a one-count Indictment charging him with the robbery of the CHASE Bank branch located at 201 St. Charles Avenue.

According to court records, on April 30, 2012, WILLIAMS entered the CHASE Bank branch and handed a note demanding money to a teller.  The teller handed WILLIAMS a bundle of bills which included a dye pack.  When WILLIAMS fled the bank, the dye pack exploded.  WILLIAMS removed some clothing and discarded it along with the dye-stained money.  The clothing and a plastic bag carried by WILLIAMS were recovered and examined by the Federal Bureau of Investigation.  The FBI lab at the FBI facility in Quantico, Virginia recovered DNA and fingerprints matching WILLIAMS.

WILLIAMS faces up to 20 years imprisonment, followed by three years of supervised release, a $250,000 fine, and a $100 special assessment.  U.S. District Judge Jay C. Zainey set sentencing for December 15, 2015.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter.  Special Assistant United States Attorney Brian Ebarb is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that HERBERT COOPER, age 42, of New Orleans, pled guilty today to one count of conspiring to distribute and possess with intent to distribute over 28 grams of cocaine base (“crack cocaine”).

In pleading guilty, COOPER faces a five-year minimum term of imprisonment, a maximum term of forty years, a fine of up to $5,000,000, a period of four  years of supervised release following any term of imprisonment, and a special assessment of $100.00.  U.S. District Judge Nannette Jolivette Brown set sentencing on December 3, 2015.

U.S. Attorney Polite praised the work of the Drug Enforcement Administration, with assistance from the New Orleans Police Department in investigating this matter.  Assistant U.S. Attorney Brandon S. Long is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that SHIMEKA MILTON-FLAX, age 36, of Hammond, was charged today in a one-count Bill of Information with making false income tax returns.

According to the Bill of Information, MILTON-FLAX knowingly prepared a materially false tax return for two individuals.  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.

If convicted, MILTON-FLAX faces a maximum term of imprisonment of three years incarceration, one year of supervised release after any term of imprisonment, a $100,000 fine, and payment of the costs of prosecution.

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.

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

WASHINGTON – An aftermarket auto parts distributor in Harahan, Louisiana, pleaded guilty today to manufacturing and selling over 800 copyright-infringing copies of Mercedes-Benz diagnostic software valued at over $17 million.

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 and Special Agent in Charge Michael J. Anderson of the FBI’s New Orleans Division made the announcement.

The Brinson Company (TBC), and its owner, Rainer Wittich, 66, of River Ridge, Louisiana, pleaded guilty before U.S. District Court Judge Nannette Jolivette Brown of the Eastern District of Louisiana to an information charging them, respectively, with conspiracy to commit criminal copyright infringement and to violate the Digital Millennium Copyright Act, and criminal copyright infringement.  Sentencing is scheduled for Jan. 16, 2015.  As part of its plea agreement, TBC agreed to assist Mercedes-Benz in compiling a list of all customers to whom it sold, distributed, donated or otherwise provided the pirated software.

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.

“Today’s guilty pleas reaffirm our commitment to protecting consumer rights,” stated U.S. Attorney Polite.  “Both businesses and individuals will be held accountable for their fraudulent conduct.”

The case was investigated by the Cyber Task Force of the FBI’s New Orleans Division.  The case is being prosecuted by Senior Counsel Evan Williams of the Criminal Division’s Computer Crimes and Intellectual Property Section and Assistant U.S. Attorneys Jordan Ginsberg and Myles Ranier of the Eastern District of Louisiana.

The enforcement action announced today is related to the many efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force).  The IP Task Force supports prosecution priorities, promotes innovation through heightened civil enforcement, enhances coordination among federal, state, and local law enforcement partners, and focuses on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders.  To learn more about the IP Task Force, go to www.justice.gov/dag/iptaskforce.

Pirated Software Valued at Over $17 Million

An aftermarket auto parts distributor in Harahan, Louisiana, pleaded guilty today to manufacturing and selling over 800 copyright-infringing copies of Mercedes-Benz diagnostic software valued at over $17 million.

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 and Special Agent in Charge Michael J. Anderson of the FBI’s New Orleans Division made the announcement.

The Brinson Company (TBC), and its owner, Rainer Wittich, 66, of River Ridge, Louisiana, pleaded guilty before U.S. District Court Judge Nannette Jolivette Brown of the Eastern District of Louisiana to an information charging them, respectively, with conspiracy to commit criminal copyright infringement and to violate the Digital Millennium Copyright Act, and criminal copyright infringement.  Sentencing is scheduled for Jan. 16, 2016.  As part of its plea agreement, TBC agreed to assist Mercedes-Benz in compiling a list of all customers to whom it sold, distributed, donated or otherwise provided the pirated software.

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 is being prosecuted by Senior Counsel Evan Williams of the Criminal Division’s Computer Crimes and Intellectual Property Section and Assistant U.S. Attorneys Jordan Ginsberg and Myles Ranier of the Eastern District of Louisiana.

The enforcement action announced today is related to the many efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force).  The IP Task Force supports prosecution priorities, promotes innovation through heightened civil enforcement, enhances coordination among federal, state, and local law enforcement partners, and focuses on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders.  To learn more about the IP Task Force, go to www.justice.gov/dag/iptaskforce.

TBC Plea Agreement

TBC Factual Basis

Wittich Plea Agreement

Wittich Factual Basis

U.S. Attorney Kenneth A. Polite announced that AKEIN SCOTT, a/k/a “Keemy,” age 22; SHAWN SCOTT, a/k/a “Shizzle,” age 26; and STANLEY SCOTT, a/k/a “Stizzle,” age 23, all pled guilty today in the racketeering conspiracy case involving the Frenchmen/Derbigny gang, or “FnD.”   

