Eastern District of Louisiana

U.S. Attorney Kenneth A. Polite announced that CAROLYN TREAUDO, age 54, a of New Orleans, was sentenced today after previously pleading guilty to a one-count Bill of Information for the theft of $94,840 in government funds.

U.S. District Judge Kurt D. Engelhardt sentenced TREAUDO to 4 years’ probation, 6 months of home confinement, and a $10,000 fine.  TREAUDO has already made full restitution to the Governor's Office of Homeland Security and Emergency Preparedness (GOHSEP).

According to court documents, TREAUDO had admitted to stealing approximately $94,840 from the Federal Emergency Management Agency during 2009 and 2010.  The funds were administered by GOHSEP under a program to return disaster-affected locations, including schools, to pre-disaster conditions by reimbursing expenses and paying replacement costs.

U.S. Attorney Polite praised the work of the Department of Homeland Security - Office of the Inspector General in investigating this matter and thanked the Louisiana Legislative Auditor for their assistance.  Assistant U.S. Attorney Chandra Menon was in charge of this prosecution.

U.S. Attorney Kenneth A. Polite announced that RAMON ANTONIO SORIANO-CANIZALEZ, age 28, a citizen of El Salvador, pled guilty today to a one-count Indictment charging him with illegal reentry into the United States after having been previously deported.

According to the court documents, SORIANO-CANIZALEZ was encountered by Border Patrol agents in the Eastern District of Louisiana on April 29, 2015, after records showed he had been previously deported from the United States to El Salvador on July 26, 2010.

SORIANO-CANIZALEZ faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment. U.S. District Judge Ivan L.R. Lemelle set sentencing for September 23, 2015.

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

Ramon Antonio Soriano-Canizalez Factual basis.pdf (1000.42 KB)

U.S. Attorney Kenneth A. Polite announced that BRENT GUZZARDO, age 34, a resident of Amite, was sentenced today for violating the Federal Controlled Substances Act.

U.S. District Judge Kurt D. Engelhardt sentenced GUZZARDO to 106 months incarceration, to be followed by 3 years of supervised release.  GUZZARDO was also ordered to pay a special assessment of $200.

On March 25, 2015, GUZZARDO pled guilty to possession with the intent to distribute a quantity of methamphetamine and possessing a firearm in furtherance of a drug trafficking crime.  The charges stem from a search warrant that was executed at GUZZARDO’s residence, during which law enforcement officers located several grams of pure methamphetamine, a scale, cash, and a loaded .357 revolver.

U.S. Attorney Polite praised the work of the Drug Enforcement Administration and officers of the Tangipahoa Parish Sheriff’s Office in investigating this matter.  Assistant U.S. Attorney David Haller was in charge of the prosecution.

Two residents of Tangipahoa Parish, Louisiana, pleaded guilty today to one count of conspiracy to defraud the United States and to commit theft of public money and mail fraud, with one defendant also pleading guilty to aggravated identity theft, 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.

According to court documents, Corey Lewis, also known as Coco, 37, and Craig Lewis, 40, conspired with each other and others to file false federal income tax returns using stolen identities including false claims for tax refunds.  The defendants and others used individuals’ names and social security numbers in order to prepare false tax returns.  They directed the Internal Revenue Service (IRS) to mail refund checks to addresses in Louisiana, including to post office boxes that were opened by co-conspirators.  Corey Lewis and others falsely endorsed and deposited the refund checks into bank accounts under their control.  The proceeds of the refund checks would then be divided amongst the co-conspirators.

The defendants are scheduled to be sentenced in U.S. District Court in the Eastern District of Louisiana on Sept. 22 and each face a statutory maximum sentence of five years in prison and a fine of $250,000 for the conspiracy count.  Corey Lewis also faces a mandatory minimum sentence of two years in prison for aggravated identity theft.  The defendants also face potential fines, forfeiture and restitution.  Brad Lewis, also known as Bird, 32, and Cedrick Mitchell, also known as Skeet, 39, previously pleaded guilty to the same conspiracy charge and await their sentencing hearings on Aug. 25 and Sept. 15, respectively.

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.

Corey Lewis Factual Basis.pdf (599.17 KB)

Craig Lewis Factual Basis.pdf (464.47 KB)

U.S. Attorney Kenneth A. Polite announced that LOUIS ADALBERTO MORADIAGA, age 44, a citizen of El Salvador, was sentenced today after pleading guilty to a one-count Indictment.

U.S. District Judge Jay C. Zainey sentenced MORADIAGA to 6 months imprisonment followed by 1 year of supervised release, and a $100 special assessment.  At the completion of the MORADIAGA’s term of imprisonment, he shall be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.

According to the Indictment, on or about March 5, 2015, MORADIAGA was found in the United States after having been officially deported and removed on or about August 25, 2000. 

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

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

According to the Indictment, JAROL DAVID SOSA-PALMA reentered the United States after having been previously deported on June 21, 2013.  If convicted, JARONL DAVID SOSA-PALMA faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.

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

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

Jarol David Sosa-Palma Indictment (732.89 KB)

U.S. Attorney Kenneth A. Polite announced that yesterday, an Indictment was unsealed charging members of a violent New Orleans street gang known as “the 39ers” with violating federal racketeering statutes and committing twelve homicides as well as multiple violations of federal drug and firearm laws. The defendants include:  LEROY PRICE, a/k/a “Lee,” age 29; ASHTON PRICE, a/k/a “Pound,” age 24; ALONZO PETERS, a/k/a “Woo-dee,” age 25; JASMINE PERRY, a/k/a “J-Real,” a/k/a “Rell,” age 24; McCOY WALKER, a/k/a “Rat,” age 25; TERRIOUES OWNEY, a/k/a “T-Red,” age 28; EVANS LEWIS, a/k/a “Easy,” age 23; CURTIS NEVILLE, a/k/a “Pooney,” a/k/a “Poonie,” age 22; RICO JACKSON, a/k/a “Freaky,” age 33; TYRONE KNOCKUM, a/k/a “T-Bone,” age 24; SOLOMON DOYLE, a/k/a “Black,” a/k/a “Sol,” age 29; WASHINGTON McCASKILL, a/k/a “Big Wash,” age 36, and DAMIAN BARNES, a/k/a “AD,” age 27.

The 45-count indictment charges that the “39ers” gang was formed through an alliance between the “G-Strip gang,” which operated in the Ninth Ward on Gallier Street, and the “3NG” gang, which operated on or near the corner of Third Street and Galvez Street in the City of New Orleans, with the purpose of increasing their drug trafficking and ability to commit crimes of violence.  Each defendant is alleged to have participated in at least one homicide.

All defendants are facing a mandatory life sentence if convicted of committing a murder in furtherance of racketeering activity, in violation of Title 18, United States Code Section 1959.

The Indictment is a product of an ongoing investigation into the drug trafficking and violent crime by this and other New Orleans gangs.  It represents the continued coordinated effort of the federal and state law enforcement authorities, including the United States Attorney’s Office, the Federal Bureau of Investigations’ New Orleans Gang Task Force, the New Orleans Police Department, the Bureau of Alcohol, Tobacco, and Firearms, and the Orleans Parish District Attorney’s Office.

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.

Assistant United States Attorneys Maurice Landrieu, Myles Ranier, and Sharan Lieberman are in charge of the prosecution.

39ers Indictment.pdf (2.31 MB)

Attorney General Loretta E. Lynch, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Michael Anderson of the FBI’s New Orleans Field Office, and Special Agent in Charge Mike Fields of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Regional Office announced today that 11 individuals – including two doctors and a clinical psychologist – were charged for their roles in five separate fraud schemes based in New Orleans that, combined, submitted close to $110 million in fraudulent claims to Medicare.

The charges were part of a nationwide sweep led by the Medicare Fraud Strike Force in 17 districts, resulting in charges against 243 individuals, including 46 doctors, nurses and other licensed medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $712 million in false billings.  In addition, the Centers for Medicare & Medicaid Services (CMS) also suspended a number of providers using its suspension authority as provided in the Affordable Care Act.  This coordinated takedown is the largest in Strike Force history, both in terms of the number of defendants charged and loss amount.

