Eastern District of Louisiana

U.S. Attorney Kenneth A. Polite announced that DENYS BENITEZ-FERNANDEZ, age 32, a citizen of Honduras, was charged today in a one-count Indictment with illegal reentry into the United States after having been previously deported.

According to the Indictment, BENITEZ-FERNANDEZ was encountered by Immigration & Customs Enforcement agents in the Eastern District of Louisiana on January 22, 2015, after records showed he had been previously deported from the United States to Honduras on April 24, 2013.

If convicted, BENITEZ-FERNANDEZ 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 in investigating this matter.  Assistant U.S. Attorney Emily K. Greenfield is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that ESWIN ESTUARDO MARTINEZ-REYES, age 42, a citizen of Guatemala, pled guilty yesterday to a one-count Indictment for illegal reentry of removed alien.

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

MARTINEZ-REYES 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 Sarah S. Vance set sentencing for March 18, 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 Spiro G. Latsis is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that TAUREAN JACKSON, age 25, from Dallas, Texas, pled guilty today to conspiring to traffic a minor from the Dallas area into the New Orleans area for the purposes of that minor engaging in prostitution and obstructing  a federal investigation into his conduct.

According to court documents, JACKSON created and operated “Star City Vixens,” an escort agency that was a front for prostitution activity.  Star City Vixens advertised “upscale adult entertainment” that would travel around the country to “major social events.”  JACKSON initially recruited his “bottom” prostitute, A.B., to join “Star City Vixens,” in 2012.  JACKSON became A.B.’s pimp and arranged for her to engage in sexual acts with others in exchange for money.

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

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

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

JACKSON disciplined A.B. in front of the victim and told the victim that he would do the same to her if she ever tried to leave him.  Additionally, the victim was prepared to testify that on at least one occasion JACKSON struck her across the legs and buttocks with an extension cord.

On July 10, 2013, A.B. and the victim were arrested in a Metairie hotel room by undercover law enforcement officers who responded to an online classified advertisement offering a prostitution date.

A.B., who pled guilty in September 2014 for her role in traffic the victim, faces a maximum sentence of five years imprisonment, followed by three years of supervised release, and a $250,000 fine.  She may also be required to register as a sex offender.  U.S. District Judge Susie Morgan set sentencing for April 8, 2015.

JACKSON faces a maximum sentence of life imprisonment, followed by a lifetime of supervised release, and a $250,000 fine.  He may also be required to register as a sex offender.  U.S. District Judge Susie Morgan set sentencing for May 20, 2015.

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

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

U.S. Attorney Kenneth A. Polite announced that RASHAD LEWIS, age 37, a resident of New Orleans, was charged today in a one-count Indictment for violations of the Federal Controlled Substances Act.

According to the Indictment, LEWIS possessed with the intent to distribute and distributed a mixture or substance containing a detectable amount of cocaine base.

If convicted, LEWIS faces up to twenty years imprisonment, a fine of up to $1,000,000, and at least three years of supervised release following any term of imprisonment.

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

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

U.S. Attorney Kenneth A. Polite announced that MICHAEL SAPERA, a resident of Mandeville, Louisiana, was charged today in a four-count Bill of Information with bank fraud, aggravated identity theft, and wire fraud in violation of Title 18, United States Code, Sections 1344, 1028A, and 1343.  SAPERA committed these violations when he embezzled approximately $2.8 million from his employer over a 19-year period.

According to court documents, SAPERA, a Certified Public Accountant (“CPA”), was employed at Company “A,” a retail clothing business headquartered in New Orleans, beginning in 1990.  SAPERA most recently functioned as the Chief Financial Officer (“CFO”) and Director of Information Technology for Company “A.”  As the CFO of Company “A,” SAPERA had access to all corporate bank accounts as well as access to the corporate PayPal account.

First, beginning in July 1996, and continuing through April 2014, SAPERA stole approximately $2,192,500 in corporate checks belonging to Company “A.”  SAPERA forged the signature of his employer on approximately 430 stolen corporate checks which SAPERA then endorsed to himself.  SAPERA then deposited the stolen checks into his personal bank account.

Next, beginning on July 15, 2011, and continuing to August 18, 2014, SAPERA transferred corporate funds from Company “A’s” bank account to SAPERA’s personal account without authorization, consent, or knowledge by the owners of Company “A.”  In total, SAPERA initiated and caused 45 wire transfers from Company “A’s” bank account to his personal bank account totaling $582,080.

Finally, beginning on June 16, 2014, and continuing to October 1, 2014, SAPERA transferred $35,000 in corporate funds from Company “A’s” PayPal account to SAPERA’s personal PayPal account without authorization, consent, or knowledge by the owners of Company “A.”  SAPERA then transferred the money into his personal bank account.

In all, SAPERA’S criminal conduct resulted in an illegal gain to him in the amount of $2,809,580, and caused his employer/victim, Company “A,” to incur a total loss for restitution purposes of approximately $2,847,752.

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

U.S. Attorney Kenneth A. Polite praised the work of the Federal Bureau of Investigation in investigating this matter.   Assistant United States Attorney Matt Coman is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that TRENISE DEBOUE MURPHY, age 52, of New Orleans, was charged in a one-count Bill of Information with conspiracy to commit theft of government funds.

According to the Bill of Information, 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.

If convicted, MUPRHY faces a maximum term of imprisonment of 5 years, followed by up to 3 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 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.

U.S. Attorney Kenneth A. Polite announced that JOSEPH F. GAGLIANO, age 55, and DOMINICK GULLO, age 72, both from Metairie, pled guilty today to federal firearm charges.

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

GAGLIANO faces a maximum of 10 years imprisonment, followed by up to three years supervised release, and a maximum fine of $250,000 for being a convicted felon in possession of the rifle.  GAGLIANO and GULLO each face a maximum of 10 years imprisonment, followed by up to three years supervised release, and a maximum fine of $10,000 for being in possession of the unregistered silencer.  There is also a mandatory $100.00 special assessment for each count associated with this guilty plea.       