AKEIN SCOTT pled guilty to eight counts of the Third Superseding Indictment and admitted guilt to the Mother’s Day shooting, which the Indictment alleged was a shooting that was committed in furtherance of the drug trafficking conspiracy and the RICO conspiracy.  Additionally, AKEIN SCOTT pled guilty to conspiracy to distribute one kilogram or more of heroin and 280 grams or more of crack cocaine, conspiracy to possess firearms in furtherance of a drug trafficking conspiracy, and four counts of Violent Crimes in Aid of Racketeering Assault with Dangerous Weapons.

SHAWN SCOTT pled guilty to five counts of the Third Superseding Indictment and also admitted guilt to the Mother’s Day shooting that was committed in furtherance of the drug trafficking conspiracy and the RICO conspiracy.  Additionally, SHAWN SCOTT pled guilty to conspiracy to distribute one kilogram or more of heroin and 280 grams or more of crack cocaine, conspiracy to possess firearms in furtherance of a drug trafficking conspiracy, Violent Crimes in Aid of Racketeering Assault with Dangerous Weapons.

STANLEY SCOTT pled guilty to six counts of the Third Superseding Indictment and admitted to committing a shooting on March 22, 2012, in furtherance of the drug trafficking conspiracy and the RICO conspiracy.  STANLEY SCOTT also pled guilty to conspiracy to distribute one kilogram or more of heroin and 280 grams or more of crack cocaine, conspiracy to possess firearms in furtherance of a drug trafficking conspiracy, and two counts of Violent Crimes in Aid of Racketeering Assault with Dangerous Weapons.

Each defendant faces at least 20 years in prison, with a maximum sentence of life imprisonment.  The drug trafficking conspiracy count carries a mandatory minimum sentence of 10 years in prison.  Further, for having committed a shooting in furtherance of the drug trafficking conspiracy, each defendant faces an additional mandatory minimum sentence of 10 years imprisonment, which must be served consecutively to any other sentence.  Lastly, the firearms conspiracy and RICO conspiracy counts carry maximum sentences of 20 years and life imprisonment, respectively.  U.S. District Judge Ivan L.R. Lemelle set sentencing for January 6, 2016.

According to court documents, the FnD gang was an enterprise engaged in racketeering under federal law.  AKEIN SCOTT, SHAWN SCOTT, and STANLEY SCOTT, as members of this gang, conspired to commit numerous overt acts in furtherance of the gang’s activities.  These acts included the distribution of illegal narcotics, such as heroin and crack cocaine, as well as crimes of violence, including several shootings.  The factual basis, signed by all three defendants, details evidence of drug dealing and shootings that occurred over the course of nearly seven years from 2006 through 2013.  FnD members sold heroin, crack cocaine, marijuana, and other illegal drugs near the intersection of Frenchmen and North Derbigny Streets in New Orleans.  FnD members often sold drugs in the Frenchmen Meat Market, a convenience store located at the corner of Frenchmen and North Derbigny Streets.  FnD members used intimidation, violence, and threats of violence to maintain the gang’s control over turf that extended from Elysian Fields Avenue, North Johnson Street, the I-10 Interstate Highway, St. Anthony Street, and North Claiborne Avenue.

Four other defendants previously pled guilty in the course of this prosecution.  CRYSTAL SCOTT, RICHMOND SMITH, and GRALEN BENSON pled to gun and drug-related charges.  The grand jury subsequently returned a superseding Indictment charging the remaining defendants with Racketeer Influenced and Corrupt Organizations (RICO) conspiracy, among other charges.  Defendant JEREMIAH JACKSON pled guilty to RICO conspiracy as well as gun and drug-related charges on May 13, 2015.  Defendant BRIAN BENSON pled guilty to RICO conspiracy and narcotics conspiracy on August 7, 2015.

With today’s plea, the sole remaining defendant in this case is TRAVIS SCOTT, who is alleged to be the leader of the FnD gang.  TRAVIS SCOTT is scheduled for trial on October 19, 2015, before U.S. District Judge Ivan L.R. Lemelle.

The Indictment is a product of an ongoing investigation into the violent acts in furtherance of the drug trafficking by the FnD gang.  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 Orleans Parish District Attorney’s Office, Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and officers of the New Orleans Police Department.  Federal and local authorities also utilized tips through the Crimestoppers Program in the successful investigation of these crimes.

Assistant United States Attorney Matthew Payne and Special Assistant United States Attorney Brian Ebarb, who is assigned from the Orleans Parish District Attorney’s Office, are in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that DARION TINSON, age 33, of New Orleans, was charged today in a four count Indictment for violations of the Federal Controlled Substances Act and the Federal Gun Control Act.

According to the Indictment, TINSON conspired to possess and possessed with the intent to distribute a mixture or substance containing a detectable amount of heroin, a Schedule I controlled substance.  In addition, TINSON faces charges of possessing a firearm in furtherance of his drug trafficking trade and for being a convicted felon in possession of a firearm in violation of the Federal Gun Control Act.

If convicted on the drug charges, TINSON faces up to 20 years in prison on each charge, a fine of up to $1,000,000, and at least three years of supervised release following any term of imprisonment.  If convicted of the gun charges, TINSON would face an additional five years in prison that must run consecutive to any other sentence.

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 Drug Enforcement Administration in investigating this matter.  Assistant United States Attorney David Haller is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that BENIAIH LEWIS, age 26, of New Orleans, was charged today in a one count Indictment for 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.  According to today’s indictment, at some time after August 2013, LEWIS moved from California to Louisiana and failed to notify law enforcement authorities of his move to Louisiana.

