Eastern District of Louisiana

U.S. Attorney Kenneth A. Polite announced that ELIAZAR GUSTAVO GARCIA-GARCIA, age 30, 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 Stanwood R. Duval, Jr. sentenced GARCIA-GARCIA to time served.  GARCIA-GARCIA will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.According to court documents, GARCIA-GARCIA was found in the United States after having been officially deported and removed on or about March 11, 2014.

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.

United States Attorney Kenneth A. Polite announced that JASON GUZMAN-URQUIA, age 36, a native of Honduras, pled guilty today to a one-count indictment for illegal entry of a removed alien.

According to court documents, GUZMAN-URQUIA was found in the United States on October 22, 2014, after having been previously removed from the United States on August 2, 2007.

GUZMAN-URQUIA faces a maximum term of imprisonment of 2 years, as well as a fine of $250,000. U.S. District Court Judge Stanwood R. Duval set sentencing for April 22, 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 ISIDRO OROZCO-LOPEZ, age 34, a citizen of Guatemala, pled guilty to a one-count Bill of Information for illegal reentry of a removed alien.

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

OROZCO-LOPEZ 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 Sarah S. Vance set sentencing for April 29, 2015.

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.

U.S. Attorney Kenneth A. Polite announced that JOHNNIE SANTANGELO, III, age 29, of Tangipahoa Parish, and OBER FARFAN BRAVO, age 34, an undocumented alien living in Tangipahoa Parish, pled guilty today to a one-count Bill of Information charging them with  a pattern and practice of unlawfully employing aliens.

According to court documents, SANTANGELO and BRAVO knowingly and unlawfully engaged in a pattern and practice of hiring aliens for employment, knowing that said aliens were unauthorized to work in the United States.

SANTANGELO and BRAVO each face a maximum term of six months incarceration and/or a fine of $3,000 for each unauthorized alien or twice the gross loss to any person.  U.S. District Judge Jay C. Zainey set sentencing for March 17, 2015.   

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

U.S. Attorney Kenneth A. Polite announced that JOSE RAMON GARCIANO-CABANILLA, age 47, a Mexican citizen, was sentenced today after having previously pled guilty to a one-count Indictment for illegal reentry of a removed alien.    

United States District Court Judge Lance M. Africk sentenced GARCIANO-CABANILLA to 22 months imprisonment followed by 3 years of supervised release, and a $100 special assessment.

According to court documents, on or about June 5, 2014, agents of the Immigration and Customs Enforcement (“ICE”) encountered GARCIANO-CABANILLA after he had been arrested for traffic violations.  After a records check, agents learned that GARCIANO-CABANILLA was a Mexican citizen who had not entered the United States legally and, in fact, had been previously deported from the United States on November 4, 2008.  It was also learned that GARCIANO-CABANILLA had re-entered the United States without being inspected by United States Border Patrol officials and without the consent of the United States Attorney General.

At the sentencing hearing, Judge Fallon determined that GARCIANO-CABANILLA was subject to the 8 USC 1326(b)(1) sentencing enhancement provision due to GARCIANO-CABANILLA’s April 2003 prior conviction for conspiracy and possession with the intent to distribute marijuana.   

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 ALTON CELESTINE, age 35, of Houma, was sentenced after having pled guilty to two counts of possession with intent to distribute cocaine. CELESTINE pled guilty to one count of possession with intent to distribute twenty-eight grams of cocaine base (“crack”) and one count of possession with intent to distribute twenty-eight grams of crack and a quantity of cocaine hydrochloride.

U.S. District Judge Helen G. Berrigan sentenced CELESTINE to time served after having served 41 months in jail, and 4 years of supervised release.

 The plea and sentencing of CELESTINE followed an investigation by the Terrebonne Parish Narcotics Division and the Drug Enforcement Administration who identified CELESTINE as a distributor of cocaine.

U.S. Attorney Polite praised the work of the Drug Enforcement Administration and the Terrebonne Parish Narcotics Division in investigating this matter.  Assistant United States Attorney Andre Jones was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that ALFREDO VARELA-HERNANDEZ, age 35, a citizen of Honduras, pled guilty today to a one-count Bill of Information for illegal reentry of a removed alien.

According to the Bill of Information, on or about September 12, 2014, VARELA-HERNANDEZ was found in the United States after having been officially deported and removed on or about December 30, 2013. 

ALFREDO VARELA-HERNANDEZ 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. Feldman set sentencing for April 22, 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 Irene González is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that ISIDRO OROZCO-LOPEZ, age 34, a citizen of Guatemala, was charged today in a one-count Bill of Information with illegal reentry of a removed alien.

According to the bill of information, ISIDRO OROZCO-LOPEZ reentered the United States on or about November 8, 2014, after having been previously removed therefrom on or about November 25, 2013. 

If convicted, ISIDRO OROZCO-LOPEZ faces a maximum term of imprisonment of two years, a fine of up to $250,000.00, 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.

ANDRES VILLALVA-GUADARRAMA, age 53, a Mexican citizen living in Gretna, was sentenced after previously pleading guilty to a one-count Bill of Information for illegal use of a Social Security Number.

U.S. District Judge Eldon E. Fallon sentenced VILLALVA-GUADARRAMA to time served and a $100 special assessment.

According to court documents, VILLALVA-GUADARRAMA, for the purpose of obtaining employment and for other purposes, knowingly and with intent to deceive, did falsely represent on an U.S. Citizenship and Immigration Services Employment Eligibility Verification Form that a Social Security Number not issued to him, was assigned to him.

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

U.S. Attorney Kenneth Allen Polite, Jr. announced that MARCIA PETERSON, of Gretna, was sentenced yesterday for defrauding several federal and state agencies.

U.S. District Judge Martin L.C. Feldman sentenced PETERSON to 15 months imprisonment, to be followed by 36 months of supervised release.  Additionally, PETERSON was ordered to pay $91,492.41 in restitution.

According to court documents, PETERSON was sentenced after having pled guilty in August to two counts of theft of government funds and one count of wire fraud.  PETERSON was the executive director and accountant for CDC 58:12, a non-profit with a stated mission of transforming communities by creating opportunities in housing, education, health, and economic development.  From 2011 through 2013, PETERSON improperly withdrew approximately $87,000 in federal grant funds from CDC’s bank account and spent the money on gambling and other personal expenses.  Additionally, from August 2012 to December 2012, while working for CDC, PETERSON falsely claimed to the Louisiana Workforce Commission that she was out of work in order to receive $4,199 in unemployment insurance benefits.

