Eastern District of Louisiana

U.S. Attorney Kenneth A. Polite announced that BRADLEY S. WILLIAMS, age 49, of Avondale, was sentenced today following his guilty plea to conspiracy to distribute and possession with intent to distribute heroin and cocaine hydrochloride. On August 2, 2013, WILLIAMS was one of 15 defendants charged in a 17-count superseding indictment.

U.S. District Judge Jane Triche Milazzo sentenced WILLIAMS to a 78-month term of imprisonment followed by five years of supervised release.

This case evolved from the FBI New Orleans Gang Task Force investigation into the drug trafficking activities of BYRON EVANS. The investigation revealed that EVANS supplied kilogram quantities of heroin and cocaine to distributors located in the greater New Orleans area.  EVANS acquired both the heroin and cocaine that he supplied to his distributors from two Columbian foreign nationals, both illegally present in the United States, YULIAN GABRIEL VERA-OLIVEROS, a/k/a “Paco,” and EZEQUIEL PADILLA ROMERO, a/k/a “Alvaro Herney Cortes,” a/k/a “Cookie.”  One of the Columbians, ROMERO also pled guilty and acknowledged supplying EVANS not less than 10 kilograms of heroin for distribution.  EVANS typically had his runners transport his heroin and cocaine to New Orleans on what is known as the dollar bus/Megabus.  At times during the course of the conspiracy charged WILLIAMS transported heroin from Houston to New Orleans via the Megabus. WILLIAMS also acted as a street-level distributor of heroin for EVANS and supplied customers located in the Greater New Orleans area.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation 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 TIMOTHY DUCKWORTH, age 47, of Metairie, pleaded guilty today to making false statements on income tax returns.

According to court documents, DUCKWORTH made false statements on his tax return for the year 2007 under-reporting his income in the amount of approximately $610,495, which resulted in DUCKWORTH having taxes due and owing in the amount of approximately $213,579.

DUCKWORTH faces a maximum term of imprisonment of three years in prison, one  year of supervised release after any term of imprisonment and a $100,000 fine.  U.S. District Judge Ivan L.R. Lemelle scheduled sentencing for March 25, 2015.

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

U.S. Attorney Kenneth A. Polite announced that CHARLIE ENGLISH, age 33, a resident of LaPlace, pled guilty today to one count of conspiracy to commit wire fraud relating to fraudulent applications he made or caused to be made to the Gulf Coast Claims Facility (GCCF) for financial assistance during the aftermath of the Deepwater Horizon oil spill.

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

ENGLISH faces a maximum term of imprisonment of five years, a $250,000 fine, and three years of supervised release following imprisonment.  U.S. District Judge Helen G. Berrigan scheduled sentencing for March 11, 2015.

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

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

U.S. Attorney Kenneth A. Polite announced that PATRICIA TATE, age 50, of New Orleans, pled guilty today to a one-count  Bill of Information charging conspiracy to commit honest services mail fraud.

According to court documents, TATE accepted cash payments to facilitate an illegal bail bonding business located at 538 S. Broad Street in New Orleans.  TATE’s activities included accessing official-use criminal justice records, delivering pre-certified bail bonds to the bail business, and other activities to assist the business outside the scope of her official duties.

U.S. District Judge Helen G. Berrigan scheduled sentencing for March 11, 2015.  TATE faces a maximum sentence of five years imprisonment and three years of supervised release.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation, with assistance from the Metropolitan Crime Commission, the New Orleans Police Department, and the Orleans Parish District Attorney’s Office in investigating this matter.  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 LAWRENCE TREIGLE, age 33, of Covington, pleaded guilty today to a one-count Superseding Bill of Information charging him with conspiring to smuggle turtles out of the United States and to violation of the Lacey Act.

According to the Superseding Bill of Information, TREIGLE was part of a group of individuals involved in capturing North American Wood turtles from the wild in Pennsylvania, shipping the turtles by mail though the United States, and then illegally exporting the turtles to Hong Kong.

TREIGLE faces a maximum term of five years in prison, a fine of $250,000, and three years of supervised release following any term of imprisonment.  U.S. District Judge Helen G. Berrigan scheduled sentencing for March 11, 2015.

U.S. Attorney Polite praised the work of the U.S. Fish and Wildlife Service, Homeland Security Investigations, and the United States Postal Inspection Service in investigating this matter.  Assistant United States Attorney David Haller is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that DONNIE PITTMAN, age 52, of Bogalusa, was sentenced yesterday, having previously pled guilty to conspiracy to distribute and conspiracy to possess with intent to distribute cocaine hydrochloride and cocaine base and misprision of a felony.

U.S. District Judge Jay C. Zainey sentenced PITTMAN to 36 months incarceration and three years of supervised release.

On February 6, 2014, PITTMAN was one of 15 defendants charged in an 8-count indictment. According to court documents, the indictment was based on court-authorized wiretaps that recorded conversations between STEVEN HAYNES, who has pleaded guilty in this case, and the defendant, concerning the distribution of powder cocaine that was later converted to crack and sold in Washington and Tangipahoa Parishes.

U.S. Attorney Polite praised the work of the Drug Enforcement Administration, the Louisiana State Police, and Washington Parish Sherriff’s Office in investigating this matter.  Assistant United States Attorney Michael E. McMahon is in charge of the prosecution.

United States Attorney Kenneth A. Polite announced that RIGO PACHECO-RODRIGUEZ, age 25, a Mexican citizen who was illegally in the United States, was sentenced yesterday after previously pleading guilty to a one-count indictment for illegal entry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).

United States District Court Judge Jay C. Zainey sentenced PACHECO-RODRIGUEZ to time served, followed by 1 year of supervised release, and a $100 special assessment fee.

According to court documents, on July 6, 2014, PACHECO-RODRIGUEZ was found in the United States after having been officially deported and removed on May 19, 2014.

U.S. Attorney Polite praised the work of the Department of Homeland Security/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 SEAN GRANGER, 36,   of Rayne, Louisiana, pleaded guilty to knowingly and willfully tampering with a method of record required to be maintained under the Outer Continental Shelf Lands Act.

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

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

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

U.S. District Court Judge Sarah Vance scheduled sentencing for March 18, 2015.  GRANGER’s conviction carries a maximum term of imprisonment of 10 years and/or a maximum fine of $250,000.