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 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.

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.  The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba.

U.S. Attorney Kenneth A. Polite announced that WANDA JAMES, age 46, of Kentwood, was sentenced today after previously pleading guilty to a one-count Bill of Information charging her with making false entries and reports of money belonging to the United States, and in the care, custody and control of the United States Postal Service.

According to court documents, on or about September 10, 2013 through and including on or about February 3, 2014, JAMES, being a Postal Service officer or employee charged with the duty of receiving, holding, or paying over moneys on behalf of the United States, knowingly and willfully made false reports of such moneys. On sixteen separate occasions, JAMES falsely recorded cash purchases of money orders as debit card purchases on her daily financial reports. She did this so she could steal the cash from the money order purchases and conceal the theft by reporting sales as debit card transactions, when, in fact, she well knew that no such purchases had been made. JAMES stole approximately $2,611.61 of United States funds in the custody of the Postal Service.

U.S. District Judge Jane Triche Milazzo sentenced JAMES to 36 months of probation, $100 special assessment, and restitution in the amount of $2,611.61.  

U.S. Attorney Polite praised the work of the U.S. Department of Education and the Federal Bureau of Investigation in investigating this matter.  Assistant U.S. Attorney Sharan E. Lieberman was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that MELVIN SMITH, age 30, of New Orleans, was sentenced today after previously pleading guilty to an Indictment charging him with conspiracy to distribute one kilogram or more of heroin.  Additionally, co-defendant THEODORE GRIFFIN, age 61, of New Orleans, pled guilty today to the same charge.

U.S. District Judge Kurt D. Engelhardt sentenced SMITH to 120 months in prison, five years of supervised release following his prison term, and a $100 special assessment.   Judge Engelhardt set GRIFFIN’s sentencing for December 9, 2015.  The trial on the remaining defendant is currently scheduled for September 28, 2015.

According to court documents, the investigation of this trafficking organization included multiple court-authorized wiretaps by the Drug Enforcement Administration New Orleans Police Department High-Intensity Drug Trafficking Area group, including taps of cell phones used by dealers to communicate with suppliers, other co-conspirators, and customers.  DEA worked together with agents of the Federal Bureau of Investigation to conduct numerous undercover purchases of heroin, surveillance operations, searches, witness debriefings, records analyses, and other investigative techniques to uncover and dismantle the heroin trafficking activities of the group.

The investigation showed that the defendants had been using GRIFFIN’s residence in New Orleans East as a base of operations to meet with heroin suppliers, maintain a heroin stash, and provide heroin to other dealers.

Numerous daily heroin customers also called the ‘dope’ phones used by these defendants every day to order heroin.  Typically one of the dealers would answer these calls, ask the caller how much heroin he or she wanted to buy, and direct the caller to drive to a gas station or other commercial location in the New Orleans East neighborhood.  Through subsequent calls and then visual contact between the customer and dealer, the dealer would direct the customer to rendezvous in a parking lot or on a side street near the commercial location to conduct the heroin sale.

According to the record, in July 2013, a court-authorized wiretap of the ‘dope’ phone used by defendant TERENCE TAYLOR intercepted a series of calls relating to the sale of heroin to a person who had recently been through treatment for heroin addiction, and who died later that day as a result of a heroin overdose.  Intercepted calls helped to demonstrate that TAYLOR negotiated this particular sale of heroin and that defendant MALCOLM BOLDEN subsequently met with the decedent to complete the sale.  Judge Engelhardt sentenced BOLDEN to 25 years in prison in June.  

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 Attorneys Michael B. Redmann and Mark A. Miller are in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that DAVID MOREL, age 32, of New Orleans, pled guilty today for crimes involving the sexual exploitation of children.

According to court records, on June 25, 2015, MOREL was charged as a result of a child exploitation investigation conducted by the Louisiana Attorney General’s Office Cyber Crime Unit (“LAGO”) and the U.S. Department of Homeland Security-Homeland Security Investigations (“HSI”).   HSI and LAGO agents executed a search warrant at MOREL’s residence after determining MOREL was downloading images depicting the sexual victimization of children.  MOREL was arrested during the execution of the search warrant after confessing to downloading and possessing images and videos depicting child pornography.  HSI computer forensic examiners conducted a search of MOREL’s seized computer equipment and located over 2,500 images and videos depicting the sexual victimization of children on MOREL’s electronic devices.

According to a Notice of Sentence Enhancement filed in federal court records, in 2010, MOREL was convicted in Orleans Parish Criminal Court of 536 counts of possession of pornography involving juveniles.  He received a ten year suspended sentence and, instead, was placed on home incarceration for a period of five years.

MOREL faces a mandatory minimum penalty of ten years and a maximum penalty of twenty years, followed by up to a life term of supervised release, and a $250,000 fine.  U.S. District Court Judge Martin L.C. Feldman set sentencing for December 9, 2015.

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 Louisiana Attorney General’s Office Cyber Crime Unit and the U.S. Department of Homeland Security-HSI in investigating this matter.  The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba.

U.S. Attorney Kenneth A. Polite announced that OSCAR EDUARDO PENA-TABORA, age 39, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Bill of Information for illegal reentry of a removed alien.

U.S. District Judge Martin L.C. Feldman sentenced PENA-TABORA to time served (5 months) imprisonment followed by 1 year of supervised release, and a $100 special assessment. PENA-TABORA will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.

According to court documents, on or about March 8, 2015, PENA-TABORA was found in the United States after having been officially deported and removed on or about August 2, 2002.