U.S. Attorney Polite praised the work of the U.S. Department of Housing and Urban Development - Office of Inspector General, the U.S. Department of Education - Office of Inspector General, the U.S. Department of Labor - Office of Inspector General, and the Federal Bureau of Investigation in investigating this matter.  Assistant United States Attorney Chandra Menon was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that THEODORE PLATANITIS, age 44, of Rancho Cordova, California, was sentenced yesterday after having previously pled guilty to conspiring to commit health care fraud and bank fraud.

U.S. District Judge Kurt D. Engelhardt sentenced PLATANITIS to serve 5 months probation and ordered restitution to the victim in the amount of $16,302.

According to court documents, PLATANITIS worked as a money carrier in an organization that hacked into the e-mail accounts of victims and then used that access to cause sums of money to be wired out of the victim’s bank accounts.  PLATANITIS was recruited by unknown individuals to open bank account(s) in the United States to receive fraudulent wire transfers from the bank accounts of victims.

On August 24, 2011, the office manager for a New Orleans physician (“Doctor A”) received an e-mail from Doctor A’s America Online e-mail account requesting that the office manager wire $32,300 from Doctor A’s bank account to PLATANITIS’S bank account.  In fact, it was not Doctor A who sent the email, but rather another individual had taken control of Doctor A’s e-mail account, and, without Doctor A’s authorization, drafted and sent the e-mail to Doctor A’s office manager purporting to be Doctor A.  Doctor A’s office manager complied with the e-mail, and the money was wired to PLATANITIS’S account.

Once the deposit in the amount of approximately $32,000 had been fraudulently deposited into PLATANITIS’S account, PLATANITIS withdrew approximately $16,150 in cash and, acting upon instructions given to him, took the cash to various Western Union locations in Rancho Cordova, California.  He then wired different amounts to different locations in Malaysia in amounts not more than $5,000. Shortly thereafter, PLATANITIS returned to a bank branch and attempted to withdraw the remainder of the funds he had fraudulently obtained from Doctor A from his business account.

U.S. Attorney 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 ROBERT SWAN, age 52,  of Ponchatoula, pled guilty today for his role in sexual exploiting children, including receiving images depicting the sexual victimization of children.

According to court documents, on January 30, 2013, investigators with the State of Louisiana Department of Justice – Office of the Attorney General, Cyber Crime Unit, executed a search warrant on SWAN’S residence.  The search was based on evidence obtained by law enforcement that between about November 30, 2012, and December 1, 2012, SWAN distributed, by making publicly available in the shared folder of his peer-to-peer program, videos depicting the sexual victimization of children between the ages of two and ten.  Agents seized fifteen separate digital devices, including multiple computers, hard drives, and flash drives.

While reviewing materials seized in the search, agents found digital materials evidencing that in about January 2010, SWAN and his associate, Thomas Middleton, forced a then-three year-old girl to engage in sexually explicit conduct, which SWAN recorded.

Additionally, agents found that between about May 2010 and January 2013, SWAN had downloaded, saved, and catalogued at least 500,000 images and videos—one of the largest collections of child pornography found in the State of Louisiana—depicting children as young as at least four weeks old being forced to engage in sexually explicit conduct.  Titles of many of the videos were consistent with the content of the videos. 

Because of SWAN’S prior conviction in 1987 for lewd and lascivious assault of a minor in Escambia County, Florida, SWAN faces a mandatory minimum term of imprisonment of fifteen  years and a maximum sentence of forty years, followed by up to a life term of supervised release, and a $250,000 fine.  He can also be required to register as a sex offender.  Sentencing before U.S. District Judge Berrigan has been scheduled for March 25, 2015.

“Robert Swan has been brought to justice for collecting over 500,000 images of child pornography, one of the largest collections ever seized in our state,” stated U.S. Attorney Polite.  “Our Office, along with our federal and state law enforcement partners, will remain vigilant in fighting the sexual exploitation of our region’s most vulnerable victims -- our children.”

“Robert Swan is every parent’s worst nightmare,” said Louisiana Attorney General Buddy Caldwell.  “When our Cyber Crime Unit begins an undercover investigation, we never know how dangerous the person lurking on the other side of the computer will be.  In this case, our forensic examination revealed that Swan not only possessed or shared half a million images depicting the sexual abuse of children, but also that he actually teamed up with another pedophile to abuse an innocent child.  We are very pleased and proud that our Cyber Crime Unit was instrumental in putting this pedophile behind bars.”

 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 State of Louisiana Department of Justice – Office of the Attorney General, Cyber Crime Unit in investigating this matter.  Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that PAUL E. GARDNER, age 57, of New Orleans, was charged yesterday in a Bill of Information with one count of Wire Fraud alleging embezzlement which took place during GARDNER’s employment with Clovelly Oil Co., L.L.C. (“Clovelly Oil”).

According to documents filed in federal court, for the past thirty years, GARDNER operated an accounting, consulting, and tax preparation business under the name Paul E. Gardner, C.P.A.  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 twenty years imprisonment and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim.

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

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

United States Attorney Kenneth A. Polite announced that APOLINAR MONJE-SANCHEZ, age 42, a native of Mexico, pled guilty today to a one-count indictment for illegal entry of a removed alien.

According to court documents, on October 1, 2014, MONJE-SANCHEZ was found in the United States after having been previously removed from the United States on April 29, 2010.

MONJE-SANCHEZ faces a maximum term of imprisonment of two years, as well as a fine of $250,000.  U.S. District Judge Susie Morgan set sentencing for April 8, 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 LORI DEXTER, age 52, of Atlanta, Georgia, pled guilty today to a one-count Superseding Bill of Information charging her with conspiracy to distribute and possess with intent to distribute methamphetamine.

According to the Bill of Information, beginning on a date unknown and continuing until on or about September 8, 2013, DEXTER knowingly combined, conspired, confederated and agreed with persons known and unknown, to distribute and possess with the intent to distribute a quantity of methamphetamine.

DEXTER faces a maximum term of imprisonment of twenty years and a fine of $1,000,000, three years of supervised release after imprisonment, and a $100 special assessment.   U.S. District Judge Martin L. C. Feldman set sentencing for April 22, 2015.               