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

U.S. Attorney Kenneth A. Polite announced that CAROLYN TREAUDO, age 53, of Marrero, was charged today in a one-count Bill of Information with theft of government funds.

According to the Bill of Information, in 2009 and 2010, TREAUDO stole approximately $94,840 from the Federal Emergency Management Agency. If convicted, TREAUDO faces up to ten years incarceration and a fine of up to $250,000.

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

 

U.S. Attorney Kenneth A. Polite announced that DARNELL REED, age 40, of New Orleans, was charged today in a two-count Indictment with Criminal Copyright Infringement.

According to the Indictment, REED reproduced and distributed more than 10 copies of one or more various sound recordings and motion pictures, which were protected by copyright and have a total aggregate retail value of more than $2,500, for the purpose of commercial advantage and private financial gain.

On each count, REED faces a maximum term of imprisonment of five years, a fine of $250,000 and three years of supervised release following any term of imprisonment.

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

U.S. Attorney Kenneth Polite announced that ANTONIO RODRIGUEZ-GALLARDO, age 32, a citizen of Mexico, pled guilty today to a one-count indictment for illegal reentry of removed alien.

According to the indictment, on or about September 4, 2014, ANTONIO RODRIGUEZ-GALLARDO was found in the United States after having been officially deported and removed on or about October 29, 2012

ANTONIO RODRIGUEZ-GALLARDO 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 Triche Milazzo set sentencing for  January 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 Spiro G. Latsis is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that PHILLIP BOOKER, age 59, of Houma, Louisiana, was charged today in a one-count Bill of Information with violating the Federal Controlled Substances Act.

According to the Bill of Information, BOOKER possessed with the intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Scheduled II drug controlled substance.

If convicted, BOOKER faces a maximum term of 20 years incarceration and/or a fine of $1,000,000, and 3 years of supervised release following any term of imprisonment.

U.S. Attorney Kenneth Allen Polite, Jr. 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 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 EDIN ANTONIO PLEITES-ZAMORA, age 24, a citizen of Honduras who most recently resides in Houma, Louisiana, was charged today in a one-count Indictment with illegal reentry of a removed alien.

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

If convicted, PLEITES-ZAMORA faces a maximum term of imprisonment of two years, a maximum fine of $250,000, one year of supervised release of one year following any term of incarceration, and a mandatory $100 special assessment.

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

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

U.S. Attorney Kenneth A. Polite announced that DARRELL HARLAND, age 32, of Hammond, Louisiana, was sentenced today for stolen identity refund fraud.

U.S. District Judge Jane Triche Milazzo sentenced HARLAND to 32 months imprisonment, three years of supervised release, and ordered HARLAND to pay $65,168 in restitution to the IRS.

According to court documents, on May 3, 2012, the St. Tammany Parish Sheriff’s Office (STPSO) executed a search warrant at HARLAND’s residence.  In the home, deputies found evidence of identity theft, including lists of names and social security numbers.  HARLAND told deputies that he had purchased the stolen identities online.

At the request of the STPSO, the IRS determined that several of the stolen identities found in HARLAND’s residence had been used to file what appeared to be fraudulent tax returns.  The IRS interviewed several of the individuals whose identities had been used and confirmed that these individuals had not given HARLAND the authority to file tax returns in their names and that all income and dependent information on the tax returns was false.  IRS records show that HARLAND caused approximately $65,168 in loss to the IRS by filing fraudulent tax returns with stolen identities.

U.S. Attorney Polite praised the Internal Revenue Service in investigating this matter.  Assistant United States Attorney G. Dall Kammer is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that ANTOINETTE KELLY, age 32, and AMBROSE WILLIAMS, age 43, both of New Orleans, pled guilty today to conspiracy to distribute and conspiracy to possess with intent to distribute heroin.

On July 25, 2014, KELLY and WILLIAMS 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 $1,200,000 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. District Judge Carl J. Barbier scheduled sentencing on March 5, 2015. KELLY is facing up to 20 years imprisonment and WILLIAMS is facing 10 years to life imprisonment. Trial is scheduled for February 23, 2015, for the seven remaining defendants.

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 LYLE RUGGLES, age 23, of Belle Chase, pled guilty today to conspiracy to possess with intent to distribute methylone.

On June 26, 2014, RUGGLES was one of three defendants charged in a one-count indictment. According to the factual basis, on May 13, 2013,law enforcement was alerted that RUGGLES, who was wanted for outstanding attachments, would be driving his Chevrolet Silverado on Interstate 10 from Kenner to New Orleans between 11:30 a.m. and noon. Detectives stopped RUGGLES at Interstate 610 and Canal Boulevard, and a search incident to arrest revealed a bag containing 31 capsules of methylone, along with other drugs.

U.S. District Judge Mary Ann Vial Lemmon scheduled sentencing for February 5, 2015.  RUGGLES faces 20 years imprisonment along with 3 years supervised release.

U.S. Attorney Polite praised the work of Homeland Security Investigations, the New Orleans Police Department, and the Jefferson Parish Sherriff’s Office in investigating this matter.  Assistant United States Attorney Michael E. McMahon is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that XPLOR Energy SPV-1, Inc. (“XPLOR”), an Oklahoma corporation residing in Southlake, Texas, pled guilty today to a one-count bill of information which charged the company with knowingly violating the Clean Water Act, Title 33, United States Code, Section 1319(c)(2)(A).  These charges concern XPLOR’s oil and gas production activities in the Breton Sound Area of the Gulf of Mexico.  As part of the guilty plea, the company agreed to pay a total monetary penalty of $3.1 million and serve a three-year term of probation.  If accepted by the Court, the $3.1 million monetary penalty will be divided as follows: $2.5 million to the United States Treasury, and $600,000 to Louisiana Department of Environmental Quality Trust Fund. 

According to the court documents, from on or about November 24, 1997 until November 18, 2011, XPLOR operated the MP 35 offshore facility (“MP 35 Platform”).   XPLOR operated the MP 35 Platform for the purpose of extracting oil and natural gas.

As part of the oil and gas production, separation and processing, XPLOR was tasked with disposing of the pollutant known as “produced water” or “brine” which is produced with the extracted oil and natural gas.  The MP 35 Platform was designed to dispose of this pollutant by forcing the produced water, under pump generated pressure, into disposal/injection wells located in Gulf of Mexico waters near the MP 35 Platform.

