Eastern District of Louisiana

U.S. Attorney Kenneth Allen Polite, Jr. announced the return of an Indictment today charging ROBERT DURST, age 71, with the crime of being a felon in possession of a firearm.

The Indictment charges that DURST, on or about March 14, 2015, unlawfully possessed a Smith and Wesson .38 caliber revolver, after having previously being convicted of crimes punishable by imprisonment for a term exceeding one year, to wit: two convictions in 2004, in case number 04-667 in the Eastern District of Pennsylvania, for, respectively, possessing a firearm while under indictment, in violation of 18 U.S.C. § 922(n), and possessing a firearm while a fugitive from justice, in violation of 18 U.S.C. § 922(g)(2).  The potential sentence in this case is a maximum 10 years incarceration in the Bureau of Prisons, a fine of $250,000, a maximum of three years of supervised release, and $100 special assessment fee.

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

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter.  Assistant United States Attorneys Myles Ranier and Michael McMahon are in charge of the prosecution.

Robert Durst Indictment

U.S. Attorney Kenneth A. Polite announced that LUIS ADALBERTO MORADIAGA, age 44, a citizen of El Salvador, was charged today in a one-count Indictment with illegal reentry of a removed alien.

According to the indictment, MORADIAGA reentered the United States after having been previously deported on August 25, 2000.  If convicted, MORADIAGA 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.

Luis Adalberto Moradiaga Indictment

U.S. Attorney Kenneth A. Polite announced that GIE PRESTON, age 39, and EMANUAL CASAME, age 26, both residents of New Orleans, were sentenced today for federal drug and gun violations. PRESTON was convicted by a federal jury in November 2014 of conspiring to distribute and possess with intent to distribute 280 grams or more of cocaine base “crack,” being a convicted felon in possession of firearms, conspiring to possess a firearm in furtherance of a drug trafficking crime, use of a communication facility in furtherance of a drug trafficking crime, and for possession of a firearm in furtherance of a drug trafficking crime.  CASAME pled guilty to conspiring to distribute and possess with intent to distribute 280 grams or more of cocaine base “crack.”

U.S. District Judge Stanwood R. Duval, Jr. sentenced PRESTON to 228 months incarceration; 168 months for the various drug and gun violations and 60 consecutive months for possession of a firearm in furtherance of a drug trafficking crime, to be followed by five years of supervised release.  CASAME was sentenced to 60 months incarceration, to be followed by five years of supervised release.

U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives as part of the metro area’s Multi-Agency Gang Unit (MAG) in investigating this case.  As an integral component of NOLA FOR LIFE’s Group Violence Reduction Strategy, the MAG Unit consists of a partnership with New Orleans Police Department (NOPD); Orleans Parish District Attorney’s Office (DA); Orleans Parish Sheriff’s Office (OPSO); Louisiana State Police (LSP); Parole Board of the Louisiana Department of Corrections; United States Attorney’s Office (USAO); Federal Bureau of Investigation (FBI); Drug Enforcement Administration (DEA); United States Marshal’s Service (USMS); and the United States Probation & Parole Office for the Eastern District of Louisiana.  Assistant U.S. Attorneys Sean Toomey and Andre Lagarde were in charge of prosecuting this matter.

U.S. Attorney Kenneth A. Polite announced the return of a Superseding Indictment charging Houston Police Officer NOE JUAREZ, 46, and Mexican citizen SERGIO GRIMALDO, 32, with conspiracy to distribute five kilograms or more of cocaine hydrochloride.  JUAREZ is additionally charged with conspiracy to possess firearms in furtherance of a drug trafficking offense.  The Superseding Indictment was returned on April 2, 2015 and recently unsealed.  This Superseding Indictment is a product of an ongoing investigation.  Both defendants are presently in custody.

If convicted of conspiracy to distribute cocaine, each defendant faces a sentence of ten years to life imprisonment, followed by a minimum of five years of supervised release, and a $10,000,000 fine.  If convicted of conspiracy to possess a firearm in furtherance of drug trafficking, JUAREZ faces a maximum of twenty years imprisonment, followed by a maximum of three years of supervised release, and a $250,000 fine.

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 (“DEA”) offices in New Orleans and Houston, the Federal Bureau of Investigation (“FBI”) in Houston, and the Houston Police Department Internal Affairs Division in investigating this matter and thanked the U.S. Attorney’s Office for the Southern District of Texas for their assistance.  Assistant United States Attorney John F. Murphy is in charge of the prosecution.

Superseding Indictment - Noe Juarez and Sergio Grimaldo

U.S. Attorney Kenneth A. Polite announced that FRANCISCO MUNOZ, age 26, 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 Susie Morgan sentenced MUNOZ to time served, and a $100 special assessment.  MUNOZ will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.

According to court documents, on or about May 6, 2013, MUNOZ  was able to obtain a Louisiana driver’s license from the Office of Motor Vehicles by using a social security number that did not belong to him.

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

U.S. Attorney Kenneth A. Polite announced that JOSE LEMUS-HERNANDEZ, age 28, 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 Susie Morgan sentenced LEMUS-HERNANDEZ to time served, followed by one year of supervised release, and a $100 special assessment.  LEMUS-HERNANDEZ will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.

According to court documents, on or about October 30, 2014, LEMUS-HERNANDEZ was found in the United States after having been officially deported and removed on or about April 16, 2012.

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

U.S. Attorney Kenneth A. Polite announced that NELSON FLORES-CRUZ, age 31, 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 Martin L. C. Feldman sentenced FLORES-CRUZ to 45 months imprisonment, followed by 3 years of supervised release, and a $100 special assessment. Upon release from incarceration, FLORES-CRUZ 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 12, 2014, NELSON FLORES-CRUZ was found in the United States after having been officially deported and removed on or about July 11, 2008. 

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

U.S. Attorney Kenneth A. Polite announced that EFREN FLORES-MELCHOR, age 40, a Mexican 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 Jay C. Zainey sentenced FLORES-MELCHOR to five months imprisonment followed by one year of supervised release, and a $100 special assessment.  Following his incarceration, FLORES-MELCHOR will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.

According to court documents, on or about November 7, 2014, St. Charles Parish deputies arrested FLORES-MELCHOR for Driving While Intoxicated. The deputies then contacted agents of the U.S. Immigration and Customs Enforcement, who discovered that FLORES-MELCHOR was a Mexican national who had been deported from the United States on three previous occasions.  Agents also learned that FLORES-MELCHOR had amassed three DWI convictions while he was illegally present in the United States.  ICE agents arrested FLORES-MELCHOR and placed an immigration hold on him.

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 DELORES TROUILLET, age 58, of Waggaman, was charged today in a one-count Bill of Information with wire fraud.

According to the Bill of Information, from 1999 to 2014 TROUILLET was employed by a carpet, flooring, and drapery sales and installation company (“Company A”) headquartered in Gretna, Louisiana, 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 various 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.

If convicted, 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. 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 United States Secret Service and investigators with the Jefferson Parish Sheriff’s Office in investigating this matter.  Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.