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

U.S. Attorney Kenneth A. Polite announced that TENILLE NIELSON, age 34, of Franklinton, was sentenced today for her role in a scheme to defraud the Louisiana Workforce Commission of unemployment benefits.    

U.S. District Judge Helen G. Berrigan sentenced NIELSON to 3 years probation and restitution in the amount of $6,422.

According to the court documents, beginning at a time unknown, but no later than on or about September 24, 2009, and continuing through on or about January 11, 2014, NIELSON, along with CHARLES E. MIZELL, JR., TERRY CASTILOW, WILLIAM DARRYL KING, DAVID LOWE, JAMES CREEL, JERRY ATHEY, 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 NIELSON applied for UI benefits and made weekly representations to LWC that she was unemployed and not getting paid, MIZELL, JR., actually employed her at Chamico, Inc., a Bogalusa construction company that concentrates on public, municipal, and industrial contracts.

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 was in charge of the prosecution.

A chief engineer from the M/V Trident Navigator was convicted by a federal jury in New Orleans late yesterday after a week-long trial, of knowingly falsifying the vessel’s oil record book in violation of the Act to Prevent Pollution from Ships (APPS), obstruction of justice and witness tampering, announced the Department of Justice Environment and Natural Resources Division and the U.S. Attorney’s Office for the Eastern District of Louisiana.

Matthaios Fafalios, 64, a resident of Greece, was convicted of knowingly falsifying the vessel’s oil record book, obstruction of justice, and witness tampering related to his service onboard the M/V Trident Navigator and a subsequent U.S. Coast Guard boarding of the vessel in January 2014.  In late December 2013, Fafalios ordered his engineering crew to construct a hose known in the industry as a “magic hose” to discharge the oily waste water that was in the vessel’s bilge holding tank.  Two crewmembers onboard the vessel reported this illegal discharge to the Coast Guard.  When coast guard inspectors boarded the vessel, Fafalios attempted to hide critical documents from the inspectors that indicated the illegal discharge occurred.  Additionally, Fafalios ordered engineers under his command to lie to the Coast Guard about the illegal oily waste water discharge.

Consistent with requirements in the APPS regulations, a vessel like the M/V Trident Navigator, must maintain a record known as an oil record book in which transfer and disposal of all oil-contaminated waste and the discharge overboard and disposal otherwise of such waste, must be fully and accurately recorded by the person in charge of the operations. Oil-contaminated bilge waste can be discharged overboard if it is processed through on-board pollution prevention equipment known as the oily water separator (OWS).

The operator of the vessel, Marine Managers ltd., had previously pleaded guilty to knowingly falsifying the oil record book and obstruction of justice and paid a total criminal penalty of $900,000.00.

The case was investigated by the U.S. Coast Guard Investigative Service.  The case was prosecuted by Kenneth E. Nelson of the Environmental Crimes Section of the Department of Justice and by Emily Greenfield of the U.S. Attorney’s Office for the Eastern District of Louisiana.

U.S. Attorney Kenneth A. Polite announced that THOMAS HARRISON, age 34, and RODNEY MACK, age 34, both residents of New Orleans, pled guilty yesterday to conspiracy to distribute and conspiracy to possess with intent to distribute heroin. Trial for the remaining five defendants is scheduled for February 23, 2015.

HARRISON is facing a minimum of 20 years up to life imprisonment and has agreed to forfeit over $130,000 of cash/jewelry.  MACK is facing a minimum of 10 years to life imprisonment.  U.S. District Judge Carl Barbier set sentencing on March 19, 2015.

On July 25, 2014, HARRISON and MACK were two of 12 defendants charged in a 23-count Indictment. According to court documents, this investigation targeted a heroin trafficking organization operating in New Orleans East. This organization was responsible for distributing at least 15 kilograms of heroin in New Orleans.  Agents seized approximately $1,200,00 in assets (a combination of vehicles, currency, jewelry and real property) from members of this drug trafficking organization that were acquired with proceeds made from the sale of heroin.

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

U.S. Attorney Kenneth A. Polite announced that DARRELL LEWIS, age 29, STERLING PIPKINS, age 30, KEVIN WALKER, age 22, CARL LEWIS, age 21, DARRYL LEWIS, age 60, DEMONIDE ROWLEY, age 37, NERIMANE BONCHAMA, age 21, TANESHEN GRANDBERRY, age 38, MICHAEL MCQUITTY, age 40, all of New Orleans, were charged in a thirteen-count indictment for violations of the Federal Controlled Substances Act and the Federal Gun Control Act.

Count 1 charges all defendants with conspiracy to distribute and to possess with the intent to distribute one kilogram or more of heroin.  As to that count, all of the defendants face a term of imprisonment of at least ten years in prison and a maximum of life imprisonment, a fine of up to $10,000,000, and a minimum of five years of supervised release following any term of imprisonment.    

Count 2 charges defendants DARRELL LEWIS, PIPKINS, WALKER, CARL LEWIS, DARRYL LEWIS, BOUCHAMA, GRANDBERRY, and MCQUITTY with conspiracy to possess firearms in furtherance of a drug trafficking crime.   The offense carries a maximum penalty of twenty years, a fine of $250,000, and three years of supervised release.

The indictment also charges DARRELL LEWIS, PIPKINS, and CARL LEWIS with distribution of heroin.  The offense carries a maximum penalty of twenty years of imprisonment, a fine of up to $1,000,000, and three years of supervised release.

DARRELL LEWIS, PIPKINS, WALKER, CARL LEWIS, DARRYL LEWIS, BOUCHAMA, and MCQUITTY are also charged with use of a communications facility in furtherance of a drug trafficking crime.  The maximum penalties those defendants may receive as to each count is four years in prison, a $250,000 fine, and not more than one year of supervised release.

The indictment lastly charges DARRYL LEWIS with possession of firearms, including AR-15 rifles, in furtherance of a drug trafficking crime.  For this offense, he faces a mandatory minimum sentence of at least five years in prison to be served consecutively with any other sentence.

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 Investigations Violent Gang Task Force (NOGTF), which includes the Drug Enforcement Administration, Homeland Security, the New Orleans Polite Department, Jefferson Parish Sheriff’s Office and the St. Tammany Parish Sheriff’s Office.

Assistant U.S. Attorneys Matthew Payne and Elizabeth Privitera are in charge of the prosecution.