In or near November, 2011, XPLOR transferred ownership and operation to another corporation.  The platform’s new owner quickly discovered the platform was continuously discharging produced water containing oil and other harmful substances into the waters of the United States.  The new owner immediately contacted regulatory authorities to report the discharge.

The ensuing investigation revealed that XPLOR had knowingly discharged produced water containing oil into waters of the United States without any permit from faulty injection lines/pipes leading from the platform to the disposal wells used to store the produced water containing oil, and from produced water disposal wells which had insufficient capacity to hold the produced water.  Despite knowing of this consistent discharge from the injection lines and the insufficient capacity of their disposal wells, XPLOR failed to adequately repair these faulty injection lines and disposal wells.  XPLOR’s intentional failure to make these repairs resulted in the repeated discharge of produced water containing oil into the waters of the United States from in or near October, 2009, and continuing through to November 18, 2011.  XPLOR’s actions resulted in a total monetary savings or gain to them in the amount of approximately $1,550,000.

“Our federal and state law enforcement partners are committed to protecting our state's environment,” stated U.S.Attorney Kenneth Polite.  “Our citizens simply demand that businesses not illegally pollute the waterways that sit at the center of our culture and economy.”

“We have a responsibility to ensure that Louisiana’s waterways are protected from harmful and illegal industrial discharges,” stated Ivan Viking, Special Agent in Charge of EPA’s Criminal Enforcement Program in Louisiana.  “This case will make a real difference in protecting public health and conserving the environment.  The community service payment is especially impressive, bolstering the hard work that state, local and federal partners have invested to restore the Gulf of Mexico.”

“Knowingly conducting unpermitted discharges of produced water from oil and gas production platforms is a crime,” said Peggy Hatch, Secretary of the Louisiana Department of Environmental Quality. “DEQ is proud of the collaborative work of our federal and state investigators to halt these illegal practices and bring the perpetrators to justice, and will continue to enforce state and federal laws that protect our environment.”

U.S. District Judge Sarah S. Vance set formal sentencing for March 4, 2015.

U.S. Attorney Polite praised the work of the Criminal Investigation Division of the United States Environmental Protection Agency (“EPA-CID”) and the Criminal Investigation Division of the Louisiana Department of Environmental Quality (“DEQ-CID”).  The case is being prosecuted by Assistant United States Attorney Matt Coman.

 

U.S. Attorney Kenneth A. Polite announced that CLEMMON BRIDGES, age 56, of Houston, Texas, and DARIN FIELDS, age 32, of Bogalusa, Louisiana, were sentenced today after having previously pled guilty to conspiracy to distribute and conspiracy to possess with intent to distribute cocaine hydrochloride and cocaine base. In addition, WALTER VAUGHN, age 49, of Amite, Louisiana, was sentenced today after having previously pled guilty to conspiracy to distribute and conspiracy to possess with intent to distribute cocaine hydrochloride and cocaine base and possession with the intent to distribute cocaine base.

U.S. District Judge Jay C. Zainey sentenced BRIDGES to a 30-month term of imprisonment and 3 years of supervised release, FIELDS to a 151-month term of imprisonment and 3 years of supervised release, and VAUGHN to a 37-month term of imprisonment and 3 years of supervised release.

On February 6, 2014, BRIDGES, FIELDS, and VAUGHN were three of 15 defendants charged in an 8-count indictment. According to court documents, the indictment was based on court-authorized wiretaps that recorded conversations between STEVEN HAYNES and the defendants, concerning the distribution of powder cocaine that was later converted to crack and sold in Washington and Tangipahoa Parishes.

U.S. Attorney Polite praised the work of the Drug Enforcement Administration, the Louisiana State Police, and Washington Parish Sherriff’s Office in investigating this matter.  Assistant United States Attorney Michael E. McMahon is in charge of the prosecution.

 

JACQUELINE J. ARIAS, 40, a tax return preparer from Spruce Pine, Alabama, was sentenced today for her role in conspiracies to file false tax returns and commit money laundering, announced U.S. Attorney Kenneth Allen Polite, Jr. and Acting Deputy Assistant Attorney General Larry J. Wszalek of the Justice Department’s Tax Division.

In addition to incarceration, U.S. District Court Judge Helen G. Berrigan sentenced ARIAS to 97 months in prison, three years of supervised release, and restitution to the United States totalling $10,589,326.  ARIAS was further ordered to forfeit nearly $400,000 in United States currency that was seized as part of the case.

On July 8, 2014, ARIAS pled guilty to one count of conspiracy to defraud the United States, six counts of mail fraud, and one count of money laundering conspiracy.  As part of her plea, ARIAS admitted to her role in a years-long scheme to defraud the United States by filing false income tax returns that fraudulently claimed large tax refunds.  ARIAS, her husband, and nineteen other individuals, all of whom were foreign nationals, as well as her tax preparation business were charged as part of the case.  Sixteen defendants have pleaded guilty, four remain fugitives overseas, and one defendant, who was recently arrested in Panama, is currently set for trial in December.

All of the defendants in this case who pleaded guilty thus far were sentenced to the following terms of imprisonment:  CESAR ALEJANDRO SORIANO (42 months); OSCAR ARMANDO PERDOMO, (42 months); YONI PERDOMO, (38 months); ARNULFO SANTOS-MEDRADO, (38 months); ELSIDES EDGARDO ALVARADO-CANALES, (36 months); ELIECER OBED RODRIGUEZ, (34 months); OCTAVIO JOSUE PERDOMO, (34 months); ELBER MENDOZA-LOPEZ, (34 months); AURELIO MONTIEL-MARTINEZ, (24 months); MILLER PERDOMO-ACEITUNO, ( 24 months); SANTOS MARTIN HERNANDEZ, (24 months); and SUSANA CARILLO MENDOZA, (19 months).

According to court documents, ARIAS and her coconspirators filed false returns listing Individual Taxpayer Identification Numbers (ITINs).  An ITIN is a tax processing number issued by the Internal Revenue Service (IRS) to individuals who do not have, and are not eligible to obtain, a Social Security Number.  As alleged in the second superseding indictment, ARIAS was a Certified Acceptance Agent, meaning that she was entrusted by the IRS with the responsibility of reviewing the documentation of an ITIN applicant’s identity and alien status for authenticity, completeness and accuracy before submitting their application to the IRS.  The indictment charged that ARIAS filed false applications for ITINs, false income tax returns, and collected preparation fees from the fraudulently-obtained tax refunds.  The indictment also charged ARIAS with filing false tax returns for her corporation, JB Tax Professional Services, and for herself individually.

