Eastern District of Louisiana

U.S. Attorney Kenneth A. Polite announced that JEREMIAH JACKSON, a/k/a “Rocky,” age 24, of  New Orleans, pled guilty today in the racketeering conspiracy case involving the Frenchmen/Derbingy gang, or “FnD.”

According to court documents, JACKSON pled guilty to four counts of the Third Superseding Indictment, including Racketeer Influenced and Corrupt Organizations (RICO) conspiracy, conspiracy to distribute one kilogram or more of heroin and 280 grams or more of crack cocaine, conspiracy to possess firearms in furtherance of a drug trafficking conspiracy, and assault with a dangerous weapon in furtherance of a racketeering enterprise.

JACKSON faces a maximum life imprisonment for the RICO violation, a mandatory minimum of 20 years to life imprisonment on the drug conspiracy charge, and a maximum of 20 years as to each charge of conspiracy to possess firearms in furtherance of a drug trafficking conspiracy and assault with a dangerous weapon in furtherance of a drug trafficking conspiracy.

According to court documents, FnD constituted a racketeering “enterprise” under federal law.  JACKSON, as a member of this enterprise, conspired to commit numerous overt acts in furtherance of this enterprise.  These acts included the distribution of illegal narcotics, such as heroin and crack cocaine, as well as crimes of violence, including assault with firearms.  JACKSON admitted to the shooting of an individual who was sitting in his car on April 16, 2011, on the 2000 block of Prieur Street in New Orleans.  The victim was shot in the stomach by JACKSON because he resembled a rival drug dealer.  The New Orleans Police Department Crime Lab matched casings found at the scene to a gun that was found in JACKSON’s possession on July 19, 2011.

Three other defendants previously pled guilty in the course of this prosecution:  CRYSTAL SCOTT, RICHMOND SMITH, and GRALEN BENSON.  The grand jury subsequently returned a superseding indictment charging the remaining defendants with RICO conspiracy, among other charges.  JACKSON is the first defendant to have pled guilty to RICO conspiracy.

Five defendants remain in this case: TRAVIS SCOTT, STANLEY SCOTT, SHAWN SCOTT, AKEIN SCOTT, and BRIAN BENSON.  U.S. District Judge Ivan L.R. Lemelle scheduled those defendants for trial on July 13, 2015.

The indictment is a product of an ongoing investigation into the violent acts in furtherance of drug trafficking by the FnD gang.  It represents the continued coordinated effort of the federal and state law enforcement authorities within the Multi-Agency Gang (“MAG”), including the United States Attorney’s Office, the Orleans Parish District Attorney’s Office, Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and officers of the New Orleans Police Department.  Federal and local authorities also utilized tips through the Crimestoppers Program in the successful investigation of these crimes.

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

Jeremiah Jackson Factual Basis.pdf (4.47 MB)

U.S. Attorney Kenneth A. Polite announced that ROYLEY A. FOLSE, JR., age 69, a resident of St. James Parish, was charged today in an eight-count Indictment with selling and possessing migratory game birds.

According to the Indictment, from June 2010 to December 2011, FOSLE illegally bartered and sold for cash four yellow-crowned night herons and sixty-two white ibis, which are migratory birds protected under the Migratory Bird Treaty Act (MBTA).   The Indictment also charges that on April 2, 2013, FOLSE possessed a Barn Owl and a Red-Tailed Hawk.

If convicted for the sale of migratory birds, FOLSE faces a maximum term of imprisonment of two years, followed by one year of supervised release, and a maximum fine of $2,000.  A conviction for the possession of the Barn Owl and the Red-Tailed Hawk carries a maximum term of imprisonment of six months, followed by one year of supervised release, and a maximum fine of $15,000.

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 Louisiana Department of Wildlife and Fisheries and the United States Fish and Wildlife Service in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.

Royley Folse, Jr. Indictment (1.92 MB)

U.S. Attorney Kenneth A. Polite announced that DARION VEAL, age 20, of Gray, Louisiana, was indicted today for crimes involving the sexual exploitation of children.

VEAL was indicted 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, on January 7, 2015, HSI and LAGO agents executed a search warrant at VEAL’s residence after determining he received and distributed images depicting the sexual victimization of children.  On March 3, 2015, VEAL was taken into federal custody pursuant to a federal criminal complaint.

If convicted, VEAL faces a mandatory minimum penalty of five years and a maximum penalty of twenty years, followed by up to a lifetime term of supervised release, and a $250,000 fine per count.  In addition, VEAL will be required to register as a sex offender.

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 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.  Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba is in charge of the prosecution.

Darion Veal Indictment.pdf (176.78 KB)

 

U.S. Attorney Kenneth A. Polite announced the arrest of TARAY BUTLER following his Indictment for being a felon in possession of a firearm.  BUTLER was arrested on Wednesday, May 6, 2015, with assistance of the United States Marshals Service.                 

The Indictment charges that on October 14, 2014, BUTLER was arrested by the New Orleans Police Department and found to be in possession of a firearm with an extended magazine.  BUTLER has a prior felony conviction from Orleans Parish Criminal District Court.  If convicted, BUTLER faces a maximum ten years in the Bureau of Prisons, a $250,000 fine, three years of supervised release, and a $100.00 special assessment fee.

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 Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Orleans Police Department for their work in investigating this case. Assistant United States Attorney Myles Ranier is in charge of the prosecution.

Taray Butler Indictment.pdf (1.62 MB)

U.S. Attorney Kenneth A. Polite announced today that LINDSEY DOOLEY, age 25, a resident of Wakefield, Louisiana, was sentenced after having previously pled guilty to misprision of a felony.

U.S. District Judge Jane Triche Milazzo sentenced DOOLEY to 3.5 years probation.

According to court documents, on May 8, 2013, while conducting a related heroin investigation, Jefferson Parish Sheriff’s Office detectives searched co-defendant STEPHEN FARRELL and DOOLEY’S residence in Metairie.  During the search, detectives found a loaded Taurus International .380 caliber firearm and drug paraphernalia.  FARRELL was convicted in federal court for possession of a firearm by a convicted felon, and was sentenced by Judge Milazzo to 68 months in federal prison.  Court records reveal that DOOLEY concealed FARRELL’S heroin distribution activities by providing a place for FARRELL to store and package heroin.

U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jefferson Parish Sheriff’s Office in investigating this matter.   Assistant United States Attorney Nolan D. Paige was in charge of the prosecution.

 

U.S. Attorney Kenneth A. Polite announced that GARCIA SHRIMP CO., LLC, a Texas Limited Liability Company headquartered in Brownsville, Texas, pled guilty today to a one-count Bill of Information for violating the Federal Lacey Act.

According to court documents, in early October 2012, GARCIA SHRIMP purchased 35,000 pounds of Mexican shrimp from Mexican businessmen. The shrimp was packaged in plastic crates typically used by Mexican supermarket wholesalers. After taking receipt of the shrimp, company personnel removed product of Mexico labels from the packages containing the shrimp and attached new tags indicating that the shrimp was caught in U.S. waters. Company personnel also conducted an offloading ruse, whereby the shrimp was trucked down to GARCIA SHRIMP’s dock facility and then re-weighed and wrapped to make it appear as if the shrimp was caught by a local U.S. flagged fishing vessel. Then company personnel created false documents and bills of lading that falsely read, “Product of U.S.A., Wild Caught Gulf Shrimp.” On or about October 12, 2012, GARCIA SHRIMP sold the shrimp to a New Orleans based seafood distributor.