U.S. Attorney Kenneth Allen Polite, Jr., announces the return of a third superseding indictment charging members of the Frenchmen/Derbigny gang, or “FnD,” with violating federal drug and firearm laws.  A federal grand jury returned the indictment on December 11, 2014, against TRAVIS SCOTT, a/k/a “Trap” or “Slim,” age 30, STANLEY SCOTT, a/k/a “Stizzle,” age 22, SHAWN SCOTT, a/k/a “Shizzle,” age 25, AKEIN SCOTT, a/k/a “Keemy,” age 21, JEREMIAH JACKSON, a/k/a “Rocky,” age 24, and BRIAN BENSON, a/k/a “Dub” or “Dubba,” age 30.

The third superseding indictment alleges that all six defendants engaged in a conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act (RICO).  According to the indictment, the defendants, as members of Frenchmen/Derbigny, or “FnD,” conspired to commit racketeering acts including murder, distribution of controlled substances, robbery, tampering with witnesses, and interstate travel in aid of racketeering.  The indictment alleges that FnD members sold drugs from a convenience store located in the Seventh Ward of New Orleans, and that FnD members benefitted from food stamp fraud that was facilitated by store employees.  The indictment also alleges the attempted murder of twenty individuals in the Mother’s Day second-line parade as an overt act committed in furtherance of the RICO conspiracy.  If convicted of the RICO conspiracy set forth in the indictment, all six defendants face a maximum of life imprisonment.

The indictment also includes six counts of violent crimes in aid of racketeering against TRAVIS SCOTT, STANLEY SCOTT, SHAWN SCOTT, AKEIN SCOTT, and JEREMIAH JACKSON.  Among these charges is a count charging JEREMIAH JACKSON with a shooting that occurred on April 16, 2011, on the 2000 block of North Prieur Street.  Each count carries a maximum sentence of 20 years in prison.

TRAVIS SCOTT is also charged with two counts of witness tampering and two counts of interstate travel in aid of racketeering.  If convicted of witness tampering, TRAVIS SCOTT faces a maximum of 20 years in prison as to each count.  If convicted of interstate travel in aid of racketeering, he faces a maximum 5 years in prison as to each count.

All defendants are presently in custody pending trial.

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

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. 

The prosecution is being handled by Assistant United States Attorney Matthew Payne and Special Assistant United States Attorney Brian Ebarb, who is assigned from the Orleans Parish District Attorney’s Office.

U.S. Attorney Kenneth A. Polite, announced that BRANDON LICCIARDI, age 29 of Meraux, Louisiana, and DARREN SHARPER, age 39, formerly of New Orleans, were charged today in a six-count Indictment.  LICCIARDI and SHARPER were charged with Conspiracy to Distribute Alprazolam, Diazepam and Zolpidem with intent to commit rape and two counts of distributing these substances with intent to commit rape.  LICCIARDI was also charged with two counts of Witness Tampering and one count of Impeding an Investigation.  The maximum punishments for these offenses are as follows:

COUNT

CHARGE

DEFENDANT

MAXIMUM PENALTIES

1

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

Brandon Licciardi

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

2

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

Brandon Licciardi

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

3

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

Brandon Licciardi

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

4

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

Brandon Licciardi

Darren Sharper

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

5

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

Brandon Licciardi

Darren Sharper

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

6

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

Brandon Licciardi

Darren Sharper

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

 

LICCIARDI is a former Deputy Sheriff with the St. Bernard Sheriff’s Office.  He resigned from that position prior to his arrest today.  SHARPER is a former member of the New Orleans Saints and is presently in custody in Los Angeles for State of California charges.

“Today's indictment reflects our office priorities of fighting violence and public corruption,” state U.S. Attorney Polite.  “As alleged, Sharper and Licciardi conspired to distributed narcotics to several women with the intent to commit rape.  Licciardi further compromised his position as a law enforcement officer by encouraging a witness to lie about Licciardi's involvement in this conspiracy.  As a result of today’s federal and state charges, both Licciardi and Sharper will now be brought to justice in this district.”

U. S. Attorney Polite reiterated that, at this time, the charges in the Indictment are merely charges, and that the guilt of the defendants must be proven beyond a reasonable doubt.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter and thanked the Orleans Parish District Attorney’s Office for their assistance.  Assistant United States Attorneys Mark A. Miller and Michael E. McMahon are in charge of the prosecution.

 

U.S. Attorney Kenneth A. Polite announced that NORWIN CASTELLON-LOPEZ, age 32, a citizen of Nicaragua, was sentenced today after having pled guilty to a one-count Indictment for illegal reentry of a removed alien.

U.S. District Judge Carl J. Barbier sentenced CASTELLON-LOPEZ to 14 months imprisonment followed by two years of supervised release, and a $100 special assessment.

According to court documents, on or about July 29, 2014, CASTELLON-LOPEZ, reentered the United States after having been previously removed on December 22, 2010.

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 Spiro G. Latsis is in charge of the prosecution.

 

U.S. Attorney Kenneth A. Polite announced that GAIL TEAGUE, 48, of New Orleans, was charged today in a Bill of Information with one count of defrauding Ochsner Federal Credit Union.

According to the Bill of Information, from approximately 2000 until approximately May 2013, TEAGUE was employed by Ochsner Federal Credit Union, first as a part-time employee and subsequently as office manager at the credit union.  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.

If convicted, 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.

The U. S. Attorney’s Office 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 Federal Bureau of Investigation and the National Credit Union Administration in investigating this case.  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 CHERKISSA JACKSON, 42, of Napoleonville, was charged today in a one-count Indictment with making false statements.

According to the Indictment, JACKSON filed an application with the Department of Homeland Security Federal Emergency Management Agency on September 3, 2008, claiming a loss for a trailer located at 3342 Back Marais Street, Napoleonville, Louisiana.  On October 31, 2008, JACKSON received a wire transfer in the amount of $28,800 based on her claim of a loss to the trailer.  However, the year before the storm, on January 6, 2007, JACKSON sold the trailer to another party as evidenced by a bill of sale, and thus, did not own the trailer on September 1, 2008.  On or about February 23, 2012 in the Eastern District of Louisiana, the defendant JACKSON lied to a special agent of the Office of the Inspector General, Department of Homeland Security, namely, JACKSON told the agent that she owned the trailer at 3342 Back Marais Street, Napoleonville, at the time Hurricane Gustav impacted Napoleonville, when in truth and in fact, she had sold the trailer on January 6, 2007.