Delores Trouillet Bill of Information

U.S. Attorney Kenneth A. Polite announced that DARNELL REED, age 40, of New Orleans, pled guilty today to two counts of criminal copyright infringement.

According to court documents, Special Agents from the United States Homeland Security Investigations, Investigators from the Louisiana Department of Justice/Attorney General Investigations Division (LDOJ/AG) and an investigator from the Recording Industry Association of America, Inc. (RIAA) and the Motion Picture Association of America (MPAA) conducted a controlled buy from REED, who was in a parking lot in the 1100 block of Elysian Fields Avenue. The investigator approached REED and inquired about a purchase of a movie DVD and music CDs. The DVDs and CDs were displayed in the rear of REED’s vehicle, which also hung a handwritten sign showing “3 FOR $10” and “7 FOR $20.”  The investigator purchased one music CD and two movie DVDs from REED for the sum of $10. The investigator examined the DVDs and CD and determined that they were counterfeit.  Law enforcement agents seized approximately 7,187 counterfeit DVDs and 7,315 counterfeit CDs from REED’s vehicle.

On each count, REED 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 Carl J. Barbier set sentencing  July 9, 2015.

U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Homeland Security Investigations and Investigators from the Louisiana Department of Justice, Attorney General in investigating this matter.  Assistant United States Attorney Loan "Mimi" Nguyen is in charge of the prosecution.

Darnell Reed Factual Basis

U.S. Attorney Kenneth A. Polite announced that DARNELL REED, age 40, of New Orleans, pled guilty today to two counts of criminal copyright infringement.

According to court documents, Special Agents from the United States Homeland Security Investigations, Investigators from the Louisiana Department of Justice/Attorney General Investigations Division (LDOJ/AG) and an investigator from the Recording Industry Association of America, Inc. (RIAA) and the Motion Picture Association of America (MPAA) conducted a controlled buy from REED, who was in a parking lot in the 1100 block of Elysian Fields Avenue. The investigator approached REED and inquired about a purchase of a movie DVD and music CDs. The DVDs and CDs were displayed in the rear of REED’s vehicle, which also hung a handwritten sign showing “3 FOR $10” and “7 FOR $20.”  The investigator purchased one music CD and two movie DVDs from REED for the sum of $10. The investigator examined the DVDs and CD and determined that they were counterfeit.  Law enforcement agents seized approximately 7,187 counterfeit DVDs and 7,315 counterfeit CDs from REED’s vehicle.

On each count, REED 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 Carl J. Barbier set sentencing  July 9, 2015.

U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Homeland Security Investigations and Investigators from the Louisiana Department of Justice, Attorney General in investigating this matter.  Assistant United States Attorney Loan "Mimi" Nguyen is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that KIM PARISH, age 51, a resident of Picayune, Mississippi, was sentenced yesterday after previously pleading guilty to a two-count Bill of Information charging her with wire fraud and bank fraud.

U.S. District Judge Sarah S. Vance sentenced PARISH to 40 months imprisonment, followed by three years of supervised release, and full restitution in the amount of $540,201.

According to court documents, for approximately four years, PARISH, in her position as an accountant for a local information technology service business, defrauded the business through two schemes. The first scheme involved PARISH issuing more than 200 checks to herself and to “petty cash” by forging the signature of the business’s owner. The second scheme involved PARISH improperly crediting herself with bonus pay through the business’s payroll system. PARISH took a variety of steps to conceal the schemes and defrauded the business of approximately $540,201.

U.S. Attorney Polite praised the work of the Defense Criminal Investigative Service, the Naval Criminal Investigative Service, and the U.S. Marshals Service. Assistant United States Attorney Chandra Menon was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that CHRISTIE ROBINSON, 39, of LaPlace, was charged today in a four-count Indictment with filing false statements on tax returns and three counts of aggravated identity theft.

According to the Indictment, ROBINSON is the owner and operator of a tax return preparation business in Kenner called CRR Services, LLC.  ROBINSON received fees charged for the preparation of these individuals' tax returns.  ROBINSON failed to include all of the substantial fees she received for income tax return preparation.  In 2007, she declared $80,000 in fees and failed to disclose $195,000.  In 2009, she disclosed $100,000 but failed to include an additional $67,000.  In 2010, she declared $71,000 but failed to declare $149,000.  Finally, in 2011 she declared $170,000 but excluded $60,000.  For the four tax years (2007, 2009, 2010, and 2011), ROBINSON failed to disclose a total of $471,000 in income.

In the final three counts of the Indictment, ROBINSON is charged with aggravated identity theft for electronically filing three tax returns using individuals’ names, dates of birth and social security numbers without their permission.

If convicted on the tax charges, ROBINSON faces a possible maximum sentence of three years imprisonment, on each count and/or a fine of $100,000 and up to three years of supervised release, as well as having to reimburse the United States for the cost of the investigation.

If convicted on the aggravated identity theft, ROBINSON faces two years incarceration per count consecutive to any sentence she would receive on the tax counts, $250,000 fine, restitution to the victims, and three years supervised release.

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

Jerome R. McDuffie, Acting Special Agent in Charge of Internal Revenue Service Criminal Investigation stated: “We are pleased with today's announcement regarding the indictment of Ms. Robinson.  The tax system is built on the premise that taxpayers file accurate and timely tax returns.  Our office will continue to work with the U.S. Attorney’s Office in the aggressive pursuit and prosecution of individuals who intentionally violate the nation's laws. Identity theft and the submission of false income tax returns are serious crimes that will be vigorously pursued by our agency."

U.S. Attorney Polite praised the work of the Internal Revenue Service, Criminal Investigation Division in investigating this matter.  Assistant United States Attorney Carter K. D. Guice, Jr. of the Fraud Unit is in charge of the prosecution.

Christie Robinson Indictment

U.S. Attorney Kenneth A. Polite announced that CYNTHIA HEFLER, age 67, of Westwego, was sentenced today after previously pleading guilty to a one-count Bill of Information for conspiring to commit bank fraud.

U.S. District Judge Kurt D. Engelhardt sentenced HEFLER to 5 years of probation and ordered her to pay $16,851 in restitution.

According to court documents, HEFLER, worked as the office manager for A & H Armature Works, Inc.  In her capacity as office manager, HEFLER handled the company’s accounts receivable and embezzled from the company business bank accounts at First American Bank.  HEFLER conspired with another person to steal the company’s funds in order to help pay off her credit card debt accrued through gambling.

The case was investigated by the United States Secret Service, New Orleans Field Division and prosecuted by Assistant United States Attorney Loan A "Mimi" Nguyen.

U.S. Attorney Kenneth A. Polite announced that ESMIN ESPINOZA-ERAZO, age 25, a citizen of Honduras who resides in Hammond, pled guilty today to a one-count Indictment for illegal use of a Social Security Number (“SSN”).

According to the Indictment, on or about July 16, 2013, ESPINOZA-ERAZO submitted a SSN 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 ESPINOZA-ERAZO a Louisiana identification card.

