Eastern District of Louisiana

U.S. Attorney Kenneth A. Polite announced that JERRY COX, age 72, of Franklinton, was charged in a one-count Bill of Information with structuring financial transactions to avoid federal reporting requirements.

According to the Bill of Information, in September 2011, COX made, and caused to be made, a series of cash withdrawals from Citizens Savings Bank and Resource Bank that were designed to evade certain reporting requirements under federal law.  COX did so as part of a pattern of activity involving more than $100,000 in a twelve-month period.  Specifically, COX caused a series of seven withdrawals between September 20, 2011 and October 11, 2011, in amounts between $7,650 and $9,500.

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

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 Internal Revenue Service – Criminal Investigation and 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 New Orleans resident BETH MARIE NGUYEN, age 38, pled guilty today to conspiracy to distribute and conspiracy to possess with intent to distribute over one kilogram of heroin.

U.S. District Judge Carl J. Barbier will sentence NGUYEN on November 12, 2015.  NGUYEN is facing 10 years and a maximum of life imprisonment, as well as a possible fine of up to $10,000,000.

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

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

 

U.S. Attorney Kenneth A. Polite announced that ARTHUR MCKINNIS, age 25, NARCISSE TROTTER, age 44, and AARONISHA LEWIS, age 26, all of New Orleans, were sentenced today for their roles in a heroin conspiracy.  MCKINNIS pled guilty in March to conspiring to distribute at least one kilogram of heroin in the New Orleans area, and TROTTER and LEWIS pled to charges of using cell phones in furtherance of the heroin trafficking conspiracy.

U.S. District Judge Kurt D. Engelhardt sentenced MCKINNIS to 172 months in prison, to be followed by five years of supervised release, and a $100 special assessment.  The Court sentenced TROTTER to 42 months in prison, to be followed by one year of supervised release, and a $200 special assessment.  LEWIS was sentenced to 24 months in prison, to be followed by one year of supervised release, and a $100 special assessment.

On June 24, 2015, U.S. District Judge Engelhardt sentenced BOLDEN to 300 months in prison for heroin distribution and distribution of heroin resulting in an overdose death.  NOEL JONES received a sentenced of 162 months in prison for distribution of heroin. TAYLOR, PERCY DEPRON, ERNEST DIAZ, and MELVIN SMITH are awaiting sentencing.  THEODORE GRIFFIN and TREY MITCHELL are scheduled for trial on September 14, 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 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.

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 JAHVAR HOOKS, age 31, of New Orleans, was sentenced today after previously pleading guilty a one-count superseding Indictment charging him with maliciously conveying false information in violation of Title 18, United States Code, Section 844(e).

U.S. District Judge Lance Africk sentenced HOOKS to time served and a three-year term of supervised release.  HOOKS has been in federal custody since his arrest on August 20, 2013.  According to court records, from August 12, 2013 through August 19, 2013, HOOKS made in excess of forty telephonic bomb threats.  Victims of these threatening phone calls include the Orleans Parish Criminal District Court and the New Orleans Municipal/Traffic Court along with schools, hotels, casinos, and other government buildings.  In an interview with officers of the New Orleans Police Department, HOOKS admitted to making the telephone calls.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter.  Assistant United States Attorney Gregory M. Kennedy was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that DERRICK HOLLOWAY, age 31, of Marrero, pled guilty today to both counts of a two-count Bill of Information charging him with unauthorized recording of a motion picture and criminal infringement of a copyright.

According to court documents, in 2014, HOLLOWAY used a digital camcorder to record approximately ten first-run motion pictures at the AMC Westbank Palace, located in Harvey, including When the Game Stands Tall and The Equalizer.  HOLLOWAY subsequently duplicated and sold copies of some or all of the motion pictures.  Additionally, HOLLOWAY manufactured and sold CDs and DVDs containing copyrighted musical works and motion pictures out from his business, Gold Teeth Kingz, located in Harvey.  Specifically, during the execution of a search warrant at Gold Teeth Kingz in early January 2015, law enforcement authorities found and seized approximately 2,932 pirated DVDs containing copyrighted motion pictures, including When the Game Stands Tall and American Sniper, and 749 pirated CDs containing copyrighted musical works, including “Kingdom Come,” by Jay-Z and “Dangerously in Love,” by Beyoncé.

HOLLOWAY faces a maximum term of imprisonment of not more than three years as to Count 1 and five years as to Count 2, followed by up to three years of supervised release, and a $250,000 fine.  U.S. District Judge Kurt D. Engelhardt set sentencing for November 4, 2015.

U.S. Attorney Polite praised the work of the 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 RUBEN GEIGER, age 22, a resident of New Orleans, was sentenced today for his participation in a drug conspiracy and a conspiracy to possess and use firearms in connection with the drug trafficking activities of a local gang known as the “Young Melph Mafia” or “YMM.”

U.S. District Judge Kurt D. Engelhardt sentenced GEIGER to 220 months imprisonment, to be followed by four years of supervised release.

GEIGER was originally charged in a five-count Superseding Indictment with nine other YMM members, who frequented the area of the former Melpomene Housing Project. According to the factual basis filed in open court, GEIGER and other YMM members participated in a wide ranging conspiracy to distribute street level quantities of crack cocaine in Central City and participated in several acts of violence against rival gangs, such as the 110ers.  The members of the YMM were associates of the members of the Allen family, who were also indicted and convicted in federal court last year.  Three members of the 110ers gang were convicted on January 29, 2015, in Orleans Parish Criminal Court for the Briana Allen shooting.

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

The United States Attorney’s Office for the Eastern District of Louisiana announced that HARDELL MACK, age 43, and MICHEGEL BUTLER, age 40, residents of LaPlace, each pled guilty today to one count of conspiracy to commit wire fraud relating to fraudulent applications they made or caused to be made to the Gulf Coast Claims Facility (“GCCF”), for financial assistance during the aftermath of the Deepwater Horizon oil spill.

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

MACK and BUTLER each face a maximum term of imprisonment of five years, a $250,000 fine, three years of supervised release following imprisonment, and a $100 special assessment.  MACK owes restitution in the amount of $36,500, and BUTLER owes restitution in the amount of $28,800.  U.S. District Judge Sarah S. Vance set sentencing for December 16, 2015.

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.

The United States Attorney’s Office for the Eastern District of Louisiana praised the work of the U.S. Postal Inspection Service and the U.S. Secret Service in investigating this matter.  Assistant U.S. Attorney Julia K. Evans is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that KEITH CANTORE, age 35, of Monee, Illinois, was sentenced today for violating the Lacey Act by attempting to purchase threatened turtles that were captured in violation of state law.

U.S. District Judge Kurt D. Engelhardt sentenced CANTORE to 41 months incarceration, to be followed by three years of supervised release and $100 special assessment. Additionally, CANTORE was ordered to pay approximately $41,000 in restitution.

According to court records, CANTORE was charged with three counts of purchasing and/or attempting to purchase threatened species of turtles that were illegally captured from the wild.  CANTORE pled guilty to attempted purchase of 100 North American Wood Turtles for $40,000.

According to court documents, the charges against CANTORE stemmed from undercover operations conducted by agents from the United States Fish and Wildlife Service, Homeland Security Investigations, and the United States Postal Inspection Service.  Court documents also note that CANTORE was previously convicted of federal charges related to the illegal sale of turtles and that he continued to illegally sell turtles while on bond for the current charges.

“The illicit trade in threatened and endangered species represents the destructive results of unfettered greed,” said Special Agent in Charge Raymond R. Parmer, head of ICE Homeland Security Investigations in New Orleans. “The poaching of Wood Turtles has had a significant negative impact on its population in the wild. In effect, this defendant was willing to help drive this species to extinction to make a few bucks. Law enforcement agencies like HSI and our partners at the U.S. Fish and Wildlife Service and U.S. Postal Inspection Service are eager to work with conservation services to stop the illegal trade in wildlife to ensure future generations get to enjoy these species in their native habitats.”

U.S. Attorney Polite praised the work of the U.S. Fish and Wildlife Service, Homeland Security Investigations, and the United States Postal Inspection Service in investigating this matter.  Assistant United States Attorney David Haller was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that STANLEY FULTON, age 39, of New Orleans, and JASON PAYNE, age 37, of Youngstown, Ohio, yesterday became the last of nine defendants under a Superseding Indictment to plead guilty to a multi-state conspiracy to distribute one kilogram or more of heroin.