If convicted, JACKSON faces a possible maximum sentence of five years imprisonment, and/or a fine of $250,000 and up to three (3) years of supervised release.

The U. S. Attorney’s Office 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 Department of Homeland Security, Office of Inspector General in investigating this case.  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 LISA ROBERTS, age 48, of Marrero, was sentenced for theft of government funds.

U.S. District Judge Jane Triche Milazzo sentenced ROBERTS to three years probation and restitution in the amount of $49,339 to the Social Security Administration.

According to court documents, ROBERTS’ sister was receiving social security widow’s benefits before her death. When she died, these benefits should have terminated. However, ROBERTS continued to receive the benefits, which were directly deposited into a bank account accessed by ROBERTS, who converted the funds to her personal use knowing that she was not entitled to receive those benefits.

U.S. Attorney Polite praised the work of the U.S. Social Security Administration- Office of Inspector General in investigating this matter.  Assistant United States Attorney Loan “Mimi” Nguyen was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that JOSE LUIS JOSE LUIS MAYORGA-LEMUS, age 24, a citizen of Honduras, was sentenced yesterday after having pled guilty to a one-count indictment for illegal reentry of a previously removed alien.

U.S. District Judge Ivan L.R. Lemelle sentenced MAYORGA-LEMUS to 3 months imprisonment followed by one year of supervised release, and a $100 special assessment.

According to court documents, on or about August 28, 2014, MAYORGA-LEMUS, reentered the United States after having been previously removed on August 3, 2011.

U.S. Attorney Polite praised the work of the ICE 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 RYAN BINNER, age 42, of Hammond, was charged today in a four-count Indictment for violations of the Federal Controlled Substances Act and the Federal Gun Control Act.  In Counts One and Two of the Indictment, BINNER was charged with distributing a quantity of methamphetamine.  In Count Three, BINNER was charged with possessing with intent to distribute five grams or more of methamphetamine.  In Count Four, BINNER was charged with possessing a short-barreled shotgun in furtherance of a drug trafficking crime.

Counts One and Two of the Indictment each carry a maximum term of imprisonment of twenty years, a fine of up to $1,000,000, and a minimum of three years of supervised release following any term of imprisonment.  Count Three carries a minimum term of imprisonment of five years and a maximum term of imprisonment of forty years, a fine of up to $5,000,000, and a minimum of four years of supervised release following any term of imprisonment.  Court Four carries a minimum term of imprisonment of ten years, a fine of up to $250,000, and a maximum of five 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, with assistance from the Tangipahoa Parish Sheriff’s Office and the Hammond Police Department in investigating this matter.  Assistant United States Attorney Brandon S. Long is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that OSAKA THAI CORPORATION, which operated Osaka Japanese Restaurant and Thai House Restaurant in Slidell, SHINTO RESTAURANT, INC., which operated Shinto Japanese Restaurant in Lafayette, and their owner, TONY NGUYEN, age 57, of Slidell, were sentenced today for conspiring to harbor aliens and for engaging in an unlawful pattern and practice of employing aliens.

U.S. District Judge Ivan L.R. Lemelle sentenced the Osaka Thai Corporation, the Shinto Restaurant, Inc., and Tony Nguyen to three years probation and forfeiture of $250,000 of illegal proceeds.

On August 20, 2014, OSAKA THAI CORPORATION and SHINTO RESTAURANT, INC. pled guilty to conspiracy to conceal, harbor, and shield from detection illegal aliens and encourage and induce illegal aliens to remain in the country by providing them housing, transportation, and employment at the restaurants operated by the defendants.  That same day, NGUYEN pled guilty to knowingly engaging in a pattern and practice of hiring aliens he knew were unauthorized to work in the United States.  As part of their plea agreement, the defendants agreed to forfeit $250,000 in illegal proceeds to the United States.

According to court documents, the defendants knowingly hired illegal aliens to work in their restaurants over a period of several years and provided the aliens with housing and a van to transport them from the housing to the restaurants.  Eighteen illegal aliens were arrested when special agents executed search warrants at the restaurants.     

U.S. Attorney Polite praised the work of the U.S. Immigration and Customs Enforcement (ICE) - Homeland Security Investigations in investigating this matter.  Assistant U.S. Attorney David Haller was in charge of the prosecution.

U. S. Attorney Kenneth Allen Polite, Jr. announced that DWAYNE E. HUPP, age 51, of Bay St. Louis, Mississippi, after having pled guilty to four counts of bank robbery.

U.S. District Judge Kurt D. Engelhardt sentenced HUPP to serve 188 months incarceration followed by three years of supervised release.  Additionally, HUPP was ordered to pay $14,991 in restitution to the victim banks.

According to court documents, HUPP admitted that he robbed the Liberty Bank on August 6, 2013, and again on September 10, 2013, and the Crescent Bank and Trust on September 4, 2013, and September 19, 2013.  Documents filed in the matter reveal that the defendant was tackled by the security supervisor and the facilities manager as he exited the Crescent Bank and Trust after the last robbery.  HUPP was held until the New Orleans Police Department (NOPD) and the Federal Bureau of Investigation (FBI) arrived on the scene.  HUPP was questioned shortly thereafter by the FBI and admitted to committing all four robberies.  When shown surveillance photographs of the robbery suspect in each of the four robberies, HUPP identified himself as the person in those photographs.  HUPP admitted that he was a heroin addict and would regularly travel from Bay St. Louis, Mississippi, to New Orleans to obtain heroin.  In order to support his habit, HUPP began to rob local banks.

U.S. Attorney Polite praised the work of the FBI with the valuable assistance of the NOPD in investigating this matter.  Also, U.S. Attorney Polite commended the security and facilities personnel who captured the defendant and added that their actions may have prevented additional robberies.  Assistant United States Attorneys Mark A. Miller and Michael M. Simpson were in charge of the prosecuted.

U.S. Attorney Kenneth A. Polite announced that KIRK P. WEBER, age 54, of Reserve, was sentenced today for crimes involving the sexual exploitation of children.

Chief Judge Sarah Vance sentenced WEBER to five years imprisonment followed by 20 years of supervised release.  Additionally, WEBER will be required to register as a sex offender pursuant to the Sex Offender Registration and Notification Act.