“The Department of Justice Tax Division remains committed to vigorously prosecuting complex, large-scale tax fraud schemes that often stretch across our borders,” stated Acting Deputy Assistant Attorney General Larry J. Wszalek of the Justice Department’s Tax Division.  Ms. Arias’ sentence and the sentences of twelve of her co-conspirators, who are collectively spending over thirty-two years in prison, sends a strong message to return preparers and individuals who engage in this type of tax fraud.  The Tax Division will continue to work with state and local authorities to prosecute these criminals and will resolutely pursue fugitives who commit tax crimes, as the recent arrest in Panama of a co-conspirator demonstrates.”

“Today's sentence reflects our Office's commitment to rooting out tax fraud,” stated U.S. Attorney Polite.  “As a tax preparer, Arias was entrusted with drafting and submitting filings in accordance with our tax laws.  Instead, she violated those laws by spearheading a scheme to defraud our government out of over $10 million in tax revenue.  In addition to paying full restitution and a significant fine, she will spend 8 years in prison for her criminal conduct.”

“Identifying financial crimes that threaten the health of our national economy andexposing criminals who attempt to steal from law-abiding taxpayers will continue to be a major investigative priority for Homeland Security Investigations," said Special Agent in Charge of HSI New Orleans Raymond R. Parmer Jr. "This case further illustrates the excellent working relationship between HSI and its federal, state and local partners to identify, investigate and referthese criminals for prosecution.”

“Jacqueline Arias cast a wide net of fraud, and, in return, captured a lengthy prison sentence,” said Gabriel L. Grchan, Special Agent in Charge, IRS Criminal Investigation.  “Today's announcement is the result of collaborative work between local, state and federal law enforcement.  Dismantling such a large network required the manpower of many agencies, and I would like to express my gratitude to our law enforcement partners who supported the investigation and prosecution of this very significant case.”

The case was investigated by U.S. Immigration and Customs Enforcement, which oversees U.S. Homeland Security Investigations; IRS-Criminal Investigation; the U.S. Secret Service; the U.S. Postal Inspection Service; and the Social Security Administration, Office of the Inspector General, in partnership with the St. Tammany Parish and Jefferson Parish Sheriffs’ Departments. The case was prosecuted by Department of Justice, Tax Division Trial Attorney Hayden Brockett and Assistant United States Attorney David Haller.

U.S. Attorney Kenneth A. Polite announced that STEVEN BOURG, 51, of LaRose, Louisiana, pled guilty today to misuse of a federal license.

According to court documents, on or about October 10, 2012, the Coast Guard received information from Daigle Towing in Belle Chase, Louisiana, that BOURG had been hired by Daigle Towing to captain the uninspected towing vessel (UTV) Mason Ray but that BOURG had been found asleep while on watch.  The Coast Guard checked the Marine Information for Safety and Law Enforcement database and found that since 2007 when he had voluntarily surrendered the license, BOURG had not possessed a merchant mariner license as issued by the Coast Guard and as required to captain a towing vessel.

The investigation revealed that BOURG submitted an altered merchant mariner license with his application to Daigle Towing.  The license was in the name of BOURG, but listed the issuance date as January 2009 and the expiration date as January 2014.  BOURG had not been issued a license nor had his license renewed in January 2009.  As a result of BOURG’s submission of the altered license, he had been employed by Daigle Towing from September 19, 2012, until September 25, 2012.  Prior to being employed by Daigle Towing, BOURG had used the altered license to apply and get employment with Triple C Towing, LLC, in Houma, Louisiana.  BOURG applied to Triple C Towing on or about July 19, 2011, and ended his employment on or about February 1, 2012.

U.S. District Court Judge Kurt D. Engelhardt scheduled sentencing for February 4, 2015.  BOURG faces a maximum of five years imprisonment and/or a maximum fine of $250,000.

U.S. Attorney Polite praised the work of the Coast Guard Investigative Service’s work on this matter.  Assistant United States Attorney Emily K. Greenfield prosecuted the case.

 

 Today, the Justice Department announced that its civil rights lawsuit involving the Terrebonne Parish Juvenile Detention Center in Houma, Louisiana, has resulted in improved conditions for the youth confined in the facility, and it asked the federal court to dismiss the case. Reforms Terrebonne Parish undertook over the past three years resulted in increased protections to prevent sexual abuse of youth by staff; reduce the use of isolation, inappropriate use of force and restraints by staff; to reduce physical abuse of youth by other youth; and to reduce suicide and other self-harming behavior.

In 2011, the department notified Terrebonne Parish officials that conditions at the detention center violated the constitutional rights of confined youth. Later that year, the department and Terrebonne Parish officials reached a settlement agreement to implement 43 specific substantive remedial measures to reform conditions at the facility. The parties appointed an independent monitor who closely monitored reform efforts and provided technical assistance to facility officials.

Although the settlement agreement pre-dated the Attorney General’s finalization of the National Standards to Prevent, Detect, and Respond to Prison Rape (PREA Standards), the required remedial measures incorporated several provisions eventually set forth in those Standards. For example, Terrebonne Parish began complying with PREA’s minimum staffing ratio requirements, ensuring that unannounced supervisory rounds were periodically conducted, established a zero-tolerance policy for sexual abuse, conducted post-incident reviews, ensured that all allegations of abuse were promptly investigated and referred to appropriate external investigative agencies, ensured that staff found to be violating agency policies were subject to formal discipline and trained all staff on sexual abuse identification and prevention practices.