ESPINOZA-ERAZO faces a maximum term of imprisonment of not more than five years, a fine of $250,000, and a mandatory special assessment of $100.00. Additionally,  ESPINOZA-ERAZO is also subject to a period of supervised release after imprisonment of up to three years. U.S. District Judge Kurt D. Engelhardt set sentencing for July 8, 2015.

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

U.S. Attorney Kenneth A. Polite announced that TONY AXELL ROMERO-MONTOYA, age 28, a citizen of Honduras, pled guilty today to a one-count Indictment charging him with illegal reentry into the United States.

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

U.S. District Judge Sarah S. Vance set sentencing in this matter for May 13, 2015.

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

Tony Axell Romero-Montoya Factual Basis

U.S. Attorney Kenneth A. Polite announced that DENYS JAVIER BENITEZ-FERNANDEZ, age 31, a citizen of Honduras, pled guilty to a one-count Indictment charging him with illegal reentry into the United States.

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

U.S. District Judge Sarah S. Vance set sentencing for May 13, 2015.

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

Denys Benitez-Fernandez Factual Basis

U.S. Attorney Kenneth A. Polite announced that ALVARO D. CAMPOS, age 39, a citizen of Guatemala, was sentenced today 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 CAMPOS to 7 months incarceration, followed by one year of supervised release, and a $100 special assessment.  Following incarceration, CAMPOS will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.

According to court records, on or about October 1, 2014, CAMPOS was found in the United States after having been officially deported and removed on three prior occasions, most recently on or about November 14, 2013. 

U.S. Attorney Polite praised the work of the United States Border Patrol in investigating this matter.  Assistant United States Attorney Rick Veters was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that ALVARO D. CAMPOS, age 39, a citizen of Guatemala, was sentenced today 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 CAMPOS to 7 months incarceration, followed by one year of supervised release, and a $100 special assessment.  Following incarceration, CAMPOS will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.

According to court records, on or about October 1, 2014, CAMPOS was found in the United States after having been officially deported and removed on three prior occasions, most recently on or about November 14, 2013.

U.S. Attorney Polite praised the work of the United States Border Patrol in investigating this matter.  Assistant United States Attorney Rick Veters is 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, was charged today in a one-count Bill of Information for falsely labeling shrimp that it sold to a New Orleans seafood distributor in violation the Federal Lacey Act.

According to the Bill of Information, on or about October 9, 2012, GARCIA SHRIMP purchased 35,000 pounds of Mexican shrimp from Mexican businessmen.  After taking receipt of the shrimp, company personnel removed Mexico labels from the packages and attached new tags indicating that the shrimp was caught in U.S. waters.  Company personnel also created false records and bills of lading to make it appear that the shrimp was caught by a U.S. flagged fishing vessel.  On or about October 12, 2012, GARCIA SHRIMP sold the shrimp to a New Orleans based seafood distributor for $120,800.

If convicted, GARCIA SHRIMP CO., LLC faces a maximum fine of $500,000 and an organizational probationary term of five years. 

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 U.S Department of Commerce NOAA Office of Law Enforcement, in investigating this matter.  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.

U.S. Attorney Kenneth A. Polite announced that TERENCE TAYLOR, age 36; ARTHUR MCKINNIS, age 24; NOEL JONES, age 27; TERRELL DYER, age 30; PERCY DEPRON, age 28; ERNEST DIAZ, age 25; MALCOLM BOLDEN, age 20; TERRELL DAVIS, age 24; and MELVIN SMITH, age 30, all pled guilty today to an Indictment for conspiring to distribute one kilogram or more of heroin in the New Orleans area.  TAYLOR and BOLDEN also pled guilty to distribution of heroin resulting in an overdose death.  Two additional defendants, NARCISSE TROTTER, age 43, and AARONISHA LEWIS, age 26, also pled guilty to charges of using telephones in furtherance of the conspiracy.

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

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

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

U.S. District Judge Kurt D. Engelhardt scheduled sentencing for June 24, 2015, as to all eleven defendants.  TAYLOR and BOLDEN will face a sentence of twenty years to life in connection with the overdose death and a sentence of ten years to life regarding the conspiracy.  MCKINNIS, JONES, DYER, DEPRON, DIAZ, DAVIS, and SMITH each face a sentence of ten years to life for their roles in the heroin conspiracy.  TROTTER’s and LEWIS’s charges carry a sentence of up to four years per count.  Trial as to the remaining defendant, THEODORE GRIFFIN, is scheduled for May 4, 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.

U.S. Attorney Kenneth A. Polite announced that TERENCE TAYLOR, age 36; ARTHUR MCKINNIS, age 24; NOEL JONES, age 27; TERRELL DYER, age 30; PERCY DEPRON, age 28; ERNEST DIAZ, age 25; MALCOLM BOLDEN, age 20; TERRELL DAVIS, age 24; and MELVIN SMITH, age 30, all pled guilty today to an Indictment for conspiring to distribute one kilogram or more of heroin in the New Orleans area.  TAYLOR and BOLDEN also pled guilty to distribution of heroin resulting in an overdose death.  Two additional defendants, NARCISSE TROTTER, age 43, and AARONISHA LEWIS, age 26, also pled guilty to charges of using telephones in furtherance of the conspiracy.

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

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

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

U.S. District Judge Kurt D. Engelhardt scheduled sentencing for June 24, 2015, as to all eleven defendants.  TAYLOR and BOLDEN will face a sentence of twenty years to life in connection with the overdose death and a sentence of ten years to life regarding the conspiracy.  MCKINNIS, JONES, DYER, DEPRON, DIAZ, DAVIS, and SMITH each face a sentence of ten years to life for their roles in the heroin conspiracy.  TROTTER’s and LEWIS’s charges carry a sentence of up to four years per count.  Trial as to the remaining defendant, THEODORE GRIFFIN, is scheduled for May 4, 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.

U.S. Attorney Kenneth A. Polite announced that CHHAY LIM, age 44, a citizen of Cambodia, was charged today in a two-count Indictment for violations of the Federal Gun Control Act.

According to the Indictment, on or about March 2, 2015, LIM, an alien present illegally in the United States, was found in possession of a TriStar 9mm semi-automatic pistol and a Marlin Model 6082 .22 caliber rifle.

If convicted of these charges, LIM faces a maximum term of imprisonment of ten years, a fine of $250,000, three years supervised release after imprisonment, and a $100 special assessment.

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 is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that CHHAY LIM, age 44, a citizen of Cambodia, was charged today in a two-count Indictment for violations of the Federal Gun Control Act.

According to the Indictment, on or about March 2, 2015, LIM, an alien present illegally in the United States, was found in possession of a TriStar 9mm semi-automatic pistol and a Marlin Model 6082 .22 caliber rifle.

If convicted of these charges, LIM faces a maximum term of imprisonment of ten years, a fine of $250,000, three years supervised release after imprisonment, and a $100 special assessment.

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 is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that JAMIE PLAISANCE, age 38, of Raceland, was indicted today for possession of child pornography.

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

Court records also revealed that PLAISANCE has a prior federal conviction for possession of child pornography.

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.

Due to his prior conviction, if convicted, PLAISANCE faces a mandatory minimum penalty of ten years imprisonment up to twenty years, followed by up to a life term of supervised release, and a $250,000.00 fine.