According to court records, from May 14, 2013 to October 24, 2013, WEBER knowingly used a popular social networking website to distribute images depicting the sexual victimization of minors.   During the investigation, federal investigators determined that WEBER used multiple email accounts to receive and download sexually explicit images of minors. WEBER pled guilty on June 4, 2014, and has been in federal custody since his February 7, 2014 arrest.         

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, HIS in investigating this matter.  Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U. S. Attorney Brian M. Klebba was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that TEQUILLA LEWIS, age 37, of New Orleans, was sentenced for conspiracy to commit wire fraud relating to fraudulent applications she made to the Gulf Coast Claims Facility (GCCF) for financial assistance in the aftermath of the Deepwater Horizon oil spill in the Gulf of Mexico.

U.S. District Judge Martin L.C. Feldman sentenced LEWIS to three years probation and ordered restitution in the amount of $188,200.

According to court documents, the GCCF made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion.  The GCCF required individuals to verify loss of income.  Beginning approximately October 2010, LEWIS agreed with other individuals to defraud the GCCF by making and submitting false on-line claims for lost earnings resulting from the Deepwater Horizon oil spill.  Pursuant to their agreement, LEWIS provided the individuals with fraudulent documentation to submit along with their false claims to GCCF.  LEWIS required them to share part of any claim proceeds with her as a fee for her assistance with the claims.  Accordingly, LEWIS filed numerous claim forms with the GCCF claims facility seeking emergency six-month payments on behalf of others, who posed as claimants.  The claim forms falsely stated that they had lost earnings as a result of the Deepwater Horizon oil spill.  To support the false claims, LEWIS created and submitted false documentation in support of these claims.

As a result of these false representations and documentation, the GCCF paid LEWIS and the other individuals approximately $188,200.

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

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter.  Assistant United States Attorney Loan AMimi@ Nguyen was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that NELSON FLORES-CRUZ, age 30, a citizen of Honduras, pled guilty today to a one-count Bill of Information for illegal reentry of a removed alien.

According to the Bill of Information, on or about August 12, 2014, FLORES-CRUZ was found in the United States after having been officially deported and removed on or about July 11, 2008. 

FLORES-CRUZ 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 Department of Homeland Security/Immigration and Custom Enforcement and Removal in investigating this matter.  Assistant United States Attorney Irene González is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that JOSE HERNANDEZ-HERNANDEZ, age 35, a citizen of Honduras, was sentenced after having pled guilty to a one-count indictment for illegal reentry of a previously removed alien.

U.S. District Judge Jay C. Zainey sentenced HERNANDEZ-HERNANDEZ to 12 months imprisonment followed by one year of supervised release, and a $100 special assessment.

According to court documents, on or about September 15, 2014, HERNANDEZ-HERNANDEZ, reentered the United States after having been previously removed on July 26, 2013.

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

U.S. Attorney Kenneth A. Polite announced that MARLON JOEL PAZ-MENDOZA, age 29, a citizen of Honduras, was sentenced today after having pled guilty to a one-count indictment for illegal reentry of a removed alien.

U.S. District Judge Jay C. Zainey sentenced PAZ-MENDOZA to time served since having been imprisoned since March 20, 2014, followed by one year of supervised release, and a $100 special assessment.

According to court records, on or about March 20, 2014, PAZ-MENDOZA was found in the United States after having been officially deported and removed on two prior occasions, most recently on or about March 14, 2014.

U.S. Attorney Polite praised the work of 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 that LAVERNE ROSE, age 68, of New Orleans, was charged today with theft of government funds.

According to the bill of information, from 1990 to 2014, ROSE stole approximately $282,400 from the United States Social Security Administration.  If convicted, ROSE faces up to ten years’ incarceration and a fine of up to twice the theft amount.

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 Social Security Administration in investigating this matter.  Assistant U.S. Attorney Chandra Menon is in charge of this prosecution.

U.S. Attorney Kenneth A. Polite announced that EVANS LEWIS, age 23, of New Orleans, was sentenced today for his role in the shooting death of a New Orleans man.  On February 26, 2014, LEWIS pled guilty to murdering an unarmed New Orleans man, Gregory Keys, and shooting another individual, Kendrick Smothers, during the course of a drug trafficking crime.

LEWIS was sentenced to 30 years imprisonment, 5 years of supervised release, and was ordered to pay a special assessment of $100 by U.S. District Judge Nannette Jolivette Brown.

“For killing a New Orleans resident and shooting another, Evan Lewis will now spend the next three decades in prison,” stated U.S. Attorney Polite.  “This lengthy sentence reflects the commitment of our federal, state, and local partners in using all necessary resources to remove the most violent offenders from our streets for as long as possible.”

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation, the Bureau of Alcohol Tobacco and Firearms, the New Orleans Police Department, Jefferson Parish Sheriff=s Office and St. Tammany Parish Sheriff=s Office in investigating this matter.  Assistant U.S. Attorneys Sharan Lieberman, Maurice Landrieu, Jr., and Matthew Payne were in charge of the prosecution.

 

U.S. Attorney Kenneth A. Polite announced that JAMES CONRAD, JR., age 49, of New Orleans, pled guilty yesterday to theft of government funds.

CONRAD admitted that from 1998 to 2013, he stole a total of $247,800 from the federal government. CONRAD jointly held a bank account with an individual who received Social Security Administration and Office of Personnel Management benefits. Entitlement to benefits terminated when the individual died in 1998, but the agencies, unaware of the death, continued wiring payments to the bank account until 2013. CONRAD knew that the payments did not belong to him. Instead of notifying the agencies of the improper payments, CONRAD spent them on himself.

CONRAD faces up to ten years’ incarceration and a fine of up to twice the theft amount. U.S. District Judge Nannette Jolivette Brown scheduled sentencing for April 10, 2015.

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

U.S. Attorney Kenneth A. Polite announced that JUNIOR LEOPOLD, age 38, of Trinidad and Tobago, was sentenced yesterday for bringing seven kilograms of cocaine into the United States.

U.S. District Judge Ivan L.R. Lemelle sentenced LEOPOLD to 45 months incarceration and two years of supervised release.

On June 11, 2014, LEOPOLD pleaded guilty to one count of possession with the intent to distribute more than five kilograms of cocaine.  As part of the plea, LEOPOLD, who worked on a ship that was traveling from Trinidad and Tobago to the United States, admitted that he was being paid $5,000 per kilogram to bring the cocaine into the United States.