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 was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that ANDREW HUTCHINSON, age 24, of New Orleans, was charged today in a one-count Bill of Information with receipt of images and videos depicting the sexual exploitation of children.

If convicted, HUTCHINSON faces a mandatory minimum of five years imprisonment and a maximum term of imprisonment of twenty years, followed by 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 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 in investigating this matter.  Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that ANGELA MITCHELL, age 40, of Mandeville, was indicted today for Theft of Mail and Misappropriation of Postal Funds.

According to the Indictment, as a result of a complaint from the Postmaster of the Mandeville Post Office regarding several suspicious transactions, the Office of Inspector General for the United States Postal Service (“Postal OIG”) initiated an investigation into MITCHELL and determined that MITCHELL was voiding Postage Validation Imprinter (“PVI”) labels and issuing refunds without completing the proper paperwork for the PVI refunds.   MITCHELL was also indicted for stealing a credit card from a post office box and using it without authorization.

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, MITCHELL faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, and a $250,000.00 fine.

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

U.S. Attorney Kenneth A. Polite announced that a Superseding Indictment was returned today charging members of a violent New Orleans street gang known as “the Young Melph Mafia” or “YMM” with violating federal racketeering statutes and committing five homicides as well as multiple violations of federal drug and firearm laws. The defendants include:  JEFFERY WILSON, age 30; LIONEL ALLEN, a/k/a “Lot,” age 21; JAWAN FORTIA,  a/k/a “Tittie” and “Wine,” age 22;  DEDRICK KEELEN, a/k/a “Roy,” age 22; DELWIN McLAREN, a/k/a “Poo” and “Poo Stupid,” age 22;  and BRYAN SCOTT, a/k/a “Killer,” age 21.

Based upon the ongoing investigation, these defendants, most of whom grew up in and around the former Melpomene Housing Development, engaged in high volume street level drug dealing over the course of several years.  During the course of this investigation, it was also determined that the defendants connected to the Young Melph Mafia routinely carried firearms to protect themselves while engaged in distributing illegal narcotics.

ALLEN, KEELEN and FORTIA are facing a mandatory life sentence if convicted of committing a murder in furtherance of racketeering activity, in violation of Title 18, United States Code Section 1959.  Attached is a summary of charges and penalties for all defendants.

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

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Orleans Police Department as partners in the metro area’s Multi Agency Gang Unit. As an integral component of NOLA FOR LIFE’s Group Violence Reduction Strategy, the Multi-Agency Gang (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); Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Drug Enforcement Administration (DEA); United States Marshal’s Service (USMS); and the United States Probation & Parole Office for the Eastern District of Louisiana.  Valuable assistance to the investigation was provided by the United States Customs and Border Protection (CBP) Air and Marine Division.  Assistant U.S. Attorneys Maurice Landrieu, Jr. and Edward Rivera are in charge of the prosecution.

U.S. Attorney Kenneth Polite announced today that a federal jury has convicted DELOYD JONES, age 23, BYRON JONES, age 24, and SIDNEY PATTERSON, age  24, all of New Orleans, following an 8-day trial.

DELOYD JONES was convicted of 11 of 13 counts.  Specifically, Conspiracy to Violate RICO;  Conspiracy to Distribute Controlled Substances; Conspiracy to Possess Firearms; Murder in the Aid of Racketeering (2 counts – murders of Devin Hutton and Corey Blue); Causing Death through the Use of a Firearm (2 counts); Assault with a Dangerous Weapon in Aid of Racketeering (2 counts); Use, Carrying, and Discharge of a Firearm during and in Relation to a Crime of Violence and a Drug Trafficking Crime (2 counts).  DELOYD JONES faces life plus 35 years in prison.

BYRON JONES was convicted of 9 of 9 counts.  Specifically, Conspiracy to Violate RICO; Conspiracy to Distribute Controlled Substances; Conspiracy to Possess Firearms; Murder in the Aid of Racketeering (murder of Travis Arnold); Causing Death through the Use of a Firearm; Assault with a Dangerous Weapon in Aid of Racketeering (2 counts); Use, Carrying, and Discharge of a Firearm during and in Relation to a Crime of Violence and a Drug Trafficking Crime (2 counts).  BYRON JONES faces life plus 35 years in prison.

SIDNEY PATTERSON was convicted of 7 of 11 counts, Specifically, Conspiracy to Violate RICO; Conspiracy to Distribute Controlled Substances; Conspiracy to Possess Firearms; Murder in the Aid of Racketeering (murder of Corey Blue); Causing Death through the Use of a Firearm; Assault with a Dangerous Weapon in Aid of Racketeering;  Causing Death Through the Use of a Firearm.  PATTERSON faces life plus ten years in prison.

U.S. District Judge Susie Morgan set sentencing for December 10, 2015 at 2:00 pm.

“These defendants were responsible for terrorizing the St. Roch community through drug trafficking, threats, and gun violence,” stated U.S. Attorney Polite.  “As a result of the MAG Unit’s collaborative efforts, these violent defendants will now spend the rest of their lives in prison.  Today’s guilty verdicts are a message to all other violent criminals in our area – like these defendants, you will soon be held accountable for your criminal actions.”

ATF Special Agent In Charge Constance Hester stated, "It is evident, based on the outcome of this trial, that ATF as well as all of our law enforcement partners will vigorously investigate and seek the prosecution of violent criminals in possession of firearms that continually plague the innocent citizens of the New Orleans Metropolitan area."

 “We made a commitment to work together to go after the most violent criminals in our city and we continue to deliver on that promise,” said NOPD Superintendent Michael Harrison. “Today’s verdict is the result of a strategic and organized partnership among local, state and federal law enforcement to combat violent crime. I am proud of the hard work of the NOPD-led Multi-Agency Gang Unit that led to this conviction. We will not back down. We will continue to relentlessly pursue those who choose to commit acts of violence and bring them to justice.”