“This action represents the largest criminal health care fraud takedown in the history of the Department of Justice, and it adds to an already remarkable record of enforcement,” said Attorney General Lynch.  “The defendants charged include doctors, patient recruiters, home health care providers, pharmacy owners, and others.  They billed for equipment that wasn’t provided, for care that wasn’t needed, and for services that weren’t rendered.  In the days ahead, the Department of Justice will continue our focus on preventing wrongdoing and prosecuting those whose criminal activity drives up medical costs and jeopardizes a system that our citizens trust with their lives.  We are prepared – and I am personally determined – to continue working with our federal, state, and local partners to bring about the vital progress that all Americans deserve.”

Grand juries sitting in the Eastern District of Louisiana returned four indictments charging defendants with crimes carried out through 13 companies operating in Louisiana, California, Mississippi, Alabama and Florida.  A criminal complaint was filed against another defendant for a scheme carried out at another companies.  These schemes centered on billing Medicare for home health care services, psychological testing services, durable medical equipment, and psychotherapy services – services and equipment that were not medically needed and in many instances were not provided.

According to court documents, Elaine Davis, Pramela Ganji, M.D., and Godwin Ogboukiri, M.D. were indicted for their involvement in a home health care fraud scheme carried out through Christian Home Health Care, Inc. (Christian).  The indictment alleges that the defendants falsely claimed that thousands of Medicare recipients in and around New Orleans were in need of home health care services.  The indictment alleges that from 2007 through 2015, Christian submitted more than $33.2 million in claims for home health care services to Medicare, the vast majority of which were fraudulent.

Also indicted were Rodney Hesson, Psy.D., and Gertrude Parker for their roles in a $25 million psychological testing scheme carried out through eight companies in four states.  Hesson and Parker owned and operated Nursing Home Psychological Service (NHPS) and  Psychological Care Services (PCS), each with separate companies in Louisiana, Mississippi, Florida and Alabama.  The indictment alleges that these companies contracted with nursing homes in these states to allow NHPS and PCS clinical psychologists to administer psychological tests to nursing home residents.  Dr. Hesson and Parker caused these companies to bill Medicare for psychological testing services that these nursing home residents did not need or in some instances did not receive.  Between 2009 and 2015, NHPS and PCS submitted over $25.2 million in claims to Medicare, a significant amount of these claims being fraudulent.

Separately, Geoffrey Ricketts, Marla Ricketts, Sunyup Kim and Samuel Kim were indicted for their direction of a $38 million fraud scheme centering around the distribution of "talking glucose meters" that were not medically needed and were often not even requested.  The indictment alleges that the defendants operated Care Concepts, LLC, which was based in Metairie, Louisiana, and Choice Home Medical Equipment and Supplies (Choice), which was based in Chatsworth, California.  Court documents reveal that the defendants paid kickbacks to workers at call centers in California and South Carolina, from which operators would cold-call Medicare recipients to convince them to accept talking glucose meters and related supplies.  Court records show that in response to Medicare audits, Choice employees were instructed to alter and fabricate documents to conceal the fraud scheme.  From 2007 through 2015, the defendants caused more than $38.2 million in claims to be submitted to Medicare through Care Concepts and Choice, virtually all of which were fraudulent.

Separately, a grand jury sitting in New Orleans charged Sheila White with defrauding Medicare in connection with the alleged provision of psychotherapy services to Medicare beneficiaries.  The indictment alleges that White fraudulently billed Medicare for psychotherapy services claimed to be provided at Brandye’s House of New Orleans, LLC (Brandye's House), a company White operated.  The indictment further alleges that White used the Medicare provider number of a licensed clinical social worker who did not work for Brandye’s House, without lawful authority, to submit bills to Medicare.  Between 2011 and 2015, Brandye’s House allegedly submitted over $1.8 million in claims to Medicare, virtually all of which were fraudulent.

Finally, Louella Givens was charged by criminal complaint for a fraud scheme carried out through two companies -- Maxima Home Health Services (Maxima), and House Call Home Health Care (House Call).  The complaint alleges that Givens caused Maxima and House Call to submit claims for home health services to Medicare beneficiaries in and around New Orleans.  The complaint alleges that a vast majority of these services were not medically necessary and/or not provided.  From 2008 through 2014, Maxima and House Call submitted claims to Medicare amounting to more than $12.2 million, the vast majority of which were fraudulent.

These cases are being investigated by the FBI and HHS-OIG, and were brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Louisiana.  These cases are being prosecuted by Trial Attorneys William Kanellis and Antonio Pozos of the Criminal Division’s Fraud Section, and Assistant United States Attorneys Patrice Harris Sullivan and Jordan Ginsberg of the Eastern District of Louisiana.

The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  Since their inception in March 2007, Strike Force operations in nine locations have charged over 2,300 defendants who collectively have falsely billed the Medicare program for over $7 billion.

Including today’s enforcement actions, nearly 900 individuals have been charged in national takedown operations, which have involved more than $2.5 billion in fraudulent billings.  Today’s announcement marks the first time that districts outside of Strike Force locations have participated in a national takedown and accounted for 82 defendants charged in the takedown.

A complaint or indictment is merely a charge, and defendants are presumed innocent until proven guilty.

Elaine David, Pramela Ganji, Godwin Ogboukiri Indictment.pdf (999.17 KB)

Rodney Hesson, Gertrude Parker Indictment.pdf (471.31 KB)

Geoffrey Ricketts, Marla Ricketts, Sunyup Kim, Samuel Kim Indictment.pdf (616.99 KB)

Sheila White Indictment.pdf (1.05 MB)

U.S. Attorney Kenneth A. Polite announced that CHARLIE ENGLISH III, age 33, a resident of LaPlace, was sentenced today for his role in a conspiracy to defraud the Gulf Coast Claims Facility (GCCF) in the aftermath of the Deepwater Horizon oil spill.

U.S. District Judge Helen G. Berrigan sentenced ENGLISH to a term of three years probation.  ENGLISH was also ordered to pay restitution in the amount of $257,400 to the GCCF.

The GCCF made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion.  The GCCF required individuals to verify loss of income.  ENGLISH worked as a claims adjuster for the GCCF.  Beginning in or about September 2010, ENGLISH, provided fraudulent documentation to his co-conspirators who posed as claimants, and submitted and/or caused to be submitted, via the internet, false claims for loss earnings representing that the claimants were employed in a commercial fishing business before the oil spill when in fact the claimants did not work in the commercial fishing industry.  ENGLISH was to share in the claim proceeds in exchange for his assistance with the claims. Based on the fraudulent documentation, the GCCF issued approximately $257,400 to undeserving individuals.

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

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

U.S. Attorney Kenneth A. Polite announced that NAZARIO HERNANDEZ-MALDONADO, 54, a citizen of Mexico, was sentenced after previously pleading guilty to a one-count Indictment for illegal reentry of a removed alien.

U.S. District Judge Helen G. Berrigan sentenced HERNANDEZ-MALDONADO to time serviced, 1 year of supervised release, and a $100 special assessment. HERNANDEZ-MALDONADO will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.

According to court documents, on or about January 23, 2015, HERNANDEZ-MALDONADO was found in the United States after having been officially deported and removed on or about August 8, 1998, and on or about July 1, 2000.

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

U.S. Attorney Kenneth A. Polite announced that JOSE BENJAMIN LOPEZ-AGUILAR, age 23, a citizen of, 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 April 24, 2015, LOPEZ-AGUILAR was found in the United States after having been officially deported and removed on or about October 15, 2014. 

LOPEZ-AGUILAR 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 Helen G. Berrigan set sentencing for August 26, 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.

Jose Benjamin Lopez-Aguilar Factual Basis.docx (19.6 KB)

U.S. Attorney Kenneth A. Polite announced that LUIS FERNANDO MARTINEZ, 40, a citizen of Honduras, was sentenced after previously pleading guilty to a one-count Bill of Information for illegal reentry of a removed alien.