According to court documents, Drug Enforcement Administration (“DEA”) agents, after conducting a series of court-authorized wire intercepts on the cellular phones of New Orleans area heroin dealers, identified co-defendant FREDRICK DOUGLAS BROOKS III as a Houston-based heroin trafficker who was distributing kilogram quantities of heroin at a time to FULTON in New Orleans and PAYNE in Youngstown, using narcotics and bulk cash couriers who have already pled guilty in the case.

U.S. District Judge Carl J. Barbier scheduled sentencing for October 29, 2015.  FULTON faces a sentence of twenty years to life, and PAYNE faces a sentence of ten years to life.

U.S. Attorney Polite praised the work of the DEA New Orleans Police Department High-Intensity Drug Trafficking Area group, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives in investigating this matter with the assistance of the St. Tammany Sheriff’s Office, the St. Bernard Sheriff’s Office, and the Louisiana State Police.  Assistant United States Attorneys Michael B. Redmann and Mark A. Miller were in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that BILLY WASHINGTON, age 34, of New Orleans, was sentenced today after previously pleading guilty to a Bill of Information charging possession with intent to distribute marijuana and possession of a firearm by a convicted felon.

U.S. District Judge Nannette Jolivette Brown sentenced WASHINGTON to a term of imprisonment of twelve months and a day, to be followed by three years of supervised release, and a $200 special assessment.

According to court documents, Drug Enforcement Administration (“DEA”) agents executed a search warrant at WASHINGTON’s residence, a convicted felon, and recovered a semi-automatic pistol and approximately three-quarters of a pound of marijuana.

Court records revealed that WASHINGTON was convicted on May 19, 2003, of possession of heroin in Orleans Parish Criminal District Court.  As such, he was prohibited from possessing firearms by both state and federal law.

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

U.S. Attorney Kenneth A. Polite announced that JENNIFER WILLIAMS, 33, of Harvey, pled guilty today to a two-count Indictment charging her with one count of disaster fraud and five counts of theft from the United States.

According to court records, WILLIAMS filed an application with the Department of Homeland Security Federal Emergency Management Agency (FEMA) on or about October 15, 2012, following Hurricane Isaac. WILLIAMS claimed that she needed rental assistance due to damage in her home and made false statements to FEMA with regard to where she was temporarily living. After receiving a total of $17,040 in rental assistance, Department of Homeland Security investigators determined that WILLIAMS in fact never rented another property after Hurricane Isaac and that her application and supporting documentation was false.

U.S. District Judge Nanette Jolivette Brown set sentencing on November 5, 2015. WILIAMS faces a possible maximum sentence of thirty years, to be followed by up to five years of supervised release as to the disaster fraud count and/or a fine of $250,000.  WILLIAMS is facing up to ten years imprisonment, to be followed by up to three years of supervised release as to each of the theft of government funds counts and/or a fine of $250,000.

U.S. Attorney Polite praised the work of the Department of Homeland Security, Office of Inspector General in investigating this matter.  Assistant United States Attorney Edward J. Rivera of the Fraud Unit is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that MELISSA ANN DURAN, age 42, Des Allemands, was charged today in a one-count Indictment with mail fraud.

According to court documents, the Gulf Coast Claims Facility (GCCF) made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion that occurred on April 20, 2010.  The GCCF required individuals to verify loss of income.  On August 23, 2010, DURAN applied for disaster assistance funds, representing that she worked as seafood process for a commercial fisherman during for two years before the oil spill.  However, DURAN had never worked as a seafood processor for the stated commercial fisherman, and she submitted or caused to be submitted false documentation to establish her false earnings.  Based on DURAN’s fraudulent application, DURAN received approximately $33,800 to which she was not entitled.

If convicted, DURAN faces a maximum penalty of twenty years, a $250,000 fine, three years of supervised release following imprisonment, and a $100 special assessment.

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

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation 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 his Office – in partnership with the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New Orleans Police Department, Orleans Parish Sheriff’s Office, and Crimestoppers – will increase efforts to investigate and prosecute federal laws prohibiting the possession of firearms in school zones throughout Southeast Louisiana.  In particular, the federal gun free school zone statute makes it a crime to unlawfully possess a firearm within 1000 feet of every elementary and secondary school.  The statute is narrowly tailored, and does not forbid otherwise lawful possession:  on private property, by law enforcement officers acting in their official capacity, or by individuals licensed to carry firearms by the state of Louisiana.

U.S. Attorney Polite stated, “This is an underutilized federal statute that will assist us in removing illegal firearms from our streets, particularly as we are seeing spikes in violent crime.  It carries a maximum punishment of 5 years in prison, which must be served consecutively to any other term of imprisonment.  We need the public’s help in two ways: report illegal firearms to ATF or Crimestoppers and spread the message that unlawful possession of firearms near our children’s schools will lead to federal prison.”

To increase public awareness of this initiative, U.S. Attorney Polite also announced that the all of the agencies will host a roll-out event on Thursday, July 30, 2015, at Mildred Osborne Charter School, 6701 Curran Boulevard in New Orleans East.  All are invited.  Members of the law enforcement agencies will also canvas the school zone surrounding Osborne, to inform the community about the initiative’s work.  Food and refreshments will be served.

U.S. Attorney Kenneth A. Polite announced that MARVIN SANTOS PERDOMO, age 33, DELSSY ADRIANA BANEGAS-ZOSA, age 31, and OLVIN SANTOS PERDOMO, age 26, all citizens of Honduras, were sentenced today for conspiracy to possess with intent to distribute cocaine and, in the case of BANEGAS-ZOSA and MARVIN SANTOS PERDOMO, reentry of an illegal alien.

On April 22, 2015, MARVIN SANTOS PERDOMO, DELSSY ADRIANA BANEGAS-ZOSA and OLVIN SANTOS PERDOMO pled guilty to conspiring to distribute and distribution of cocaine hydrochloride, a Schedule II controlled drug substance, and MARVIN SANTOS PERDOMO and DELSSY ADRIANA BANEGAS-ZOSA admitted to being illegal aliens found in the United States after being previously deported from the United States.   

U.S. District Judge Stanwood R. Duval sentenced MARVIN SANTOS PERDOMO and OLVIN SANTOS PERDOMO to 24 months incarceration, to be followed by 3 years of supervised release. Following their incarceration, both defendants will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.  DELSSY ADRIANA BANEGAS-ZOSA was sentenced to time served, to be followed by 3 years of supervised release. BANEGAS-ZOSA will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.

U.S. Attorney Polite praised the work of the Drug Enforcement Administration and Jefferson Parish Sherriff’s Office in investigating this matter.  Assistant United States Attorney David Haller was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced the unsealing of an eleven-count Indictment yesterday charging LEROY SMITH, age 31, JAMIE JONES, age 32, and KENNETH MIXON, age 31, all of New Orleans East, with violations of federal drug and firearms laws.  All of the defendants face the lead charge of conspiracy to distribute and possess with intent to distribute heroin, along with other substantive drug offenses.  All of the defendants were charged with using a telephone in furtherance of their drug conspiracy.  Defendants SMITH and JONES were also charged with possessing firearms in furtherance of the drug offenses.  Finally, SMITH was charged with being a convicted felon in possession of a firearm.

If convicted of the drug conspiracy, SMITH and JONES face a minimum sentence of 5 years incarceration, a maximum sentence of 40 years in prison, a fine of not more than $5,000,000, and a minimum of four years of supervised release.  On the drug conspiracy, MIXON faces a maximum sentence of 20 years incarceration, a fine of not more than $1,000,000, and a minimum of three years of supervised release.  On the telephone counts, the defendants face a maximum sentence of 4 years incarceration, a fine of not more than $250,000, and a maximum of three years of supervised release.  For possessing the firearms in furtherance of the drug offenses, SMITH and JONES face a minimum sentence of 5 years incarceration, a fine of not more than $250,000, and a maximum three years of supervised release.  Lastly, on the felon in possession charge, SMITH faces a maximum sentence of 10 years incarceration, a fine of not more than $250,000, and a maximum three years of supervised release.