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 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 MARINICA MIREL COTOI, age 37, of Romania, pled guilty today to one count of bank fraud related to the use of ATM “skimming” devices.

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.

COTOI faces a sentence of up to 30 years in prison, up to $250,000 in fines, and up to three years of supervised release.  COTOI also faces deportation consequences as a result of his conviction.  U.S. District Judge Nannette Jolivette Brown set sentencing on December 3, 2015.

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

U.S. Attorney Kenneth A. Polite announced that JAROL DAVID SOSA-PALMA, age 34, a citizen of Honduras, was charged today in a one-count Indictment with illegal reentry of a removed alien.

According to the Indictment, JAROL DAVID SOSA-PALMA reentered the United States after having been previously deported on June 21, 2013.  If convicted, JARONL DAVID SOSA-PALMA 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 Immigration and Customs Enforcement Agency in investigating this matter.  Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.

U.S. Attorney Kenneth Polite announced that TRACY C. HARTMAN, 49, of Slidell, was charged today in a Bill of Information with one count of making false statements.

According to the Bill of Information, on or about January 4, 2006, HARTMAN and her husband were approved for a Small Business Administration (“SBA”) disaster loan in the amount of $182,700.

TRACY 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, TRACY 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 TRACY HARTMAN composed the letter.

If convicted, HARTMAN faces a possible maximum sentence of five years imprisonment, and/or a fine of $250,000, and up to three years of supervised release.

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 Small Business Administration, 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 RICKEY COLEMAN, age 26, of Meraux, was sentenced today after previously pleading guilty to one count of conspiring to falsify ATF records related to the purchase of a firearm.

U.S. District Judge Sarah S. Vance sentenced COLEMAN to 60 months in prison to be followed by 3 years of supervised release.

According to court records, COLEMAN enlisted the help of two other individuals to aid in the purchase of a firearm from Academy Sports in Elmwood on June 9, 2013. COLEMAN was a previously convicted felon and prohibited from buying a firearm. The female who purchased the firearm falsified an ATF form regarding the true ownership of the firearm.

U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) in investigating this matter along with the assistance of the St. Bernard Sheriff’s Office.    Assistant United States Attorney Edward J. Rivera was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that JOHNNY BAHAM, age 53, of Mandeville, entered a plea of guilty today to stealing the United States mail.

According to the court documents, 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 $75.00 Master Card gift cards from his mail route.

BAHAM faces a maximum penalty of five years imprisonment, followed by up to three years of supervised release, and a $250,000 fine.  U.S. District Judge Helen G. Berrigan set sentencing for December 2, 2015.

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 is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that KIM CASSELL, age 42, of New Orleans, was sentenced today after pleading guilty to a one-count Bill of Information charging her with stealing money from Open World Family Services, Inc. (“Open World”). Open World was a non-profit 501(c)(3) charitable corporation organized for the purpose of helping students in the greater New Orleans area grow academically.

From March 2010 until June 2012, CASSELL knowingly used federal grant money from the 21st Century Community Learning Centers grant program, amounting to more than $140,000, for her personal benefit, rather than for educational, grant related purposes.

U.S. District Judge Ivan L.R. Lemelle sentenced CASSELL to five years of probation with six months electronic monitoring and $149,000 in restitution.

U.S. Attorney Polite praised the work of the U.S. Department of Education and the Federal Bureau of Investigation in investigating this matter.  Assistant U. S. Attorney Sharan E. Lieberman was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that DEBORAH FORTNER, age 53, of New Orleans, entered a plea of guilty yesterday to one count of submitting false documents to the Road Home Program.

According to court records, FORTNER applied for a LRHP grant to renovate her home after Hurricane Katrina.  In 2007, Fortner was awarded a $97,899 grant from the LRHP.  In 2011, the LRHP contacted FORTNER to request proof of pre-storm occupancy related to her property.  As a result of the request, FORTNER faxed a copy of an altered bank statement to the LRHP.  The mailing address on the bank statement had been changed by FORTNER to make it appear that FORTNER was receiving mail at that property prior to Hurricane Katrina.  In 2013, the LRHP again contacted FORTNER and requested proof of occupancy related to her property.  In response to LRHP’s request, FORTNER faxed a copy of a New Orleans Sewerage and Water Board (“S&WB”) statement to the LRHP.  The submitted S&WB document falsely contained the address of the property.  The false documents were submitted by  FORTNER to the LRHP in order to prove compliance with the grant covenants and to prevent FORTNER from having to pay the funds back to the LRHP.

FORTNER faces a maximum penalty of five years imprisonment, followed by up to three years of supervised release, and a $250,000 fine.  U.S. District Judge Jane Triche Milazzo set sentencing for December 3, 2015.

The U. S. Department of Housing and Urban Development- Office of Inspector General and the Federal Bureau of Investigation are in charge of investigating this matter.  Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced today the unsealing of a seventeen-count Indictment that charges THOMAS GORDON, a/k/a “Ice,” age 31, and DONALD EALY, a/k/a “Deebo,” age 37, of New Orleans, along with MARTHA QUINONES, age 50, and KEVIN GONZALES, age 24, of Houston, with numerous violations of the Federal Controlled Substances Act.  All four defendants face the lead charge of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin, along with other substantive drug offenses.  In addition, all of the defendants were charged with using a telephone in furtherance of their drug-trafficking conspiracy.