U.S. District Judge Helen G. Berrigan sentenced MARTINEZ to time served, 1 year of supervised release, and a $100 special assessment.  MARTINEZ will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.

According to court documents, on or about March 4, 2015, MARTINEZ was found in the United States after having been officially deported and removed on or about February 1, 2013.

U.S. Attorney Polite praised the work of the United States Customs and Border Protection in investigating this matter.  Assistant United States Attorney Irene González was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that M.D. BASCIANI AND SONS, INC., a corporation domiciled in Pennsylvania, was charged today in a one-count Bill of Information with harboring illegal aliens at the Red Hill Mushroom Farm in Independence, Louisiana, which is leased by the defendant.

According to the Bill of Information, M.D. BASCIANI AND SONS, INC. concealed, harbored, and shielded from detection several of its employees at the Red Hill Mushroom Farm, knowing that such employees were aliens unauthorized to work in the United States.  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.

If convicted, M.D. BASCIANI AND SONS, INC. faces a sentence of probation of not less than one year or more than five years, and a maximum fine of $500,000.  If convicted, the defendant also faces the forfeiture of its gross proceeds from the offense.

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

M.D. Basciani and Sons, Inc. Bill of Information (1.15 MB)

Erin Pitre Bill of Information.pdf (610.15 KB)U.S. Attorney Kenneth A. Polite announced that ERIN PITRE, age 36, of Cut Off, Louisiana, was charged in a one-count Bill of Information with possession of images and videos depicting the sexual exploitation of children under the age of twelve years old.

If convicted, PITRE faces a maximum term of imprisonment of not more than twenty  years, followed by up to a lifetime of supervised release, and a $250,000 fine per count.  He can also be required to register as a sex offender.

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

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

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

Erin Pitre Bill of Information.pdf (610.15 KB)                                       

U.S. Attorney Kenneth A. Polite announced that PHILLIP BOOKER, age 59, of Houma, was sentenced today after previously pleading guilty to a one-count Bill of Information charging him with violation of the Federal Controlled Substances Act.

U.S. District Judge Lance M. Africk sentenced BOOKER to term of 57 months incarceration, to be followed by three years of supervised release following any term of imprisonment.

On February 5, 2015, BOOKER pled guilty to the Bill of Information, which charged him with possession with the intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Scheduled II drug controlled substance.  According to the factual basis, BOOKER was part of a conspiracy that was transporting methamphetamine from South Texas to Terrebonne Parish.  

U.S. Attorney Polite praised the work of the Drug Enforcement Administration and officers of the Terrebonne Parish Sheriff’s Narcotics Unit in investigating this matter.  Assistant United States Attorney David Haller was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that EDGAR RIVERA-SANTOS, age 33, a native of Honduras, was sentenced today after previously pleading guilty to a one-count Indictment for illegal entry of a removed alien.

U.S. District Judge Mary Ann Vial Lemmon sentenced RIVERA-SANTOS to time served, one year of supervised release, and a $100 special assessment fee.  RIVERA-SANTOS will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.

According to court documents, the defendant was encountered by federal agents on January 29, 2015.  He had previously been removed from the United States on August 29, 2013.

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

U.S. Attorney Kenneth A. Polite announced that JOSE MARTINEZ-ROMERO, age 32, a native of Honduras, was sentenced today after previously pleading guilty to a one-count Indictment for illegal entry of a removed alien.

U.S. District Judge Carl J. Barbier sentenced MARTINEZ-ROMERO to five months incarceration and a $100 special assessment fee.  MARTINEZ-ROMERO will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.

According to court documents, MARTINEZ-ROMERO was encountered by federal agents on March 5, 2012.  He had previously been removed from the United States on April 16, 2007.

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

U.S. Attorney Kenneth A. Polite announced that MICHAEL SAPERA, age 55, a resident of Mandeville, was sentenced today after previously pleading guilty to a four-count Bill of Information charging him with bank fraud, aggravated identity theft, and wire fraud.  These charges related to his embezzlement of approximately $2.8 million from his employer over a 19-year period.

U.S. District Judge Eldon E. Fallon sentenced SAPERA to a total of 82 months in prison, composed of a term of 58 months as to the charges of bank fraud and wire fraud plus a consecutive term of 24 months for the charge of aggravated identity theft.  In addition, the defendant was order to pay restitution in the total amount of $2,847,752, including $2,541,752 to victim Perlis, Inc.  SAPERA was further sentenced to a three-year term of supervised release following his release from prison, and a $400 special assessment.

According to court documents, SAPERA, a Certified Public Accountant, was employed at Perlis, Inc., a retail clothing business headquartered in New Orleans, beginning in 1990.  SAPERA most recently functioned as the Chief Financial Officer and Director of Information Technology for the company and thereby had access to various corporate bank accounts.  As a part of his embezzlement scheme, SAPERA forged the signature of his employer on approximately 430 stolen corporate checks totaling $2,192,500, and then endorsed the checks to himself.  SAPERA then deposited the stolen checks into his personal bank account. SAPERA also conducted 45 fraudulent wire transfers, totaling $582,080, from the company’s corporate bank account to his personal account without authorization, consent, or knowledge by the owners of the company.  More recently, SAPERA also transferred $35,000 from the company’s corporate PayPal account to his personal PayPal account without authorization, consent, or knowledge by the owners of the company.  In all, SAPERA’S criminal conduct resulted in an illegal gain to him in the amount of $2,809,580, and caused the company to incur a total loss for restitution purposes of $2,847,752.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation 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 MANUEL OMAR MINJAREZ, age 27, of Houma, pled guilty today to charges of conspiracy to distribute methamphetamine and having methamphetamine mailed to him from a Fresno, California.

According to court documents, this case arose out of an investigation into methamphetamine trafficking that was being conducted by agents of the Drug Enforcement Administration (DEA) and the United States Postal Inspection Service (USPIS) in Fresno during the summer of 2014.  In July 2014, agents learned that members of a Fresno-based methamphetamine trafficking organization were mailing methamphetamine to a drug dealer in Houma.  DEA agents and Postal Inspectors in Fresno coordinated with their counterparts in the New Orleans offices for the DEA and the USPIS to further investigate the Houma-based arm of this drug conspiracy.  On July 18, 2014, postal Inspectors in Houma subsequently intercepted a package containing almost one pound of methamphetamine.  With the assistance of the Louisiana State Police and the Terrebonne Narcotics Task Force, DEA agents and US Postal Inspectors determined that MINJAREZ was the intended recipient of the package.

As the investigation continued, DEA agents learned in July 2014, that MINJAREZ requested more methamphetamine to be mailed from the Fresno cell of this drug trafficking conspiracy.  USPS Postal Inspectors also determined that on July 10, 2014, MINJAREZ had received another package of methamphetamine that weighed approximately one pound and eleven ounces.  On July 30, 2014, MINJAREZ was arrested by a Texas Department of Public Safety Trooper in Sutton County, Texas.  Through the assistance of Texas state authorities, MINJAREZ was removed to federal custody to face the federal indictment in New Orleans to which he pleaded guilty today.

MINJAREZ pleaded guilty as charged to all three counts of the indictment.  As to Count 1, conspiracy to distribute and to possess with the intent to distribute 500 grams or more of methamphetamine, MINJAREZ faces a minimum of 10 years in prison and a maximum of life imprisonment, a $10,000,00 fine, and at least five years of supervised release.  Count 2 and Count 3 charged MINJAREZ with the use of a phone and the mail in furtherance of a drug trafficking conspiracy.  As to Counts 2 and 3, MINJAREZ faces a maximum of four years of imprisonment, a $250,000 fine, and up to one year of supervised release.  U.S. District Judge Ivan L.R. Lemelle set sentencing for September 23, 2015.