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

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

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

LEMOINE faces a possible maximum sentence of 10 years imprisonment, and/or a fine of $250,000 and up to 3 years of supervised release following any term of imprisonment.  U.S. District Judge Carl J. Barbier set sentencing for April 30, 2015.

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

U.S. Attorney Kenneth A. Polite, DEA Special Agent in Charge Raymond “Keith” Brown, FBI Special Agent in Charge Michael Anderson, Orleans Parish District Attorney Leon Cannizzaro, New Orleans Police Superintendent Michael Harrison, and Louisiana State Probation and Parole District Administrator Frank Palestina announce the results of Operation “Wild Wild East.”

Beginning in late July 2014, DEA New Orleans Field Division initiated and led Operation Wild Wild East as part of a Violent Trafficker Initiative (VTI).  This operation was in response to a sharp increase in shootings and homicides in eastern New Orleans. DEA and FBI agents, in conjunction with the New Orleans Police Department and Louisiana State Probation and Parole, began the VTI by targeting violent, repeat offenders selling heroin, crack cocaine, and guns. Over a six month period, Special Agents conducted undercover buys and telephone wire intercepts concentrated in eastern New Orleans.

On January 29, 2015, DEA, FBI, New Orleans Police Department, Louisiana State Probation & Parole conducted multiple search and arrest operations involving more than 110 law enforcement officers. This operation resulted in 111 arrests (19 Federal / 92 State) with the seizures of 32 guns (4 rifles, 27 handguns, 1 shotgun), 1 ballistic vest, 9 vehicles, $971,234 U.S. Currency, jewelry valued at $332,289, and quantities of heroin and crack cocaine. Of the 111 arrested during this operation, 65 had prior felony arrests.  These repeat offenders were removed off the street - relieving the crime riddled eastern New Orleans 7th District of a tremendous burden.

“This is the way law enforcement will do business in this region,” stated U.S. Attorney Kenneth A. Polite. “Together, we are focusing on identifying, investigating, engaging, and ultimately removing perpetrators of violence from our streets. Whether it is through the MAG Unit, headed by NOPD and headquartered at ATF, the FBI Safe Streets Task Force, or efforts like DEA’s Operation Wild Wild East, we are all in this fight to ensure a safer New Orleans area.”

“Drug trafficking is one of the primary drivers of violent crime across the United States, and the City of New Orleans is no exception,” said DEA Special Agent in Charge Keith Brown.  “This operation focused the joint efforts of DEA and our law enforcement partners on those drug dealers who preyed upon the good people in New Orleans East by selling drugs and committing acts of violence to protect their illegal business, and to retaliate on their perceived competition.  Drug dealing and violent crime often walk hand in hand spreading fear and destruction wherever they go, and we in law enforcement have an obligation to put a stop to those who would destroy our communities.  DEA is committed to its partnerships with the New Orleans Police Department, the Louisiana Department of Public Safety and Corrections Division of Probation and Parole, the FBI, and the other dedicated law enforcement officers who work in and around the City of New Orleans in our ongoing efforts to make it a safer and better place for our families and children.”

U.S. Attorney Kenneth A. Polite announced that PAUL E. GARDNER, age 57, a resident of New Orleans, pled guilty today to wire fraud regarding an embezzlement scheme which took place during GARDNER’s employment with Clovelly Oil Co., L.L.C. (“Clovelly Oil”).

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

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

The maximum penalty for wire fraud is 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 the victim.  U.S. District Judge Nannette Jolivette Brown set sentencing on April 23, 2015.

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

Mark A. Hofmann of San Diego, California, was sentenced today to two years in prison for his role in an investment fraud scheme whereby Hofmann misappropriated more than $400,000 in investment funds of a Louisiana riverboat pilots association known as Bolivar Investors Group, LLC.

During a hearing before U.S. District Judge Dana M. Sabraw, Hofmann was also ordered to pay more than $400,000 in restitution to members of the riverboat pilots association – the victims of Hofmann’s white collar crime.

According to court documents, Hofmann solicited $3 million from Bolivar Investors Group, LLC, as part of a joint venture to allegedly develop office buildings next to a medical center in Covington, Louisiana.   As part of their deal, Hofmann agreed to open a bank account in San Diego, California, in order to use the investment funds to pay project expenses.   Hofmann promised the investors in Bolivar Investors Group, LLC that they would have access to the bank account and would be able to review the statements online.   However, Hofmann, and his co-conspirator, Timothy Monahan, were the only signatories on the bank account, and were the only ones with access to the bank account details.   To conceal his fraudulent scheme, Hofmann provided the riverboat pilots that invested through Bolivar Investors Group with falsified bank records and other fraudulent financial documents.

According to court documents and Hofmann’s admissions, rather than spend the money on project expenses, Hofmann misappropriated more than $400,000 of funds that belonged to Bolivar Investors Group, LLC, for his own personal use and expenses, which were unrelated to the land development deal. In addition, as mentioned during the sentencing hearing today, Hofmann also withdrew from the joint venture bank account more than $230,000 in cash and checks that he wrote to himself, which was also unrelated to the land deal.

During the sentencing hearing, two of the riverboat pilots from Louisiana told the Court that Hofmann’s fraud had destroyed personal relationships between generations of pilots dating back 100 years. The two pilots said the victims are constantly reminded each month of Hofmann’s fraud because they continue to pay monthly interest and principal on loans they had taken out to invest in the joint venture with Hofmann.

United States Attorney Laura E. Duffy said, “Today, justice was served on behalf of the riverboat pilots association in Louisiana, who placed their trust in Mr. Hofmann. We hope that this case serves as a deterrent to those raising capital for joint ventures who might seek to take advantage of their investors and misappropriate their funds.”

This case was investigated by the New Orleans Division of the Federal Bureau of Investigation and presented for prosecution to the U.S. Attorney’s Office in the Eastern District of Louisiana.   The case was transferred to the Southern District of California for entry of the guilty plea and for sentencing.