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

U.S. Attorney Polite praised the work of the Drug Enforcement Administration and 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 BRANDON LICCIARDI, age 29 of Meraux, Louisiana, and ERIK NUNEZ, age 28, formerly of New Orleans, were charged today in a seven-count second superseding indictment.  LICCIARDI, a former St. Bernard Deputy, was charged with Conspiracy to Distribute MDMA (Ecstasy) Alprazolam, Diazepam and Zolpidem with intent to commit rape and two counts of distributing these substances with intent to commit rape.  LICCIARDI was also charged with two counts of Witness Tampering and one count of Impeding an Investigation.  NUNEZ was charged with Conspiracy to Impede an Official Investigation.  The maximum punishments for these offenses are as follows:

COUNT CHARGE DEFENDANT MAXIMUM PENALTIES

1

18 U.S.C. 1512(b)(1); Tampering with a Witness

Brandon Licciardi

20 Years, $250,000 Fine, 3 Years Supervised Release.

2

18 U.S.C. 1512(b)(1); Tampering with a Witness

Brandon Licciardi

20 Years, $250,000 Fine, 3 Years Supervised Release.

3

18 U.S.C. 1512(c)(2); Impeding an Investigation

Brandon Licciardi

20 Years, $250,000 Fine, 3 Years Supervised Release.

4

18 U.S.C. 1512(k), Conspiracy to Impede an Investigation

Erik Nunez

20 Years, $250,000 Fine, 3 Years Supervised Release.

5

21 U.S.C. 846; Conspiracy to Distribute a Schedule IV Controlled Substance;

Brandon Licciardi

20 Years, $250,000 Fine, 3 Years Supervised Release.

6

21 U.S.C. 841(a)(1),(b)(1)(D) & (E)(7)(A); Distribution of a Controlled Substance, Schedule IV

Brandon Licciardi

20 Years, $250,000 Fine, 3 Years Supervised Release.

7

21 U.S.C. 841(a)(1),(b)(1)(D) & (E)(7)(A); Distribution of a Controlled Substance, Schedule IV

Brandon Licciardi

20 Years, $250,000 Fine, 3 Years Supervised Release.

U.S. Attorney Polite indicated that DARREN SHARPER was not named in the current superseding indictment as a result of his prior pleas of guilty to federal drug charges.  U.S. Attorney Polite reiterated that, at this time, the charges in the Second Superseding Indictment are merely allegations, 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 and the New Orleans Police Department in investigating this matter and thanked the Orleans Parish District Attorney’s Office for their assistance.  Assistant United States Attorneys Mark A. Miller and Michael E. McMahon are in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that EVELYN ODOMS, age 64, of New Orleans, pled guilty today to one count of aiding and abetting health care fraud.

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

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

ODOMS faces a maximum term of imprisonment of ten years, followed by three years of supervised release, and a $250,000 fine.  U.S. District Judge Susie Morgan set sentencing for October 28, 2015.

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

Evelyn Odoms Factual basis.pdf (690.93 KB)

U.S. Attorney Kenneth A. Polite, Jr. announced that MARINA ARNEDO ROJAS-ZAYED, age 34, of Ocean Springs, Mississippi, was charged today in a Bill of Information for making false statements to an agency of the United States.

According to the Bill of Information, from on or about July 2012 until on or about August 2013, ROJAS-ZAYED represented before the New Orleans Immigration Court, that she was a licensed attorney in the state of Alabama, when in truth she was not a licensed attorney.

If convicted, ROJAS-ZAYED faces a possible maximum term of imprisonment of five years, followed by three years of supervised release, and a $250,000 fine.

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 Homeland Security Investigations (HSI) in investigating this matter.  Assistant U. S. Attorney Julia K. Evans is in charge of the prosecution.

Marina Arnedo Rojas-Zayed Bill of Information.pdf (639.95 KB)

 

 

WASHINGTON – A leader of a coupon counterfeiting ring pleaded guilty today to participating in a conspiracy to sell counterfeit coupons using the “Silk Road” online marketplace, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana.

Beau Wattigney, 30, New Orleans, pleaded guilty before U.S. District Judge Ivan L.R. Lemelle of the Eastern District of Louisiana to conspiracy to commit wire fraud and conspiracy to commit trademark counterfeiting.  Sentencing has been scheduled for Oct. 28, 2015.

In connection with his plea, Wattigney admitted that, between May 2012 and November 2014, he used the online monikers “PurpleLotus” and “GoldenLotus” to sell counterfeit coupons for various goods and services on Silk Road 1.0, which was a hidden website through which users around the world bought and sold illegal drugs, goods and services.  Wattigney further admitted that he engaged in the same conduct on Silk Road 2.0, a successor to Silk Road 1.0, using the monikers “PurpleLotus” and “CouponKing.”

The coupons allowed purchasers to obtain significant discounts on a variety of goods and services offered by the victim companies, including Hopster, Veri-fi, SmartSource, RedPlum and Visa.  For example, Wattigney sold a counterfeit coupon that allowed users to purchase $50.00 Visa Gift Cards for $0.01 each.

Wattigney admitted that he created and manufactured the fraudulent coupons with the assistance of several co-conspirators, and that they designed the coupons to look like original print-at-home manufacturers’ coupons by using the companies’ trademarks.  He also admitted that the scheme affected more than 50 U.S.-based businesses, and caused or attempted to cause more than one million dollars in intended losses.

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

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

According to the Indictment, 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.

PENA-TABORA faces a maximum term of imprisonment of two years, followed by one year of supervised release, a fine of $250,000, and a $100 special assessment.   U.S. District Judge Martin L.C. Feldman set sentencing for September 2, 2015.

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

U.S. Attorney Kenneth A. Polite announced that BRIAN CARTER, age 40, of Kenner, was charged today in a four-count Indictment, specifically,  two counts of theft of mail by a postal employee and two counts of opening mail in his possession without authorization.

According to the Indictment, on or about June 15, 2013, CARTER, a United States Postal employee, stole two gift cards from the mail, each in the amount of $50.00.

The Indictment also alleges that on August 7, 2013, CARTER, while on his postal route in Kenner, opened one greeting card and removed cash from another.

If convicted, CARTER 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 Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.

U.S. Attorney Polite praised the work of the U.S. Postal Service, Office of Inspector General for investigating this matter.  Assistant U.S. Attorney Sharan E. Lieberman is in charge of the prosecution.

Brian Carter Indictment.pdf (140.33 KB)

U.S. Attorney Kenneth A. Polite announced that ORONDE GABRIEL, age 30, of New Orleans, pled guilty today to one count of conspiring to falsify ATF records related to the purchase of a firearm.

According to court documents, GABRIEL conspired to assist two other individuals in the purchase of a firearm from Academy Sports in Elmwood on June 9, 2013. GABRIEL was a previously convicted felon and prohibited from buying a firearm.  The individual who purchased the firearm falsified an ATF form regarding the true ownership of the firearm, which is a federal offense.

GABRIEL faces a maximum sentence of five years imprisonment, followed by 3 years of supervised release, and a maximum fine of $250,000.  U.S. District Judge Sarah S. Vance set sentencing on November 18, 2015.

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

Ordone Gabriel Factual Basis.pdf (350.27 KB)

U.S. Attorney Kenneth A. Polite announced that EDIN ANTONIO PLEITES-ZAMORA, age 24, a citizen of Honduras, was sentenced today after pleading guilty today to a one-count indictment charging him with illegal reentry of a removed alien.

U.S. District Judge Sara S. Vance sentenced PLEITES-ZAMORA to time served and ordered to pay a $100 special assessment.  PLEITES-ZAMORA will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.

According to court documents, PLEITES-ZAMORA reentered the United States on or about November 4, 2014, after having been previously removed on May 25, 2012.

U.S. Attorney Polite praised the work of the United States Department of Homeland Security, United States Border Patrol 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 TAUREAN JACKSON, age 26, from Dallas, who went by the nickname “Marvelous Rich,” was sentenced today for conspiring to trafficking a minor from the Dallas-area into the New Orleans-area for the purposes of that minor engaging in prostitution and obstruction of a federal investigation into his conduct.

U.S. District Judge Susie Morgan sentenced JACKSON to 270 months incarceration, to be followed by 10 years of supervised release, and $1,750 in restitution.  JACKSON was also ordered to register as a sex offender.