GARCIA SHRIMP faces a maximum fine of $500,000 and an organizational probationary term of five years.  U.S. District Judge Nannette Jolivette Brown set sentencing for September 24, 2015.

U.S. Attorney Polite praised the work of the U.S Department of Commerce NOAA Office of Law Enforcement, in investigating this matter.   Eastern District of Louisiana Assistant U. S. Attorney Spiro G. Latsis and Department of Justice Trial Attorney Christopher L. Hale with the Environmental Crimes Section in Washington D.C. are in charge of the prosecution.

Garcia Shrimp.pdf (2.37 MB)

U.S. Attorney Kenneth A. Polite announced that GEOFFREY WALKER, age 65, of San Francisco, California, pled guilty today for crimes involving the sexual exploitation of children.

According to court documents, as a result of an undercover operation by federal law enforcement agents with the U.S. Department of Homeland Security, Homeland Security Investigations (“HSI”) into the sexual exploitation of children and the distribution of child pornography in the Eastern District of Louisiana, it was determined that WALKER was utilizing his email account to distribute child pornography from California to Louisiana.  On September 5, 2014, a federal search warrant was executed at WALKER’s residence in California and HSI agents seized his computer pursuant to the search warrant.  WALKER was taken into federal custody at the time of the execution of the search warrant.  HSI agents established that on eleven different occasions, WALKER emailed sexually explicit images of minors to an undercover HSI agent located in New Orleans.  A subsequent computer forensic search of WALKER’s computer by HSI yielded over 9,000 images and over 1,000 videos depicting minors engaging in sexually explicit activity.

WALKER faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of twenty years, followed by up to a lifetime term of supervised release, and a $250,000 fine.  In addition, WALKER will be required to register as a sex offender.  U.S. Judge Susie Morgan set sentencing for August 12, 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 Kenneth Polite praised the work of the U. S. Department of Homeland Security, HSI in investigating this matter.  Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U. S. Attorney Brian M. Klebba is in charge of the prosecution.

Geoffrey Walker Factual Basis.pdf (48.26 KB)

 

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

According to the Indictment, SORIANO-CANIZALEZ was encountered by Immigration & Customs Enforcement 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.

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

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

Ramon Antonio Soriano-Canizalez Indictment.pdf (124.17 KB)

U.S. Attorney Kenneth A. Polite announced that STEPHEN ELLIS, age 52, a resident of New Orleans, was charged today in a four-count Indictment for violations of the Federal Gun Control Act, the Federal Controlled Substances Act, and for Assault.

According to the Indictment, ELLIS possessed firearms subsequent to being convicted of a felony offense, possessed firearms in furtherance of a drug-trafficking crime, possessed with the intent to distribute a quantity of cocaine hydrochloride, a Schedule II drug controlled substance, and committed an assault on law enforcement officers during the execution of a search warrant.

The charges arose out of the execution of a search warrant at ELLIS’s home in New Orleans, in which gun fire was exchanged as the agents tried to enter the home, resulting in ELLIS being wounded in the leg.

In convicted, ELLIS faces:

• Count 1, being a felon-in-possession of a firearm:  up to ten years imprisonment, a fine of up to $250,000, and up to three years of supervised release following imprisonment;

• Count 2, possession of a firearm in furtherance of a drug trafficking crime:  a minimum of five years up to life imprisonment, to run consecutive to any other sentence, and up to five years of supervised release following imprisonment;

• Count 3, assault with a deadly weapon:  up to ten years imprisonment, a fine of up to $250,000, and up to three years of supervised release following imprisonment; and,

• Count 4, possession with intent to distribute a quantity of cocaine hydrochloride:  up to twenty years imprisonment and/or a $1,000,000 fine, followed by at least 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 Homeland Security Investigation, the Jefferson Parish Sheriff’s Office, the New Orleans Police Department, and the Gretna Police Department in investigating this matter.  Assistant United States Attorney Michael E. McMahon is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that RONY RIVERA-GONZALES, age 23, a citizen of Honduras and residing in Hammond, was sentenced after previously pleading guilty to a one-count Indictment for illegal use of a Social Security Number.

U.S. District Judge Marry Lemmon sentenced GONZALES to time served followed by one year of supervised release, and a $100 special assessment.  GONZALES will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.

According to court documents, on or about August 20, 2014, GONZALES submitted a social security number which 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 GONZALES 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 was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that ROGER NADEAU, age 51, a resident of Linn, Missouri, was sentenced today for his role in a scheme to defraud the Louisiana Workforce Commission of unemployment benefits.  NADEAU previously pled guilty to conspiracy to commit mail fraud.

U.S. District Judge Helen G. Berrigan sentenced NADEAU to one year probation and a $500 fine.  Additionally, NADEAU was ordered to pay $2,470 in restitution to the Louisiana Workforce Commission (“LWC”).

According to the court records, beginning at a time unknown, but no later than on or about September 24, 2009, and continuing through on or about January 11, 2014, NADEAU along with CHARLES MIZELL, JR., TERRY CASTILOW,  WILLIAM DARRYL KING, DAVID LOWE, JAMES CREEL, JERRY ATHEY, TENILLE NIELSON, and JACQUELINE MYERS conspired to defraud the LWC of money and property by means of false and fraudulent representations, pretenses and promises, well knowing the representations, pretenses and promises were false, and mailed and caused to be mailed through the United States Postal Service unemployment (“UI”) benefit claim forms for the purpose of obtaining UI benefits to which they were not entitled.  Specifically, at the time CASTILOW, KING, LOWE, CREEL, ATHEY, NIELSON, MYERS, and NADEAU applied for UI benefits and made weekly representations to LWC that they were unemployed and not getting paid, MIZELL, JR., actually employed them at Chamico, Inc., a Bogalusa construction company that concentrates on public, municipal, and industrial contracts.

MIZELL, JR. was the President of Chamico and, according to the court records, asked NADEAU and his other employees to fraudulently file for unemployment so that he would not have to pay their full salaries during tough economic times for his business.   NADEAU and the other employees would each get cash from Chamico during the weeks they were claiming unemployment benefits reporting that they were not working and not getting any income from work.

U.S. Attorney Polite praised the work of the Department of Labor-OIG and the Federal Bureau of Investigation with assistance from the Louisiana Workforce Commission in investigating this case.  Assistant United States Attorney Emily K. Greenfield was in charge of the prosecution.

 

U.S. Attorney Kenneth A. Polite announced that ANTONIO CAICEO-VALENCIA, age 42, a citizen of Columbia, 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 CAICEO-VALENCIA to 30 months imprisonment followed by 3 year of supervised release, and a $100 special assessment.  Upon completion of his sentence, CAICEO-VALENCIA will be surrendered to the custody of U.S. Immigration & Customs Enforcement for removal proceedings.

According to court documents, on or about November 20, 2014, CAICEO-VALENCIA was found in the United States after having been officially deported and removed on or about December 27, 2010

U.S. Attorney Polite praised the work of the United States Department of Homeland Security, ICE Enforcement and Removal Operations 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 LUIS ADALBERTO MORADIAGA, age 44, a citizen of El Salvador, pled guilty on today to a one-count Indictment for illegal reentry of removed alien.

According to court records, 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.

MORADIAGA 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 Jay C. Zainey set sentencing for July 28, 2015.

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.

Luis Adalberto Moradiaga Factual Basis

 

U.S. Attorney Kenneth A. Polite announced that JAHVAR HOOKS, age 31, of New Orleans, pled guilty today to a one-count Superseding Indictment charging him with maliciously conveying false information in violation of Title 18, United States Code, Section 844(e).