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

U.S. Attorney Polite praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations in investigating this matter.  Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that JOHNNY BAHAM, age 53, of Mandeville, was indicted today for theft of mail.

According to the Indictment, BAHAM was employed as a contract letter carrier in Mandeville, Louisiana.  A federal investigation revealed that in December 2014, BAHAM stole first class mail containing two $75.00 Master Card gift cards from his mail route.

If convicted, BAHAM faces a maximum penalty of five years imprisonment, followed by up to three years of supervised release, and a $250,000 fine.

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

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

U.S. Attorney Kenneth A. Polite announced that GAIL TEAGUE, 48, of New Orleans, pled guilty yesterday to defrauding Ochsner Federal Credit Union in connection with the theft of funds during her employment.

According to the Bill of Information, TEAGUE was employed by Ochsner Federal Credit Union, first as a part-time employee and subsequently as office manager at the credit union from approximately 2000 until approximately May 2013.  TEAGUE admitted to stealing $34,000 by creating a fraudulent loan.  Specifically, in or around January, 2013, TEAGUE created a fictitious loan in the name “William Morris.”  This loan was disbursed in the form of an official credit union check made payable to a local automobile dealership.  The check was redeposited into the credit union.  TEAGUE then withdrew $34,000 cash from the vault.  Credit Union auditors interviewed TEAGUE and she signed a hand written confession on May 17, 2013 acknowledging that she stole $34,000.

TEAGUE faces a possible maximum sentence of ten years imprisonment, and/or a fine of $250,000 and up to three years of supervised release.  U.S. District Judge Stanwood R. Duval, Jr. set sentencing for July 15, 2015.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the National Credit Union Administration in investigating this matter.  Assistant United States Attorney Carter K. D. Guice, Jr. of the Fraud Unit is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that KEITH JOSEPH MCGEE, age 31, of Gretna, was sentenced today for various charges of sexual exploitation of children.  In June 2014, a federal jury found MCGEE guilty of 3 counts, specifically:  attempting to coerce a minor to produce images of sexually explicit conduct;  receiving sexually explicit images of a 14-year-old boy; and receiving sexually explicit images from a 15-year old boy.

U.S. District Judge Jay C. Zainey sentenced MCGEE to 180 months imprisonment, to be followed by 5 years of supervised release.

According to evidence introduced in trial, MCGEE, formerly a foreign language teacher at several Catholic high schools, posted numerous personal advertisements on an online classified advertisement website designed seeking sexual interactions with “young teens” and “Catholic high school boys.”  Additionally, between January 29, 2013, and February 11, 2013, MCGEE corresponded with two actual minors and an undercover FBI agent posing as a minor by e-mail, text message, and on smartphone social media applications.  During those correspondences, MCGEE confirmed that each person was a minor and then repeatedly encouraged and enticed them to provide him with sexually explicit pictures.  In addition to seeking sexually explicit pictures, MCGEE attempted to arrange sexual liaisons with the boys, including driving to the home of the 15-year-old boy at around 2:00 a.m.  Additionally, evidence introduced at trial indicated that MCGEE engaged in sexually explicit conversations and exchanged sexually explicit pictures with approximately six other minors who have not been identified.

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

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter.   Assistant United States Attorneys Jordan Ginsberg and Patrice Harris Sullivan were in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that STEPHEN FARRELL, age 25, of Metairie, was sentenced today after having previously pled guilty to possession of a firearm by a convicted felon.

U.S. District Judge Jane Triche Milazzo sentenced FARRELL to 68 months of incarceration, to be followed by 3 years of supervised release.

According to court documents, on May 8, 2013, Jefferson Parish Sheriff’s Office detectives searched FARRELL’s residence located at 705 Central Avenue in Metairie.  During the search, detectives found a loaded Taurus International .380 caliber firearm and ammunition.

Court records revealed that FARRELL was convicted on or about February 6, 2007, of attempted armed robbery in the 24th Judicial District Court in Jefferson Parish.  As such, he was prohibited from possessing firearms by both state and federal law.

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

U.S. Attorney Kenneth A. Polite announced that PATRICIA BLANCHARD, age 67, formerly of New Orleans, pled guilty yesterday to mail fraud for her role in embezzling approximately $715,000 from Community Health Charities of Louisiana and Mississippi (“CHC”).

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

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

BLANCHARD faces a maximum term of imprisonment of twenty years in prison, three years of supervised release after any term of imprisonment, and a $250,000 fine.  As part of her plea, BLANCHARD also agreed to repay CHC for the amount she stole, $715,000.  U.S. District Judge Jane Triche Milazzo set sentencing on June 25, 2015.

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

U.S. Attorney Kenneth A. Polite announced that ANDREA HOBGOOD, age 36, of Slidell, was sentenced today, having pled guilty to embezzlement of union funds. HOBGOOD had been a union’s office manager and, on more than 100 occasions, failed to deposit members’ dues payments into the union’s bank account and instead kept and spent the money for herself.

U.S. District Judge Helen G. Berrigan sentenced HOBGOOD to 5 years probation and ordered her to pay restitution.

U.S. Attorney Polite praised the work of the U.S. Department of Labor’s Office of Labor-Management Standards in investigating this matter. Assistant United States Attorney Chandra Menon was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that ERIC SAMUEL MOTINO-ALVAREZ, age 26, a citizen of Honduras, pled guilty today to a one-count Indictment for illegal reentry of a removed alien.

According to the Indictment, on or about January 29, 2015, MOTINO-ALVAREZ was found in the United States after having been officially deported and removed on or about October 2, 2009. 

MOTINO-ALVAREZ faces a maximum term of imprisonment of two years, 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 May 20, 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.

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

According to the Bill of Information, 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.

If convicted, 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. 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 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.

U.S. Attorney Kenneth A. Polite announced that TIMOTHY MONAHAN, age 36, a real estate developer from San Diego, California, was sentenced today after previously pleading guilty to committing wire fraud.

U.S. District Judge Jane Triche Milazzo sentenced MONAHAN to one year and one day incarceration, followed by two years of supervised release.  Restitution to the Bolivar Investment Group, LLC in the amount of $140,525.19 was paid prior to sentencing.

According to court documents, in about late 2008, MONAHAN and his business partner,  “M.H.,” sought investors to invest approximately $3,000,000 for the acquisition of an approximately five-acre tract of land adjacent to the Lakeview Regional Medical Center in Covington, Louisiana, and the development of two office buildings on that land.  MONAHAN and M.H. convinced Bolivar Investors Group, L.L.C., an investment group organized by members of the Crescent River Port Pilots= Association, to invest the money.  In February 2009, MONAHAN, his partner, and Bolivar created a new entity, ANewtrac West,@ to facilitate the purchase and development.  As part of the agreement, Bolivar agreed to fund a $3,000,000 capital contribution to Newtrac West.  Shortly thereafter, MONAHAN and his business partner opened a bank account in the name of Newtrac West; while representatives of Bolivar were supposed to have access to the account, in truth only MONAHAN and M.H. had access.  Between January 20, 2009, and July 14, 2009, Bolivar made six deposits, including five by wire, into the Newtrac West bank account, totaling approximately $3,000,000.