According to court documents, JACKSON created and distributed a radio program in the Dallas-area called “Cheap Hoes Gotta Go” that addressed the nuances of being a pimp.  He also created and operated “Star City Vixens,” an escort agency that was a front for prostitution activity.  Star City Vixens advertised “upscale adult entertainment” that would travel around the country to “major social events.”  JACKSON initially recruited his “bottom” prostitute, ANDREA BIRDOW, to join “Star City Vixens,” in 2012.  JACKSON became BIRDOW’s pimp and arranged for her to engage in sexual acts with others in exchange for money.  Judge Morgan sentenced BIRDOW last week for her role in the offense.

JACKSON was responsible for advertising and scheduling prostitution calls with BIRDOW. JACKSON kept all, or most, of the proceeds from the prostitution calls.  As a means of controlling BIRDOW’s behavior and ensuring her compliance, JACKSON beat and choked BIRDOW on multiple occasions, often in front of others.  On several occasions, JACKSON also burned BIRDOW with lit cigarettes to discipline her.

In mid-June 2013, JACKSON and BIRDOW met the victim, who was then 16-years-old, in the Dallas-area and recruited her to begin working for JACKSON as a prostitute.  As part of his recruitment process, JACKSON showed the victim a video he recorded and uploaded to Youtube.com that depicted the purportedly glamorous life of a prostitute and showed JACKSON and BIRDOW in a hotel room, riding in a stretch limousine, drinking champagne, and eating a heaping plate of nachos. 

Over the course of the next several weeks, JACKSON drove BIRDOW and the victim throughout Texas and Louisiana for the purpose of BIRDOW and the victim engaging in prostitution, which JACKSON advertised, arranged, and scheduled using an online classified advertisement.  JACKSON arranged for the victim to watch BIRDOW engage in prostitution acts as a means of educating her on the best way to perform sexual acts.  JACKSON required BIRDOW and the victim to turn over all, or most, of the proceeds she earned from prostitution calls.

JACKSON disciplined BIRDOW in front of the victim and told the victim that he would do the same to her if she ever tried to leave him.  JACKSON also beat the victim, including striking her across the legs and buttocks with an extension cord.

Ultimately, BIRDOW and the victim were arrested on July 10, 2013, in a Metairie hotel room by undercover law enforcement officers with the Jefferson Parish Sheriff’s Office who responded to an online classified advertisement offering a prostitution date.

“Jackson was a brazen sex trafficker who preyed on a vulnerable women and girls,” stated U.S. Attorney Polite.  “Today’s significant sentence finally brings him to justice.  It also continues our law enforcement community’s enhanced efforts in fighting human trafficking in our area.”

  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 Federal Bureau of Investigation, the Jefferson Parish Sheriff’s Office–Vice Division, with assistance from the FBI Dallas Child Exploitation Task Force, and the Dallas Police Department High Risk Victims Unit in investigating this matter. Assistant United States Attorneys Jordan Ginsberg and Brandon Long were in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that M.D. BASCIANI AND SONS, INC., a corporation domiciled in Pennsylvania, pled guilty today to a one-count Bill of Information charging the company with harboring illegal aliens at the Red Hill Mushroom Farm in Independence, Louisiana.

U.S. District Judge Jay C. Zainey sentenced M.D. BASCIANI AND SONS, INC. to three years of probation and ordered that the company forfeit over $1 million in illegal proceeds that it obtained as a result of employing the illegal workers.  The company was also ordered to comply with future immigration inspections and to provide training to its managers and employees with hiring authority about compliance with United States immigration laws.

According to court documents, M.D. BASCIANI AND SONS, INC. rehired several of the same workers under different names after an immigration inspection revealed that they were unauthorized to work in the United States.  The company’s records showed that the illegal alien workers had been fired, but in reality, they continued to pick and grow mushrooms at the farm.  The farm’s manager and another of its supervisory employees have already pled guilty to a pattern and practice of employing illegal aliens at the farm.

“It is important to ensure that all businesses are competing on a level playing field, and using illegal labor to increase profits will not be tolerated,” stated U.S. Attorney Polite.  “We will insist that every dollar in illegal proceeds is forfeited so that this illegal conduct does not pay.”

"Companies that violate federal law by employing workers illegally 'under the table' gain an unfair advantage over businesses that play by the rules," said Cindy M. Johnson., acting special agent in charge of HSI New Orleans. "HSI is committed to investigating and seeking prosecution of illegal employment practices to protect the legitimate workers and businesses that support our nation’s economy."

U.S. Attorney Polite praised the work of the Homeland Security Investigations in investigating this matter.  Assistant United States Attorney David Haller was in charge of the prosecution.

M.D. Basciani and Sons, Inc. Factual Basis.pdf (271.84 KB)

U.S. Attorney Kenneth A. Polite announced that TIMOTHY JONES,  a/k/a “Lucci,” “King Lucci,” “Lucci Loco,” age 25, of Memphis, was charged today in an eight-count Indictment for offenses related to his involvement in the sex trafficking of two minor into the New Orleans area for the purposes of those minors engaging in prostitution.

According to the Indictment, in early December 2013, JONES met and began recruiting Victim 1, a 17-year-old female from Baton Rouge, to work for him as a prostitute.  For approximately three weeks, Victim 1 did so.  In early January 2014, JONES met Victim 2, a sixteen-year-old female from Memphis and recruited her to work for him as a prostitute.  JONES then arranged for Victim 2 to travel first to Louisville, Kentucky, and then to New Orleans, to work for him as a prostitute.  JONES required Victim 1 and Victim 2 to give him all of the money they earned from engaging in prostitution.  JONES advertised prostitution dates with Victim 1 and Victim 2 using an online classified website.  JONES instructed Victim 1 and Victim 2 on how much to charge for sex, how to solicit “dates,” and how to avoid detection by law enforcement.  He also instructed them to steal credit cards, wallets, cash, and other valuables from customers.

JONES also used a variety of means to control his victims.  Among his techniques, JONES provided them with alcohol and illicit drugs to numb their senses, control their behavior, and encourage them to continue engaging in prostitution.  To further coerce his victims, JONES beat them, punched them, and forced them to have sex with him.  JONES also beat, punched, and choked others who worked for him as prostitutes in front of Victim 1 and Victim 2 as a means of threatening and intimidating them.   When Victim 2 told JONES that she wanted to return to Memphis and stop working for him as a prostitute because she was ill and did not want him to beat her anymore, JONES told her that he would send her home once she earned enough “real” money.

If convicted, JONES faces a mandatory minimum term of imprisonment of fifteen years and a maximum of life, followed by up to a life term of supervised release, and a $250,000 fine.  JONES may also be required to register as a sex offender.

“As alleged, Timothy Jones used violence, alcohol, and drugs to coerce underage women into prostitution,” stated U.S. Attorney Polite.  “Today’s indictment continues our Office’s heightened efforts in combating human trafficking.  Individuals and businesses that profit from these heinous crimes are now on notice.”

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

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

U.S. Attorney Polite praised the work of the New Orleans Field Offices of the Federal Bureau of Investigation and Homeland Security Investigations, with assistance from the Louisiana State Police, in investigating this matter.  Assistant U.S. Attorney Jordan Ginsberg is in charge of the prosecution.

Timothy Jones Indictment.pdf (3.46 MB)

 

U.S. Attorney Kenneth A. Polite announced that SYLVIA CHESTNUT, age 37, of New Orleans, was sentenced today after pleading guilty to a one-count Bill of Information charging her with stealing property from a Navy Exchange Store in Florida.

U.S. District Judge Lance M. Africk sentenced CHESTNUT to sixty days imprisonment, followed by three years of supervised release.  Additionally, CHESTNUT was ordered to pay full restitution to the Navy Exchange.

According to court documents, between November 12, 2011 and December 18, 2011, CHESTNUT wrote 43 worthless checks totaling $20,549.36 to two Naval Exchange Stores located at the Naval Air Station in Jacksonville, Florida, and Naval Station Mayport, Florida.  CHESTNUT used the worthless checks to purchase clothing, household items, pre-paid Visa cards, and other personal items.