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.

If convicted, the maximum penalty as to each charge is ten years imprisonment, a $250,000 fine, and a three year term of supervised release following imprisonment.  U.S. District Judge Lance M. Africk set sentencing for August 6, 2015.

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

Jahvar Hooks Factual Basis

U.S. Attorney Kenneth A. Polite announced that CHAD LANDRY, age 43, of Houma, pled guilty today to charges that he conspired to distribute over 500 grams of methamphetamine and unlawfully possessed a firearm in furtherance of his methamphetamine conspiracy.

The drug offense carries a sentence of ten years to life imprisonment, a fine of up to $10,000,000, and a minimum of five years of supervised release following any term of imprisonment.  The gun offense carries a minimum term of imprisonment of five years imprisonment, a fine of up to $250,000, and up to five years of supervised release following any term of imprisonment.

U.S. Attorney Polite praised the work of the Drug Enforcement Administration, with assistance from the Terrebonne Parish Sheriff’s Office and Louisiana State Police in investigating this matter.  Assistant U.S. Attorney Brandon S. Long is in charge of the prosecution.

Chad Landry Factual Basis

U.S. Attorney Kenneth A. Polite announced that SERGIO TULIO VARGAS-VARGAS, age 25, a citizen of Guatemala, was charged today in a one-count Indictment with illegal reentry of a removed alien.

According to the Indictment, VARGAS-VARGAS reentered the United States after having been previously deported on October 25, 2012.  If convicted, VARGAS-VARGAS 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.

Sergio Tulio Vargas-Vargas Indictment

U.S. Attorney Kenneth A. Polite announced that GREGORY DENSON, 52,  COREY DENSON, 31, CARL SINGLETON, 30, JOE LEE MILLER, 30, QUINCY JYNES, 27, BRIDGETT MILES, 44, ESCARLITA CARMOUCHE, 48, and ANNETTE ROBINSON, 37, all of New Orleans, were charged today in a fourteen-count Superseding Indictment.  All defendants were charged with Conspiracy to violate the Hobbs Act, which prohibits interference with interstate commerce through violence. Defendants DENSON, COREY DENSON, MILLER, JYNES and SINGLETON are also charged with various robberies and weapons offenses.  DENSON is charged with the murder of an individual to stop that individual from providing information to law enforcement authorities about his (DENSON’S) activities.  MILLER and JYNES are charged with helping to dispose of the body.

COUNT

CHARGE

DEFENDANTS

PUNISHMENT RANGE

1

18 U.S.C.1951-Conspiracy to Commit Hobbs Act Robbery

All

NMT 20 Yrs, NMT $250,000 Fine, NMT 3Yrs Sup. Rel.

2

18 U.S.C.1951-Hobbs Act Robbery

Denson, Miller, Jynes

NMT 20 Yrs, NMT $250,000 Fine, NMT 3Yrs Sup. Rel.

3

18 U.S.C. 924(c)-Brandishing a Firearm during and in relation to a crime of violence

Denson, Miller, Jynes

NMT 7 Yrs Consecutive, NMT $250,000 Fine, NMT 2 Yrs Sup. Rel.

4

18 U.S.C. 922(g)(1)-Felon in Possession of a Firearm

Miller

NMT 10 Yrs, NMT $250,000 Fine, NMT 3Yrs Sup. Rel.

5

18 U.S.C. 922(g)(1)-Felon in Possession of a Firearm

Jynes

NMT 10 Yrs, NMT $250,000 Fine, NMT 3Yrs Sup. Rel.

6

18 U.S.C. 924(c)-Brandishing a Firearm during and in relation to a crime of violence

Denson, Corey, Denson

NMT 7 Yrs Consecutive, NMT $250,000 Fine, NMT 2 Yrs Sup. Rel. As to Deft Jynes, a second conviction results in a consecutive 25 yr sentence

7

18 U.S.C. 922(g)(1)-Felon in Possession of a Firearm

Corey, Denson

NMT 10 Years, NMT $250,000 Fine, NMT 3Yrs Sup. Rel.

8

18 U.S.C.1951-Hobbs Act Robbery

Denson, Miller, Jynes, Singleton, Corey, Denson

NMT 20 Yrs, NMT $250,000 Fine, NMT 3Yrs Sup. Rel.

9

18 U.S.C. 924(c)-Discharging a Firearm during and in relation to a crime of violence

Denson, Miller, Jynes, Corey, Denson, Singleton

NMT 10 Yrs Consecutive, NMT $250,000 Fine, NMT 3Yrs Sup. Rel. As to Defts Denson and Miller, a 2ndconviction results in a consecutive 25 yr sentence. As to Deft Jynes, a 3rd conviction results in a 2nd consecutive 25 yr sentence.

10

18 U.S.C. 922(g)(1)-Felon in Possession of a Firearm

Miller

NMT 10 Yrs, NMT $250,000 Fine, NMT 3Yrs Sup. Rel.

11

18 U.S.C. 922(g)(1)-Felon in Possession of a Firearm

Jynes

NMT 10 Yrs, NMT $250,000 Fine, NMT 3Yrs Sup. Rel.

12

18 U.S.C. 1512-Murder of a Federal Witness

Denson

NMT Life Imprisonment or Death, NMT $250,000 Fine, NMT 5 Years Sup. Rel.

13

18 U.S.C. 3-Accessory After the Fact

Jynes, Miller

NMT 15 Years, NMT $250,000 Fine, NMT 3 Yrs. Sup.Rel.

14

18 U.S.C. 1512(c)(2)-Obstructing an Investigation

Jynes, Miller

NMT 20 Yrs, NMT $250,000 Fine, NMT 3Yrs Sup. Rel.

U.S. Attorney Polite reiterated that the charges in the Indictment are merely charges, 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.  Assistant United States Attorneys Mark A. Miller and Michael M. Simpson are in charge of the prosecution.

Gregory Denson, et al Superseding Indictment

U.S. Attorney Kenneth A. Polite announced that DAMIEN WILSON, age 35, of Chalmette, was charged in a three-count Indictment for violations of the Federal Controlled Substances Act, which was recently unsealed.

According to the Indictment, WILSON conspired to possess with the intent to distribute and to distribute a kilogram or more of heroin and distributed heroin on two different occasions.

If convicted, WILSON faces a mandatory minimum sentence of ten years up to life imprisonment, followed by at least five years of supervised release, and a fine of up to $10,000,000.

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

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

Damien Wilson Indictment

Today, Attorney General Loretta E. Lynch announced the appointment of Kenneth A. Polite, U.S. Attorney for the Eastern District of Louisiana, along with five other U.S. Attorneys, to the Attorney General’s Advisory Committee (AGAC).

Created in 1973, the AGAC represents the voice of the 93 U.S. Attorneys across the nation and reports to the Attorney General through the Deputy Attorney General.  It provides advice and counsel to the Attorney General and other senior leaders in the U.S. Department of Justice on policy, management and operational issues, helping to shape policies to accomplish the Department’s core mission of serving justice.

“The distinguished women and men who serve on the Attorney General’s Advisory Committee provide invaluable advice and wise counsel that help shape the Justice Department’s approach to combating crime, violence, and injustice in every community across the country,” said Attorney General Lynch.  “They help introduce new ideas, formulate innovative policies, and design fresh strategies.  They foster collaboration across our U.S. Attorney’s Offices and with Main Justice.  And, in all of their work, they seek to strengthen and improve law enforcement efforts at every level.  As a former chair of the AGAC, I am proud to welcome six outstanding new members to the Committee, and I look forward to all that we will achieve, with their help, in the days ahead.”