U.S. Attorney Kenneth A. Polite announced that MECHELLE STANTON WOODS, age 44, of Laplace, 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 Nannette Jolivette Brown sentenced WOODS to one year probation.

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.  According to court documents, WOODS assisted with preparing and electronically submitting fraudulent claim forms, for her co-conspirators who recruited claimants, falsely representing the claimants were employed in the commercial fishing industry at the time of the oil spill.  WOODS knew the claims were fraudulent, but she did not report it to law enforcement.    

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. Attorneys Julia K. Evans and Theodore R. Carter, III were in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that LISANDRO HUMBERTO BAIRES-GOMEZ, age 20, a citizen of El Salvador, pled guilty on Tuesday, January 27, 2015, to a one-count Indictment for illegal reentry of removed alien.

According to the Indictment, on or about November 17, 2014, BAIRES-GOMEZ was found in the United States after having been officially deported and removed on or about June 13, 2013.

After accepting his guilty plea, U.S. District Judge Jay C. Zainey sentenced BAIRES-GOMEZ to time served, ordered him to serve one year of supervised release, and pay a special assessment of $100.  BAIRES-GOMEZ will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.

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 ANTONIO CAICEO-VALENCIA, age 42, a citizen of Columbia, pled guilty yesterday to a one-count Indictment for illegal reentry of removed alien.

According to the Indictment, 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. 

CAICEO-VALENCIA faces an enhanced maximum term of imprisonment of twenty years, a fine of $250,000, three years supervised release after imprisonment, and a $100 special assessment.   U.S. District Judge Helen G. Berrigan set sentencing for May 6, 2015.

U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration  and Customs Enforcement and Removal Operations 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 JUAN CARLOS SALAZAR-GARCIA, age 34, a citizen of Mexico, pled guilty today to a one-count Bill of Information for illegal reentry of removed alien.

According to the Bill of Information, on or about November 20, 2014, SALAZAR-GARCIA was found in the United States after having been officially deported and removed on or about February 7, 2014.

SALAZAR-GARCIA faces a maximum term of imprisonment of two years and a fine of $250,000, or the greater of twice the gross gain to the defendant, one year supervised release after imprisonment, and a $100 special assessment.   U.S. District Judge Martin L.C. Feldman set sentencing for April 8, 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 ELLIS RANSON, III, age 28, of Laplace, was sentenced today after previously pleading guilty to conspiracy to pass fictitious obligations.

U.S. District Judge Stanwood R. Duval, Jr. sentenced RANSON to 12 months and 1 day imprisonment, followed by 2 years of supervised release.

According to court documents, Special Agents from the United States Secret Service, New Orleans Field Office, investigated an attempted pass of a counterfeit payroll check that occurred at the Wal-Mart store located on Veterans Boulevard in Kenner. Through their investigation, the agents discovered that RANSON had produced the counterfeit payroll check.  RANSON manufactured the counterfeit checks for negotiation at different Wal-Mart retail stores. He worked with others who would cash the counterfeit checks at Wal-Mart stores and then return to him in order to split the proceeds.

U.S. Attorney Polite praised the work of the U.S. Secret Service, New Orleans Field Office for investigating this matter.  Assistant United States Attorney Loan "Mimi" Nguyen was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that ELVIS CANO-MORALES, age 33, a native of Honduras, was sentenced today on a one-count Indictment for illegal reentry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).

U.S. District Judge Stanwood R. Duval, Jr. sentenced CANO-MORALES to time served, which was 6 months incarceration.  CANO-MORALES will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.

According to court documents, CANO-MORALES was found in the United States on August 1, 2014, after having been previously removed from the United States on June 10, 2011.

U.S. Attorney Polite praised the work of the U.S. Customs and Border Protection Agency in investigating this matter.  Assistant United States Attorney Jon Maestri handled the prosecution.

U.S. Attorney Kenneth A. Polite announced that JAIRO ALMENDAREZ-DUARTE, age 47, a native of Honduras, pled guilty today to a one-count Indictment for illegal reentry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).

According to court documents, ALMENDAREZ-DUARTE was found in the United States on January 10, 2014, after having been previously removed from the United States on August 28, 2003.

ALMENDAREZ-DUARTE faces a maximum term of imprisonment of two years, as well as a fine of $250,000. U.S. District Judge Martin L.C. Feldman set sentencing for April 8,  2015.

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

U.S. Attorney Kenneth A. Polite announced that TEOFILO RIASCOS-OROBIA, age 43, a native of Columbia, pled guilty today to a one-count Indictment for illegal reentry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).

According to court documents, RIASCOS-OROBIA was found in the United States on November 21, 2014, after having been previously removed from the United States on June 23, 1997.

RIASCOS-OROBIA faces a maximum term of imprisonment of two years, as well as a fine of $250,000. U.S. District Judge Helen G. Berrigan set sentencing for May 6, 2015.

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

U.S. Attorney Kenneth A. Polite announced that CHARLES E. “CHUCK” MIZELL, JR., age 44, a resident of Bogalusa, Louisiana, was sentenced today after previously pleading guilty to conspiracy commit mail fraud in a scheme to defraud the Louisiana Workforce Commission of unemployment benefits, and five counts of mail fraud.

U.S. District Judge Helen G. Berrigan sentenced MIZELL to 21 months imprisonment, followed by 3 years of supervised release.  Additionally, MIZELL was found to be jointly and severally liable with his co-defendants for $53,356 in restitution.

According to 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, MIZELL, TERRY CASTILOW, WILLIAM DARRYL KING, DAVID LOWE, JAMES CREEL, JERRY ATHEY, TENILLE NIELSON, JACQUELINE MYERS, and ROGER NADEAU conspired to defraud the Louisiana Workforce Commission (“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 actually employed them at Chamico, Inc., a Bogalusa construction company that concentrates on public, municipal, and industrial contracts.