U.S. Attorney Polite praised the work of the Naval Criminal Investigative Service (NCIS), in investigating this matter.  Assistant U. S. Attorney Spiro G. Latsis and Assistant U.S. Attorney Kevin Frein of the United States Attorney’s Office for the Middle District of Florida were in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that BAKEER RASHED, JR., 33, of Houston, pled guilty today to a one-count superseding Bill of Information charging him with conspiring to distribute 500 grams or more of cocaine hydrochloride.

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

RASHED faces a sentence of not less than 5 years but not more than 40 years of incarceration, a fine of not more than $5,000,000 and supervised release of not less than 4 years.  U.S. District Judge Ivan L.R. Lemelle set sentencing for October 14, 2015.

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

Rashed Bakeer, Jr. Factual Basis.pdf (1.93 MB)

A resident of Tangipahoa Parish, Louisiana, and the owner of two automotive businesses pleaded guilty today for his involvement in a stolen identity refund fraud scheme, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Kenneth Allen Polite Jr. of the Eastern District of Louisiana.

Martin Jackson Sr., 48, pleaded guilty to one count of a triple object conspiracy to defraud the United States, to commit theft of public money and mail fraud.  According to court documents, Jackson conspired with at least six other individuals to use stolen identities to file false federal income tax returns that fraudulently claimed tax refunds.  Jackson owns Woodscale Automotive Sales LLC and Woodscale Autobody and Mec. LLC.  He used the business bank accounts as part of the scheme.  Some of the co-conspirators prepared and filed the false tax returns using the stolen identity information and requested that the Internal Revenue Service (IRS) mail the refund checks to addresses in Louisiana, including to post office boxes that were opened by co-conspirators.  Jackson deposited refund checks into his business bank accounts and gave cash or checks to his co-conspirators, while retaining a portion of the proceeds for himself.

Jackson is the final co-conspirator to plead guilty of the seven defendants indicted in this case.  Previously, Angela Chaney, 43, Thaddeus Richardson, 50, Corey Lewis, aka Coco, 37, Craig Lewis, 40, Brad Lewis, aka Bird, 32, and Cedrick Mitchell, aka Skeet, 39, pleaded guilty.  Their sentencings are scheduled in August and September.

U.S. District Court Judge Jay Zainey of the Eastern District of Louisiana set sentencing for Jackson on Oct. 6.  Jackson faces a statutory maximum sentence of five years in prison and a $250,000 fine, or twice the gross gain or loss caused by the offense and restitution.

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 Trial Attorneys Hayden Brockett and Lauren Castaldi of the Tax Division and Assistant U.S. Attorney Dall Kammer of the Eastern District of Louisiana, who are prosecuting the case.

ESMIN ESPINOZA-ERAZO, age 25, a citizen of Honduras who currently resides in Hammond, Louisiana, was sentenced today after previously pleading guilty to a one-count Indictment for illegal use of a Social Security Number, announced U. S. Attorney Kenneth Allen Polite, Jr. today.

U.S. District Judge Kurt D. Engelhardt sentenced ESMIN ESPINOZA-ERAZO to 27 months imprisonment followed by 3 years of supervised release, a $2,500 fine, and a $100 special assessment.

According to the Indictment, on or about July 16, 2013, ESMIN ESPINOZA-ERAZO submitted a social security number that did not belong to him to a Louisiana Department of Motor Vehicles Office in order to obtain a Louisiana identification card.  Based on that false submission, an employee with the Department of Motor Vehicles issued ESMIN ESPINOZA-ERAZO a Louisiana identification card.

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

DONALD FONTENOT, age 61; JOSEPH POUNDS, age 47; EDGAR POUNDS, age 65; and HOUSTON COTTON, age 67; residents of Bogalusa, Louisiana, each pled guilty today to multiple federal charges of selling Roxicodone 30mg tablets to an undercover Drug Enforcement Administration agent, announced U. S. Attorney Kenneth Allen Polite, Jr.  Roxicodone is a branded formulation of oxycodone, a prescription-only Schedule II drug controlled substance and a highly addictive and abused semi-synthetic opioid.

According to court documents, DEA conducted the undercover drug purchases as part of an investigation into reports of widespread illegal street sales of Roxicodone pills in and around the City of Bogalusa.  The investigation showed that Roxicodone 30mg tablets were being sold by pill traffickers for approximately twenty-five to thirty dollars ($25-30) per tablet.  Agents further learned that many of these sellers were patients or close associates of patients of Clinic A, an unregistered pain management clinic operating as a ‘pill mill,’ dispensing Roxicodone prescriptions in exchange for cash outside the scope of professional medical practice and not for a legitimate medical purpose.  Clinic A changed locations multiple times during the investigation, operating at times in the New Orleans area and in Kiln, Mississippi, and also changed names on paper, although no signage was ever posted outside the clinic stating the clinic’s name or otherwise indicating that a medical practice was operating therein.

U.S. District Judge Kurt D. Engelhardt scheduled sentencing for October 14, 2015.  Each defendant faces a sentence of up to twenty years imprisonment per count.  Five other defendants are charged in the Indictment, and trial is scheduled for July 27, 2015.

U.S. Attorney Polite praised the work of the DEA Tactical Diversion Squad 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 JAMES WOOLF, age 41, a resident of Atlanta, Georgia, pled guilty before United States District Judge Martin L. C. Feldman to one count of conspiracy to distribute and possess with intent to distribute fifty grams or more of methamphetamine.

According to the indictment, beginning on a date unknown and continuing until on or about September 8, 2013, WOOLF knowingly combined, conspired, confederated and agreed with persons known and unknown to the Grand Jury, to distribute and possess with the intent to distribute a fifty (50) grams or more of methamphetamine.

WOOLF faces a minimum term of imprisonment of twenty years, a maximum term of life imprisonment, a fine of $10,000,000.00, at least five years of supervised release after imprisonment, and a $100.00 special assessment.   District Judge Feldman set sentencing for October 21, 2015.           

U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter.  Assistant United States Attorney Andre’ Jones is the prosecuting attorney.

WASHINGTON – Two residents of Tangipahoa Parish, Louisiana, pleaded guilty today to multiple criminal charges for their involvement in a stolen identity tax refund fraud scheme, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Kenneth Allen Polite Jr. of the Eastern District of Louisiana.

At today’s plea hearing in the U.S. District Court for the Eastern District of Louisiana, Angela Chaney, 43, pleaded guilty to one count of conspiracy to defraud the United States and one count of aggravated identity theft, and Thaddeus Richardson, 50, pleaded guilty to one count of conspiracy to defraud the United States, one count of conspiracy to commit money laundering and seven counts of theft of public money.

According to court documents, Chaney and Richardson conspired with each other and others to file false federal income tax returns using stolen identities that included false claims for tax refunds.  Richardson owned and operated a funeral home in Tangipahoa Parish and used the business bank account as part of the scheme.  Chaney and others used individuals’ names and social security numbers to prepare false tax returns and directed the Internal Revenue Service (IRS) to mail refund checks to addresses in Louisiana, including to post office boxes opened by some of the co-conspirators.  Chaney and others falsely endorsed the refund checks and then brought those checks to Richardson and others.  Richardson deposited the checks into the business bank account before dividing the proceeds amongst the co-conspirators.

The defendants are scheduled to be sentenced on Oct. 6 and each faces a statutory maximum sentence of five years in prison for conspiracy to defraud the United States.  Chaney also faces a mandatory minimum sentence of two years in prison for aggravated identity theft.  Richardson also faces a statutory maximum sentence of 10 years in prison for each theft of public money count and 20 years in prison for conspiracy to commit money laundering.  In addition to a prison sentence, the defendants face potential fines, forfeiture and restitution.

After today’s guilty pleas, six of the seven defendants charged in the indictment have pleaded guilty.  Corey Lewis, aka Coco, 37; Craig Lewis, 40; Brad Lewis, aka Bird, 32; and Cedrick Mitchell, aka Skeet, 39, previously pleaded guilty to conspiracy and related charges and await their sentencing hearings scheduled in August and September.  The case of Martin Jackson Sr., 48, of Tangipahoa Parish, is still pending.

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 Trial Attorneys Hayden Brockett and Lauren Castaldi of the Tax Division and Assistant U.S. Attorney Dall Kammer of the Eastern District of Louisiana, who are prosecuting the case.