U.S. Attorney Kenneth A. Polite announced that SYLVIA CHESTNUT, age 37, of New Orleans, pled guilty today to a one-count Bill of Information for stealing property from a Navy Exchange Store in Florida.

According to court records, 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.

CHESTNUT faces a maximum of 10 years imprisonment, to be followed by three years of supervised release, and a fine of $250,000.  U.S. District Judge Lance M. Africk set sentencing for July 23, 2015.

U.S. Attorney Polite praised the work of the Naval Criminal Investigative Service 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 are in charge of the prosecution.

Sylvia Chestnut Factual Basis

U.S. Attorney Kenneth A. Polite announced that ALEX BRASINGTON, age 22, of Carriere, Mississippi, pled guilty today to conspiracy to possess and transport stolen firearms in interstate commerce and transportation of stolen firearms in interstate commerce.  A five-count superseding indictment was returned on October 3, 2014, charging BRASINGTON, and co-defendants BRITTANY BAUER and BRITTEN PARSONS, with conspiracy, possession and transportation of stolen firearms in interstate commerce.

According to court documents, in January and February 2013, BRASINGTON, BAUER and PARSONS transported nine stolen firearms in interstate commerce, from Alabama to Louisiana.  The investigation revealed that the firearms had been stolen during residence burglaries in Huntsville, Alabama.  On February 14, 2013, agents conducted a search of BAUER’s New Orleans apartment and found five stolen firearms and approximately 1700 rounds of ammunition. Court documents reflect that agents also recovered four stolen firearms and ammunition that BRASINGTON, BAUER and PARSONS sold to individuals in New Orleans.  BRASINGTON had previously been found in possession of a stolen firearm on January 31, 2013.

BRASINGTON faces a maximum of ten years imprisonment, followed by three years of supervised release.  U.S. District Judge Jane Triche Milazzo set sentencing for July 20, 2015.

U.S. Attorney Polite stated, “Today’s guilty plea underscores our Office’s continued commitment to prosecuting those who illegally transport stolen firearms into our District.”

U.S. Attorney Polite praised the work of the ATF New Orleans Division Office, New Orleans Police Department, Pearl River (LA) Police Department, Pearl River County (MS) Sheriff’s Office, and Huntsville Police Department in investigating this matter.  Assistant United States Attorney Nolan D. Paige is in charge of the prosecution.

Alex Brasington Factual Basis

U.S. Attorney Kenneth A. Polite announced that ROBERTO HERRERA-VILLAGOMEZ, age 23, and JUAN MANUEL HERRERA-VILLAGOMEZ, age 34, both citizens of Mexico, pled guilty today to a two-count Indictment charging them with violations of the Federal Gun Control Act.

According to court records, on or about October 15, 2014, ROBERTO HERRERA-VILLAGOMEZ and JUAN MANUEL HERRERA-VILLAGOMEZ, both illegal aliens, were found in possession of firearms.  Agents executed a search warrant into the harboring of illegal aliens at a mushroom farm in Tangipahoa Parish and found the defendants in possession of firearms.

ROBERTO HERRERA-VILLAGOMEZ and JUAN MANUEL HERRERA-VILLAGOMEZ each face a maximum term of imprisonment of ten years, followed by up to three years of supervised release, and a fine of $250,000.  U.S. District Judge Jane Triche Milazzo set sentencing for July 30, 2015.

U.S. Attorney Polite praised the work of the Department of Homeland Security, Homeland Security Investigations (HSI) in investigating this matter.  Assistant United States Attorney David Haller is in charge of the prosecution.

Herrera-Villagomez, Roberto & Juan Manual Factual Basis

U.S. Attorney Kenneth A. Polite announced that on Tuesday, April 28, 2015, a jury convicted MELVIN JACKSON, age 34, of Hammond, of violations of federal drug and firearms laws.

After a two-day trial, the jury returned a guilty verdict on all three counts charged in the Indictment: conspiracy to distribute and possess with intent to distribute over one kilogram of heroin; felon in possession of a firearm; and possession with intent to distribute a quantity of heroin.

JACKSON faces a minimum sentence of ten years’ incarceration, and a maximum of life imprisonment.  U.S. District Judge Stanwood R. Duval, Jr. set sentencing for August 12, 2015. 

U.S. Attorney Polite commended the work of the Drug Enforcement Administration and the Tangipahoa Parish Sheriff’s Office in investigating this matter. Assistant United States Attorneys Maurice Landrieu and Brandon Long were responsible for the prosecution.

United States Attorney Kenneth A. Polite announced that JOSE MARTINEZ-ROMERO, age 32, a native of Honduras, pled guilty yesterday to a one-count Indictment for illegal entry of a removed alien.

According to court documents, MARTINEZ was previously removed from the United States on April 16, 2007.  MARTINEZ was later found in the Eastern District of Louisiana on March 2, 2015 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.

MARTINEZ faces a maximum term of imprisonment of two years, as well as a fine of $250,000. United States District Court Judge Carl J. Barbier set sentencing for June 11, 2015.

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

Jose Martinez-Romero Factual Basis (630.46 KB)

U.S. Attorney Kenneth A. Polite announced that RONNIE P. VEDROS, 52, of Grand Isle, was sentenced today after previously pleading guilty to one count of mail fraud.

U.S. District Judge Lance M. Africk sentenced VEDROS to 41 months imprisonment, to be followed by three years of supervised release.  In addition to the term of imprisonment, VEDROS was ordered to pay $30,173.56 in restitution.

According to court documents, VEDROS’s charges stem from an application he submitted to the Gulf Coast Claims Facility (GCCF) in the aftermath of the explosion and oil spill at the Deepwater Horizon oil rig. VEDROS claimed to have lost earnings as a commercial fisherman and engineer as a result of the oil spill and provided documentation to prove his loss. In reality, as set forth in the factual basis, VEDROS was neither a commercial fisherman nor employed as an engineer at the time of the disaster and the documentation submitted had been falsified. As a result of VEDROS’s false application, he received approximately $30,173.56 in funds from the GCCF in which he was not entitled.

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

U.S. Attorney Polite praised the work of the U.S. Secret Service in investigating this case.  Assistant U.S. Attorney Tracey Knight was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that LATASHA N. ANDERS, age 34, and ARNOLD WILLIAMS, age 33, residents of New Orleans, 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, 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.  ANDERS worked as a claims adjuster for the GCCF.  Beginning in or about October 2010, ANDERS submitted or caused to be submitted, via the internet, claim forms on behalf of her co-conspirators containing false representations and fraudulent documentation that they were employed in the commercial fishing industry at the time of the oil spill, when in fact they were not.  ANDERS shared in the claim proceeds in exchange for her assistance.  Based upon the fraudulent documentation, ANDERS obtained $250,000 in claim proceeds to which she and her co-conspirators were not entitled.

Additionally, ANDERS conspired with WILLIAMS to file a false claim for loss earnings on his behalf, when in fact he did not work in the commercial fishing industry.  Based upon the fraudulent claim, WILLIAMS received $50,000 to which he was not entitled. Both ANDERS and WILLIAMS admitted to purchasing a home for $110,000 with the illegal proceeds they received from the fraudulent claims.