Between January 20, 2009, and July 27 2009, MONAHAN used approximately $140,525.19 from the account without authorization to pay expenses and debts apart from and unrelated to the purchase or development of the land in Covington.

Subsequently, MONAHAN and M.H. devised a scheme to hide the misuse of funds.  Specifically, false financial and bank statements of Newtrac West, based on the real bank statements for the Newtrac West account, were created to hide the unauthorized withdrawal of funds and to deceive representatives of Bolivar into believing that Newtrac West was in excellent financial condition.  For example, while the Newtrac West account had a true balance of negative $29,292.45 on September 30, 2009, the doctored statement represented that the account had a balance of $826,512.92.

MONAHAN’S partner, M.H., was charged in the Eastern District of Louisiana in August 2013 for his role in the above-described scheme.  He pleaded guilty in the Southern District of California and was sentenced to twenty-four months in jail earlier this year.

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

U.S. Attorney Kenneth A. Polite announced that CAROLYN TREAUDO, age 54, of Marrero, pled guilty yesterday to theft of government funds.  TREAUDO admitted to stealing approximately $94,840 from the Federal Emergency Management Agency during 2009 and 2010.  The funds were administered by the Louisiana Governor’s Office of Homeland Security and Emergency Preparedness under a program to return disaster-affected locations, including schools, to pre-disaster conditions by reimbursing expenses and paying replacement costs.

According to court documents, TREAUDO obtained the funds by making false representations in connection with a property associated with her non-profit organization, Conquering Word Christian Academy.  TREAUDO represented that the location was a school prior to Hurricane Gustav, when, as she well knew, the location had not been registered as a school with the state prior to this disaster.  TREAUDO also intentionally and repeatedly submitted claims for reimbursement of fictitious expenditures and for replacement of fictitious supplies.  TREAUDO bolstered these claims with false invoices to make it appear as if she had spent funds on repairs and supplies when, as she well knew, these expenditures had not occurred.

TREAUDO faces up to ten years’ incarceration and a fine of up to $250,000.  U.S. District Judge Kurt D. Engelhardt set sentencing for June 24, 2015.

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

U.S. Attorney Kenneth A. Polite announced that ESWIN ESTUARDO MARTINEZ-REYES, age 42, a citizen of Guatemala, 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 Sarah S. Vance sentenced MARTINEZ-REYES to time served and a $100 special assessment.  MARTINEZ-REYES will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.

According to court documents, MARTINEZ-REYES was found in the United States on December 2, 2014, after having been officially deported and removed on or about June 7, 2013.

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 Spiro G. Latsis is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that JOSEPH J. MOGAN, III, M.D., age 48, formerly of New Orleans, and TIFFANY MILLER, age 43, of Metairie, were sentenced yesterday for conspiring to dispense prescription drugs illegally through “pill mill” clinics operated as Omni Pain Management in Metairie, Louisiana, and Omni Pain Management Plus in Slidell, Louisiana, and related money laundering charges.

U.S. District Judge Susie Morgan sentenced MOGAN and MILLER each to a term of imprisonment of 97 months, a term of supervised release of 3 years, a $200 special assessment, and asset forfeiture of criminal proceeds and property.

According to court documents, MOGAN and MILLER owned and operated the two clinics and conspired to prescribe narcotics and other controlled substances without a legitimate medical purpose and outside the bounds of professional medical practice to drug seekers and drug abusers.

U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter.  First Assistant United States Attorney Richard W. Westling and Assistant United States Attorneys Harry “Bill” McSherry and Michael B. Redmann were in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that ISIDRO OROZCO-LOPEZ, age 34, a citizen of Guatemala, 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 Sarah S. Vance sentenced OROZCO-LOPEZ to time served and a $100 special assessment. OROZCO-LOPEZ will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.

According to court documents, OROZCO-LOPEZ was found in the United States on November 8, 2014 after having been officially deported and removed on or about November 25, 2013.

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 was in charge of the prosecution.

WASHINGTON – The owner and operator of a New Orleans-based medical clinic and an accountant pleaded guilty today in federal court in New Orleans 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 Jr. 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 U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Dallas Regional Office and Louisiana Attorney General James D. “Buddy” Caldwell made the announcement.

Paige Okpalobi, 58, of Slidell, Louisiana, and Christopher White, 48, of Destrehan, Louisiana, pleaded guilty before Chief U.S. District Judge Sarah S. Vance of the Eastern District of Louisiana to one count of conspiracy to commit health care fraud and one count of conspiracy to falsify records in a federal investigation.  Sentencing hearings for each are scheduled for July 1, 2015.

According to her plea agreement, Okpalobi owned and operated a New Orleans-based medical clinic that employed doctors to certify that Medicare beneficiaries were qualified to receive home health care.  Okpalobi admitted that doctors employed at her clinic falsely certified that certain of their clients—specifically, Medicare beneficiaries—were homebound and in need of home health care services.  Okpalobi further admitted that she and other co-conspirators then used the false certifications to bill Medicare for fraudulent home health care services through home health care companies she jointly operated with another co-conspirator.

According to his plea agreement, White managed financial and accounting services at Okpalobi’s companies and other companies.  White admitted that he coordinated the payment of patient recruiters who illegally sold Medicare beneficiary information to Okpalobi and her co-conspirators.  This information was used by home health companies operated by Okpalobi and others to bill Medicare for home health care services that were not medically necessary and often not delivered at all.

Okpalobi and White each also admitted that they fabricated tax and employment records in response to a federal grand jury subpoena to conceal the illegal kickbacks paid and mislead the grand jury.

Okpalobi admitted that between 2007 and 2014, she caused the submission of $49,989,323 in claims to Medicare for home health services that were not medically necessary or not provided.

Thirteen individuals have been indicted in connection with this Medicare fraud scheme, and eight have now pleaded guilty, including two doctors employed at Okpalobi’s medical clinic.

This case was investigated by the FBI, HHS-OIG and the Louisiana Attorney General’s Medicaid Fraud Control Unit (MFCU), 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 is being prosecuted by Trial Attorneys William Kanellis and Antonio Pozos and Assistant Chief Benton Curtis of the 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 SEAN GRANGER, 36, of Rayne, Louisiana, was sentenced today for knowingly and willfully tampering with a method of record required to be maintained under the Outer Continental Shelf Lands Act.

U.S. District Judge Sarah S. Vance sentenced GRANGER to three years probation and ordered him to pay a $3,000 fine.

According to court documents, on June 4, 2012, GRANGER was employed as a coil tubing supervisor to perform coil tubing services on a well at a drilling rig located in the Gulf of Mexico at Ship Shoal 359 in the Eastern District of Louisiana.  Prior to starting the contracted coil tubing services at Ship Shoal 359, GRANGER tested his coil tubing unit’s blowout preventer.  A coil tubing unit should not be placed into service for the contract until all the BOP components pass pressure testing.