Thaddeus Richardson Factual Basis.pdf (174.88 KB)

Angela Chaney Factual Basis.pdf (214.63 KB)

 

U.S. Attorney Kenneth A. Polite announced that DANIEL FIGUEROA-MUNGUIA, age 30, a citizen of Honduras, pled guilty today to a one-count Bill of Information charging him with illegal re-entry into the United States.

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

U.S. District Judge Nannette Jolivette Brown set sentencing for August 13, 2015.

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

Daniel Figueroa-Munguia Factual Basis.pdf (177.34 KB)

WASHINGTON – Today, a motel owner pleaded guilty to financially benefiting from a sex trafficking scheme operated out of the Riviera Motel in New Orleans in which multiple adult women were compelled to engage in prostitution, announced head of the Civil Rights Division Principal Deputy Assistant Attorney General Vanita Gupta and U.S. Attorney Kenneth Allen Polite Jr. of the Eastern District of Louisiana.  Kanubhai Patel, also known as Mr. Kenny and Pop, 74, of Kenner, Louisiana, pleaded guilty to one count of benefitting financially from trafficking in persons.

“The Department of Justice will not tolerate those who traffic in human beings or who benefit financially from human trafficking,” said Principal Deputy Assistant Attorney General Gupta.  “We will continue in our steadfast determination to bring to justice not only those who use force and coercion to exploit other human beings—but also those entities or individuals who knowingly profit from these depraved acts.”

“This defendant callously profited from a sex trafficking venture that used force, fraud and coercion to compel women to engage in commercial sex acts,” said U.S. Attorney Polite.  “These crimes often pass without detection because victims live in fear from physical abuse, threats and other forms of coercion.  My office is committed to prosecuting individuals and organizations that profit from this illegal conduct.”

“This investigation and prosecution should serve as a clear reminder to all those individuals engaged in sex trafficking and those who profit from this heinous crime, that the full force of federal law enforcement, across geographical boundaries, will bring them to swift justice,” said Special Agent in Charge Michael Anderson of the FBI’s New Orleans Office.

“Human trafficking is a form of modern-day slavery that Homeland Security Investigations fights as one of its highest priorities via a coordinated global effort with the FBI and our state and local law enforcement partners,” said Acting Special Agent in Charge Cindy M. Johnson of Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) New Orleans.  “The results speak for themselves; over the past two years HSI has doubled its number of human trafficking arrests.  HSI will continue to investigate and seek prosecution of these criminals while also ensuring the victims of this terrible crime are rescued and get the care they need.”

According to evidence presented in court and documents filed in connection with the case, Patel acknowledged that, in his role as the former owner of the Riviera Motel, he regularly rented rooms to individuals who are charged as sex trafficking co-conspirators in connection with this case, knowing they were pimps who forced and coerced women to engage in prostitution.  Patel admitted that although he never personally recruited, groomed or coerced any of the victims, he benefited financially from the sex trafficking operation.

Evidence presented at the plea hearing and court documents establish that Patel would charge the pimps and sex trafficking co-conspirators higher rates than other motel guests, and would open the motel’s gate to allow the women to bring customers back to the hotel.  Patel learned that members of the sex trafficking conspiracy physically assaulted women they prostituted, including one instance in which a co-conspirator brutally beat one woman with a large piece of wood while she screamed for help, leaving her with multiple lacerations and what appeared to be a broken arm.  Patel also saw the damage that a co-conspirator caused to a motel room during a beating, including a broken toilet, a damaged sink and blood on the walls.  Patel agreed not to call the police after the co-conspirator paid him for the damage to the room.  Patel also knew that, in furtherance of the sex trafficking scheme, members of the sex trafficking conspiracy would take the women’s identification cards from them.  Patel saw the sex trafficking co-conspirators possessing the women’s identification cards and using them to rent hotels.  Patel did not report them to police as long as they paid their rent.

At sentencing, Patel faces a statutory maximum sentence of five years in prison for benefiting financially from participating in a trafficking scheme involving control of victims’ identification documents.

Five other defendants have pleaded guilty in connection with the case.  On June 25, 2014, Zacchaeus Taylor, 22, pleaded guilty to sex trafficking conspiracy and to transportation for purposes of prostitution.  Laquentin Brown, 33, and Anthony Ellis, 26, subsequently pleaded guilty to the same charges on March 4, 2015, and April 20, 2015, respectively.  All of these defendants are from Memphis, Tennessee, and each faces a statutory maximum sentence of five years in prison for conspiracy and a statutory maximum sentence of 10 years in prison for transportation for prostitution.

On April 20, 2015, Duane Phillips, 29, and Christopher Williams, 30, also of Memphis, each pleaded guilty to sex trafficking conspiracy.  They each face a statutory maximum sentence of life in prison.

Patel was charged in a second superseding indictment returned on Oct. 3, 2014, along with Brown, Ellis, Philips, Williams and Granville Robinson, 26, also of Memphis.  Taylor was charged separately on March 28, 2014.  Of the seven defendants charged in connection with the case, six have entered guilty pleas and Robinson is awaiting trial.  An indictment is merely an accusation and the defendants are innocent until proven guilty.

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

Kanubhai Patel Factual Basis (36.06 KB)

Sex Trafficking Scheme Used Threats, Violence and Coercion to Compel Women into Prostitution in New Orleans and Elsewhere

Today, a motel owner pleaded guilty to financially benefiting from a sex trafficking scheme operated out of the Riviera Motel in New Orleans in which multiple adult women were compelled to engage in prostitution, announced head of the Civil Rights Division Principal Deputy Assistant Attorney General Vanita Gupta and U.S. Attorney Kenneth Allen Polite Jr. of the Eastern District of Louisiana.  Kanubhai Patel, also known as Mr. Kenny and Pop, 74, of Kenner, Louisiana, pleaded guilty to one count of benefitting financially from trafficking in persons. 

“The Department of Justice will not tolerate those who traffic in human beings or who benefit financially from human trafficking,” said Principal Deputy Assistant Attorney General Gupta.  “We will continue in our steadfast determination to bring to justice not only those who use force and coercion to exploit other human beings—but also those entities or individuals who knowingly profit from these depraved acts.”

“This defendant callously profited from a sex trafficking venture that used force, fraud and coercion to compel women to engage in commercial sex acts,” said U.S. Attorney Polite.  “These crimes often pass without detection because victims live in fear from physical abuse, threats and other forms of coercion.  My office is committed to prosecuting individuals and organizations that profit from this illegal conduct.”

“This investigation and prosecution should serve as a clear reminder to all those individuals engaged in sex trafficking and those who profit from this heinous crime, that the full force of federal law enforcement, across geographical boundaries, will bring them to swift justice,” said Special Agent in Charge Michael Anderson of the FBI’s New Orleans Office.

“Human trafficking is a form of modern-day slavery that Homeland Security Investigations fights as one of its highest priorities via a coordinated global effort with the FBI and our state and local law enforcement partners,” said Acting Special Agent in Charge Cindy M. Johnson of Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) New Orleans.  “The results speak for themselves; over the past two years HSI has doubled its number of human trafficking arrests.  HSI will continue to investigate and seek prosecution of these criminals while also ensuring the victims of this terrible crime are rescued and get the care they need.”

According to evidence presented in court and documents filed in connection with the case, Patel acknowledged that, in his role as the former owner of the Riviera Motel, he regularly rented rooms to individuals who are charged as sex trafficking co-conspirators in connection with this case, knowing they were pimps who forced and coerced women to engage in prostitution.  Patel admitted that although he never personally recruited, groomed or coerced any of the victims, he benefited financially from the sex trafficking operation. 

Evidence presented at the plea hearing and court documents establish that Patel would charge the pimps and sex trafficking co-conspirators higher rates than other motel guests, and would open the motel’s gate to allow the women to bring customers back to the hotel.  Patel learned that members of the sex trafficking conspiracy physically assaulted women they prostituted, including one instance in which a co-conspirator brutally beat one woman with a large piece of wood while she screamed for help, leaving her with multiple lacerations and what appeared to be a broken arm.  Patel also saw the damage that a co-conspirator caused to a motel room during a beating, including a broken toilet, a damaged sink and blood on the walls.  Patel agreed not to call the police after the co-conspirator paid him for the damage to the room.  Patel also knew that, in furtherance of the sex trafficking scheme, members of the sex trafficking conspiracy would take the women’s identification cards from them.  Patel saw the sex trafficking co-conspirators possessing the women’s identification cards and using them to rent hotels.  Patel did not report them to police as long as they paid their rent. 