In addition to remedial measures designed to eliminate sexual abuse of youth within the facility, the settlement also required several remedial measures to increase protections against suicide and other self-harming behavior, including a reduction in the facility’s over-reliance on isolation. For example, the settlement prohibited the routine use of isolation rooms for youth on suicide precautions, prohibited the use of isolation for all youth except where youth pose an imminent threat to themselves or others (or in rare cases where less severe disciplinary measures have proven ineffective), prohibited the use of any disciplinary isolation longer than 72 hours except in extraordinary circumstances and ensured that any use of isolation be accompanied by strict safeguards such as frequent youth welfare checks and frequent visits by clinicians. During the remedial action period, the facility proactively implemented an effective incentive-based behavior management program that rewarded youth for positive and pro-social behavior. In addition, the facility implemented and trained staff on Safe Crisis Management – a program for preventing and responding to disruptive behavior by youth. Implementation of these programs substantially reduced the frequency of serious incidents at the facility, and enabled facility-leadership to eliminate the use of sanctioned disciplinary isolation – an outcome that exceeded settlement agreement requirements.

In the spring of 2014, the monitor issued her fifth compliance report indicating that Terrebonne Parish had achieved substantial compliance with all required remedial measures in the settlement agreement. The department concurs with the monitor’s assessment.

During the course of the department’s investigation, including the enforcement period, Terrebonne Parish officials and the facility director have remained highly cooperative and steadfast in their commitment to improving conditions of confinement in the facility.

“We commend Terrebonne Parish for its commitment to protecting youth held in custody,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “These improvements will help to ensure the safety and security of all youth in the facility in a sustainable manner.”

“Rehabilitation of the district’s youth is the principal goal of juvenile justice and we are pleased that Terrebonne Parish has been diligent in remedying its facility,” said U.S. Attorney Kenneth A. Polite for the Eastern District of Louisiana. “These changes will help foster an environment where our at-risk youth can exit the juvenile justice system ready to positively contribute to their communities.”

The department initiated this investigation under the Violent Crime Control and Law Enforcement Act of 1994, which gives the department authority to seek a remedy for a pattern or practice of conduct that violates the constitutional or federal statutory rights of youth in juvenile justice institutions. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.

U.S. Attorney Kenneth A. Polite announced that today a federal jury convicted, DONALD RICHARDSON, age 36, of Houma, Louisiana, of distribution of a quantity of cocaine base (“crack”).

RICHARDSON was charged in a two-count indictment, alleging that on March 17, 2011, and March 23, 2011, RICHARDSON distributed a quantity of crack.  After a two-day trial before U.S. District Judge Sarah S. Vance, a jury returned a guilty verdict against RICHARDSON for the March 23, 2011 distribution charge.

RICHARDSON faces a maximum term of imprisonment of twenty years, a maximum fine of $1,000,000, three years of supervised release after imprisonment, and a $100 special assessment.   Judge Vance set sentencing for March 4, 2015.            

U.S. Attorney Polite praised the work of the Drug Enforcement Administration and the Terrebonne Parish Department’s Narcotics Unit in investigating this matter.  Assistant United States Attorney Andre’ Jones and Special Assistant United States Attorney Brian C. Ebarb were in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that HON KIT LAU, age 34, from Hong Kong, pled guilty today to a one-count superseding Bill of Information charging him with conspiring to smuggle turtles out of the United States and to violate the Lacey Act.

According to the superseding Bill of Information, LAU was part of a group of individuals involved in capturing the threatened species of North American Wood turtles from the wild, shipping the turtles by mail though the United States, and then illegally exporting the turtles to Hong Kong.

U.S. District Court Judge Helen G. Berrigan scheduled sentencing for February 25, 2015.  LAU faces a maximum term of five years in prison, a fine of $250,000, and three years of supervised release following any term of imprisonment.

U.S. Attorney Polite praised the work of the U.S. Fish and Wildlife Service, Homeland Security Investigations, and the United States Postal Inspection Service in investigating this matter.  Assistant United States Attorney David Haller is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that MELVIN JOSUE AVELAR-CASTRO (“AVELAR”), age 34, a citizen of Honduras, pled guilty today to one-count of illegal re-entry of a removed alien.

According to court documents, AVELAR was arrested by Immigration and Customs Enforcement (“ICE”) agents at a residence in Metairie, Louisiana.  The arrest followed an investigation by ICE agents which determined that AVELAR was illegally present in the United States.  AVELAR had been convicted of re-entry of a removed alien on two previous occasions.

AVELAR faces a maximum term of imprisonment of ten years on the illegal re-entry charge, a fine of $250,000 and up to three years of supervised release following any term of imprisonment. U.S. District Judge Martin L.C. Feldman scheduled sentencing on March 18, 2015.

U.S. Attorney Polite praised the work of U.S. Immigration and Customs Enforcement in investigating this matter.  Assistant U.S. Attorney Michael M. Simpson is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that SANTOS GAVARRETE-NATAREN, 36, a native of Honduras, pled guilty today to knowingly delivering a firearm to a common carrier without written notice.

According to court documents, on or about December 2, 2013, Dip Shipping, a common carrier based in Kenner, Louisiana, received a plastic container for international shipment at its West Bank drop-off location. The container was purportedly from Alfredo Barahona, addressed to Yessenia Martinez in Yoro, Honduras. The shipping label noted that the shipment contained kitchen items and shoes.

While scanning packages with a company owned X-ray machine, a Dip Shipping employee observed the image of two firearms inside the container.  On December 9, 2013, HSI Special Agents were notified of the discovery and responded to Dip Shipping.  Upon inspecting the container, the agents discovered that it contained a Smith & Wesson model 642, .38 revolver (SN: CJJ4544) and a Lorcin model L380, .380 semi-automatic handgun (SN: 125407).

HSI agents determined that GAVARRETE shipped the package. GAVARRETE admitted that he did not apply for an export license to ship the firearms.  Further, he did not advise Dip Shipping that the package contained firearms.

U.S. District Judge Kurt D. Engelhardt scheduled sentencing for February 4, 2015.   GAVARRETTE faces a maximum of 5 years imprisonment and a maximum fine of $250,000.

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

 

U.S. Attorney A. Kenneth Polite announced that ELVIS CANO-MORALES, age 33, a citizen of Honduras, pled guilty today to a one-count indictment for illegal reentry of a removed alien.

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.

CANO-MORALES faces a maximum term of imprisonment of two years, as well as a fine of $250,000. U.S. District Judge Stanwood R. Duval set sentencing for January 28, 2015.

U.S. Attorney Polite praised the work of the U.S. Customs and Border Patrol in investigating this matter.  Assistant United States Attorney Jon Maestri 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, were charged yesterday in a one-count bill of information for unlawfully employing aliens.