U.S. Attorney Polite praised the coordinated investigation between the Fresno offices for the DEA and USPIS, the DEA New Orleans Office, the USPIS New Orleans Office, the Louisiana State Police, and the Terrebonne Narcotics Task Force in investigating this matter.  U.S. Attorney Polite extended his thanks to the U.S. Attorney’s Office for the Eastern District of California, theTexas Department of Public Safety, the Sutton County, Texas, Sheriff’s Office, the District Attorney’s Office for the Texas 112th Judicial District, and the DEA Office in Del Rio, Texas, for their assistance in prosecuting this case.  Assistant United States Attorneys Matthew R. Payne and Theodore R. Carter, III, are in charge of the prosecution.

Manuel Omar Minjarez Factual Basis (1.77 MB)

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

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

PLEITES-ZAMORA faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.  U.S. District Judge Sarah S. Vance set sentencing for July 15, 2015.

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.

Edin Antonio Pleites-Zamora Factual Basis (1.24 MB)

U.S. Attorney Kenneth A. Polite announced that ROY JOSEPH BUSIERE, age 67, of Covington, pled guilty today to conspiracy to commit bank fraud.

According to court documents, BUSIERE, who worked as a comptroller for A & H Armature Works, Inc., embezzled from the company’s bank account at First American Bank. BUSIERE conspired with another to steal from A & H Armature Works, Inc. by using PayPal and American Express accounts to transfer the funds.

BUSIERE faces a maximum term of imprisonment of five years, a fine of $250,000 and three years of supervised release following any term of imprisonment.  U.S. District Judge Kurt D. Engelhardt set sentencing  for September 16, 2015.

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

Roy Joseph Busiere Factual Basis (348.39 KB)

Two residents of Kenner, Louisiana, and four businesses were indicted yesterday for conspiracy to commit money laundering, announced United States Attorney Kenneth A. Polite and Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.  According to the Indictment, the defendants conspired to launder money for others by cashing fraudulently obtained tax refund checks, filing misleading reports with government agencies regarding these transactions, and comingling the proceeds with their business activities, including by purchasing real estate in other businesses’ names.

The Indictment charges SUSANTHA WIJETUNGE, a/k/a VJ, age 51; MANULA WIJETUNGE, a/k/a Manu, age 47; VJ DISCOUNT, INC.; VJ AND MANU PROPERTIES, LLC; VJ AND MANU PROPERTIES, II, LLC; and VJ AND MANU PROPERTIES, III, LLC with conspiracy to commit money laundering.  SUSANTHA WIJETUNGE, MANULA WIJETUNGE, and VJ DISCOUNT, INC. were further charged with filing materially false Currency Transaction Reports (“CTRs”), failing to file CTRs, and failure to file Foreign Bank Account Reports (“FBARs”). In addition, SUSANTHA WIJETUNGE and MANULA WIJETUNGE were charged with criminal tax offenses related to their individual federal income tax returns and VJ DISCOUNT, INC.’s corporate tax return.

According to the allegations in the Indictment, defendants SUSANTHA WIJETUNGE and MANULA WIJETUNGE owned VJ DISCOUNT, INC., a Louisiana corporation that operated a convenience store and check cashing business in Kenner. As part of their business, the defendants were required to maintain an Anti-Money Laundering Program and to file CTRs for any transaction or set of transactions by or on behalf of a single individual that resulted in either cash in or cash out totaling more than $10,000 during any one business day. According to the Indictment, SUSANTHA WIJETUNGE, MANULA WIJETUNGE, and VJ DISCOUNT, INC. cashed fraudulently obtained tax refund checks for multiple individuals, for which they charged an inflated check cashing fee. As alleged in the Indictment, the defendants concealed their cashing of fraudulently obtained tax refund checks by filing materially false CTRs and by failing to file CTRs as required by law.

If convicted, the defendants face a statutory maximum term of twenty years in prison for the money laundering conspiracy charge; a statutory maximum term of ten years in prison for each count of failure to file CTRs, filing false CTRs, and failure to file FBARs; and a statutory maximum term of three years of imprisonment for each count of filing a false tax return. They also face fines, forfeiture, and restitution if convicted.

U.S. Attorney Polite and Acting Assistant Attorney General Ciraolo 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 and Acting Assistant Attorney General Ciraolo commended special agents of Homeland Security Investigation and IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Hayden Brockett, Michael Hatzimichalis, and Karen Quesnel of the Tax Division and Assistant U.S. Attorney David Haller, who are prosecuting the case.

Susantha and Manuela Wijetunge; VJ Discount, et al Indictment (2.72 MB)

U.S. Attorney Kenneth A. Polite announced that PABLO E. PAZ, 45, of New Orleans, was sentenced today after previously pleading guilty to one count of conspiracy to commit theft of government funds.

U.S. District Judge Jay Zainey sentenced PAZ to three years probation and $20,000 restitution.

According to court documents, PAZ was a recruiter for the Louisiana Army National Guard.  In this capacity, Paz obtained personally identifiable information (PII), such as names, dates of birth and social security numbers, from potential soldiers that came to the recruiting station for the purpose of becoming a soldier.   PAZ provided the PII of potential soldiers to his co-defendant, Ramon Madrid, without the knowledge or consent of the soldiers, to obtain Guard Recruiter Assistance Program (G-RAP) incentive payments to which they were not entitled.  Madrid received approximately $20,000 in fraudulently obtained recruitment incentive payments, a portion of which he provided to PAZ.

U.S. Attorney Polite praised the work of the United States Army Criminal Investigation Division Command and the Defense Criminal Investigative Service in investigating this matter.  Public Integrity Unit Chief Tracey N. Knight handled this prosecution.

U.S. Attorney Kenneth A. Polite announced that this afternoon, a jury returned a guilty verdict against NEMESSIS BATES for his participation in the November 2010 murder of Christopher “Tiger” Smith.

The jury found BATES, age 36, of Kenner, guilty as charged of solicitation to commit a crime of violence, use of interstate commerce facilities in the commission of murder-for-hire, causing death through the use of a firearm, and conspiracy to possess firearms.

According to court documents, on Sunday, November 21, 2010 at 8:10 pm, Christopher Smith was found by Jefferson Parish Sheriff (“JPSO”) deputies lying in the doorway of his Gretna apartment, after having been shot at least twenty times.  Smith was pronounced dead at the scene.  JPSO’s investigation ultimately revealed that BATES paid co-defendants, AARON SMITH, a/k/a “Beadie,” a/k/a “Beedie,” and WALTER PORTER, a/k/a “Moonie,” a/k/a “Urkel,” $20,000 to murder Christopher Smith.  AARON SMITH previously pled guilty and awaits sentencing.  WALTER PORTER is awaiting trial.

U.S. District Judge Sarah S. Vance set sentencing for September 9, 2015.  BATES faces a maximum penalty of life imprisonment.

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

U.S. Attorney Kenneth A. Polite announced that SERGIO TULIO VARGAS-VARGAS, age 25, a citizen of Guatemala, was sentenced today after previously pleading guilty to a one-count Indictment for illegal reentry of a removed alien.

U.S. District Judge Jay C. Zainey sentenced VARGAS-VARGAS to time served and a $100 special assessment. VARGAS-VARGAS will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.

According to court documents, VARGAS-VARGAS reentered the United States after having been previously deported on October 25, 2012.

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

 

U.S. Attorney Kenneth A. Polite announced that DENNIS NUNEZ-LACAYO, age 28, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Indictment for violations of the Federal Gun Control Act.

U.S. District Judge Susie Morgan sentenced NUNEZ-LACAYO to serve 13 months imprisonment, followed by 1 year of supervised release. Following incarceration, NUNEZ-LACAYO will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.

According to court documents, on or about June 4, 2014, NUNEZ-LACAYO, an alien present illegally in the United States, was found in possession of a firearm.

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

 

U.S. Attorney Kenneth A. Polite announced that CHARLES ADONAY-LAINES, age 23, a citizen of Honduras, pled guilty today to a one-count Indictment for illegal reentry of a removed alien previously convicted of an aggravated felony.