According to court documents, on August 6, 2015, QUINONES had agreed to travel by Megabus from Houston to New Orleans, while transporting narcotics which she intended to deliver to GORDON.  Law enforcement intercepted QUINONES as she arrived in New Orleans and found her to be in possession of almost a half-kilogram of heroin in her duffle bag.  Further, EALY and GONZALES conspired with QUINONES and GORDON to distribute and possess with intent to distribute heroin in the Eastern District of Louisiana.

If convicted of the lead charge of engaging in a drug conspiracy, each defendant faces a minimum sentence of 10 years in prison, a maximum sentence of life in prison, a fine of not more than $10,000,000, and a minimum of 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 Federal Bureau of Investigation New Orleans Gang Task Force (NOGTF), which includes FBI, the Saint Tammany Parish Sheriff’s Office, the Jefferson Parish Sheriff’s Office, and the New Orleans Police Department.  Assistant United States Attorney Brandon S. Long is responsible for the prosecution.

U.S. Attorney Kenneth A. Polite announced that RONALD BACKES, age 48, of Slidell, was sentenced today after previously pleading guilty to wire fraud relating to an application for financial assistance in the aftermath of the Deepwater Horizon oil spill.

U.S. District Judge Ivan L.R. Lemelle sentenced BACKES to one year of home detention to be followed by four years’ probation. Judge Lemelle also ordered BACKES to pay $192,000 in restitution.

The Gulf Coast Claims Facility (GCCF) made disaster assistance money available to individuals affected by the oil spill resulting from the Deepwater Horizon explosion in the Gulf of Mexico. The GCCF required individuals to verify loss of income. According to court documents, in August and September 2010 BACKES falsely represented to the GCCF that he earned $156,000 annually from a shrimping business and that another individual earned $36,000 annually as BACKES’s employee. To support these claims, BACKES created and submitted to the GCCF false receipts of shrimp sales. As a result of BACKES’s conduct, GCCF issued checks totaling $192,000.

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 Federal Bureau of Investigation in investigating this matter.  Assistant U.S. Attorney Chandra Menon was in charge of this prosecution.

U.S. Attorney Kenneth A. Polite announced that JAMIE PLAISANCE, age 38, of Raceland, pled guilty today to a one-count Indictment for possession of child pornography.

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.

According to court records, PLAISANCE has a prior federal conviction for possession of child pornography.

Due to his prior conviction, PLAISANCE faces a mandatory minimum penalty of ten years imprisonment up to twenty years, followed by up to a life term of supervised release, and a $250,000 fine.  U.S. District Judge Martin L.C. Feldman set sentencing for December 9, 2015.

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.  Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that STEVEN GAETA, age 41, of Kenner, pled guilty today to a one-count Bill of Information for crimes involving the possession of child pornography.

According to court records, on November 25, 2014, Special Agents with the U.S. Department of Homeland Security, Homeland Security Investigations (“HSI”) executed a federal search warrant at GAETA’s Kenner home.  HSI agents determined Gaeta used Peer to Peer file sharing programs to possess approximately 120 videos and 500 images depicting the sexual victimization of children.

GAETA faces a maximum penalty of twenty years, followed by up to a life term of supervised release, and a $250,000 fine.  He can also be required to register as a sex offender pursuant to the Sex Offender Registration Notification Act.  U.S. District Judge Kurt D. Engelhardt set sentencing for November 18, 2015.

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 Department of Homeland Security 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 BOUBACAR DIALLO, age 35, of Metairie, was charged in a one-count Bill of Information with trafficking in counterfeit goods.

According to the Bill of Information, on March 12, 2015, DIALLO trafficked and attempted to traffic in a variety of counterfeit goods, including approximately 111 pairs of “True Religion” blue jeans, 166 “Michael Kors” purses, 67 “Michael Kors” pocketbooks, 87 “Michael Kors” watches, 6 pair of “Nike” tennis shoes, 9 pair of “Polo” pants, and 8 pair of “Polo” shirts.

If convicted, DIALLO faces a maximum term of imprisonment of not more than ten years, 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.

U.S. Attorney Polite praised the work of the Louisiana Department of Justice / Office of the Attorney General Investigation Division and Immigration and Customs Enforcement, 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 DANIEL FIGUEROA-MUNGUIA, age 30, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Bill of Information charging him with illegal reentry into the United States.

U.S. District Judge Nannette Jolivette Brown sentenced FIGUEROA-MUNGUIA to time served and a $100 special assessment.  FIGUEROA-MUNGUIA will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.

According to the court documents, March 30, 2015, FIGUEROA-MUNGUIA was found in the United States after having been deported on April 29, 2011. 

U.S. Attorney Polite praised the work of the Department of Homeland Security in investigating this matter. Assistant United States Attorney Emily K. Greenfield was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that FRANK MIKE, JR., age 46, of New Orleans, pled guilty as charged today to an Indictment charging interstate transportation of a stolen 2010 Dodge Caravan van from Louisiana to Georgia.

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 Intercostal 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. District Judge Sarah S. Vance scheduled sentencing for December 16, 2015.  MIKE faces a maximum sentence of 10 years in prison.

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 is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that VANDALE THOMAS, age 41, a resident of Prairieville, was sentenced today after being convicted by a federal jury.

U.S. District Judge Stanwood R. Duval, Jr. sentenced THOMAS to thirty-six months in federal prison followed by three years of supervised release to be served upon his release from prison.  THOMAS was also ordered to make restitution in the amount of $684,065.53 to the City of New Orleans.