MIZELL was the President of Chamico and, according to the factual bases in the court record, asked those employees to fraudulently file for unemployment so that he would not have to pay their full salaries during tough economic times for Chamico. The 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.

Also sentenced today was JAMES CREEL, age 48, a resident of Bogalusa, Louisiana, and WILLIAM DARRYL KING, age 47, a resident of Angie, Louisiana. CREEL and KING each received 2 years’ probation and a $500 fine for their role in the conspiracy to commit mail fraud.  ROGER NADEAU, age 51, of Linn, Missouri, is the last remaining defendant in this case.  He pleaded guilty to one count of conspiracy at today’s proceeding. NADEAU faces a maximum sentence of 5 years in prison, a $250,000 fine, and three years supervised release on the conspiracy conviction.

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 matter.  Assistant United States Attorney Emily K. Greenfield is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that CRYSTAL FINDLEY MCDONALD, and her husband, COREY MCDONALD (the “MCDONALDs”), ages 32 and 43, respectively, were sentenced after previously pleading guilty to a one-count Bill of Information for conspiracy to defraud the United States and to pay and receive illegal remuneration.

U.S. District Judge Jay C. Zainey sentenced both to 5 years’ probation.  As a condition of probation, the MCDONALDs, residents of North Carolina, were ordered to spend 12 months in home detention.  In addition, the MCDONALDs were ordered to pay $342,447 in restitution.

According to court documents, the defendants were paid illegal kickbacks to refer patients to Care Concepts for Durable Medical Equipment.  The equipment was neither needed nor wanted by the patients, but was reimbursable by Medicare.  The defendants also paid illegal kickbacks to their employees to procure such referrals.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the Office of Inspector General for the United States Department of Health and Human Services in investigating this matter.  Assistant U.S. Attorney Patrice Harris Sullivan was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that JOSE EDGARDO CANALES-MADRID, age 25, a citizen of Honduras, was charged today in a one-count Bill of Information with illegal reentry of a removed alien.

According to the Bill of Information, CANALES-MADRID reentered the United States on or about December 1, 2014, after having been previously removed therefrom on or about October 6, 2011.

If convicted, CANALES-MADRID faces a maximum term of imprisonment of two years, a fine of up to $250,000, one year supervised release after imprisonment, and a $100 special assessment.

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

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

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

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

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

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

If convicted, ADDINGTON faces a maximum term of imprisonment of 5 years per count and/or a maximum fine of $250,000 per count.

The U.S. Attorney’s Office praised the work of the Department of Interior-Office of Inspector General (Energy Investigations Unit) with assistance from the Investigations and Review Unit, Bureau of Safety and Environmental Enforcement and the Environmental Protection Agency-Criminal Investigation Division in investigating this matter.  Assistant United States Attorney Emily K. Greenfield of the United States Attorney’s Office’s National Security Unit is in charge of this prosecution.

U.S. Attorney Kenneth A. Polite announced that GROSS WILLIAMS, age 49, and his wife, KATHLEEN WILLIAMS, age 46, both of New Orleans, were charged yesterday in a five-count Indictment for violations of the Federal Controlled Substances Act, the Federal Gun Control Act, conspiracy to launder money and obstruction of justice.

According to the Indictment, GROSS WILLIAMS possessed with the intent to distribute and distributed one kilogram or more of heroin and five kilograms or more of cocaine.  GROSS WILLIAMS is also alleged to have possessed a firearm in furtherance of those drug trafficking crimes and to have illegally possessed a weapon after a felony conviction.  KATHLEEN WILLIAMS and GROSS WILLIAMS were also charged with conspiring to launder the proceeds of GROSS WILLIAMS’s drug trafficking.  KATHELEEN WILLIAMS was additionally charged with obstruction of justice for destroying a cellular telephone.  

If convicted, GROSS WILLIAMS faces a minimum term of imprisonment of 15 years to a maximum of life, a fine of up to $10,000,000 and 5 years of supervised release following any term of imprisonment.

If convicted, KATHLEEN WILLIAMS faces a maximum term of imprisonment of 40 years, a fine of up to $500,000, and 3 years of supervised release following any term of imprisonment.

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

U.S. Attorney Polite praised the work of the Drug Enforcement Administration, the Federal Bureau of Investigation, the St. Bernard Parish Sheriff’s Office, the New Orleans Police Department, and Louisiana Probation and Parole in investigating this matter.  Assistant United States Attorney David Haller is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that MIGUEL ANGEL LOPEZ-HERNANDEZ, age 23, a citizen of Mexico, pled guilty yesterday to a one-count Indictment for illegal reentry of a removed alien.

According to the Indictment, on or about October 26, 2014, LOPEZ-HERNANDEZ was found in the United States after having been officially deported and removed on or about May 9, 2011.

LOPEZ-HERNANDEZ 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 Jane Triche Milazzo set sentencing for March 26, 2015.

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 Rick Veters is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced the jury trial conviction of YOLANDA SMITH, 34, of Waggaman, on all three counts, namely: conspiracy to import methylone from China into the United States; conspiracy to possess methylone with the intent to distribute; and possession of methylone with the intent to distribute. According to evidence and testimony introduced at trial, SMITH, along with three other co-defendants who pleaded guilty and testified as government witnesses at trial, provided her address to accept mail parcels from China containing approximately half-a-kilogram each of methylone. The parcels were intercepted by Customs and Border Protection agents in San Francisco, tested for the substance, and forwarded to this district for controlled deliveries by United States Postal Inspectors and Homeland Security Investigation agents. The parcel addressed to SMITH at her Waggaman residence was control-delivered on May 30, 2013, and SMITH was arrested soon after that.

SMITH faces a maximum of 20 years imprisonment, along with a $250,000 fine and three years of supervised release on each count of conviction.  U.S. District Judge Helen G. Berrigan set sentencing for May 6, 2014.