According to the Indictment, on or about April 12, 2015, ADONAY-LAINES was found in the United States after having been officially deported on or about October 13, 2013, following a conviction for being an illegal alien in possession of a firearm. 

ADONAY-LAINES faces a maximum term of imprisonment of twenty years and a fine of $250,000, one year supervised release after imprisonment, and a $100 special assessment.   U.S. District Judge Martin L.C. Feldman set sentencing for September 30, 2015.

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

Charles Adonay-Laines Factual Basis (953.11 KB)

U.S. Attorney Kenneth A. Polite, announced that DARREN SHARPER, age 40, formerly of New Orleans, pled guilty today to Conspiracy to Distribute Alprazolam, Diazepam and Zolpidem with intent to commit rape and two counts of distributing these substances with intent to commit rape.  The maximum punishments for these offenses are as follows:

COUNT

CHARGE

MAXIMUM PENALTIES

4

21 U.S.C. 846; Conspiracy to Distribute a Schedule IV Controlled Substance with the intent to commit a crime of violence

20 Years, $250,000 Fine, NLT 1 Year Supervised Release.

5

21 U.S.C. 841(a)(1),(b)(1)(D) & (E)(7)(B); Distribution of a Controlled Substance, Schedule IV with the intent to commit a crime of violence

20 Years, $250,000 Fine, NLT 1 Year Supervised Release.

6

21 U.S.C. 841(a)(1),(b)(1)(D) & (E)(7)(B); Distribution of a Controlled Substance, Schedule IV with the intent to commit a crime of violence

20 Years, $250,000 Fine, NLT 1 Year Supervised Release.

SHARPER is a former member of the New Orleans Saints and is presently in custody.  He has previously pled guilty to similar charges in Los Angeles and Phoenix.  He is also charged in Orleans Parish District Court.  His plea today was part of a global resolution of the charges against him. In the factual basis filed during the guilty pleas, SHARPER admitted that he and others distributed controlled substances to unsuspecting women and then had sexual relations with them while they were incapacitated.  He also admitted that he conspired with other persons in committing these offenses.  U.S. District Judge Jane Triche Milazzo set sentencing in this matter  for August 20, 2015 at 10:00 a.m.

Former St Bernard Sheriff’s Deputy Brandon Licciardi is awaiting trial on the same charges as well as charges of Witness Tampering and Impeding an Official Proceeding.

U.S. Attorney Polite thanked the victims for their courage and willingness to come forward.

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 District Attorney Leon Cannizzaro and Orleans Parish District Attorney’s Office for their invaluable assistance.  The Los Angeles County District Attorney’s Office also assisted in this case.  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 DELORES TROUILLET, age 58, of Waggaman, pled guilty today to wire fraud for embezzling over $200,000 from her employer.

According to court documents, from 1999 to 2014 TROUILLET was employed by a carpet, flooring, and drapery sales and installation company (“Company A”) headquartered in Gretna, where she served as a bookkeeper.  In her capacity as bookkeeper, TROUILLET was responsible for overseeing the company’s finances and accounts.  TROUILLET had access to Company A’s bank accounts, including the ability to conduct wire transfers from Company A’s bank accounts.

Using her access to the company’s accounts, TROUILLET stole money from Company A in five different ways, including generating checks drawing on Company A’s bank accounts to pay her personal expenses.  To make the payments appear legitimate, TROUILLET listed in Company A’s internal records checks she made out to herself and deposited into her personal bank account as being made payable to entities with whom Company A engaged in business or frequently paid funds, such as “State Farm Insurance” and “IRS.”  TROUILLET also paid for her personal daily expenses using Company A’s corporate credit and debit cards.  Further, TROUILLET added money to her biweekly payroll in excess of her agreed upon salary.  In total, TROUILLET embezzled approximately $208,082.03 from Company A.

TROUILLET faces a maximum term of imprisonment of 20 years imprisonment, and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to any person.  U.S. District Judge Carl J. Barbier set sentencing for August 20, 2015.

U.S. Attorney Polite praised the work of the United States Secret Service and investigators with the Jefferson Parish Sheriff’s Office for investigating this matter.   Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.

Delores Trouillet Factual Basis (180.78 KB)

U.S. Attorney Kenneth A. Polite announced that ANTONIO HALEY, age 38, of Hammond, and ORLANDO RODRIGUEZ, age 25, of Houston, were charged today in a three-count Indictment for conspiring to and possessing with intent to distribute methamphetamine.

According to the Indictment, from a date unknown until May 14, 2015, HALEY and RODRIGUEZ conspired to possess with the intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine.  The indictment also separately charges that HALEY and RODRIGUEZ possessed with the intent to distribute methamphetamine on May 14, 2015.

If convicted, both HALEY and RODRIGUEZ each face a maximum term of imprisonment of forty years, a maximum fine of $5,000,000 and a maximum term of supervised release of at least four years as to the conspiracy count.  HALEY faces a maximum term of imprisonment of twenty years, a maximum fine of $1,000,000 and a term of supervised release of at least four years as to his possession with intent to distribute count.  RODRIGUEZ faces a maximum term of imprisonment of forty years, a maximum fine of $5,000,000 and a term of supervised release of at least four years as to his possession with intent to distribute count.

U.S. Attorney Polite reiterated that an 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 in investigating this matter. Assistant U.S. Attorney James Baehr is in charge of the prosecution.

Antonio Haley & Orlando Rodriguez Indictment (1.25 MB)

WASHINGTON – A Louisiana man was charged in a two-count information with conspiracy to commit wire fraud and conspiracy to commit trademark counterfeiting using the “Silk Road” online marketplace, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Polite Jr. of the Eastern District of Louisiana.

“Anonymous online marketplaces have provided criminals with the ability to conduct illegal operations worldwide while seemingly insulating them from apprehension and prosecution,” said Assistant Attorney General Caldwell.  “The Criminal Division is determined to peel back the veil of anonymity and prosecute criminals of all stripes who attempt to use the ‘dark web’ to cloak their illegal conduct.”

According to allegations in the information, Beau Wattigney, 30, of New Orleans, Louisiana, created counterfeit coupons and used Silk Road to sell them.  Silk Road was a worldwide Internet forum used to anonymously sell illegal drugs, goods and services.  Wattigney allegedly used Silk Road 1.0 until it was dismantled by federal officials in October 2013, and Silk Road 2.0 until it was dismantled in November 2014.

According to the information, Wattigney designed the coupons to look like print-at-home manufacturers’ coupons.  The coupons included counterfeit trademarks for many prominent coupon distribution services, including Hopster, Coupons.com, SmartSource and RedPlum.  Wattigney allegedly sold a selection of counterfeit coupons entitled “The Original S.R. Exclusive Coupon Collection” for approximately $50.00.  Additionally, one counterfeit coupon Wattigney allegedly created and sold allowed users to purchase $50.00 Visa Gift Cards for $.01 each.  The coupons Wattigney allegedly sold on Silk Road 1.0 and 2.0 affected more than 50 manufacturers, retailers and online coupon distributors.  If redeemed, the counterfeit coupons could have resulted in a loss of more than $1,000,000 to the affected businesses.

The charges contained in the information are merely accusations, and a defendant is presumed innocent unless and until proven guilty.

The case is being investigated by the FBI’s Philadelphia Division, with assistance from the FBI’s New Orleans Division.  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.

Beau Wattigney Bill of Information (137.46 KB)

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

According to court documents, from on or about September 10, 2013 through and including on or about February 3, 2014, JAMES, being a Postal Service officer or employee charged with the duty of receiving, holding, or paying over moneys on behalf of the United States, knowingly and willfully made false reports of such moneys. On sixteen separate occasions, JAMES falsely recorded cash purchases of money orders as debit card purchases on her daily financial reports. She did this so she could steal the cash from the money order purchases and conceal the theft by reporting sales as debit card transactions, when, in fact, she well knew that no such purchases had been made.   JAMES stole approximately $2,611.00 of United States funds in the custody of the Postal Service.