According to court records, after a week-long jury trial in October 2014, the former Chief Financial Officer at New Orleans Traffic Court (“Traffic Court”) was convicted on all 11 counts of theft, money laundering, and structuring transactions to evade reporting requirements.  THOMAS was found guilty of three counts of theft concerning programs receiving federal funds resulting from his employment at Traffic Court. Evidence presented at trial established that on November 24, 2008, THOMAS and his accounting firm, Thomas & Thomas Accounting Services, LLC, were hired by Traffic Court to provide accounting and bookkeeping services.  THOMAS’s initial agreement with Traffic Court allowed him to bill at a rate of $75.00 an hour and his contract was not to exceed $75,000 for a twelve month period.  THOMAS’s billings exceeded $75,000 within the first few months of his agreement.  On six additional occasions between November 24, 2008, and April 13, 2011, THOMAS received written authorization from the City of New Orleans and Traffic Court to expand the amount that he could bill.  In total, the City and Traffic Court authorized THOMAS to submit invoices and receive compensation for accounting services in an amount not to exceed $627,000.  However, subsequent audits by the Louisiana Legislative Auditor’s Office and the Office of the Inspector General for the City of New Orleans, and an investigation by the Federal Bureau of Investigation revealed that THOMAS submitted 174 invoices and was issued 173 checks totaling $1,311,065.53.

THOMAS was also found guilty of three counts of laundering illegal funds obtained from Traffic Court.  The jury found that on September 14 and September 24, 2010, THOMAS used illegally obtained money from Traffic Court to purchase casino chips in excess of $10,000 at a New Orleans casino and THOMAS used illegally obtained money from Traffic Court to make a down payment on an $80,000 Bentley GT Coupe.

Additionally, THOMAS was found guilty of five counts of structuring transactions to evade reporting requirements.  According to the evidence and testimony presented during the trial, THOMAS used numerous bank branches in order to evade federal currency transaction reporting requirements.  Specifically, THOMAS went to multiple bank locations in New Orleans and Baton Rouge to structure cash withdrawals in order to evade the currency transaction reporting requirement that all transactions over $10,000 be reported by financial institutions to the Internal Revenue Service.

“Mr. Thomas has been brought to justice for defrauding our local courts and the City of New Orleans,” stated U.S. Attorney Polite.  “Corruption – wherever it is found in Southeast Louisiana – will not be tolerated.”

“The residents of New Orleans and the surrounding areas are fed up with seeing individuals like Thomas steal public funds to support their personal lifestyles of extravagance,” stated Jerome R. McDuffie, Special Agent in Charge, IRS – Criminal Investigations.  “The court echoed that sentiment today with the sentence they imposed on Thomas for his actions against the citizens of this great city.  IRS-CI will continue to aggressively pursue individuals who engage in the theft of public funds, and will seek to have them prosecuted to the fullest extent of the law."

“Vandale Thomas’ defrauding of the New Orleans Traffic Court was first identified by the OIG as it conducted an evaluation of the Court in 2011,” stated New Orleans Inspector General Ed Quatrevaux.  OIG investigators continued to work with our federal partners to bring Mr. Thomas to justice and secure restitution for the City.”

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigations Division, and the New Orleans Office of Inspector General in investigating this matter.  Assistant United States Attorneys Brian M. Klebba, Matthew Payne, Marquest Meeks, and Andre Lagarde were in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that BURNELL ALLEN, age 35, and SONNY ALLEN, age 32, both of New Orleans, were sentenced today after being convicted by a federal jury.

U.S. District Judge Stanwood R. Duval, Jr. sentenced BURNELL ALLEN to life imprisonment for conspiring to distribute and possess with intent to distribute 280 grams or more of cocaine base “crack.”  SONNY ALLEN was sentenced to 240 months imprisonment for being a member of that crack conspiracy and four 120 concurrent sentences for distributing crack.

Evidence was presented at trial that the defendants grew up in and around the former Melpomene Housing Development, engaged in high volume street level drug dealing over the course of several years.  The majority of this activity took place near an older relative’s home.

“As we did in the prosecution of the Allen gang, our Office will continue to pursue the harshest penalties possible against those who terrorize our communities through violence,” stated U.S. Attorney Polite.

ATF Special Agent in Charge Constance Hester stated, “The Citizens of New Orleans, in particular Central City, can be assured that ATF will continue to utilize all available resources to pursue the most violent offenders who use firearms to conduct criminal activity.”

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 U.S. Attorneys Sean Toomey and Andre Lagarde were in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that DAVID LEE KILLEN, age 44, a resident of Covington and a former chiropractor, was sentenced today after previously pleading guilty to health care fraud.  

U.S. District Judge Sarah S. Vance sentenced KILLEN to 44 months imprisonment, to be followed by 3 years of supervised release.  KILLEN is presently in state custody serving 60 months on charges of domestic abuse battery involving strangulation.  Judge Vance ordered that all but 24 months of the federal sentence be served concurrently with the state sentence.  The Court ordered restitution in the amount of $183,674.14 to five different insurance companies.

According to court documents, KILLEN owned and operated Back on Track Clinic, LLC, a chiropractic clinic in Bogalusa.  KILLEN billed insurers for chiropractic services, back braces, and X-rays that he did not provide.  KILLEN also billed insurers for expensive allergy tests, the antigen leukocyte antibody test, otherwise known as an “ALCAT.”  KILLEN either did not render the ALCATs or used it to incentivize his patients, bartering for reduction in co-payments or erasing co-payment balances if the patient would agree to the test.  KILLEN also fraudulently billed insurers for services using physician provider numbers without authorization, or on days when the physicians were not working in his clinic.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the United States Department of Health and Human Service’s Office of Inspector General in investigating this matter.  The case was prosecuted by Assistant United States Attorney Patrice Harris Sullivan.