U.S. Attorney Polite praised the work of Homeland Security Investigations, U.S. Customs and Border Protection, and the Border Enforcement Security Taskforce, the United States Postal Service, Jefferson Parish Sheriff's Office, and the New Orleans Police Department in investigating this matter. Assistant United States Attorneys Michael E. McMahon and Michael S. Simpson were in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that TRACIE MEDUS, age 39, of New Orleans, pled guilty yesterday to theft of government funds.

According to court documents, MEDUS admitted that she defrauded the federally funded Small Rental Property Program, a Louisiana Road Home program to enable low-income families displaced by Hurricane Katrina to return to Louisiana. The program provided money for landlords to repair units to be rented at specified low rates to approved low-income tenants. Road Home required that tenants be approved for income eligibility and to reside in units prior to landlords receiving funds.

MEDUS obtained preliminary approval for an award by representing to Road Home that two low-income individuals were residing in her rental property and that they were paying low, Road Home-authorized rents. To support her application, MEDUS submitted a purported lease for each tenant. The leases were false in that they indicated that MEDUS charged the authorized rents when in fact she actually charged her unwitting tenants higher, impermissible rents. Additionally, one of the leases was also false in that it listed an approved low-income tenant, when in fact a different person resided there instead.

At her January 2010 award closing, MEDUS reaffirmed that the tenant of the first unit was paying the approved rent amount, knowing that in fact she had been continually overcharging him. MEDUS also reaffirmed that she was renting the second unit to the previously reported purported tenant and charging the authorized rent. In truth, she instead had been continually renting to an unreported person and charging more than the authorized rent. Based on these renewed misrepresentations, Road Home issued MEDUS $158,700.

When she accepted the award, MEDUS acknowledged that she could be legally required to repay it if she failed to abide by its conditions. Unbeknownst to Road Home, MEDUS immediately violated the conditions by continuing to overcharge her tenants and by renting to the unreported tenant. In October 2010, MEDUS submitted a purported lease to Road Home indicating that a new tenant would pay the authorized rent. Again, the lease was false, as MEDUS actually charged her new unwitting tenant a higher, impermissible rent.

MEDUS, who was employed as a New Orleans Police Department police officer at the time of the crime, was suspended upon being charged and resigned prior to pleading guilty. MEDUS faces up to ten years’ incarceration and a fine of up to twice the theft amount. Sentencing is scheduled for April 30, 2015 before the Honorable Mary Ann Vial Lemmon.

U.S. Attorney Polite praised the work of the Department of Housing and Urban Development - Office of Inspector General and the Federal Bureau of Investigation in investigating this matter and thanked the New Orleans Police Department’s Public Integrity Bureau and the Internal Revenue Service’s Criminal Investigation Division for their assistance. Assistant U.S. Attorney Chandra Menon is in charge of this prosecution.

U.S. Attorney Kenneth A. Polite announced today that KIRK JENKINS, age 41, a resident of New Sarpy in St. Charles Parish, was sentenced after having previously pled guilty to three counts of distribution of heroin.

U.S. District Judge Sarah S. Vance sentenced JENKINS to 48 months of incarceration, to be followed by 3 years of supervised release.

According to court records, JENKINS distributed quantities of heroin on December 9, 2012, January 14, 2013, and March 6, 2013.

U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Louisiana State Police and St. Charles Parish Sheriff's Office in investigating this case. Assistant United States Attorney Nolan D. Paige was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that JOHN FOSTER, age 45, a resident of Tipp City, Ohio, was sentenced today for conspiracy to produce child pornography.

According to court documents, beginning in June 2012, and continuing until November 2013, FOSTER conspired with JONATHAN JOHNSON, the administrator of a multi-national child pornography website, to create and post videos depicting the sexual exploitation of children on the Internet.  In November 2013, FOSTER was arrested by special agents with the United States Department of Homeland Security, Homeland Security Investigations (“HSI”).

U.S. District Judge Kurt Engelhardt sentenced FOSTER to 16 years’ incarceration, followed by 20 years of supervised release, and FOSTER will have to register as a sex offender.

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

U.S. Attorney Polite praised the work of Homeland Security Investigations and the U.S. Postal Inspection Service in investigating this case.  Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that TANEHA D. SUMMERS, age 38, of New Orleans, 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 Ivan L.R. Lemelle sentenced SUMMERS to five years’ probation and $95,847.19 in restitution to the GCCF.

The GCCF made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion in the Gulf of Mexico.  The GCCF required individuals to verify loss of income.  According to court documents, SUMMERS assisted by her co-conspirators, who posed as claimants, created claim forms with 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.  The fraudulent claims forms 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, SUMMERS and her co-conspirators received approximately $134,600 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.

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. Attorneys Julia K. Evans and Theodore R. Carter, III were in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that JACOBI BOYD, a/k/a "Co", age 23, from New Orleans, pled guilty to today to federal drug and gun charges.

BOYD, a member of the Young Melph Mafia gang, pleaded guilty to conspiracy to possess and possess with intent to distribute 28 grams or more of cocaine base ("crack").  According to court documents, BOYD conspired with others in the New Orleans area from before 2007 through August 21, 2014, to possess and possess with intent to distribute at least 28 grams of cocaine base ("crack"). BOYD also pleaded guilty to conspiring to possess firearms in furtherance of their drug trafficking activities.

For the drug conspiracy, BOYD faces a maximum of 40 years’ incarceration, followed by a minimum of 4 years supervised release, and a maximum fine of $5,000,000.  For the gun possession, BOYD faces a maximum of 20 years of incarceration, followed by up to 3 years supervised release, and a maximum fine of $250,000.  There is also a mandatory $100.00 special assessment for each count associated with this guilty plea. U.S. District Judge Kurt D. Engelhardt set sentencing for April 15, 2015.

U.S. Attorney Polite praised the work of  the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Orleans Police Department as part of a Multi-Agency Gang Task Force. Assistant United States Attorneys Maurice Landrieu and Edward Rivera are in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that FREDERICK WILLIAMS, age 42, of Kenner, was sentenced today for possessing and attempting to pass counterfeit U.S. currency.