ANDERS faces a maximum term of imprisonment of five years, a $250,000 fine, three years of supervised release following imprisonment, and restitution in the amount of $250,000.  WILLIAMS faces a maximum term of imprisonment of five years, a $50,000 fine, three years of supervised release following imprisonment, and restitution in the amount of $50,000.  U.S. District Judge Martin L.C. Feldman set sentencing for September 2, 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.

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 is in charge of the prosecution.

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

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

BACKES faces a maximum term of imprisonment of twenty years, a fine of $250,000 and three years of supervised release following any term of imprisonment. U.S. District Judge Ivan L.R. Lemelle set sentencing for August 19, 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.

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

Ronald Backes Factual Basis

U.S. Attorney Kenneth A. Polite announced that TIMOTHY DUCKWORTH, age 44, of Metairie, was sentenced today after previously pleading guilty to making false statements on income tax returns.

U.S. District Judge Ivan L.R. Lemelle sentenced DUCKWORTH to 5 years probation with the special condition of the first 18 months served as home confinement.  DUCKWORTH was also ordered to pay $213,579 in restitution.

According to court documents, DUCKWORTH made false statements on his tax return for the year 2007 under-reporting his income in the amount of approximately $610,495.00, which resulted in DUCKWORTH having taxes due and owing in the amount of approximately $213,579.

U.S. Attorney Polite praised the work of the Internal Revenue Service – Criminal Investigations and 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 DERRICK HOLLOWAY, age 31, of Marrero, was charged in a two-count Bill of Information with unauthorized recording of a motion picture and criminal infringement of a copyright.

According to the Bill of Information, on September 13, 2014, HOLLOWAY used a digital camcorder to record the motion picture When the Game Stands Tall at the AMC Westbank Palace, located in Harvey.  The Bill of Information also charges that until December 23, 2014, HOLLOWAY knowingly and willfully, for the purpose of commercial advantage and private financial gain, infringed the copyright of copyrighted works by distributing ten or more copies of the works during a 180-day period, which had a total retail value in excess of $2,500.

If convicted, HOLLOWAY faces a maximum term three years imprisonment 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.

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 Immigration and Customs Enforcement, Homeland Security Investigations in investigating this matter.  Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.   

Derrick Holloway Bill of Information                         

U.S. Attorney Kenneth A. Polite announced that DAVID HENRY, age 31, of Covington, was sentenced today for theft of mail.

According to court records, as a result of multiple complaints of missing mail from highway contract route No. 76 (“Route 76”) in Mandeville, the Office of Inspector General for the United States Postal Service (“Postal OIG”) initiated an investigation into Route 76 in an effort to determine the cause of the lost mail.  On April 23, 2014, HENRY, admitted to taking three cards that he believed to have contained cash.  HENRY also admitted to taking cash from the mail on three or four other occasions.

Today, U.S. District Court Judge Ivan L.R. Lemelle sentenced HENRY to three years probation and a $250.00 fine.

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

U.S. Attorney Kenneth A. Polite announced that CLARA AITCH, age 39, and WENDY ERVIN, age of 42, both of New Orleans, each pled guilty on Tuesday, April 28, 2015, to one count of conspiracy to commit wire fraud relating to the fraudulent applications they made or caused to be made to the Gulf Coast Claims Facility (GCCF) for financial assistance during the aftermath of the Deepwater Horizon oil spill.

On March 12, 2015, AITCH and ERVIN were 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, the GCCF made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion.  The GCCF required individuals to verify loss of income.  In November, 2010, AITCH and ERVIN conspired with LISA CRINEL to apply for disaster assistance funds, and represent that they were employees of LACE, a reception hall owned and operated by LISA CRINEL, when, in truth, AITCH and ERVIN were full time employees of ABIDE HOME CARE SERVICES, INC.

Based on their fraudulent applications, the co-defendants received a total of $35,800 in GCCF funds, monies neither were entitled to receive.

AITCH and ERVIN both face a maximum term of imprisonment of five (5) years, a $250,000 fine, and three (3) years of supervised release following imprisonment.  U.S. District Judge Susie Morgan set sentencing for July 29, 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.

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

U.S. Attorney Kenneth A. Polite announced that EULIO MARQUEZ- CHACON, age 40, from Honduras, was charged on April 23, 2015, in a one-count Indictment with illegal reentry into the United States after having been previously deported.

According to the Indictment, MARQUEZ-CHACON was encountered by Immigration& Customs Enforcement agents in the Eastern District of Louisiana on March 4, 2015, after records showed he had been previously deported from the United States to Honduras on June 12, 2003.

If convicted, MARQUEZ-CHACON faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.

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

U.S. Attorney Polite praised the work of the Immigration & Customs Enforcement and the New Orleans Police Department in investigating this matter. Assistant U.S. Attorney Rick Veters is in charge of the prosecution.

Eulio Marquez-Chacon Indictment

U.S. Attorney Kenneth A. Polite announced that this afternoon, a jury returned guilty verdicts against three defendants for their participation in a conspiracy to commit mail and wire fraud as part of a fraudulent tax credit scheme.

The jury found PETER M. HOFFMAN, age 65, of Los Angeles, guilty on Counts 1 through 21, which includes a variety of substantive mail and wire fraud offenses.  In total, PETER HOFFMAN faces 405 years in prison.  MICHAEL P. ARATA, age 49, of New Orleans, was convicted on Counts 1 through 7, 13, and 21 through 25, which includes four counts of making false statements.  He faces a maximum of 185 years in prison.  Lastly, the jury found SUSAN HOFFMAN, age 69, of New Orleans, guilty on Counts 1, 11, and 21, for which she faces a total of 45 years in prison.

U.S. Attorney Polite stated: “I appreciate the hard work of AUSAs Baehr, Kammer, and Menon, as well as our law enforcement partners from the FBI and the Louisiana Office of the Inspector General.  We are pleased with the verdict, and we thank the jury and the court for their consideration of this case.  This case is important because it sends the message that our state’s business, especially our growing film industry, will no longer fall prey to fraud and corruption.  Just as important, today’s verdict underscores the fact that wherever we find criminal conduct, as we did in the case of the Hoffmans and Michael Arata, we will follow the facts and bring justice to those individuals, regardless of where they live, their wealth, or their last names.”

Louisiana State Inspector General Stephen Street commented:  “I am pleased that the jury saw this for what it was:  plain and simple thievery.  These guilty verdicts should send the message loud and clear that we have zero tolerance for those who defraud Louisiana's tax credit programs, and will continue to make pursuing these criminal cases a top priority.  I want to thank our partners at the FBI and United States Attorney’s Office for their outstanding work on this case, and in particular the Assistant United States Attorneys for a fine job with the prosecution.”

WASHINGTON – A Louisiana doctor pleaded guilty to federal health care fraud charges today, admitting that he wrote false home health care certifications that were used in a multi-million dollar 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 Anderson of the FBI’s New Orleans Field Office, 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 and Louisiana Attorney General James D. “Buddy” Caldwell made the announcement.

Winston Murray, M.D., 62, of Hammond, Louisiana, pleaded guilty before Chief U.S. District Judge Sarah S. Vance of the Eastern District of Louisiana to all three charges against him, including one count of conspiracy to commit health care fraud and two counts of health care fraud.  He is scheduled to be sentenced on August 12, 2015.  Murray is the ninth defendant to plead guilty in this case.  The trial for the remaining four defendants is scheduled to begin on May 6, 2015.