The results of BOP tests are recorded on a circular graphic chart known as the BOP pressure test chart.  To record pressures, a test chart is placed into a chart recorder that has a needle with a pen attached to it. As the recorder spins, the needle makes a record on the test chart of how much pressure the BOP components are holding. The BOP test chart is the record that inspectors review to determine if the BOP units are functioning properly.

On June 4, there were irregularities in the BOP testing process.  Rather than take action to properly document the pressures of the BOP components or remedy the irregularities in the testing, GRANGER tampered with the pressure test chart by spinning it on the recorder. When inspectors reviewed the pressure test chart a few days later, they were unable to determine whether the BOP on the coil tubing unit was functioning properly.

U.S. Attorney Polite praised the work of the Department of Interior-Office of Inspector General and Bureau of Safety and Environmental Enforcement for their work on this matter.  Assistant United States Attorney Emily K. Greenfield of the National Security Unit was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that EDUARD TERCERO-LAGOS, age 25, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Bill of Information for illegal reentry of a removed alien.

U.S. District Judge Sarah S. Vance sentenced TERCERO-LAGOS to time served and a $100 special assessment.   TERCERO-LAGOS will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.

According to court documents, TERCERO-LAGOS was found in the United States on December 8, 2014 after having been officially deported and removed on or about June 24, 2013.

U.S. Attorney Polite praised the work of the United States 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 ESWIN ESTUARDO MARTINEZ-REYES, age 42, a citizen of Guatemala, 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 Sarah S. Vance sentenced MARTINEZ-REYES to time served and a $100 special assessment.  MARTINEZ-REYES will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.

According to court documents, MARTINEZ-REYES was found in the United States on December 2, 2014, after having been officially deported and removed on or about June 7, 2013.

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 Spiro G. Latsis was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that KENNETH JOHNSON, SR., age 52, of Stone Mountain, Georgia, pled nolo contendere (no contest) on March 16, 2015, to conspiring  to pay kickbacks in a federal debris removal contract and guilty to two counts of filing false tax returns with the Internal Revenue Service.

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

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

At sentencing, JOHNSON faces a maximum term of imprisonment of five years on the conspiracy charge and a maximum term of imprisonment of three years on the tax charges.    U.S. District Judge Stanwood R. Duval, Jr. set sentencing for July 15, 2015.

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

U.S. Attorney Kenneth A. Polite, Jr., announced that GALDINO MARTINEZ-CARRILLO, age 38, a citizen of Mexico, was sentenced yesterday for illegal re-entry of previously removed alien.

U.S. District Judge Martin L.C. Feldman sentenced MARTINEZ-CARRILLO to time served.  MARTINEZ-CARRILLO will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings

According to the court documents, on August 1, 2014, GALDINO MARTINEZ-CARRILLO was found in the United States after having been deported previously on October 25, 2012.

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 JAIME JAUREGUI, age 36, of Orlando, Florida, was sentenced today after a federal jury found him guilty of conspiracy to violate the Gun Control and National Firearms Acts and possession of unregistered firearms.

U.S. District Judge Jay C. Zainey sentenced JAUREGUI to 120 months incarceration, followed by 3 years of supervised release.

According to previously filed court documents, in January 2012, agents of Homeland Security Investigations in New Orleans received information indicating that JAUREGUI was interested in acquiring items listed on the United States Munitions List and smuggling the weapons to end users in Mexico.  On at least four occasions from January 2012 through March 21, 2013, JAUREGUI met with an undercover agent in St. Tammany Parish to negotiate the purchase of more than 100 fully automatic assault rifles, grenade launchers, grenades, and night vision goggles, all of which were destined for a Mexican drug trafficking cartel.  JAUREGUI provided a cash deposit of approximately $46,000 during those meetings.  JAIME JAUREGUI hired CARLOS CABRERA, FRANCISCO MALDONADO, and RUBEN JAUREGUI to assist him with transporting the weapons to the final destinations. None of the men have federal firearms or export licenses. Defendants CABRERA, MALDONADO, and RUBEN JAUREGUI previously pled guilty and have been sentenced.

U.S. Attorney Polite praised the work of Homeland Security Investigations (HSI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with assistance from the Defense Criminal Investigative Service (DCIS), the Louisiana State Police, and the St. Tammany Parish Sheriff’s Office for investigating this matter.  Assistant U.S. Attorney Gregory M. Kennedy and Special Assistant U.S. Attorney Brian Ebarb are in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that a 26-count indictment was returned against twenty individuals and one corporation, charging approximately $30,052,295 in Medicare fraud.

Specifically, LISA A. CRINEL, age 51; WILNEISHA HARRISON JAKES, age 28; HENRY EVANS, age 70; THREASA ADDERLEY, age 63; MICHAEL JONES, age 45; PAULA JONES, age 44; SHELTON BARNES, age 61; CARY PAYTON, age 60; EVELYN ODOMS, age 63; SHEILA MATHIEU, age 46; SUPRENIA WASHINGTON, age 58; ERICA EDWARDS, age 30; ZELLISHA DEJEAN, age 36; CAREN BATTAGLIA, age 48; SHEILA HOPKINS, age 62; VERINESE SUTTON, age 62, all of New Orleans; JONATHON NORA, age 27, of River Ridge; ELESHIA WILLIAMS, age 44, of Harvey; and PCAH, INC. a/k/a PRIORITY CARE AT HOME, INC. (PCAH) d/b/a ABIDE HOME CARE SERVICES, INC., a Louisiana corporation, were indicted today for conspiracy to commit health care fraud, conspiracy to defraud the United States and to receive and pay health care kickbacks, and health care fraud.  CLARA AITCH, age 39, of New Orleans, and WENDY ERVIN, age 41, of Laplace, were indicted for conspiracy to commit wire fraud along with CRINEL and JAKES.  CRINEL is also charged with wire fraud.

According to the indictment, the defendants participated in a criminal organization for the purpose of fraudulently billing Medicare.  CRINEL was the owner and operator of a home health company known as ABIDE.  Through her operation of ABIDE, CRINEL and her daughter JAKES, as Chief Administrative Officer, hired “House Doctors” to sign orders and plans of care for Medicare beneficiaries who had no legitimate medical necessity for home health services.  The House Doctors, including DRS. BARNES, EVANS, ADDERLEY and MICHAEL JONES, falsely signed home health orders regardless of the beneficiary’s needs, homebound status, or diagnoses.  In return, DRS. BARNES, EVANS, and ADDERLEY received monthly payments fraudulently characterized as medical consultant or director fees for which they provided no services other than fraudulently certifying Medicare beneficiaries for unnecessary home health services.  Instead of making monthly payments to DR. MICHAEL JONES like the other House Doctors, CRINEL and ABIDE hired PAULA JONES, DR. MICHAEL JONES’s wife, and thereafter, inflated salary payments to PAULA JONES, representing MICHAEL JONES’s fees for fraudulently certifying home health for ineligible Medicare beneficiaries.

WILLIAMS and other ABIDE marketers contacted JONATHON NORA and others to confirm that the person fraudulently referred for home health was a Medicare beneficiary.  Once NORA determined the referred individual was a Medicare beneficiary, NORA scheduled a physician visit, usually with an ABIDE House Doctor, knowing that the individual referral to ABIDE was by a Marketer, instead of the beneficiary’s own health care professional.