U.S. Attorney Ivan L.R. Lemelle sentenced WILLIAMS to 18 months’ imprisonment, followed by three years of supervised release.                                                                         

According to court documents, Special Agents from the U.S. Secret Service, New Orleans Field Office, received information from the Jefferson Parish Sheriff’s Office that WILLIAMS had been arrested for attempting to pass counterfeit U.S. currency at Ochsner Hospital located on Jefferson Highway, Jefferson, Louisiana. WILLIAMS was also found to be in possession of an additional $720 in counterfeit U.S. currency.

U.S. Attorney Polite praised the work of the U.S. Secret Service, New Orleans Field Office, and the Jefferson Parish Sheriff’s Office for investigating this matter.  Assistant United States Attorney Loan "Mimi" Nguyen was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that DAVID HENRY, age 31, of Covington, pled guilty today to a one-count Indictment 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.  HENRY admitted to taking three cards on April 23, 2014 that he believed to have contained cash.  HENRY also admitted to taking cash from the mail on three or four other occasions.

HENRY faces a maximum of 5 years’ incarceration.  U.S. District Judge Ivan L.R. Lemelle set sentencing for April 29, 2015.

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

U.S. Attorney Kenneth A. Polite announced that SHANTELL WASHINGTON, age 43, of Independence, was sentenced today after having previously pled guilty to one count of misprision of a felony.

U.S. District Judge Jay C. Zainey sentenced WASHINGTON to three years’ probation.

According to court documents, agents with the Drug Enforcement Administration (DEA) and Tangipahoa Sheriff’s Office deputies were investigating Washington’s husband, JAMES BROWN, JR.., for heroin distribution beginning in July 2013.  After having made several controlled purchases of heroin from BROWN, DEA agents obtained a federal warrant for his arrest.  On November 21, 2013, agents went to BROWN’s residence to execute the warrant, but BROWN was not present at his home.  Agents advised WASHINGTON that her husband was wanted for federal drug distribution charges, and that concealing him is a federal offense.  WASHINGTON subsequently rented a hotel room for BROWN in Hammond, in order to conceal him from arrest.  Federal authorities later located BROWN at the hotel room and arrested him.  BROWN was convicted in federal court for conspiracy to distribute heroin and possession of a firearm as a convicted felon, and he was sentenced by Judge Zainey to 120 months in federal prison.

U.S. Attorney Polite praised the work of the DEA and the Tangipahoa Sheriff’s Office in investigating this matter. Assistant United States Attorney Matthew Payne was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that EDUIN ALEXANDER BETANCOURTH-SALGADO, age 27, a Honduran citizen, was sentenced today after having previously pled guilty to a one-count Indictment for illegal reentry of a removed alien.    

U.S. District Judge Jay C. Zainey sentenced BETANCOURTH-SALGADO to two months imprisonment followed by one year of supervised release, and a $100 special assessment.  Following his incarceration, BETANCOURTH-SALGADO will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.

According to court documents, on or about November 10, 2014, BETANCOURTH-SALGADO was encountered by agents of the Immigration and Customs Enforcement outside the Jefferson Parish Juvenile Court.  ICE agents interviewed BETANCOURTH-SALGADO regarding his immigration status and he admitted to agents that he had illegally reentered the United States after having been deported.  An ICE records check confirmed that BETANCOURTH-SALGADO was in fact a citizen of Honduras who had been deported from the United States on April 15, 2011.  ICE agents arrested BETANCOURTH-SALGADO 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 DAVID LEE KILLEN, age 43, a resident of Covington, pled guilty today to a one-count Bill of Information for health care fraud.  KILLEN admitted to fraudulently billing health care insurance plans for chiropractic and other services that were not rendered or were otherwise unauthorized.

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

KILLEN faces a maximum term of 10 years imprisonment, a fine of $250,000, and 3 years of supervised release following any term of imprisonment.  U.S. District Judge Sarah S. Vance set sentencing for April 29, 2015.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation, the United States Department of Health and Human Service’s Office of Inspector General for investigating this matter.  Special Assistant United States Attorney Juliana A. Etland is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that EFREN FLORES-MELOCHOR, age 40, a citizen of Mexico, was charged today in a one-count Indictment with illegal reentry into the United States after having been previously deported.

According to the Indictment, FLORES-MELCHOR was encountered by Immigration & Customs Enforcement agents in the Eastern District of Louisiana on December 10, 2014, after records showed he had been previously deported from the United States to Honduras on April 18, 2013.

If convicted, FLORES-MELCHOR 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 St. Charles Parish Sheriff’s Department in investigating this matter.  Assistant U.S. Attorney Rick Veters is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that URIS ORDONEZA-MENDOZA, age 32, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Indictment for illegal reentry of a removed alien.

U.S. District Judge Helen G. Berrigan sentenced ORDONEZA-MENDOZA to time served.  ORDONEZA-MENDOZA will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.

According to the court documents, on September 20, 2014, ORDONEZA-MENDOZA was found in the United States after having been deported previously on February 14, 2014. 

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 ANGEL ENO CORNEJO-MORENO, age 40, a citizen of Honduras, was charged today in a one-count Indictment with illegal reentry into the United States after having been previously deported.

According to the Indictment, CORNEJO-MORENO was encountered by Immigration & Customs Enforcement agents in the Eastern District of Louisiana on December 8, 2014, after records showed he had been previously deported from the United States to Honduras on January 26, 2009.

If convicted, CORNEJO-MORENO 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 Jefferson Parish Sheriff’s Department in investigating this matter.  Assistant U. S. Attorney Rick Veters is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that GENORD PERRY, age 36, of Hammond, was charged today in a five-count Indictment for violations of the Federal Controlled Substances Act and the Federal Gun Control Act.  Specifically,  PERRY was charged with three counts of distributing a quantity of heroin, in violation of Title 21, United States Code, Section 841(a)(1) and 841(b)(1)(C) (Counts One, Two and Four).  In addition, he was charged with two counts of possessing a semiautomatic handgun in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Sections 924(c)(1)(A) & (C) (Counts Three and Five).