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

If convicted, SANTANGELO and BRAVO 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. Attorney Polite reiterated that the bill of information 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 Homeland Security Investigations in investigating this matter.  Assistant United States Attorney David Haller is in charge of the prosecution.

(Download Bill of Information )

U.S. Attorney Kenneth A. Polite announced that MICHAEL DAVID SORINA, JR., age 35, resident of Slidell, Louisiana, LARRY HARDY, age 48, resident of New Orleans, Louisiana, and TERRELL CARNEY, age 33, resident of New Orleans, pled guilty today to conspiracy to distribute and conspiracy to possess with intent to distribute heroin.

On July 25, 2014, SORINA, HARDY, and CARNEY were three 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 $1,200,000 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. District Judge Carl J. Barbier will sentence SORINA, HARDY, and CARNEY on February 19, 2015. 

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 HON KIT LAU, age 34, from Hong Kong, and LAWRENCE TREIGLE, age 44, from Covington, Louisiana, were charged today in a one-count superseding bill of information with conspiring to smuggle a threatened species of turtles out of the United States and in violation of the Lacey Act.

According to the superseding bill of information, LAU and TREIGLE were part of a group of individuals involved in capturing North American Wood turtles from the wild in Pennsylvania, shipping the turtles by mail though the United States, and then illegally exporting the turtles to Hong Kong. 

If convicted, LAU and TREIGLE, face a maximum term of five years in prison, a fine of $250,000, and three years of supervised release following any term of imprisonment.

U.S. Attorney Polite reiterated that the superseding bill of information 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 U.S. Fish and Wildlife Service, Homeland Security Investigations, and the United States Postal Inspection Service in investigating this matter.  Assistant United States Attorney David Haller is in charge of the prosecution.

(Download Superseding Bill of Information )

U.S. Attorney Kenneth A. Polite announced that COREY D. WILSON, age 37, of New Orleans, was sentenced today for his role in a conspiracy to possess with the intent to distribute 100 grams or more of heroin.

U.S. District Judge Jane Triche Milazzo sentenced WILSON to 124 months imprisonment, 8 years of supervised release, and a special assessment of $100.

U.S. Attorney Polite praised the work of the Drug Enforcement Administration, a High Intensity Drug Trafficking Area group (“HIDTA group”) consisting of DEA in New Orleans and Houston, NOPD and ATF agents, the West Bank Major Crimes Task Force, the Louisiana State Police, and the United States Postal Inspection Service in investigating this matter. This was an Organized Crime Drug Enforcement Task Force case. Assistant U.S. Attorneys Sharan Lieberman and Collin Sims are in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that JORGE GUTIERREZ-SANCHEZ, a/k/a Frank Farias, a/k/a Eusebio Ramirez, Jr., a/k/a Erick S. Couvertier-Rivera, age 29, a Mexican citizen, was sentenced today for falsely representing two different social security numbers in order to obtain training for employment.

U.S. District Judge Nannette Jolivette Brown sentenced GUTIERREZ-SANCHEZ to six months imprisonment, followed by one year of supervised release.

According to court documents, on May 6, 2014, GUTIERREZ-SANCHEZ was hired by Insulations Inc., a company located in Harahan, Louisiana, using the name Erick Steven Couvertier-Rivera, with the Social Security number XXX-XX-6526. GUTIERREZ-SANCHEZ completed the I-9 form claiming U.S. citizenship, as well as W-4 form, using a driver’s license with his own photo in Couvertier-Rivera’s name and Social Security number.

On May 7, 2014, prior to Insulations Inc. sending GUTIERREZ-SANCHEZ to work at Mississippi Power Company, he attended training at Gulf Coast Safety Council (“GCSC”),  located in St. Charles Parish in the Eastern District of Louisiana.  In order to get into GCSC’s training, GUTIERREZ-SANCHEZ presented that same driver’s license and Social Security number in Couvertier-Rivera’s name.   

This was not the first time GUTIERREZ-SANCHEZ had attended a GCSC training. On January 31, 2014, GUTIERREZ-SANCHEZ went to employment training at GCSC and presented GCSC personnel with a driver’s license with his photo, but in the name Frank Farias and gave GCSC a Social Security card in Frank Farias’s name with the number XXX-XX-7281.  The same day GUTIERREZ-SANCHEZ was posing as Frank Farias, another individual went to GCSC for employment training and presented himself as Eusebio Ramirez, Jr. with a Social Security card with the number XXX-XX-4930 in the name of Eusebio Ramirez, Jr. and a driver’s license in the name of Eusebio Ramirez, Jr., but with GUTIERREZ-SANCHEZ’s picture on it.   GUTIERREZ-SANCHEZ had previously used the identity of Eusebio Ramirez, Jr., including the driver’s license and social security card presented to GCSC on January 31, 2014, to gain employment.

U.S. Attorney Polite praised the work of the Bureau of Immigration and Customs Enforcement in investigating this matter.  Assistant United States Attorney Emily K. Greenfield prosecuted the case.

U.S. Attorney Kenneth A. Polite announced that MEREDITH CORBIN, age 33, of Hammond, Louisiana, was sentenced today, having previously pled guilty to possession of cocaine hydrochloride with intent to distribute and possessing a firearm during and in relation to that drug-trafficking crime.

U.S. District Judge Eldon E. Fallon sentenced CORBIN to 12 months and 1 day for possession of cocaine with intent to distribute and 60 months for possessing a firearm in relation to possession with intent to distribute cocaine, with sentences to run consecutively for a total of 72-month term of imprisonment.  Additionally, CORBIN was sentenced to serve 3 years of supervised release following imprisonment and ordered to pay a $200 special assessment fee.

U.S. Attorney Polite praised the work of the Drug Enforcement Administration and the Hammond Police Department in investigating this matter.  Assistant United States Attorney Michael E. McMahon is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that SANDY ISAAC-HOLDEN, age 53, of Destrehan, Louisiana, was sentenced today for one count of tax evasion.

United States District Court Judge Ivan L.R. Lemelle sentenced ISAAC-HOLDEN to serve 48 months of probation and was ordered her to pay $384,712.27 in restitution to the Internal Revenue Service for taxes due and owing.