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

U.S. Attorney Kenneth A. Polite announced that TERRIOUES OWNEY, age 27, and DARICK WALLACE, age 25, both of New Orleans, were sentenced today for their roles in a heroin distribution conspiracy.

On February 13, 2014, OWNEY pled guilty to one count of conspiracy to possess with the intent to distribute one kilogram or more of heroin, and one count of using a telephone to further the drug conspiracy.

On February 27, 2014, WALLACE pled guilty to one count of conspiracy to possess with the intent to distribute 100 grams or more of heroin.  Additionally, WALLACE was eligible for a sentencing enhancement for having previously been convicted of a felony drug offense.

U.S. District Judge Nanette Jolivette Brown sentenced OWNEY to 151 months incarceration, five years of supervised release, and a $200 special assessment.  WALLACE was sentenced to 120 months incarceration, 8 years of supervised release, and a $100 special assessment.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation, the Bureau of Alcohol Tobacco and Firearms, the New Orleans Police Department, Jefferson Parish Sheriff’s Office and St. Tammany Parish Sheriff’s Office in investigating this matter.   Assistant U.S. Attorneys Sharan Lieberman, Maurice Landrieu, Jr. and Matthew Payne were in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that JANET SMITH, age 44, 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, SMITH became a licensed bail bondwoman in 1996.  She later permitted her name, license, and contracts with two insurance companies to be used to operate an illegal bail bonding business located at 538 S. Broad Street in New Orleans.

U.S. District Judge Jane Triche Milazzo scheduled sentencing for March 5, 2015.  SMITH faces a maximum sentence of five years imprisonment and three years 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 CYRUS CASBY, age 29, from Marrero, Louisiana, was sentenced today following his conviction at trial for arson resulting in death and injury. 

U.S. District Judge Eldon E. Fallon sentenced CASBY to life imprisonment.

CASBY was convicted following a five day trial that concluded on August 16, 2013, with CASBY being convicted of maliciously damaging or destroying by means of fire, 1005 Tallowtree, Apartment “C”, Harvey, Louisiana as charged in the Indictment.  The Indictment also charged and the jury found that 19-month-old Cyanna Carto, CASBY’s daughter, and 11-year- old Cleveland McGinnis, Jr. died and 10-year-old Jarvis Carto, 32-year-old Janice Carto and Fireman Walter Allen were injured as a direct and proximate result of the fire started by CASBY.  The trial evidence showed CASBY repeatedly stabbed Cynthia Carto, Cyanna Carto’s mother, and Janice Carto in an upstairs bedroom of the apartment.  Autopsies revealed that Cynthia Carto died as a result of the stab wounds, though Janice Carto survived for a brief time after being stabbed though dying after the fire was initiated.  Following the stabbings, CASBY then used an accelerant to start a fire at the top of the second floor stair landing, effectively trapping the remaining occupants in the second floor of the apartment.  Autopsies revealed that Cyanna Carto and Cleveland McGinnis, Jr. died as a result of carbon monoxide poisoning resulting from smoke inhalation.  Jarvis Carto was injured as a result of carbon monoxide poisoning and Fireman Walter Allen was injured while assisting in fire-fighting and rescue efforts.

“We thank the court for imposing a sentence of life,” stated U.S. Attorney Polite.  “It is certainly warranted, given Cyrus Casby’s criminal rampage which resulted in several homicides.  Today’s sentence reflects the coordinated efforts of our federal prosecutors, the ATF, the Jefferson Parish Sheriff’s Office, the Jefferson Parish Fire Department, and the Harvey Fire Department.”

Assistant United States Attorneys William J. Quinlan, Jr. and Greg Kennedy were in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that KORY KREIDER, age 23, of Lacombe, was sentenced today for assaulting a federal officer.

U.S. District Judge Lance M. Africk sentenced KREIDER to 46 months imprisonment followed by three years of supervised release and a $100 special assessment.   A hearing to determine restitution is scheduled for December 11, 2014.

According to court documents, in May 2014 officers intercepted a package containing 1,200 pills of Alprazolam (generic Xanax) addressed to a post office box at the Royal Mail and Parcel on Metairie Road in Metairie, Louisiana.  Officers delivered the package to Royal Mail and later observed KREIDER pick up the package and walk back to his pickup truck.  When KREIDER was instructed to stop, he entered his truck and took off, making evasive maneuvers in order to avoid arrest.  At one point, KREIDER headed toward the exit of a parking lot, and a task force officer moved to block the exit with his vehicle.  KREIDER rammed the officer’s vehicle, pushing it out of the way, and made good his escape.

U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service, the Drug Enforcement Administration, and the Louisiana State Police in investigating this matter.  Assistant United States Attorney Michael B. Redmann was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that JOSE LEMUS-HERNANDEZ, age 28, a citizen of Honduras, pled guilty today to a one-count Bill of Information for illegal reentry of removed alien.

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

JOSE LEMUS-HERNANDEZ 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 Susie Morgan set sentencing for April 8, 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 Irene González is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that JOSUE ALEXANDER HERNANDEZ-MARTINEZ, age 29, 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 August 26, 2014, HERNANDEZ-MARTINEZ was found in the United States after having been officially deported and removed on three prior occasions – June 29, 2006, December 14, 2006, and April 20, 2012. 

HERNANDEZ-MARTINEZ 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 Lance M. Africk set sentencing for March 12, 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 that EDUIN ALEXANDER BETANCOURTH-SALGADO, age 26, from 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, BETANCOURTH-SALGADO was found by Homeland Security Investigation agents in the Eastern District of Louisiana after records showed on April 15, 2011, he had been previously deported from the United States to Honduras.

If convicted, BETANCOURTH-SALGADO 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 Homeland Security Investigation agents in investigating this matter. Assistant U.S. Attorney Rick Veters is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that JOSHUA ORSO, age 27, and BRITTANY WATTIGNEY, age 25, both of Hammond, were sentenced today for conspiracy to make, possess, and pass counterfeit U.S. currency.

U.S. District Judge Jane Triche Milazzo sentenced ORSO and WATTINGNEY each to 18 months incarceration followed by three years of supervised release.