JAMES faces a maximum term of imprisonment of 10 years, to be followed by 3 years of supervised release, a $250,000 fine, and restitution to the United States.  U.S. District Judge Jane Triche Milazzo set sentencing for September 3, 2015.

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

Wanda James Factual Basis (114.21 KB).

U.S. Attorney Kenneth A. Polite announced that FRED DOUGLAS BROOKS III, age 47, of Houston; DAVID HUMPHRIES, age 46, of Baltimore; and PAUL LEE, age 36, MARLON BARNES, age 38, and GARRY GENTRY, age 31, residents of New Orleans, pled guilty today to a Superseding Indictment charging conspiracy to distribute one kilogram or more of heroin.  BROOKS also pled guilty to conspiracy to commit money laundering.

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 BROOKS as a Houston-based heroin trafficker who was distributing multiple kilograms of heroin at a time to the New Orleans area, and further identified HUMPHRIES as one of BROOKS’ couriers who was bringing heroin to, and picking up bulk currency drug debt payments from, New Orleans customers on behalf of BROOKS.  LEE, BARNES, and GENTRY then purchased multi-ounce quantities of heroin from one of BROOKS’ wholesale customers to sell it in New Orleans.

BROOKS faces a sentence of twenty years to life, and HUMPHRIES, LEE, BARNES, and GENTRY each face a sentence of ten years to life for their roles in the heroin conspiracy.  U.S. District Judge Carl J. Barbier scheduled sentencing for August 20, 2015.  Trial as to the remaining defendants is scheduled for July 9, 2015.

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 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 are in charge of the prosecution.

Fred Douglas Brooks III Factual Basis (249.79 KB)  Paul Lee Factual Basis (68.67 KB) David Humphries Factual Basis (138.54 KB) Garry Gentry Factual Basis (82.54 KB) Marlon Barnes Factual Basis (115.41 KB)

U.S. Attorney Kenneth A. Polite announced that ANGELA LEMOINE, 43, of Amite, was sentenced today after previously pleading guilty to a one-count Bill of Information charging her with theft of funds.

U.S. District Judge Carl J. Barbier sentenced LEMOINE to three years probation and 50 hours of community service.

According court documents, from approximately November 2005 until approximately March 1, 2013, LEMOINE worked for First NBC Bank as a manager at the Kentwood Branch. LEMOINE, admitted to stealing $14,000 by forging a customer’s signature on a maturing Certificate of Deposit (CD).  Specifically, on August 6, 2012, LEMOINE withdrew $14,000 from a customer’s CD which was maturing, forged the customer’s signature, and had a teller advance her the $14,000 in cash, which she kept in her possession.  LEMOINE signed a hand written confession on March 1, 2013 acknowledging that she stole $14,000.  LEMOINE has made full restitution to the bank.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this case.  Assistant United States Attorney Carter K. D. Guice, Jr. was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that JASON C. DOYLE, age 38, of New Orleans, pled guilty yesterday to wire fraud and failing to pay over taxes.

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

In 2010, DOYLE also deducted federal taxes from his employees’ wages. However, he failed to pay over the collected employee taxes to the Department of Treasury, in violation of federal tax law. The taxes due and owing to the Department of Treasury exceed $105,000. 

The maximum penalty for wire fraud is twenty years imprisonment and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim. The maximum penalty for failing to pay over taxes is five years imprisonment and/or a fine of $250,000.  U.S. District Judge Sarah S. Vance set ssentencing for August 16, 2015.

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

Jason Doyle Factual Basis (3.17 MB)

U.S. Attorney Kenneth A. Polite announced that SELVIN IRIAS-MURILLO, age 44, a Honduran citizen, was sentenced today after having previously pled guilty to a one-count Indictment for illegal reentry of a removed alien.   

U.S. District Judge Kurt D. Engelhardt sentenced SELVIN IRIAS-MURILLO to 20 months imprisonment followed by one year of supervised release, a $2,500 fine and a $100 special assessment.  Following his incarceration, IRIAS-MURILLO will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.

According to court documents, on or about August 25, 2014, IRIAS-MURILLO was arrested by Jefferson Parish Sheriff Deputies for a home incarceration violation and was booked into the Jefferson Parish Correctional Center in Gretna.  Immigration and Customs Enforcement (ICE) agents then encountered IRIAS-MURILLO during their Criminal Alien Program checks at the correctional facility.  ICE agents discovered that IRIAS-MURILLO was a Honduran national who had been deported from the United States on four previous occasions between 1998 and 2011 and was once again illegally present in the United States. IRIAS-MURILLO admitted to ICE agents that he had illegally re-entered the United States sometime after his most recent deportation on August 26, 2011.

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

U.S. Attorney Kenneth A. Polite announced that DENYS JAVIER BENITEZ-FERNANDEZ, age 31, a citizen of Honduras, was sentenced yesterday after having previously pled guilty to a one-count Indictment for illegal reentry of a removed alien.

U.S. District Judge Sarah S. Vance sentenced BENITEZ-FERNANDEZ to four months incarceration (time served).  BENITEZ-FERNANDEZ will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.

According to the court documents, on January 22, 2015, BENITEZ-FERNANDEZ was found in the United States after having been deported on April 24, 2013.

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

U.S. Attorney Kenneth A. Polite announced that JOHN SPOSATO, age 64, of Slidell, was charged today in a one-count Bill of Information with wire fraud for his role in promoting and operating a national Ponzi scheme.

According to the Bill of Information, since approximately 2010, SPOSATO was affiliated with, owned, or operated numerous different companies, including: Pegasus Investment & Development Corporation, LLC; Pegasus Investments; Oil Eaters, LLC; Organic Miracle Incorporation; S&J Corporate Properties, LLC; Pegasus Demolition & Debris Removal Service, LLC; and Pegasus Truck Lines, Inc.  SPOSATO represented to potential investors that the companies were all investment entities that offered participants the chance to invest in various low-risk, high-reward investment vehicles, including international bank instruments, cutting edge oil remediation and recovery products, and real estate transactions.  SPOSATO primarily relied upon word-of-mouth and e-mail correspondence, in which he fraudulently represented that he had knowledge and expertise in financial investing, to attract new investors.  SPOSATO told investors that the alleged investments were safe, secure, and never at risk.

SPOSATO did not actually invest the money in any legitimate investment vehicle, instead using it to make retail purchases for himself and his friends for various goods and services, including luxury items such as a new Chevrolet Camaro for one girlfriend and breast augmentation surgery for another girlfriend.  In total, between about January 2010, and April 2014, approximately forty-eight individuals invested approximately $811,305 with SPOSATO and his companies.

To perpetuate his scheme, SPOSATO promised guaranteed and extraordinarily high rates of return – rates much higher than market rates –or so called “guaranteed” investments to potential investors, such as a $25,000 investment in “oil-clean remediation work” in the Gulf of Mexico and another $25,000 investment in the purchase of “1,000,000 gallons of EP 55 Bio Fertile” fertilizer.  SPOSATO promised that the first investment would result in a profit of $25,000 within approximately two weeks and the second investment would result in a profit of up to $3,000,000 within one year.  SPOSATO provided prospective investors false or fraudulent documents to make the investments appear legitimate and to conceal the true nature of the Ponzi scheme. When investors became impatient, SPOSATO used new investor money to pay lulling payments to other investors, which he characterized as partial payments for investments with an overdue return, in an effort to give investors a false sense of security, to deceive investors into believing their money was invested legitimately, and to conceal the true nature of the Ponzi scheme.

If convicted, SPOSATO faces a maximum term of imprisonment of twenty years, followed by up to three years of supervised release, and a $250,000 fine per count.

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

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

John Sposato Bill of Information.pdf (142.8 KB)

U.S. Attorney Kenneth A. Polite announced that JAMES CONRAD, JR., age 50, New Orleans, was sentenced today to one year and one day imprisonment for the theft of $247,800 in government funds.