According to court documents, ISAAC-HOLDEN received unreported income for tax year 2010. The income was received from a contract that existed between two companies, Company “A” and Company “B.”  Company “A” manufactures and markets retail products and Company “B” has a maintenance service contract with Company “A.”  ISAAC-HOLDEN had been employed as the on-site manager for by Company “B.”  Her job responsibilities included managing the Company “B” staff, interacting with Company “A” managers, and retaining subcontractors for work that was outside the scope of work set forth in the contract between Companies “A” and “B.”

ISAAC-HOLDEN received invoices from subcontractors and paid subcontractors (“G & M”) directly.  She often awarded this out-of-scope work to G&M Services, LLC.  She concealed the fact that she was actually the sole owner and operator of G&M, which sometimes provided these outside the scope of work services such as grass cutting, painting, and cleaning to Company “A.”  She hid her interest in G&M by listing her sister’s post office box, as the address for G&M on all of the invoices to Company “B.”  ISAAC-HOLDEN also stated to the owners of Company “B” that G&M was owned and operated by “Mr. G” and operated by a man named “Robert.”  She also submitted false Forms W-9 (request for taxpayer identification number and certification) in order to conceal from the IRS that she was the person actually earning the income. These forms were submitted in 2009 and 2010 and contained the forged signature of another person. 

On April 24, 2011, ISAAC-HOLDEN signed, and placed into the mail for filing with the Internal Revenue Service, a false 2010 Form 1040 tax return which stated that her income for the 2010 calendar year was the sum of $57,466, and that she was owed a refund in the sum of $4,564.  However, she knew that her taxable income for the 2010 calendar year was the sum of $455,230.  She therefore owed income tax in the amount of $163,083.66, rather than a refund.

U.S. Attorney Polite praised the work of the Internal Revenue Service in investigating this matter.  Assistant United States Attorneys Jon Maestri and Andre Lagarde are in charge of this prosecution.

U.S. Attorney Kenneth A. Polite announced that CHANNING CHRISTOPHER MILLER, age 36, of Houma, Louisiana, was sentenced today after having previously pled guilty to a one-count indictment for possession with the intent to distribute cocaine hydrochloride.     

U.S. District Court Judge Ivan L.R. Lemelle sentenced MILLER to 120 months of imprisonment followed by 3 years of supervised release, and a $100 special assessment.

According to court documents, on or about November 14, 2013, law enforcement officers established surveillance of the MEGABUS terminal on Bienville Street in New Orleans in order to conduct routine drug interdiction operations at the terminal.  At approximately 5:45 p.m., officers observed MILLER exit the MEGABUS and retrieve a black duffel bag from the luggage area.  Officers approached MILLER and smelled the aroma of marijuana coming from MILLER’s person.  After telling officers that he was travelling from Houston, Texas, MILLER gave verbal consent to the officers to search his back pack and the black duffel bag.  Immediately thereafter, officers seized 3½ bricks of powder cocaine from the back pack and a plastic bag containing marijuana and an off-white cutting agent. Officers then arrested MILLER.  Subsequent laboratory analysis revealed a net weight of 4,469 grams of cocaine hydrochloride.     

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

(Download Factual Basis )

U.S. Attorney Kenneth Allen Polite, Jr. announced that yesterday, ZHENG B. NI, age 26, a resident of Los Angeles, California, pled guilty before U.S. District Judge Ivan L.R. Lemelle to four counts of access device fraud and one count of aggravated identity theft.

 According to the court documents, on or about September 3, 2012, NI fraudulently used credit cards belonging to three individuals without their consent or authorization.  In one day, NI made or attempted to make purchases totaling over $67,000 at various stores in the Greater New Orleans area.

NI faces a sentence of up to 10 years’ imprisonment on each count of access device fraud, followed by a mandatory minimum of 2 years’ imprisonment for the aggravated identity offense, to run consecutive to any term of imprisonment he receives on the access device fraud charges.  In addition, NI will be ordered to pay restitution for the amounts charged to the credit cards.  His sentence is scheduled for September 3, 2014.

The case was investigated by the United States Secret Service and prosecuted by Emily K. Greenfield.

(Download Factual Basis )

U.S. Attorney Kenneth A. Polite announced that VITTORIO FRANCESCO GONZALEZ-CASTILLO, age 26, a resident of Tucson, Arizona, pled guilty today in the District of Arizona after being indicted in the Eastern District of Louisiana for Conspiracy to Produce Child Pornography. In addition, GONZALEZ-CASTILLO was previously indicted in the District of Arizona for Distribution, Possession, and Knowing Access of Child Pornography.

GONZALEZ-CASTILLO was permitted to plead guilty in federal court in Arizona to the Louisiana charges pursuant to Rule 20 of the Federal Rules of Criminal Procedure.  GONZALEZ-CASTILLO also pled guilty to distributing child pornography arising from the Arizona indictment. 

As a result of a nationwide child exploitation investigation, special agents with the New Orleans Office of the United States Department of Homeland Security, Homeland Security Investigations (“HSI”) determined that GONZALEZ-CASTILLO was responsible for producing videos depicting the sexual exploitation of children.  According to court documents, beginning in 2012, and continuing until January 2013, GONZALEZ-CASTILLO conspired with Jonathan Johnson, the administrator of a multi-national child pornography website, to create and post videos depicting the sexual exploitation of children on the Internet.

Conspiracy to produce child pornography carries a mandatory minimum sentence of 15 years and a maximum sentence of 30 years.  Similarly, distribution of child pornography carries a mandatory minimum sentence of 5 years and a maximum of 20 years.  However, GONZALEZ-CASTILLO has agreed to serve a total of 30 years imprisonment pursuant to his plea on both counts.  GONZALEZ-CASTILLO will have to register as a sex offender and will be placed on supervised release for a term of not less than 5 years and up to life once released from prison.

Sentencing is scheduled for January 26, 2015 before a U.S. District Court Judge in Tucson, Arizona. 

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

U.S. Attorney Polite praised the work of the Homeland Security Investigations in investigating this matter.  Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U. S. Attorney Brian M. Klebba is in charge of this prosecution.  Assistant U.S. Attorney Carin C. Duryee of the U.S. Attorney’s Office for the District of Arizona handled the plea proceeding in Tucson, Arizona.

U.S. Attorney Kenneth A. Polite announced that SELVIN IRIAS-MURILLO, age 44, from Honduras, was charged today in a one-count indictment with illegal reentry into the United States after having been previously deported, in violation of 8 U.S.C. '1326(a).