Registered nurses, including MATHIEU, EDWARDS, WASHINGTON, DEJEAN, and HOPKINS were assigned to go to the homes of Medicare beneficiaries to complete assessments that determined the necessary level of care required for the beneficiary and the reimbursement rate for the claims made by ABIDE. When MATHIEU, EDWARDS, WASHINGTON, DEJEAN and HOPKINS, completed these assessments, they routinely and fraudulently included a group of diagnoses that were unrelated to the needs of the beneficiaries and included items suggesting the need for assistance with different activities of daily living in order to falsely inflate the reimbursement rates paid by Medicare to ABIDE.  MATHIEU, EDWARDS, WASHINGTON, HOPKINS and DEJEAN also fraudulently included other items in the assessment to falsely document the beneficiary’s homebound status.

After assessments were completed, ABIDE generated plans of care reflecting the falsely created assessments.  The plans of care were given to DRS. BARNES, EVANS, ADDERLEY and MICHAEL JONES to falsely certify and recertify medically unnecessary episodes of home health.  Licensed practical nurses (LPNs) assigned to beneficiaries, including ODOM, PAYTON and BATTAGLIA, performed skilled nursing visits usually once a week, and ODOM, PAYTON and BATTAGLIA routinely falsified documentation of visits to support the ongoing fraudulent billing by PAULA JONES, on behalf of ABIDE, of medically unnecessary home health services.

In the wire fraud conspiracy and three individual wire counts, CRINEL is charged with filing fraudulent applications for relief relating to the April 20, 2010 explosion and fire which occurred on the Deepwater Horizon, an oil rig in the Gulf of Mexico where British Petroleum (BP) had been drilling a well.  After the disaster, BP established the Gulf Coast Claims Facility (GCCF) to administer, mediate, and settle claims of individuals and businesses for losses incurred as a result of the Deepwater Horizon incident.  The GCCF began receiving and processing such claims in August 2010.  The GCCF required any individual filing a claim to submit valid documentation as proof of loss or reduction in earnings due to the oil spill.  CRINEL and a Georgia accountant created false documentation on behalf of AITCH,  ERVIN, and JAKES, to include in fraudulent applications for reimbursement for lost wages.  The false documentation stated that AITCH, ERVIN and JAKES, at the time of the BP disaster, were employed by LACE, a reception hall owned and operated by CRINEL, when, in truth, AITCH and ERVIN were full time employees of ABIDE and JAKES was attending school out of state.  After AITCH and ERVIN received payments from BP, they had to kick back some of the funds to CRINEL.  The loss to BP from the fraudulent claims totals $37,800.

If convicted, the defendants face the following possible maximum terms of imprisonment:

• VERINESE SUTTON, CLARA AITCH and WENDY ERVIN - 5 years;
• JONATHON NORA - 10 years;
• ELESHIA WILLIAMS, PAULA JONES and CARY PAYTON - 15 years;
• ERICA EDWARDS, WILNEISHA HARRISON JAKES and SUPRENIA WASHINGTON - 20 years;
• CAREN BATTAGLIA and ZELLISHA DEJEAN - 30 years;
• DRS. HENRY EVANS and MICHAEL JONES - 35 years;
• SHEILA MATHIEU - 35 years;
• EVELYN ODOMS - 50 years;
• SHEILA HOPKINS - 80 years;
• DR. SHELTON BARNES - 85 years;
• THRESA ADDERLEY – 85 years; and
• LISA A. CRINEL - 270 years.

For each count for which any defendant is convicted, they are subject to a $250,000 fine.  And, if convicted, PCAH, INC. a/k/a PRIORITY CARE AT HOME, INC. (PCAH) d/b/a ABIDE HOME CARE SERVICES, INC. faces millions in fines.

The indictment also charges forfeiture of property including real estate, bank and life insurance accounts, and jewelry purchased with the proceeds of health care fraud.

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

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation; and the U.S. Department of Health and Human Services, Office of Inspector General in this ongoing investigation.  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 a 26-count indictment was returned against twenty individuals and one corporation, charging approximately $30,052,295 in Medicare fraud.

Specifically, LISA A. CRINEL, age 51; WILNEISHA HARRISON JAKES, age 28; HENRY EVANS, age 70; THREASA ADDERLEY, age 63; MICHAEL JONES, age 45; PAULA JONES, age 44; SHELTON BARNES, age 61; CARY PAYTON, age 60; EVELYN ODOMS, age 63; SHEILA MATHIEU, age 46; SUPRENIA WASHINGTON, age 58; ERICA EDWARDS, age 30; ZELLISHA DEJEAN, age 36; CAREN BATTAGLIA, age 48; SHEILA HOPKINS, age 62; VERINESE SUTTON, age 62, all of New Orleans; JONATHON NORA, age 27, of River Ridge; ELESHIA WILLIAMS, age 44, of Harvey; and PCAH, INC. a/k/a PRIORITY CARE AT HOME, INC. (PCAH) d/b/a ABIDE HOME CARE SERVICES, INC., a Louisiana corporation, were indicted today for conspiracy to commit health care fraud, conspiracy to defraud the United States and to receive and pay health care kickbacks, and health care fraud.  CLARA AITCH, age 39, of New Orleans, and WENDY ERVIN, age 41, of Laplace, were indicted for conspiracy to commit wire fraud along with CRINEL and JAKES.  CRINEL is also charged with wire fraud.

According to the indictment, the defendants participated in a criminal organization for the purpose of fraudulently billing Medicare.  CRINEL was the owner and operator of a home health company known as ABIDE. Through her operation of ABIDE, CRINEL and her daughter JAKES, as Chief Administrative Officer, hired “House Doctors” to sign orders and plans of care for Medicare beneficiaries who had no legitimate medical necessity for home health services.  The House Doctors, including DRS. BARNES, EVANS, ADDERLEY and MICHAEL JONES, falsely signed home health orders regardless of the beneficiary’s needs, homebound status, or diagnoses.  In return, DRS. BARNES, EVANS, and ADDERLEY received monthly payments fraudulently characterized as medical consultant or director fees for which they provided no services other than fraudulently certifying Medicare beneficiaries for unnecessary home health services.  Instead of making monthly payments to DR. MICHAEL JONES like the other House Doctors, CRINEL and ABIDE hired PAULA JONES, DR. MICHAEL JONES’s wife, and thereafter, inflated salary payments to PAULA JONES, representing MICHAEL JONES’s fees for fraudulently certifying home health for ineligible Medicare beneficiaries.

WILLIAMS and other ABIDE marketers contacted JONATHON NORA and others to confirm that the person fraudulently referred for home health was a Medicare beneficiary.  Once NORA determined the referred individual was a Medicare beneficiary, NORA scheduled a physician visit, usually with an ABIDE House Doctor, knowing that the individual referral to ABIDE was by a Marketer, instead of the beneficiary’s own health care professional.