U.S. District Judge Nannette Jolivette Brown sentenced CONRAD one year and one day imprisonment, to be followed by three years of supervised release.  CONRAD was also ordered to pay restitution in the amount of $192,245.12.

CONRAD had pled guilty to stealing $196,690.43 from the United States Office of Personnel Management and $51,110 from Social Security Administration over the course of 15 years. CONRAD jointly held a bank account with his aunt, who died in 1998. Unaware of CONRAD’S aunt’s death, the two agencies continued wiring survivor and retirement benefits for her to the account. CONRAD, knowing the payments did not belong to him, received the benefits until 2013 when the agencies learned that his aunt had died. After the crime was discovered, the government recovered $55,555.31 from the bank account.

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

U.S. Attorney Kenneth A. Polite announced that PAUL E. GARDNER, age 57, of New Orleans, was sentenced today for an embezzlement scheme which took place during GARDNER’s employment with Clovelly Oil Co., L.L.C. (“Clovelly Oil”).

U.S. District Judge Nannette Jolivette Brown sentenced GARDNER to thirty months imprisonment, followed by two years supervised release.  In addition to the term of imprisonment, GARDNER was ordered to pay restitution in the amount of $1,798,000.

According to court documents, GARDNER operated an accounting, consulting, and tax preparation business under the name Paul E. Gardner, C.P.A. for the past thirty years.  In October 2007, Clovelly Oil hired GARDNER as a part-time bookkeeper.  GARDNER was responsible for recording the receipts and disbursements for Clovelly and preparing the royalty checks for Clovelly’s more than two-hundred owners.  In addition, GARDNER handled the bi-weekly payroll for all of Clovelly’s employees and he was responsible for paying himself.

Beginning in August 2010, and continuing until his termination in May 2014, GARDNER embezzled $1,798,000 from Clovelly Oil by manipulating the bi-weekly payroll records of Clovelly.  Every two weeks, GARDNER logged into Clovelly’s on-line bank accounting system using his username and password given to him so he could prepare Clovelly’s payroll and increased his bi-weekly compensation by sometimes as much as $20,000.  GARDNER diverted the illegally obtained funds into bank accounts held by the defendant.  According to the Bill of Information, GARDNER used the embezzled funds to satisfy gambling debts incurred at a New Orleans casino.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter.  The prosecution of this case is being handled by Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba.

U.S. Attorney Kenneth A. Polite announced that TRINA MARIE BOURG, age 45, of Houma, was charged today in a five-count Superseding Indictment for crimes involving the solicitation of illegal payments from undocumented clients and their family members.

According to court records, on May 7, 2014, the U.S. Department of Homeland Security-Homeland Security Investigations (“HSI”) received information that BOURG, who worked as a Spanish language interpreter contract employee for the Office of the District Defender for the 32nd Judicial District for Terrebonne Parish, was soliciting illegal payments from undocumented clients.  Unknown to the clients’ attorneys,  BOURG represented to the clients that she would use the money she received to bribe United States Immigration Officials in order to remove the immigration detainers or federal immigration charges from the clients’ criminal or administrative cases.

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

The Indictment also alleges that for a payment of $12,000 to $20,000, BOURG offered to marry one of her clients in order to improve his immigration status.

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

If convicted, BOURG faces a term of incarceration of up to twenty years and a fine of $250,000 per count.  U.S. District Judge Susie Morgan set a trial date on July 27, 2015, before United States District Judge Susie Morgan.

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

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

Trina Marie Bourg Superseding Indictment.pdf (126.31 KB)

U.S. Attorney Kenneth A. Polite announced that RICHARD ZANCO, age 44, of Slidell, was sentenced today after previously pleading guilty to money laundering.

U.S. District Judge Susie Morgan sentenced ZANCO to thirty months imprisonment to be followed by three years of supervised release.

According to court documents, in about May 2012, ZANCO learned that someone had opened a brokerage account in his name and used that account to acquire collateralized mortgage obligations (CMOs), a type of bond, by fraudulent means.  Even though he knew that the CMOs did not belong to him, ZANCO gained control of the accounts and arranged for the interest proceeds of the CMOs to be diverted to other financial accounts under his control.  Between March 11, 2013, and September 19, 2013, ZANCO illegally used the funds, in the amount of approximately $343,998.82, to engage in a variety of financial transactions, including the purchase of multiple automobiles and one or more boats.

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

The United States Attorney’s Office for the Eastern District of Louisiana announced that RACE ADDINGTON, 49, of Houston, was sentenced today for making false statements to agencies or departments of the United States in relation to the veracity of blowout preventer testing on an offshore oil and gas platform located at Ship Shoal 225 on a federal mineral lease in the Gulf of Mexico.

U.S. District Judge Helen G. Berrigan sentenced ADDINGTON to one year probation and 40 hours of community service.

According to court documents, on or about November 27, 2012, production and well workover operations were being conducted on the platform and the blowout preventer system had to be tested. A blowout preventer system is designed to ensure well control and prevent potential release of oil and gas and possible loss of well control. The blowout preventer pressure chart that recorded the testing of the blowout preventer testing done on November 27, only recorded 6 of the 7 required components as being tested and was not signed nor dated by any representative on the platform.

On or about November 28, 2012, ADDINGTON, as the well site supervisor for the platform saw the results of the blowout preventer testing and had workers create a false blowout preventer test.  The next day when Bureau of Safety and Environmental Enforcement (BSEE) inspectors conducted a routine inspection of the platform, ADDINGTON presented the fabricated blowout preventer pressure test chart to the BSEE inspectors with the expectation that it would be a passing test and the inspectors would not find the platform to be in non-compliance for failing to properly test the blowout preventer system.

On December 6, 2012, during an investigation of the veracity of the blowout preventer test by the Department of Interior’s Investigation and Review Unit, ADDINGTON lied and told investigators the false chart he provided inspectors was a test of the chart recorder and that the inspectors mistakenly retrieved the wrong pressure chart from the files when in truth and in fact he knew that he had the blowout preventer pressure test chart fabricated and personally presented the chart to inspectors as the actual test record for the platform’s blowout preventer system.

The case was investigated by the Department of Interior-Office of Inspector General (Energy Investigations Unit) with assistance from the Investigations and Review Unit, Bureau of Safety and Environmental Enforcement and the Environmental Protection Agency-Criminal Investigation Division.  The case was prosecuted by Assistant United States Attorney Emily K. Greenfield of the United States Attorney’s Office’s National Security Unit.

U.S. Attorney Kenneth A. Polite announced that VITTORIO FRANCESCO GONZALEZ-CASTILLO, age 27, of Tucson, Arizona, was sentenced yesterday by District of Arizona Chief Judge Raner C. Collins to thirty years’ incarceration for his part in two federal child pornography cases. GONZALEZ’s term of imprisonment will be followed by lifetime supervised release with stringent sex offender conditions and the requirement that he register as a sex offender.

In the first case, which arose in Arizona, GONZALEZ-CASTILLO was charged with distribution, receipt, and possession of child pornography after a 2009 investigation by the Federal Bureau of Investigation (FBI) revealed GONZALEZ-CASTILLO’s large-scale trading and distribution of graphic and sadistic child pornography. 

In the second case, as a result of a nationwide child exploitation investigation, special agents with the New Orleans Office of the United States Department of Homeland Security, Homeland Security Investigations (“HSI”), determined that GONZALEZ-CASTILLO was responsible for producing videos depicting the sexual exploitation of children.  According to court documents, beginning in 2012, and continuing until January 2013, GONZALEZ-CASTILLO conspired with Jonathan Johnson, the administrator of a multi-national child pornography website, to create and post videos depicting the sexual exploitation of children on the Internet.  On January 24, 2014, GONZALEZ-CASTILLO was charged with conspiracy to produce child pornography for his part in producing a series of videos depicting a minor engaging in sexually explicit conduct in 2012 and 2013.

GONZALEZ-CASTILLO entered guilty pleas in both cases on November 12, 2014, after the Louisiana matter was transferred to the District of Arizona.