At sentencing, Patel faces a statutory maximum sentence of five years in prison for benefiting financially from participating in a trafficking scheme involving control of victims’ identification documents. 

Five other defendants have pleaded guilty in connection with the case.  On June 25, 2014, Zacchaeus Taylor, 22, pleaded guilty to sex trafficking conspiracy and to transportation for purposes of prostitution.  Laquentin Brown, 33, and Anthony Ellis, 26, subsequently pleaded guilty to the same charges on March 4, 2015, and April 20, 2015, respectively.  All of these defendants are from Memphis, Tennessee, and each faces a statutory maximum sentence of five years in prison for conspiracy and a statutory maximum sentence of 10 years in prison for transportation for prostitution.

On April 20, 2015, Duane Phillips, 29, and Christopher Williams, 30, also of Memphis, each pleaded guilty to sex trafficking conspiracy.  They each face a statutory maximum sentence of life in prison. 

Patel was charged in a second superseding indictment returned on Oct. 3, 2014, along with Brown, Ellis, Philips, Williams and Granville Robinson, 26, also of Memphis.  Taylor was charged separately on March 28, 2014.  Of the seven defendants charged in connection with the case, six have entered guilty pleas and Robinson is awaiting trial.  An indictment is merely an accusation and the defendants are innocent until proven guilty.

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

U.S. Attorney Kenneth A. Polite announced that TONY AXELL ROMERO-MONTOYA, age 28, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Indictment charging him with illegal reentry of a removed alien.

U.S. District Judge Sarah R. Vance sentenced ROMERO-MONTOYA to time served, followed by one year of supervised release.  ROMERO-MONTOYA will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.

According to the court documents, on February 25, 2015, ROMERO-MONTOYA was found in the United States after having been deported previously on September 17, 2012.

U.S. Attorney Polite praised the work of the Department of Homeland Security in investigating this matter. The case was prosecuted by Assistant United States Attorney Emily K. Greenfield.

U.S. Attorney Kenneth A. Polite announced that ARMER BRIGHT, 51, a resident of Baton Rouge and former employee of the Orleans Parish School Board (“OPSB”), pled guilty today to charges of conspiracy to commit bribery and honest services wire fraud.

According to court documents, BRIGHT admitted that beginning in September 2013 and continuing until January 2015, he and others participated in a conspiracy to commit bribery and honest services wire fraud.  BRIGHT admitted that he initiated a scheme to defraud Orleans Parish and its citizens of honest services through bribery and a kickback scheme, whereby IRA THOMAS, an Orleans Parish School Board member, used his public office and official capacity to provide favorable treatment, including attempting to facilitate the awarding of a contract, that was designed to benefit the business and financial interest of an individual who provided him with a bribe and kickback in the form of cash payment disguised as a campaign contribution.

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

BRIGHT faces statutory penalties of up to five years in prison, a $250,000 fine and three years of supervised release.   U.S. District Judge Susie Morgan set sentencing for September 23, 2015 at 2:00 pm.

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

Armer Bright Factual Basis.pdf (14.82 KB)

U.S. Attorney Kenneth A. Polite announced that ANDREA BIRDOW, age 24, from Sherman, Texas, was sentenced today after pleading guilty to conspiring with her boyfriend, TAUREAN JACKSON, to traffick a minor from the Dallas area into the New Orleans area for the purposes of that minor engaging in prostitution.

U.S. District Judge Susie Morgan sentenced BIRDOW to time served, followed by one year of supervised release.

According to court documents, BIRDOW met JACKSON, the creator and host of a Dallas-area radio program entitled, “Cheap Hoes Gotta Go,” in 2012, after JACKSON recruited her to join “Star City Vixens,” an entity he created to foster and promote prostitution.  JACKSON became BIRDOW’s pimp and arranged for her to engage in sexual acts with others in exchange for money.  JACKSON was responsible for advertising and scheduling prostitution calls with BIRDOW.  JACKSON kept all, or most, of the proceeds from the prostitution calls.  As a means of controlling BIRDOW’S behavior and ensuring her compliance, JACKSON beat and choked BIRDOW on multiple occasions, often in front of others.  On several occasions, JACKSON burned BIRDOW with lit cigarettes to discipline her.

In mid-June 2013, JACKSON and BIRDOW met the victim, who was then 16-years-old, in the Dallas area and recruited her to begin working for JACKSON as a prostitute.  Over the course of the next several weeks, JACKSON and BIRDOW drove the victim throughout Texas and Louisiana for the purpose of BIRDOW and the victim engaging in prostitution, which JACKSON advertised and arranged using an online classified advertisement.  JACKSON arranged for the victim to watch BIRDOW engage in prostitution acts as a means of educating

her on the best way to perform sexual acts.  To control the victim’s behavior, JACKSON beat BIRDOW in front of the victim, warning that he would do the same to the victim if she tried to leave him, and separately beat the victim with an extension cord.  Ultimately, BIRDOW and the victim were arrested on July 10, 2013, in a Metairie hotel room by undercover law enforcement officers who responded to an online classified advertisement offering a prostitution date.

JACKSON pled guilty earlier this year and is scheduled to be sentenced on July 15, 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 Jefferson Parish Sheriff's Office for initiating the case, and the Federal Bureau of Investigation, with assistance from the FBI Dallas Child Exploitation Task Force, and the Dallas Police Department High Risk Victims Unit for investigating this case. Assistant United States Attorneys Jordan Ginsberg and Brandon Long are in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that DAVID MOREL, age 31, of New Orleans, was charged yesterday in a Bill of Information 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 U.S. Department of Homeland Security-Homeland Security Investigations (“HSI”) and the Louisiana Attorney General’s Office High Tech Crime Unit (“LAGO”).  According to court records, HSI and LAGO agents executed a search warrant at MOREL’s residence after determining MOREL was downloading images depicting the sexual victimization of children.

In 2010, MOREL was convicted in Orleans Parish Criminal Court of 536 counts of possession of pornography involving juveniles.  He received 10 years suspended and was sentenced to 5 years home incarceration.  MOREL was prohibited from using computers and the Internet.  MOREL was arrested by the LAGO on December 18, 2014, and is currently in state custody for a violation of his state probation.

Because of his prior state conviction for similar criminal conduct, MOREL faces a mandatory minimum penalty of ten years and a maximum penalty of twenty years, followed by up to a lifetime term of supervised release, and a $250,000 fine.

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.

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

U.S. Attorney Polite praised the work of the U.S. Department of Homeland Security-HSI and the Louisiana Attorney General’s Office High Tech Crime Unit 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.

David Morel Bill of Information.pdf (240.58 KB)

U.S. Attorney Kenneth A. Polite announced that RAVEN HUGHES, age 27, of Hammond, was charged today in an eight-count Indictment with mail fraud and aggravated identity theft for engaging in a multi-year tax fraud scheme.

According to the Indictment, HUGHES obtained the name and social security number of unsuspecting individuals and used that information without their knowledge or authorization to prepare false tax returns that claimed large tax refunds.  The refund checks were mailed to numerous Post Office Boxes opened by HUGHES throughout Louisiana, as well as her residence.  Once the tax refund checks were received, HUGHES falsely endorsed the checks and cashed them.  HUGHES also arranged for some of the refunds to be transmitted electronically into bank accounts under her control.  In total, HUGHES caused not fewer than 148 federal income tax returns to be submitted in the names of at least 103 different individuals without their knowledge or authorization.  As a result of the conduct described above, between 2009 and 2012 HUGHES sought over $646,000 in fraudulent tax refunds from the Department of the Treasury, and she received at least $199,050.

“Our agency will vigorously pursue fraudulent refund claims and those individuals who engage in identity theft,” stated Jerome R. McDuffie, Special Agent in Charge, IRS Criminal Investigation.  “The message to be taken from today’s court action against Ms. Hughes is simple.  We will continue to work with the United States Attorney's Office to aggressively protect innocent taxpayers and preserve the integrity of our tax system.  Participation in refund fraud schemes does not pay and those who do so will be prosecuted and held accountable for their illegal activities."