At his plea hearing, Murray admitted that he operated a clinic in Hammond, Louisiana, from which he wrote home health care referrals for Medicare beneficiaries he knew were not confined to their homes.  Murray further admitted that his referrals were used by home health companies Interlink Health Care Services Inc. (Interlink) and Lakeland Health Care Services Inc. (Lakeland), among others, to fraudulently bill Medicare for home health services supposedly rendered to hundreds of Medicare beneficiaries living in and around Hammond and New Orleans.

Medicare records reveal that Murray’s certifications were used by Interlink and Lakeland to bill Medicare for more than $2.2 million in home health services that were not medically needed or were not provided.  From 2007 through 2014, these companies and other companies involved in this scheme submitted more than $56 million in claims to Medicare, a vast majority of which were fraudulent.  Medicare paid approximately $50.7 million on these claims.

This case was investigated by the FBI, HHS-OIG and the Louisiana Attorney General’s Medicaid Fraud Control Unit, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for 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 former District Attorney for the 22nd Judicial District, WALTER P. REED, age 68, and STEVEN P. REED, age 43, both from Covington, were charged with offenses related to their involvement in a conspiracy to commit wire fraud and money laundering related to the misuse of funds from WALTER P. REED’S campaign account.  Additionally, WALTER P. REED was charged with wire fraud for his personal misuse of campaign funds, mail fraud based on his diverting into his personal accounts funds from St. Tammany Parish Hospital that were intended for the Office of the District Attorney for the 22nd Judicial District, and filing false tax returns.

According to the Indictment, WALTER P. REED and STEVEN P. REED devised a scheme to defraud the Walter Reed Campaign and contributors to the Walter Reed Campaign by using donations to WALTER P. REED’S campaign to pay for goods and services either unrelated to the campaign or in an amount that grossly exceeded the value of the services provided.

The Indictment alleges that WALTER P. REED caused a series of payments to be made from the Campaign Fund to STEVEN P. REED’s companies in order to pay down a loan on which WALTER P. REED was a cosigner for services that either were not provided or whose value was substantially less than the amount paid.  For example, WALTER P. REED caused, STEVEN P. REED’S company, Globop, to be paid approximately $8,352.64 for producing a housewarming party at WALTER P. REED’S new condominium in April 2012 that was unrelated to WALTER P. REED’S campaign.  Similarly, STEVEN P. REED’s company, Liquid Bread LLC, received $29,400 from the Campaign Fund account for purportedly providing catering or bar services at a campaign event at the Castine Center in September 2012 that STEVEN P. REED did not actually provide.  WALTER P. REED also required two companies that provided services at the September 2012 event to kickback a portion of their payments to STEVEN P. REED as a means to funnel campaign monies to him.

WALTER P. REED also paid for numerous other personal expenses unrelated to his campaign out of his Campaign Fund, including flowers with an accompanying message that stated, “[T]o my rodeo girl from a secret admirer from Camp J,” $1,885.36 for a Thanksgiving Day dinner for REED and approximately ten other members of his family and a $500 gift card for his future personal use, and $2,635.00 to a North shore steakhouse for a dinner he hosted for “Pentecostal Preachers” for the purpose of recruiting clients to refer him private civil legal work.  Subsequently, REED also sought, and received, a reimbursement for the $2,635.00 dinner from the law firm with which he was affiliated, which he did not then put back into his Campaign Fund.  In total, WALTER P. REED, spent at least $100,000 from the Walter Reed Campaign Fund bank account on personal expenses in this manner, including to recruit potential clients for his private legal practice, to pay off various expenses incurred by his son, STEVEN P. REED, and to pay for private and personal dinners.

The Indictment also alleges that WALTER P. REED diverted money paid by St. Tammany Parish Hospital for work performed by the Office of the District Attorney to his personal bank account.  Specifically, between about 1994 and 2014, St. Tammany Parish Hospital retained the services of the Office of the District Attorney to advise it on various matters, for which it agreed to pay between $25,000 and $30,000 per year.  REED attended some of the monthly meetings, though on dozens of occasions he directed Assistant District Attorneys to attend.  Notwithstanding REED’s use of resources and personnel of his office, REED deposited into his own personal bank account each check provided by St. Tammany Parish Hospital that were intended for the Office of the District Attorney.

If convicted, WALTER P. REED faces up to 277 years in prison, followed by up to a three (3) year term of supervised release, and up to a $ 4,500,000 fine.  STEVEN P. REED faces up to 65 years in prison, followed by up to a three (3) year term of supervised release, and up to a $1,000,000 fine.

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

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation for investigating this matter and thanked the Metropolitan Crime Commission for their assistance.  The prosecution of this case is being handled by Assistant United States Attorney Jordan Ginsberg and First Assistant United States Attorney Richard Westling.

Download Indictment

U.S. Attorney Kenneth A. Polite announced that DUNWOODIE MCDUFFIE, age 48, a resident of Metairie and the owner of a Metairie moving company, was sentenced today on eight counts of conducting interstate household goods moves without the proper Department of Transportation authorities.

According to court records, MCDUFFIE pled guilty on November 5, 2014, to an eight-count Bill of Information.  In 2007, MCDUFFIE applied for authorization to conduct interstate moves with his company Mr. Move, but never followed through with the various requirements to maintain authority to conduct interstate moves.  MCDUFFIE nonetheless continued to operate his interstate moving business, knowing that he lacked the proper authority to do so.  Each of the eight charges represents a different move conducted by MCDUFFIE’s business in 2013.

U.S. District Judge Martin L.C. Feldman sentenced MCDUFFIE to 6 months imprisonment, to be followed by 1 year of supervised release.

U.S. Attorney Polite praised the work of the Department of Transportation, Office of the Inspector General in investigating this matter.  Assistant United States Attorney David Haller was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that MARVIN SANTOS PERDOMO, age 33, and OLVIN SANTOS PERDOMO, age 26, citizens of Honduras who reside in New Orleans, pled guilty today to a five-count Indictment charging them with conspiracy to possess with intent to distribute cocaine and, in the case of MARVIN SANTOS PERDOMO, reentry of an illegal alien.

According to the court records, MARVIN SANTOS PERDOMO and OLVIN SANTOS PERDOMO conspired to distribute and distributed cocaine hydrochloride, a Schedule II controlled drug substance.  Additionally, MARVIN SANTOS PERDOMO was illegally in the United States after being previously departed.   

U.S. District Judge Stanwood R. Duval, Jr. set sentencing on July 29, 2015.   MARVIN SANTOS PERDOMO and OLVIN SANTOS PERDOMO face a maximum term imprisonment of twenty years and/or a fine of $1,000,000.

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

U.S. Attorney Kenneth A. Polite announced that LUIS FERNANDO MARTINEZ, age 40, a citizen of Honduras, pled guilty today to a one-count Bill of Information for illegal reentry of removed alien.

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

MARTINEZ 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 June 17, 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.

U.S. Attorney Kenneth A. Polite announced that TRENISE DEBOUE MURPHY, age 52, of New Orleans, pled guilty today to a one-count Bill of Information charging her with conspiring to commit theft of government funds.

According to court documents, MURPHY submitted an application to receive housing assistance from the Jefferson Parish Housing Authority (“JPHA”) through the Housing Choice Voucher Program (“HCVP”).  MURPHY listed her family composition as she, her son, and her daughter.  The defendant did not include her husband, who owned the residence in which they lived, in her family composition.  As a result of that representation, as well as yearly recertification paperwork she filed that indicated that she was unmarried and that hid the fact that her “landlord” was actually her husband, the JPHA provided housing assistance on behalf of MURPHY between September 2003 and September 2012, in the amount of approximately $68,593.00.