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

U.S. Attorney Polite praised the work of the Homeland Security Investigations in Louisiana, Arizona, and California, as well as the U.S. Postal Inspection Service in Louisiana, and the Federal Bureau of Investigation in Tucson, Arizona, Birmingham, Alabama, and Albany, New York in investigating this matter.  Assistant U.S. Attorney Carin C. Duryee of the District of Arizona and Assistant U.S. Attorney Brian M. Klebba of the Eastern District of Louisiana were in charge of the prosecution.

 

WASHINGTON – A jury in New Orleans convicted four employees of medical service clinics yesterday for their roles in a $50 million Medicare fraud scheme.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Michael J. Anderson of the FBI’s New Orleans Field Office, Special Agent in Charge Mike Fields of the Department of Health and Human Services’ Office of the Inspector General (HHS-OIG) Dallas Regional Office and Louisiana Attorney General James D. “Buddy” Caldwell made the announcement.

Barbara Smith, M.D., 66, of Metairie, Louisiana; Roy Berkowitz, M.D., 69, of Slidell, Louisiana; Beverly Breaux, 67, of New Orleans; and Joe Ann Murthil, 57, of New Orleans, were convicted on all counts after a five-day jury trial before Chief U.S. District Court Judge Sarah S. Vance of the Eastern District of Louisiana.

Evidence introduced at trial showed that the defendants and others carried out a home health care fraud scheme in and around New Orleans through multiple companies over the course of more than 10 years.  Smith and Berkowitz falsely claimed that thousands of Medicare recipients were homebound and required nursing or therapy services to be provided in their homes.  Breaux was a registered nurse who falsely certified that these patients were homebound, and falsely claimed to have treated patients that she had not seen.  Murthil was an office manager and biller at one home health company who assisted with the payment of illegal kickbacks to patient recruiters.  Murthil also submitted false claims to Medicare stating that patients were homebound when some of these patients had jobs, had not received services or did not want services.  From 2007 through 2014, the companies in this scheme submitted more than $56 million in claims to Medicare, the vast majority of which were fraudulent.  Medicare paid approximately $50.7 million on these claims.

Sentencing for the defendants is scheduled for Aug. 26, 2015.  In total, 13 defendants have been charged for their roles in this scheme.  Nine other defendants previously pleaded guilty.

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

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

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

U.S. Attorney Kenneth A. Polite announced that JOSEPH F. GAGLIANO, age 55, and DOMINICK GULLO, age 72, both from Metairie, were each sentenced today for violating federal firearm laws.   

U.S. District Judge Eldon E. Fallon sentenced GAGLIANO to 28 months imprisonment, to be followed by 3 years supervised release.  GULLO was sentenced to serve 5 months imprisonment, to be followed by 3 years of supervised release.

GAGLIANO pled guilty to being a convicted felon in possession of a loaded, Ruger model, .22 caliber scope-mounted rifle.  GAGLIANO and GULLO both pled guilty to being in possession of an unregistered silencer that fit the .22 caliber rifle.  The rifle and silencer, along with other evidence, was recovered from an older model Ford van occupied by both GAGLIANO and GULLO.   A Jefferson Parish Sheriff’s Deputy stopped the van on May 7, 2014, after learning the van had a stolen license plate affixed to it.  Subsequent investigation by agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives, along with Jefferson Parish Sheriff’s detectives, revealed modifications to the van were made at GAGLIANO’s instruction.

U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jefferson Parish Sheriff’s Office for their work investigating this matter. Assistant United States Attorneys William J. Quinlan, Jr. and Elizabeth Privitera were in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that ANGEL CORNEJO-MORENO, age 44, a Honduran citizen, was sentenced today after having previously pled guilty to a one-count Indictment for illegal reentry of a removed alien.    

U.S. District Judge Mary Ann Vial Lemmon sentenced CORNEJO-MORENO to five months imprisonment followed by one year of supervised release, and a $100 special assessment.  Following his incarceration, CORNEJO-MORENO will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.

According to court documents, on or about December 8, 2014, Jefferson Parish Sheriff deputies arrested CORNEJO-MORENO for driving while intoxicated and driving without a license. The deputies then contacted agents of United States Immigration & Customs Enforcement (ICE), who discovered that CORNEJO-MORENO was a Honduran national who had been previously deported from the United States in 2003 and 2009.  ICE agents confirmed that CORNEJO-MORENO had again illegally reentered the United States without inspection by a United States Immigration official.  Agents placed an ICE detainer on CORNEJO-MORENO in order to hold him for criminal prosecution.

U.S. Attorney Polite praised the work of the Immigration and Customs Enforcement Agency in investigating this matter.  Assistant United States Attorney Rick Veters is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that WILLIE ENGLISH, age 42, of Belle Chasse, was sentenced today for his misuse of a federal license.

U.S. District Judge Mary Ann Vial Lemmon sentenced ENGLISH to three years probation with six months home detention.

According to the court documents, in November 2008, ENGLISH used a fake U.S. Coast Guard Merchant Mariner’s License, purporting to be a Master of vessels not more than 100 gross tons, to maintain employment as a vessel captain at Bud’s Boat Rental in Belle Chase, Louisiana.  ENGLISH admitted he made the license while he was a deckhand onboard another vessel for another employer.

U.S. Attorney Polite praised the work of the Coast Guard Investigative Service in investigating this matter.   Assistant United States Attorney Emily K. Greenfield was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that KIM CASSELL, age 52,  of  Ruston, pled guilty today to stealing money from Open World Family Services, Inc. (“Open World”).   Open World was a non-profit 501(c)(3) charitable corporation organized for the purpose of helping students in the greater New Orleans area grow academically.

According to court documents, from March 2010 until June 2012, CASSELL knowingly used more than $140,000 in federal grant money for her personal benefit, rather than for its intended educational purposes.

CASSELL faces a maximum term of imprisonment of ten years, three years of supervised release following any term of imprisonment, a $250,000 fine, and restitution to the United States Department of Education.   U.S. DistrictJudge Ivan L.R. Lemelle set sentencing for August 19, 2015.

U.S. Attorney Polite praised the work of the U.S. Department of Education, the Federal Bureau of Investigation, and the Office of the Louisiana Legislative Auditor in investigating this matter.   Assistant U.S. Attorney Sharan E. Lieberman is in charge of the prosecution.

Kim Cassell Factual Basis.pdf (332.88 KB)

U.S. Attorney Kenneth A. Polite announced that IRA THOMAS, 56, of New Orleans and former member of the Orleans Parish School Board (“OPSB”), pled guilty today to charges of conspiracy to commit bribery and honest services wire fraud.

THOMAS 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.  THOMAS admitted that, in his role as an Orleans Parish School Board Member, he engaged in a scheme to defraud Orleans Parish and its citizens of his honest services through bribery and a kickback scheme, whereby THOMAS 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.

According to court documents, in September 2013 a cooperating witness (“CW”) was approached by an OPSB employee, who offered the CW a janitorial services contract that would soon be up for bid by the OPSB in exchange for a monetary payoff.  During the fall of 2013, the CW, THOMAS, the OPSB employee, and at times another private citizen, met to discuss this contract. These conversations were recorded by the CW with the assistance of the FBI.  Ultimately, it was decided that the CW would pay $5,000 to THOMAS in the form of a “campaign contribution” in exchange for THOMAS’ and the OPSB employee’s assistance regarding the janitorial services contract.  In December 2013, the CW delivered $5,000 in cash to the private citizen acting as a conduit for THOMAS, which was video recorded.  This money was then delivered to THOMAS.  During the fall of 2014, THOMAS and the OPSB employee discussed over recorded telephone conversations how to alter the bid process so that the CW would be given an improper advantage in bidding for the janitorial services contract, which was valued over $5,000.

THOMAS 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 on August 12, 2015.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter and thanked the Metropolitan Crime Commission for their assistance.  Assistant U.S. Attorney Sean Toomey is in charge of the prosecution.

Ira Thomas Factual Basis.pdf (14.86 KB)