If convicted, HUGHES faces a maximum term of imprisonment for each count of mail fraud of not more than twenty years, followed by up to three years of supervised release, and a $250,000 fine.  HUGHES also faces a mandatory consecutive two-year sentence for the commission of aggravated identity theft.

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

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

Raven Hugh Indictment.pdf (1.91 MB)                             

U.S. Attorney Kenneth A. Polite announced that CARLOS RAMIREZ-VASQUEZ, age 38, a citizen of Mexico, pled guilty today to a one-count Bill of Information for illegal reentry of removed alien.

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

RAMIREZ-VASQUEZ faces a maximum term of imprisonment of two years and a fine of $250,000, one year supervised release after imprisonment, and a $100 special assessment.   U.S. District Judge Carl J. Barbier set sentencing for August 6, 2015.

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

Carlos Ramirez-Vasquez Factual Basis.pdf (48.01 KB)

U.S. Attorney Kenneth A. Polite announced that ERIC O’NEAL SELDERS, age 43, of Independence, was sentenced today after previously pleading guilty to a one-count Indictment for a federal gun violation.

U.S. District Judge Eldon E. Fallon sentenced SELDERS to 180 months incarceration, to be followed by 5 years of supervised release and a $100 special assessment.

On July 19, 2012, SELDERS – who has four prior state felony convictions – was arrested by Tangipahoa Sherriff’s Deputies for illegally possessing a .38 caliber revolver within the Eastern District of Louisiana.  SELDERS was sentenced to a mandatory minimum due to his classification by federal law as an “Armed Career Criminal.”                                          

U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tangipahoa Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Edward J. Rivera was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that MICHAEL MENDEZ, age 51, of Houston, was charged today in a three-count Indictment alleging violations of federal drug and firearms laws.  Specifically, the Indictment charges MENDEZ with:   conspiracy to distribute and possess with intent to distribute over five kilograms of cocaine hydrochloride; possession with intent to distribute over five kilograms of cocaine hydrochloride; and possession of a firearm in furtherance of a drug-trafficking offense.

According to the Indictment, on June 10, 2015, Louisiana State Police conducted a traffic stop of MENDEZ as he was driving on Interstate 12 in Tangipahoa Parish.  During the stop, police discovered over fifteen kilograms of cocaine hydrochloride and a loaded 9 millimeter Glock pistol inside of the car.

If convicted of either drug offense, MENDEZ faces between ten years to life in prison, a $10,000,000 fine, and at least five years of court supervision after his release.  If convicted of the gun offense, MENDEZ faces at least five years in prison, a $250,000 fine, and no more than five years of supervised release.

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

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

Michael Mendez Indictment.pdf (300.85 KB)

U.S. Attorney Kenneth A. Polite announced that EUELIO MARQUEZ-CHACON, age 40, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Indictment for illegal reentry of a removed alien.

U.S. District Judge Carl J. Barbier sentenced MARQUEZ-CHACON to time served months imprisonment followed by 1 year of supervised release, and a $100 special assessment.

MARQUEZ-CHACON 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 4, 2015, MARQUEZ-CHACON was found in the United States after having been officially deported and removed on or about June 12, 2003.

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

 

U.S. Attorney Kenneth A. Polite announced that DERRICK JOSEPH DURAN, age 28, a resident of Des Allemands, was charged today in a three-count Indictment with conspiracy to commit mail fraud.

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

If convicted, DURAN faces a maximum penalty of twenty years, a $250,000 fine, three years of supervised release following imprisonment, and a $100 special assessment.

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

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter.  Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution.

Derrick Joseph Duran Indictment.pdf (194.65 KB)

 

U.S. Attorney Kenneth A. Polite announced that PATRICIA BLANCHARD, age 67, formerly of New Orleans, was sentenced after previously pleading guilty to mail fraud for her role in embezzling approximately $715,000 from Community Health Charities of Louisiana and Mississippi (“CHC”), a charitable fundraising organization.

U.S. District Judge Jane Triche Milazzo sentenced BLANCHARD to 30 months imprisonment, followed by 3 years of supervised release.  Additionally, BLANCHARD was ordered to pay $575,000 in restitution, in addition to the $140,000 she has already paid.

According to court documents, BLANCHARD’S husband, G.B., was hired in 2000 to be the Executive Director and President of CHC, a not-for-profit charitable organization that raised, collected, and distributed funds to local charities through workplace giving campaigns.  CHC received pledges from federal civilian, postal, and military donors to support eligible non-profit organizations. In about 2005, he arranged for BLANCHARD to be hired as CHC’s bookkeeper.  As bookkeeper, BLANCHARD was responsible for overseeing CHC’s finances and accounts, including reconciling accounts payable and receivables.

Between 2006 and November 2011, BLANCHARD embezzled approximately $715,000 from CHC in three ways.  First, she mailed checks drawn on Charity A’s accounts to pay her own credit card bills.  To disguise her behavior and make the checks look legitimate, BLANCHARD added fictitious notes on the checks, such as “Cancer Research Institute,” “AIDS Research Foundation,” “MARCH OF DIMES,” “NO AIDS/TASK FORCE,” “American Heart Assoc.,” and “AMERICAN CANCER SOCIETY.”  Second, BLANCHARD obtained cash advances on her Shell gas card without authorization and reimbursed herself from CHC’s accounts, making it look like the reimbursement were for legitimate travel and gas expenses.  Third, BLANCHARD paid for personal expenditures and items directly from CHC’s bank accounts without authorization.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter.  Assistant United States Attorney Jordan Ginsberg was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that MALCOLM BOLDEN, age 20, NOEL JONES, age 27, and TERRELL DYER, age 29, all of New Orleans, were sentenced today for their roles in a conspiracy to distribute at least one kilogram of heroin in the New Orleans area.  BOLDEN was also sentenced for one count of distribution of heroin resulting in an overdose death.

United States District Judge Kurt D. Engelhardt sentenced BOLDEN to 300 months in prison, 5 years of supervised release following his prison term, and a $200 special assessment.  A restitution hearing regarding BOLDEN is scheduled for September 30, 2015.   Judge Engelhardt read from the bench a letter written by the victim’s mother, and had a picture of the victim displayed in the courtroom.

The Court sentenced JONES to 327 months in prison, with 240 months to run consecutive to a state court sentence of 12 years, as well as 5 years of supervised release and a $100 special assessment.  DYER was sentenced to 162 months in prison, 5 years of supervised release, and a $100 special assessment.  Six other defendants are scheduled for sentencing hearings in August and September of this year.  Trial on the Indictment as to defendant THEODORE GRIFFIN is scheduled for September 14, 2015.

Before sentencing, Judge Engelhardt stated that there is a heroin epidemic in the New Orleans metropolitan area that spans racial and economic lines, and that the community needs to address the issue in part through cases such as this one.

“I applaud Judge Engelhardt for imposing such lengthy sentences in this case,” stated U.S. Attorney Polite.  “Moreover, I share his sentiments regarding the heroin epidemic that we are experiencing both regionally and nationally.  As the overdose death in this case illustrates, heroin trafficking is not a victimless crime.”

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 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 BOLDEN subsequently met with the decedent to complete the sale.

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 LAVERNE ROSE, age 69, of New Orleans, was sentenced today after previously pleading guilty to a one-count Bill of Information for theft of government funds.

U.S. District Judge Kurt D. Engelhardt sentenced ROSE to 15 months incarceration, to be followed by 3 years of supervised release.  ROSE was also ordered to pay full restitution.

According to court documents, ROSE admitted that she stole $282,400 from the Social Security Administration over the course of 23 years. ROSE jointly held a bank account with her father, who died in 1990.  Unaware of ROSE’S father’s death, the Social Security Administration continued wiring retirement benefits for him to the account.  ROSE received and spent the benefits until 2014, when the Social Security Administration learned that ROSE’S father had died.  ROSE admitted that she knew the payments should have ceased and that they did not belong to her.

U.S. Attorney Polite praised the work of the United States Social Security Administration - Office of the Inspector General in investigating this matter.  Assistant U.S. Attorney Chandra Menon was in charge of this prosecution.