MUPRHY faces a maximum term of imprisonment of five years, followed by up to three years of supervised release, and a $250,000 fine.  U.S. District Judge Stanwood R. Duval, Jr. set sentencing on August 12, 2015.

U.S. Attorney Polite praised the work of the U.S. Department of Housing and Urban Development – Office of the Inspector General in investigating this matter.  Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.

Trenise Deboue Murphy Factual Basis

U.S. Attorney Kenneth A. Polite announced that LAWRENCE TREIGLE, age 33, from Covington, was sentenced today after pleading guilty to a one-count Bill of Information charging him with conspiring to smuggle turtles out of the United States in violation of the Lacey Act.

According to court documents, on December 3, 2014, TREIGLE pled guilty to the superseding Bill of Information. TREIGLE admitted he was part of a group of individuals involved in capturing North American Wood turtles from the wild in Pennsylvania, shipping the turtles by mail though the United States, and then illegally exporting the turtles to Hong Kong. 

U.S. District Court Judge Helen G. Berrigan sentenced TREIGLE to a term of 15 months imprisonment, to be followed by two years of supervised release.

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 SYLVIA CHESTNUT, age 37, of New Orleans, was charged yesterday in one-count Bill of Information for stealing property from a Navy Exchange Store.

According to the Bill of Information, between November 12, 2011, and December 18, 2011, CHESTNUT wrote 43 worthless checks, totaling $20,549.36, to two Naval Exchange Stores in Florida.  CHESTNUT used the worthless checks to purchase clothing, household items, pre-paid Visa cards, and other personal items.

If convicted, CHESTNUT faces a maximum prison term of 10 years, to be followed by 3 years of supervised release, and $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 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 are in charge of the prosecution.

Sylvia Chestnut Bill of Information

U.S. Attorney Kenneth A. Polite announced that RICKEY COLEMAN, age 26, of Meraux, pled guilty yesterday to one count of conspiring to falsify ATF records related to the purchase of a firearm.

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

COLEMAN faces a sentence of up to five years in prison, followed by up to three years of supervised release, and up to $250,000 in fines.  U.S. District Judge Sarah S. Vance set sentencing for August 5, 2015.

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

Rickey Coleman Factual Basis

WASHINGTON – Today, three additional defendants pleaded guilty in connection with a sex trafficking scheme operated out of the Riviera Motel in New Orleans, Louisiana, which compelled multiple women to engage in prostitution in New Orleans and elsewhere, announced Principal Deputy Assistant Attorney General Vanita Gupta of the Justice Department’s Civil Rights Division and U.S. Attorney Kenneth Allen Polite Jr. of the Eastern District of Louisiana.

Defendants Duane Phillips, 29, and Christopher Williams, 30, both of whom are residents of Memphis, Tennessee, each pleaded guilty today to conspiring to commit sex trafficking of adult victims by force, fraud and coercion in New Orleans and elsewhere.  Defendant Anthony Ellis, 26, also of Memphis, pleaded guilty to one count of conspiring to commit sex trafficking of adult victims and one count of transportation for purposes of prostitution.

“The Department of Justice will not tolerate trafficking in human beings, and will continue to relentlessly pursue justice on behalf of vulnerable members of our society, whether they are migrants from beyond our borders or whether they are young women from our own communities,” said Principal Deputy Assistant Attorney General Gupta.  “We will continue in our steadfast determination to hold accountable those who use force and coercion to exploit other human beings.”

“These defendants recruited vulnerable victims from the New Orleans community and brought other victims to New Orleans to engage in commercial sex trafficking,” said U.S. Attorney 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 who manipulate victims into committing commercial sex acts and profit from this illegal conduct.”

“This investigation and prosecution should serve as a clear reminder to all those individuals engaged in the heinous crime of sex trafficking 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 Division.

“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 Homeland Security Investigations’ (HSI) New Orleans Field Office.  “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.”

Two defendants have previously pleaded guilty in connection with the case.  On June 25, 2014, defendant Zacchaeus Taylor pleaded guilty to sex trafficking conspiracy and to Transportation for Purposes of Prostitution.  On March 4, 2015, Laquentin Brown pleaded guilty to the same charges.  Each face a maximum of five years on the conspiracy count and a maximum of 10 years on the transportation for prostitution count.

On Oct. 3, 2014, a grand jury in the Eastern District of Louisiana returned a Second Superseding Indictment charging defendants Phillips, Williams and Ellis, along with additional defendants Granville Robinson and Laquentin Brown, with sex trafficking conspiracy and varying counts of sex trafficking and transportation for prostitution.  The Second Superseding Indictment also charged defendant Kanubhai Patel, who was the former owner of the Riviera Motel, with benefitting financially from the sex trafficking conspiracy.  Defendant Taylor was charged separately on March 28, 2014.  Of the seven defendants charged in connection with the sex trafficking scheme, five have entered guilty pleas.  An indictment is merely an accusation and defendants are innocent until proven guilty beyond a reasonable doubt.

During their respective plea hearings and in their respective court filings, defendants Phillips, Williams and Ellis admitted that they, along with co-defendants Robinson and Brown, all of whom are from Memphis, conspired to recruit, groom, force, compel and coerce adult women to engage in prostitution, enforcing rules and means of control that included requiring the women to earn a certain amount of money each day, requiring them to turn over the proceeds and prohibiting them from speaking to or looking at other pimps.  Williams admitted intentionally trying to impregnate women to make it harder for them to leave him, while some of the other defendants took the victims’ identification cards and documents.  To enforce the rules, Phillips, Williams and Ellis each admitted that they and their co-conspirators used a variety of punishments, including withholding food, forcing the victims to engage in additional commercial sex acts, as well as physical assaults.  Williams noted that he attempted to avoid visible bruising so that the victims would not draw the attention of the police or scare off prospective customers.  Phillips, Williams and Ellis each admitted that they and their co-conspirators consulted one another on means of furthering their pimping activities, and would monitor each other’s victims when a co-conspirator was incarcerated.  Phillips, Williams, Ellis and the other co-conspirators frequently stayed at the Riviera Motel because they knew that the hotel staff would not stop them from pimping women.

At sentencing, defendant Ellis faces a maximum sentence of 10 years on the transportation for prostitution charge and a maximum sentence of five years on the conspiracy charge.  Defendants Phillips and Williams each face a maximum sentence of life imprisonment for the sex trafficking conspiracy.

This case was investigated jointly by agents from the New Orleans Field Offices of the Federal Bureau of Investigation (FBI) and Department of Homeland Security (DHS), 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.

Duane Phillips Factual Basis      Christopher Williams Factual Basis        Anthony Ellis Factual Basis

U.S. Attorney Kenneth A. Polite announced that JOEL CANUL-CAUICH, age 26, a citizen of Mexico, was sentenced today after previously pleading guilty to a one-count Bill of Information for illegal reentry of a removed alien.

U.S. District Judge Lance M. Africk sentenced CANUL-CAUICH to time served and a $100 special assessment.   CANUL-CAUICH will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.

According to court documents, on or about January 20, 2015, CANUL-CAUICH was found in the United States after having been officially deported and removed on or about April 20, 2010.

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 HOWARD GREGOR, age 52, a resident of Attica, Ohio, was charged today in a two-count Bill of Information for mail and wire fraud.