Registered nurses, including MATHIEU, EDWARDS, WASHINGTON, DEJEAN, and HOPKINS were assigned to go to the homes of Medicare beneficiaries to complete assessments that determined the necessary level of care required for the beneficiary and the reimbursement rate for the claims made by ABIDE. When MATHIEU, EDWARDS, WASHINGTON, DEJEAN and HOPKINS, completed these assessments, they routinely and fraudulently included a group of diagnoses that were unrelated to the needs of the beneficiaries and included items suggesting the need for assistance with different activities of daily living in order to falsely inflate the reimbursement rates paid by Medicare to ABIDE.  MATHIEU, EDWARDS, WASHINGTON, HOPKINS and DEJEAN also fraudulently included other items in the assessment to falsely document the beneficiary’s homebound status.

After assessments were completed, ABIDE generated plans of care reflecting the falsely created assessments.  The plans of care were given to DRS. BARNES, EVANS, ADDERLEY and MICHAEL JONES to falsely certify and recertify medically unnecessary episodes of home health.  Licensed practical nurses (LPNs) assigned to beneficiaries, including ODOM, PAYTON and BATTAGLIA, performed skilled nursing visits usually once a week, and ODOM, PAYTON and BATTAGLIA routinely falsified documentation of visits to support the ongoing fraudulent billing by PAULA JONES, on behalf of ABIDE, of medically unnecessary home health services.

In the wire fraud conspiracy and three individual wire counts, CRINEL is charged with filing fraudulent applications for relief relating to the April 20, 2010 explosion and fire which occurred on the Deepwater Horizon, an oil rig in the Gulf of Mexico where British Petroleum (BP) had been drilling a well.  After the disaster, BP established the Gulf Coast Claims Facility (GCCF) to administer, mediate, and settle claims of individuals and businesses for losses incurred as a result of the Deepwater Horizon incident.  The GCCF began receiving and processing such claims in August 2010.  The GCCF required any individual filing a claim to submit valid documentation as proof of loss or reduction in earnings due to the oil spill.  CRINEL and a Georgia accountant created false documentation on behalf of AITCH,  ERVIN, and JAKES, to include in fraudulent applications for reimbursement for lost wages.  The false documentation stated that AITCH, ERVIN and JAKES, at the time of the BP disaster, were employed by LACE, a reception hall owned and operated by CRINEL, when, in truth, AITCH and ERVIN were full time employees of ABIDE and JAKES was attending school out of state.  After AITCH and ERVIN received payments from BP, they had to kick back some of the funds to CRINEL.  The loss to BP from the fraudulent claims totals $37,800.

If convicted, the defendants face the following possible maximum terms of imprisonment:

• VERINESE SUTTON, CLARA AITCH and WENDY ERVIN - 5 years;
• JONATHON NORA - 10 years;
• ELESHIA WILLIAMS, PAULA JONES and CARY PAYTON - 15 years;
• ERICA EDWARDS, WILNEISHA HARRISON JAKES and SUPRENIA WASHINGTON - 20 years;
• CAREN BATTAGLIA and ZELLISHA DEJEAN - 30 years;
• DRS. HENRY EVANS and MICHAEL JONES - 35 years;
• SHEILA MATHIEU - 35 years;
• EVELYN ODOMS - 50 years;
• SHEILA HOPKINS - 80 years;
• DR. SHELTON BARNES - 85 years;
• THRESA ADDERLEY – 85 years; and
• LISA A. CRINEL - 270 years.

For each count for which any defendant is convicted, they are subject to a $250,000 fine.  And, if convicted, PCAH, INC. a/k/a PRIORITY CARE AT HOME, INC. (PCAH) d/b/a ABIDE HOME CARE SERVICES, INC. faces millions in fines.

The indictment also charges forfeiture of property including real estate, bank and life insurance accounts, and jewelry purchased with the proceeds of health care fraud.

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

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

The U.S. Attorney’s Office announced that RAMONA HUDSON, age 52, of Slidell, was sentenced today for her role in a conspiracy to defraud the Gulf Coast Claims Facility (“GCCF”) in the aftermath of the BP oil spill.

U.S. District Judge Lance M. Africk sentenced HUDSON to 4 years’ probation, 6 months of home confinement, and ordered restitution in the amount of $75,000.

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 in the Gulf of Mexico.  The GCCF required individuals to verify loss of income.  In or about September 2010, HUDSON, assisted by her co-conspirator, posed as a claimant and completed an electronic claim form with false representations that HUDSON was employed in the commercial fishing industry at the time of the oil spill, when in fact, she was not.  The fraudulent claim form and documentation were all wired from a location in the Eastern District of Louisiana to the GCCF’s office in Dublin, Ohio.  Based on these false representations, HUDSON and her co-conspirator received approximately $75,000 for lost wages for which they were 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, or in writing to National Center for Disaster Fraud, Baton Rouge, LA  70821-4909.

The U.S. Attorney’s Office praised the work of the U.S. Postal Inspection Service and the U.S. Secret Service in investigating this matter.  Assistant U.S. Attorneys Julia K. Evans and Theodore R. Carter, III were in charge of the prosecution.

U.S. Attorney’s Office announced that DARRELL MORRIS, age 55, of Slidell, was sentenced today for his role in a conspiracy to defraud the Gulf Coast Claims Facility (“GCCF”) in the aftermath of the BP oil spill.

U.S. District Judge Nannette Jolivette Brown sentenced MORRIS to three years’ probation, and ordered restitution in the amount of $40,000.

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 in the Gulf of Mexico.  The GCCF required individuals to verify loss of income.  MORRIS, assisted by his co-conspirator, posed as a claimant and completed an electronic claim form with false representations that MORRIS was employed in the commercial fishing industry at the time of the oil spill, when in fact, he was not.  The fraudulent claim form and documentation were all wired from a location in the Eastern District of Louisiana to the GCCF’s office in Dublin, Ohio.  Based on these false representations, MORRIS and his co-conspirator received approximately $75,000 for lost wages to which they were 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, or in writing to National Center for Disaster Fraud, Baton Rouge, LA  70821-4909.

The U.S. Attorney’s Office praised the work of the U.S. Postal Inspection Service and the U.S. Secret Service in investigating this matter.  Assistant U.S. Attorneys Julia K. Evans and Theodore R. Carter, III were in charge of the prosecution.

U.S. Kenneth A. Polite announced that TRAVIS ISRAEL OSBORNE, age 23, of New Orleans, was sentenced today for crimes involving the sexual exploitation of children.

U.S. District Judge Eldon E. Fallon sentenced OSBORNE to 60 months incarceration, followed by 5 years of supervised release.

According to court documents, special agents with the Federal Bureau of Investigation executed a search warrant at OSBORNE’S residence on April 2, 2013.  Agents recovered one computer and one external digital storage device.  A subsequent forensic examination of the computer and storage device revealed that beginning in 2011 OSBORNE used versions of a peer-to-peer network to look for and download images of children as young as 8-years-old engaging in sexually explicit conduct.  In total, OSBORNE downloaded and catalogued approximately 140 images and 37 videos of prepubescent children being sexually victimized.

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

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