Counts One, Two, and Four each carry a maximum term of imprisonment of  20 years, a fine of up to $1,000,000, and a minimum of 3 years of supervised release following any term of imprisonment.  Count Three carries a minimum term of imprisonment of 5 years, a fine of up to $250,000, and a maximum of 5 years of supervised release following any term of imprisonment.  Court Five carries an additional minimum term of imprisonment of 25 years, a fine of up to $250,000, and a maximum of 5 years of supervised release following any term of imprisonment.

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

U.S. Attorney Polite praised the work of the Drug Enforcement Administration and the Hammond Police Department in investigating this matter.   Assistant U.S. Attorney James S. C. Baehr is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that NICOLE CARRIE, age 36, a resident of New Orleans, pled guilty today to a one-count Bill of Information charging her with conspiracy to commit mail fraud.

According to court documents, CARRIE became a licensed bail bondwoman in 2004.  CARRIE later permitted her name, license, and contracts with an insurance company to be used to operate an illegal bail bonding business located at 538 S. Broad Street in New Orleans.

U.S. District Judge Stanwood R. Duval, Jr., set sentencing for May 13, 2015.  CARRIE faces a maximum sentence of 5 years imprisonment followed by 3 years of supervised release.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter, and the assistance of the Metropolitan Crime Commission, the New Orleans Police Department, and the Orleans Parish District Attorney’s Office.  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 JEREMY SHAWN REASON, age 34, of New Orleans, was sentenced today for crimes involving the sexual exploitation of children.

U.S.  District Judge Stanwood R. Duval, Jr. sentenced REASON to ten years incarceration, followed by ten years of supervised release and $1,000 in restitution.

According to court documents, REASON knowingly accessed child pornography with the intent to view images depicting the sexual victimization of minors.  REASON had been in the custody of the Bureau of Prisons since his previous conviction in 2008 for Possession of Child Pornography.  At the time of his arrest in April 2013, REASON was residing at a halfway house.

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."

This case was investigated by special agents from the U. S. Department of Homeland Security, HSI.  The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U. S. Attorney Brian M. Klebba.

U.S. Attorney Kenneth A. Polite announced that CONCEPCION DIAZ, a/k/a “Conchi,” a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Indictment for the unlawful transfer of identification document.

U.S. District Judge Jane Triche Milazzo sentenced DIAZ to 8 months imprisonment followed by one year of supervised release, and a $100 special assessment.

According to court documents, on or about January 22, 2014, DIAZ transferred, without lawful authority, a means of identification of another person, to wit, a Social Security card, with the intent to commit, or to aid or abet, or in connection with, unlawful activity that constitutes social security fraud. 

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

U.S. Attorney Kenneth A. Polite announced that FRANK FRABBIELE, age 79, of Abita Springs, was sentenced today after previously pleading guilty to the transmission of wagering information and money laundering.

U.S. District Judge Helen G. Berrigan sentenced FRABBIELE to 8 months incarceration, forfeiture in the amount of $209,203.87, and a $200 special assessment.

According to court documents, beginning not later than January 2008 and continuing until April 9, 2014, FRABBIELE operated a gambling operation in which he took bets and wagers on football, basketball, and baseball games.  In the course of conducting his gambling operation, FRABBIELE used a “pay-per-head” betting website based in Costa Rica to track, record, and register bets and clients, to which FRABBIELE paid a per-client fee.  FRABBIELE’S relationship with the website caused information to be transmitted by wire from Abita Springs to the country of Costa Rica for the purposes of assisting in placing bets on football, baseball, and basketball.  FRABBIELE also committed money laundering by depositing $20,000 cash, which was proceeds of the gambling operation, into a bank account on November 15, 2012.

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

U.S. Attorney Kenneth A. Polite announced that KWANZA WELLS, age 34, a resident of New Orleans, was sentenced today for conspiring to defraud the Gulf Coast Claims Facility (GCCF).

U.S. District Judge Jay C. Zainey sentenced WELLS to three years probation, 72 hours of community service, $19,500 in restitution to the Deepwater Horizon Oilfield Trust, and $100 special assessment.

According to court documents WELLS, conspired to device a scheme to obtain money by means of fraudulent representations to defraud the GCCF.  As a result of her false and fraudulent representations and documentation, the GCCF paid WELLS approximately $19,500.

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 United States Secret Service and Federal Bureau of Investigation in investigating this matter.  Assistant United States Attorney Irene González was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that DAVID DAY, age 56, a resident of New Orleans, pled guilty today to failure to file tax returns.

According to the Bill of Information, from January 1, 2007, through at least December 31, 2010, DAY owned and operated Louisiana Support Services, Inc. (“LSS”), a limited liability corporation that provided courier services for law firms in southeast Louisiana.  DAY was primarily responsible for the day-to-day activities of the company, including all financial matters and bookkeeping.  From 2007 through 2010, DAY earned substantial amounts of income from the operation of LSS.  For each of the tax years 2007 through 2010, DAY did not file individual tax returns within the time set forth by law and did not request an extension of time in which to file a return.

DAY pled guilty to failure to file a tax return for the year 2009, which carries a possible a maximum term of imprisonment of one year, a fine of $25,000 and one year of supervised release following any term of imprisonment.

U.S. District Judge Jay C. Zainey set sentencing on April 14, 2015.

U.S. Attorney Polite praised the work of the Internal Revenue Service, Criminal Investigations Division in investigating this matter.  Assistant U. S. Attorney Patrice Harris Sullivan is in charge of the prosecution.

The Department of Justice filed today a civil forfeiture complaint seeking the forfeiture of nine properties worth approximately $1,528,000 that were allegedly purchased with funds traceable to a $2 million bribe paid by a Honduran information-technology company to the former Executive Director of the Honduran Institute of Social Security.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Polite, Jr. of the Eastern District of Louisiana and Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) made the announcement.