According to court documents, law enforcement officers, utilizing a cooperating individual, conducted an undercover controlled purchase of $2,000 worth of counterfeit U.S. currency in exchange for $350 of genuine U.S. currency from ORSO and WATTIGNEY at their residence. A search warrant executed at their residence resulted in the seizure of evidence that was used to manufacture the counterfeit currency. ORSO and WATTIGNEY were arrested by law enforcement officers, who seized additional counterfeit U.S. currency.

U.S. Attorney Polite praised the work of the U.S. Secret Service, New Orleans Field Office, the Louisiana State Police, and the Hammond Police Department 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 Grand Isle businessman JOSH JAMBON was sentenced to 1 year probation on each count for assaulting two African-American women because of both their race and employment status.  One condition of probation is that JAMBON serve 25 consecutive weekends days incarcerated at the Bureau of Prisons.   In addition to the probation, JAMBON was fined $10,000.  The victims, identified as M.R. and N.S., were members of a Hurricane Isaac relief crew.

During a plea hearing on July 2, 2014, JAMBON admitted that he assaulted the two female African-American workers because of both their race and employment status.  On Sept. 18, 2012, in Grand Isle, JAMBON approached a work crew tasked with cleaning up debris from Hurricane Isaac.  JAMBON was upset because he believed a different work crew had damaged his property, and he asked to speak to the crew’s supervisor.  During this interaction, JAMBON used racial slurs against the female African-American crew members.  JAMBON then approached one of the women, N.S., and hit her in the face.  He then hit the other woman, M.R., in the face.  When JAMBON saw a third crew member, B.W., filming the incident on her cell phone, JAMBON initiated a physical struggle with B.W. in an attempt to take her cell phone so that he could delete the video.

This case was investigated by the Federal Bureau of Investigation and was prosecuted by Trial Attorney Risa Berkower of the Justice Department’s Civil Rights Division and Assistant United States Attorney Matthew Chester of the U.S. Attorney’s Office for the Eastern District of Louisiana.

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

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

VEDROS faces a maximum penalty of twenty years imprisonment, up to three years of supervised release, a $250,000 fine, and a $100 special assessment.  U.S. District Judge Lance M. Africk scheduled sentencing for March 12, 2015.

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

U.S. Attorney Polite praised the work of the U.S. Secret Service in investigating this case.  Assistant U. S. Attorney Matt Chester is in charge of the prosecution.

DONALD STEWART, age 58, a former tax return preparer and resident of New Orleans, was indicted today for six counts of theft of public funds, two counts of wire fraud, and six counts of aggravated identity theft, announced United States Attorney Kenneth Allen Polite, Jr. and Acting Deputy Assistant Attorney General Larry J. Wszalek of the Justice Department’s Tax Division.  According to the indictment, STEWART acted as a return preparer from approximately 2001 through 2008, before the IRS suspended his Electronic Filing Information Number.

As charged in the indictment, from January 2011 through February 2012, STEWART caused federal tax refunds in the names of others to be electronically deposited into bank accounts under his control.  These deposits totaled approximately $37,809.  STEWART is charged with two counts of wire fraud related to his filing of two specific false income tax returns in early 2011.  The indictment further alleges that STEWART cashed or deposited U.S. Treasury checks, which represented federal income tax refunds, at a bank in the New Orleans area.  These U.S. Treasury checks totaled approximately $539,393.  Finally, STEWART is charged with aggravated identity theft for using the means of identification of others during and in relation with wire fraud and theft of public money.

STEWART faces a maximum term of twenty years imprisonment for each wire fraud charge, ten years imprisonment for each theft of public money count, and a mandatory term of two years imprisonment for each charge of aggravated identity theft.  As to each count, he also faces a fine of $250,000, or twice the gross gain or loss caused by the offense, and terms of supervised release.

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

The case was investigated by IRS-Criminal Investigation.  It is being prosecuted by Tax Division Trial Attorneys Hayden Brockett and Lauren Castaldi and Assistant United States Attorney Carter K. D. Guice, Jr.

U.S. Attorney Kenneth A. Polite announced that JERRY ATHEY, age 56,  DAVID LOWE, age 48, and TERRY CASTILOW, age 48, all of Bogalusa, Louisiana, were sentenced yesterday for their roles in a scheme to defraud the Louisiana Workforce Commission of unemployment benefits.

U.S. District Court Judge Helen G. Berrigan sentenced ATHEY and LOWE to three years probation.   CASTILOW was sentenced to 8 months home confinement and 5 years probation.

CASTILOW, LOWE, and ATHEY, were indicted in April 2014 – along with CHARLES “CHUCK” MIZELL, JR., JAMES CREEL, WILLIAM DARRYL KING, TENILLE NIELSON, JACQUELINE MYERS, and ROGER NADEAU – for mail fraud and conspiracy to commit mail fraud.  According to the indictment, 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, JR., CASTILOW, KING, LOWE, CREEL, ATHEY, NIELSON, MYERS, and 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, JR., actually employed them at Chamico, Inc., a Bogalusa construction company that concentrates on public, municipal, and industrial contracts.

MIZELL, JR., was the President of Chamico and, according to the factual bases signed by CASTILOW, LOWE, and ATHEY, he asked them to fraudulently file for unemployment so that he would not have to pay their full salaries during tough economic times for Chamico. CASTILOW, LOWE and ATHEY 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.

In 2009, CASTILOW had personally participated in the unemployment scheme with MIZELL, JR., but when she became Chamico’s office manager in 2013 she assisted MIZELL, JR. in facilitating the scheme for the other employees.  According to the factual basis for CASTILOW’s plea, she completed the unemployment forms for six Chamico employees, fraudulently representing to the Louisiana Workforce Commission that the employees did not work at Chamico when she knew that they were working and/or receiving income from Chamico.  CASTILOW kept the payroll records for the employees and the ledgers showing how much cash each employee who was participating in the unemployment scheme was to receive each week.  CASTILOW cashed the checks that MIZELL, JR. endorsed for those employees he was paying while they were drawing unemployment and still working for him.  On pay day, those employees picked up the cash payments from CASTILOW.

MYERS pleaded guilty to conspiracy to commit mail fraud and on September 24, 2014, was sentenced to three years probation.

MIZELL, KING, CREEL and NIELSON previously pled guilty to conspiracy to commit mail fraud and are scheduled to be sentenced on January 28, 2015.

The trial of the ROGER NADEAU is scheduled for February 2, 2015.

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