U.S. Attorney Kenneth A. Polite announced that TRINA MARIE BOURG, age 45, of Houma, entered a plea of guilty to all five counts of a Superseding Indictment for crimes involving the solicitation of illegal payments from undocumented clients and their family members.

BOURG faces a term of incarceration of up to of twenty years and a fine of $250,000 per count.  U.S. District Judge Susie Morgan set sentencing for November 4, 2015.

According to court records, on May 7, 2014, the U.S. Department of Homeland Security-Homeland Security Investigations (“HSI”) received information that BOURG, who worked as a Spanish language interpreter contract employee for the Office of the District Defender for the 32nd Judicial District for Terrebonne Parish (“Public Defender’s Office”), was soliciting illegal payments from undocumented clients.  According to a Factual Basis filed today in federal court, BOURG, while providing Spanish interpreting services for attorneys employed by the Public Defender’s Office, identified clients facing criminal charges who were subject to potential removal from the United States.  BOURG then initiated contact with the client, or the client’s family, outside of the presence or knowledge of their court appointed attorney and falsely represented to the client or the client’s family that for a certain amount of money, she could bribe federal immigration officials not to seek federal prosecution or initiate removal proceedings against the client.  BOURG charged the client, or the client’s family, approximately $2,000 to $4,000 and said she would use the money to pay federal immigration officials in order to secure the client’s release from immigration custody.  BOURG pled guilty to knowingly devising a scheme and artifice to defraud undocumented Hispanic aliens and through false material misrepresentation was able to accomplish her scheme through lies, misrepresentations, coercion, and threats.

In 2011 and again in 2014, BOURG solicited illegal payments totaling more than $5,000 from Client “A” and his family members.  BOURG admitted to employing threats and intimidation to coerce the family members into paying BOURG.

The Superseding Indictment also alleged that for a payment of $12,000 to $20,000, BOURG offered to marry one of her clients in order to improve his immigration status.  Further, the Superseding Indictment alleged that BOURG attempted to have a client transfer the title of his vehicle and other property to BOURG. 

It is important to note that no federal immigration officials have been implicated in this investigation, nor is it believed that any federal officials were complicit in BOURG’s crimes.  BOURG was originally indicted in August 2014.

U.S. Attorney Polite praised the work of the U. S. Department of Homeland Security-HSI (McAllen, TX and Houma, LA offices), the Louisiana State Police-Criminal Investigation Division, and the Terrebonne Parish Sheriff’s Office in investigating this matter.  Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba and Assistant U.S. Attorney Marquest Meeks are in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that JUAN VASQUEZ-ALVARADO, age 47, a citizen of Honduras, was charged today in a one-count Indictment with illegal reentry of a removed alien.

According to the Indictment, VASQUEZ-ALVARADO reentered the United States after having been previously deported on September 5, 2002.  If convicted, VASQUEZ-ALVARADO 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 Immigration and Customs Enforcement Agency in investigating this matter.  Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution

U.S. Attorney Kenneth A. Polite announced that BRIAN BENSON, a/k/a “Dub,” a/k/a “Dubba,” age 31, of New Orleans, pled guilty today in the racketeering conspiracy case involving the Frenchmen/Derbigny gang, or “FnD.”

BENSON pled guilty to two counts of the Third Superseding Indictment.  Count 1 charged BENSON with Racketeer Influenced and Corrupt Organizations (RICO) conspiracy.  The maximum sentence for Count 1 is a term of life imprisonment.  BENSON also pled guilty to Count 2, charging conspiracy to distribute one kilogram or more of heroin and 280 grams or more of crack cocaine, for which BENSON faces a mandatory minimum of 20 years in prison and a maximum of life imprisonment.  U.S. District Judge Ivan L.R. Lemelle set sentencing on November 4, 2015.

According to court documents, FnD constituted a racketeering “enterprise” under federal law.  BENSON, as a member of this enterprise, conspired to commit numerous overt acts in furtherance of this enterprise.  These acts included the distribution of illegal narcotics, such as heroin and crack cocaine.  FnD members used a store, the Frenchmen Meat Market, located at Frenchmen and N. Derbigny streets to sell drugs.  As set forth in plea documents, agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) raided the store in August 2013 pursuant to a search warrant.  Agents seized video surveillance recordings from the store that showed BENSON and other members of FnD selling drugs over the course of five days.

CRYSTAL SCOTT, RICHMOND SMITH, GRALEN BENSON, and JEREMIAH JACKSON have previously pled guilty and are awaiting sentencing.  TRAVIS SCOTT, STANLEY SCOTT, SHAWN SCOTT, and AKEIN SCOTT are scheduled for trial on October 19, 2015.

The Indictment is a product of an ongoing investigation into the violent acts in furtherance of the drug trafficking by the FnD gang.  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 Orleans Parish District Attorney’s Office, Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and officers of the New Orleans Police Department.  Federal and local authorities also utilized tips through the Crimestoppers Program in the successful investigation of these crimes.

Assistant United States Attorney Matthew Payne and Special Assistant United States Attorney Brian Ebarb, who is assigned from the Orleans Parish District Attorney’s Office, are in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that CARLOS RAMIREZ-VASQUEZ, age 38, a citizen of Mexico, was sentenced after previously pleading guilty to a one-count Indictment for illegal reentry of a removed alien.

U.S. District Judge Carl J. Barbier sentenced CARLOS RAMIREZ-VASQUEZ to time served, and a $100 special assessment.  RAMIREZ-VASQUEZ will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.

According to court documents, on or about March 29, 2015, CARLOS RAMIREZ-VASQUEZ was found in the United States after having been officially deported and removed on or about April 17, 2000.

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 was in charge of the prosecution.