“Mario Zelaya was the director of Honduras’s social security agency, but instead of building a social safety net for his country’s citizens, he allegedly used his position of public trust to steal public money for himself,” said Assistant Attorney General Caldwell.  “Our action today highlights how the Criminal Division’s Kleptocracy Initiative, with our network of law enforcement partners around the globe, will trace and recover the ill-gotten gains of corrupt officials.  Criminals should make no mistake:  the United States is not a safe haven for the proceeds of your crimes.  If you hide or invest your stolen money here, we will use all the legal tools we have to find it and seize it.”

“The United States Attorney’s Office for the Eastern District of Louisiana is committed to working with our law enforcement partners, both domestically and internationally, to ensure that this district is not used to launder corruptly obtained funds, no matter the source of the corruption,” said U.S. Attorney Polite.

“ICE’s Homeland Security Investigations will continue to work in cooperation with our international law enforcement partners to ensure that our country is not used as a safe haven for corrupt foreign officials to hide their assets,” said HSI Executive Associate Director Edge.

From 2010 to 2014, Dr. Mario Roberto Zelaya Rojas, 46, of Tegucigalpa, Honduras, served as the Executive Director of the Honduran Institute of Social Security (HISS), a Honduran Government agency that provides social security services, including workers’ compensation, retirement, maternity, and death benefits.  According to allegations in the forfeiture complaint, Zelaya solicited and accepted $2.08 million in bribes from Compania De Servicios Multiples, S. de R. L. (COSEM) in exchange for prioritizing and expediting payments owed to COSEM under a $19 million contract with HISS.  Zelaya also allegedly instructed COSEM to make bribe payments to two members of the Board of Directors of HISS charged with overseeing the COSEM contract.  To conceal the illicit payments, COSEM allegedly sent the bribes through its affiliate company, CA Technologies.

As further alleged in the complaint, the bribe proceeds were then laundered into the United States and used by Zelaya and his brother, Carlos Alberto Zelaya Rojas, to acquire real estate in the New Orleans area.  Certain properties were titled in the name of companies nominally controlled by Zelaya’s brother in an effort to conceal the illicit source of the funds as well as the beneficial owner.  The current action seeks forfeiture of nine properties acquired with the proceeds of Zelaya’s alleged bribery scheme.

The investigation was conducted by HSI’s New Orleans and Miami Field Offices.  The case is being handled by Trial Attorneys Stephen A. Gibbons and Marybeth Grunstra of the Criminal Division’s Asset Forfeiture and Money Laundering Section and Assistant U.S. Attorney Daniel P. Friel of the Eastern District of Louisiana.  Substantial assistance was provided by the Public Ministry of the Republic of Honduras and the HSI Attaché Tegucigalpa.

This case was brought under the Kleptocracy Asset Recovery Initiative.  Under that initiative, dedicated prosecutors in the Criminal Division’s Asset Forfeiture and Money Laundering Section work in partnership with U.S. Attorneys’ Offices and federal law enforcement agencies to forfeit the proceeds of foreign official corruption and, where possible and appropriate, put forfeited corruption proceeds to use for the benefit of the people of the country harmed by the abuse of public office.  Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to kleptocracy@usdoj.gov.

U.S. Attorney Kenneth A. Polite announced that MOISES VAZQUEZ-ALVARADO, age 31, a citizen of Mexico, pled guilty today to a one-count Indictment for illegal entry of a removed alien.

According to court documents, VAZQUEZ-ALVARADO was found in the United States on May 16, 2014, after having been previously removed from the United States on July 18, 2007.

VAZQUEZ-ALVARADO faces a maximum term of imprisonment of 2 years, as well as a fine of $250,000. U.S. District Court Judge Carl J. Barbier set sentencing for March 19, 2015.

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

U.S. Attorney Kenneth A. Polite announced that LAVELL STOVALL, 22, of New Orleans, was sentenced today after previously pleading guilty to federal drug and firearms charges.  STOVALL was one of seven defendants that were charged in a gang indictment that was returned on October 4, 2013.

U.S. District Judge Ivan L.R. Lemelle sentenced STOVALL to 480 months imprisonment, followed by 5 years of supervised release.

On August 7, 2014, STOVALL pled guilty to Counts 1 and 2 of a superseding Bill of Information.  As part of the written plea agreement, STOVALL acknowledged his participation in a conspiracy to distribute 100 grams or more of heroin and a conspiracy to possess firearms in furtherance of his drug trafficking activities.

According to court documents, STOVALL admitted that on June 14, 2010, he participated in a drive-by shooting which resulted in the murder of Ms. Eula Mae Ivey.  STOVALL admitted that he, CHARLES JOHNSON, CAREY JONES, NORMAN RATCLIFF, THERON GOLSTON, and CHARLES CANNON used two vehicles to search with the intent to kill a rival gang member.  As they drove past the rival gang member’s house the defendants saw their rival and opened fire.  The defendants missed their target and hit Ms. Ivey, who was standing in her driveway.  Ms. Ivey was pronounced dead at the scene.  To date, JONES, GOLSTON AND RATCLIFF have all pled guilty to participating in this murder.  JONES and GOLSTON were each sentenced to life in prison, RATCLIFF was sentenced to serve 396 months, and CANNON pled guilty in state court. CHARLES JOHNSON is scheduled to go to trial in February 2015.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation as part of the MAG Unit in investigating this matter.  Assistant United States Attorney Maurice E. Landrieu, Jr. is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that CYNTHIA HEFLER, age 67, of Westwego, Louisiana, pled guilty in federal court today to conspiracy to commit bank fraud.

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 to steal A & H Armature Works, Inc. funds in order to help pay off her credit card debt accrued through gambling.

HEFLER faces a maximum term of imprisonment of 5 years, a fine of $250,000 and 3 years of supervised release following any term of imprisonment for each count. U.S. District Judge Kurt K. Engelhardt set sentencing for April 1, 2015.

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