According to court documents, from November 3, 2008, through on or about April 19, 2013, GREGOR worked for Company A, a New Orleans based company that manufactures conveyor belts for use in food processing and packaging facilities.  Company A employed GREGOR as an account manager.  His sales work required him to travel frequently and incur business-related expenses.  Company A had a policy that allowed account managers to submit expense reports for reimbursement of actual out-of-pocket business expenses.  Rather than submitting expense reports for actual expenses, GREGOR devised a scheme and artifice to defraud Company A by creating inflated and fictitious items to put on his expense report to cause Company A to pay him for expenses that he did not actually incur.  GREGOR submitted these expense reports via U.S. mail and electronic mail.  In all, GREGOR caused Company A to reimburse him for nearly $300,000 of expenses that he did not actually incur, causing a loss to the company.

If convicted, GREGOR faces a maximum term of imprisonment of 20 years, followed by five years of supervised release, and a fine of $250,000, as to each of Counts 1 and 2. 

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 and the United States Postal Inspection Service in investigating this matter.  Assistant United States Attorney Sharan Lieberman is in charge of the prosecution.

Howard Gregor Bill of Information

U.S. Attorney Kenneth A. Polite announced that DARIUS WILLIAMS, age 23, a resident of New Orleans, was sentenced yesterday 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 WILLIAMS to 156 months imprisonment, to be followed by five years of supervised release.

WILLIAMS 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, WILLIAMS 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 stated, “This is just another example of how serious the federal government is in helping turn the tide of violence that is occurring in New Orleans.  These local gangs have caused serious harm to the neighborhoods of this City, and the federal government will continue to work with local authorities to bring these individuals to justice.”

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

U.S. Attorney Kenneth A. Polite announced that BRANDON WATKINS, age 31, a resident of Hammond, was sentenced today after having previously pled guilty to distribution of cocaine and possession and sale of a stolen firearm by a convicted felon.

U.S. District Judge Kurt D. Engelhardt sentenced WATKINS to 162 months of incarceration, to be followed by 3 years of supervised release.

According to court documents, in September and October 2012, WATKINS sold quantities of cocaine and four stolen firearms to an undercover law enforcement agent.  Additionally, on July 17, 2013, WATKINS sold oxycodone pills to an undercover law enforcement agent.

Court records revealed that WATKINS was convicted on or about April 24, 2009, of unauthorized entry of an inhabited dwelling in Tangipahoa Parish.  As such, he was prohibited from possessing firearm by both state and federal law.

U.S. Attorney Polite praised the work of the Tangipahoa Parish Sheriff’s Office, Hammond Police Department, and the ATF New Orleans Division Office in investigating this matter.  Assistant United States Attorney Nolan D. Paige was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that LEONID DJUGA, a/k/a “Leonid Dzhuga,” age 37, of Reseda, California, pleaded guilty today, to one count of conspiracy to distribute and to possess with the intent to distribute 500 grams or more of methamphetamine.

According to court documents, in June 2014, St. Bernard Parish Sheriff’s Office (SBSO) deputies investigating methamphetamine distribution in Arabi, Louisiana, arrested two men who were selling methamphetamine on West Judge Perez Drive. Through their investigation, deputies learned that their source of methamphetamine was DJUGA, a resident of Reseda.  SBSO deputies coordinated with agents from the Drug Enforcement Administration (DEA) New Orleans Field Office, and between June 26th and 27th, 2014, federal agents and SBSO deputies intercepted four packages containing methamphetamine being mailed through Federal Express to Arabi.  In total, the four packages contained over one kilogram of methamphetamine.  According to DEA laboratory analysts, the methamphetamine in all four packages had a purity level of over 99%, with one shipment testing as 100% pure methamphetamine.

On July 15, 2014, DEA agents, assisted by Los Angeles Police Department officers and a St. Bernard Parish Sheriff’s deputy, arrested DJUGA at his residence in Reseda, pursuant to a federal arrest warrant.  At DJUGA’S residence, agents located plastic bottles that were similar to the bottles used to package the methamphetamine that was seized in Louisiana.  Agents also seized from DJUGA’S office a notebook that appeared to be a drug ledger; a receipt for a package being shipped to Arabi; and three cellular telephones.  Agents also located a BMW that was registered to DJUGA.  In the trunk of the car, agents found a box cutter with residue.  The residue was field tested which resulted in a presumptive positive result for the presence of methamphetamine.  A subsequent search of DJUGA’S cellular phones pursuant to a warrant revealed text messages discussing shipments of packages to Louisiana and a photograph of a FedEx tracking label destined for Louisiana.

DJUGA faces a mandatory minimum term of 10 years and a maximum of life imprisonment, a $10 million fine, and at least five years of supervised release.  U.S. District Judge Lance M. Africk set sentencing for July 23, 2015.

U.S. Attorney Polite praised the work of the St. Bernard Parish Sheriff’s Office with the Drug Enforcement Administration in investigating this matter and thanked the District Attorney’s Office for Louisiana’s 34th Judicial District, the DEA Los Angeles Field Office, and the Los Angeles Police Department for providing assistance.  Assistant United States Attorneys Matthew Payne and Brandon Long are in charge of the prosecution.

Leonid Djuga Factual Basis

WASHINGTON – Seven Tangipahoa Parish, Louisiana, residents were indicted today on charges of conspiracy to defraud the United States, theft of public money, mail fraud, aggravated identity theft and conspiracy to commit money laundering, 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 the indictment, the defendants conspired to file false income tax returns using stolen identities and then launder the resulting fraudulent tax refunds.

The indictment charges Corey Lewis aka Coco, 37, Angela Chaney, 43, Cedrick Mitchell aka Skeet, 39, Craig Lewis, 40, Brad Lewis aka Bird, 32, Thaddeus Richardson, 49, and Martin Jackson Sr., 48, with conspiracy to defraud the United States, conspiracy to commit money laundering, conspiracy to commit mail fraud and conspiracy to commit theft of public money.  In addition, Corey Lewis, Chaney, Richardson and Jackson Sr. were charged with various counts of theft of public money.  Chaney was also charged with six counts of mail fraud and five counts of aggravated identity theft.  Corey Lewis was additionally charged with three counts of aggravated identity theft.

According to the allegations in the indictment, the defendants used individuals’ names and social security numbers in order to prepare false tax returns that claimed large tax refunds.  The refund checks were mailed to addresses in Louisiana, including to post office boxes that were opened by members of the conspiracy.  Once the tax refund checks were received, members of the conspiracy falsely endorsed the checks and cashed them.  Corey Lewis, Chaney and Mitchell deposited fraudulently obtained U.S. Treasury checks into bank accounts under their control.  Richardson and Jackson Sr. deposited checks into their business accounts, then provided some of the proceeds to their co-conspirators and kept the remaining proceeds for themselves.

If convicted, the defendants each face a statutory maximum sentence of 20 years in prison for each mail fraud count and each money laundering conspiracy charge, a statutory maximum sentence of 10 years in prison for each theft of public money count, a statutory maximum sentence of five years in prison for each conspiracy count, and a mandatory minimum sentence of two years in prison for each count of aggravated identity theft.  The defendants also face potential fines, forfeiture 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.

The charges contained in the indictment are only allegations.  A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

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

Corey Lewis et al Indictment

 

U.S. Attorney Kenneth A. Polite announced that JASON C. DOYLE, age 38, of New Orleans, was charged today in a Bill of Information with one count of Wire Fraud and one count of 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. 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 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 C. Doyle Bill of Information