According to the indictment, IRIAS-MURILLO was found by Immigrations and Customs Enforcement agents in the Eastern District of Louisiana after records showed he had been deported on four prior occasions from the United States to Honduras. 

If convicted, IRIAS-MURILLO 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 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 Immigration and Customs Enforcement agents in investigating this matter. Assistant U. S. Attorney Rick Veters is in charge of the prosecution.

(Download Indictment )

U.S. Attorney Kenneth A. Polite announced that HERBERT COOPER, age 41, and RICHARD WILLIAMS, age 38, both residents of New Orleans, Louisiana, were charged today in a three-count indictment for violations of the Federal Controlled Substances Act.  According to the indictment, on October 24, 2014, COOPER and WILLIAMS conspired to distribute and to possess with the intent to distribute over 28 grams of crack cocaine, in violation of Title 21, United States Code, Section 846.  WILLIAMS was also charged with distributing at least 28 grams of cocaine base, in violation of Title 21, United States Code, Sections 841(a)(1), and 841(b)(1)(B).  Additionally, COOPER was charged with possessing with the intent to distribute at least 28 grams of cocaine base, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B).

If convicted, COOPER and WILLIAMS each face a maximum term of 40 years imprisonment as to each count, a fine of up to $5,000,000, a period of four years of supervised release following any term of imprisonment, and a special assessment of $100.00.     

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 New Orleans Polite Department in investigating this matter.  Assistant United States Attorney Brandon S. Long is in charge of the prosecution.

(Download Indictment )

U.S. Attorney Kenneth A. Polite announced that RICKY GUITI, age 29, a native of Honduras, was indicted today by a federal grand jury for reentering the United States without permission, after previously having been deported.

According to court documents, GUITI was previously removed from the United States on October 27, 2011. GUITI was found in the Eastern District of Louisiana on October 5, 2014, and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.

If convicted, GUITI faces a maximum term of imprisonment of two years, as well as a fine of $250,000.  

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

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

(Download Indictment )

U.S. Attorney Kenneth A. Polite announced that GIE PRESTON, age        39, BURNELL ALLEN, age 35, and SONNY ALLEN, age 31, all residents of New Orleans, Louisiana, were convicted late yesterday after a 4-day jury trial.  The jury returned a verdict of guilty on a superseding indictment charging all defendants with conspiring to distribute and possess with intent to distribute 280 grams or more of cocaine base “crack.”  The jury also found SONNY ALLEN guilty of distributing a quantity of cocaine base “crack” on four occasions.  In addition, GIE PRESTON was found guilty of possessing a firearm in furtherance of a drug trafficking crime, being a convicted felon in possession of firearms, and conspiring to possess a firearm in furtherance of a drug trafficking crime.  BURNELL ALLEN and SONNY ALLEN were found not guilty of conspiring to possess a firearm in furtherance of a drug trafficking crime and GIE PRESTON was found not guilty of another gun crime. 

Evidence was presented at trial that these defendants are related and grew up in and around the former Melpomene Housing Development, engaged in high volume street level drug dealing over the course of several years.  The majority of this activity took place near an older relative’s home located at 1218 Simon Bolivar Avenue.  Further evidence presented showed that the defendants routinely carried firearms to protect themselves while engaged in distributing illegal narcotics.

U.S. District Judge Stanwood R. Duval, Jr. scheduled sentencing for April 8, 2015.   GIE PRESTON faces 15 years to life; BURNELL ALLEN faces a mandatory life sentence; and SONNY ALLEN faces 20 years to life.

"The Allen Gang sold crack cocaine 'every day, all day' in the Guste high rises, and used guns to protect that business," U.S. Attorney Kenneth A. Polite said in a statement. "These guilty verdicts ensure that these men spend decades in jail for terrorizing their community."

ATF Special Agent in Charge Phillip Durham stated, “For decades, the criminal enterprise known as the Allen family has preyed upon the local community by using firearms to commit violent crimes and distributing large quantities of illegal drugs.  Unquestionably, these guilty verdicts are a resounding victory for the citizens of New Orleans and highlight the unyielding efforts of ATF and the Multi-Agency Gang Unit in combating these violent crimes.” 

“This verdict is proof that the rules of the game have changed for good,” said NOPD Superintendent Michael Harrison. “Through the Multi-Agency Gang Unit, local, state and federal law enforcement agencies are working together every day to take dangerous individuals off the streets. We will not rest until every neighborhood in New Orleans is a safe neighborhood.”

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives as part of the metro area’s Multi-Agency Gang Unit (MAG).  As an integral component of NOLA FOR LIFE’s Group Violence Reduction Strategy, the MAG Unit consists of a partnership with New Orleans Police Department (NOPD); Orleans Parish District Attorney’s Office (DA); Orleans Parish Sheriff’s Office (OPSO); Louisiana State Police (LSP); Parole Board of the Louisiana Department of Corrections; United States Attorney’s Office (USAO); Federal Bureau of Investigation (FBI); Drug Enforcement Administration (DEA); United States Marshal’s Service (USMS); and the United States Probation & Parole Office for the Eastern District of Louisiana. 

U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and the New Orleans Police Department in investigation this matter.  Assistant U.S. Attorneys Sean Toomey and Andre Lagarde were in charge of prosecuting this matter.

U.S. Attorney Kenneth A. Polite announced that LIONEL THOMAS, age 30, 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, THOMAS possessed with the intent to distribute one kilogram or more of a mixture or substance containing a detectable amount of heroin, a Scheduled I drug controlled substance. 

If convicted, THOMAS faces a maximum term of imprisonment of ten years to life, a fine of $10,000,000 and 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 (DEA) and the Federal Bureau of Investigation (FBI) in investigating this matter.   Assistant United States Attorney David Haller is in charge of this prosecution.

(Download Indictment )

U.S. Attorney Kenneth A. Polite announced that JASON GUZMAN-URQUIA, age 36, a native of Honduras, was indicted today by a federal grand jury for reentering the United States without permission, after previously having been deported.

According to court documents, on August 2, 2007, GUZMAN-URQUIA was previously removed from the United States. On October 22, 2014, GUZMAN-URQUIA was found in the Eastern District of Louisiana and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.

If convicted, GUZMAN-URQUIA faces a maximum term of two years imprisonment, as well as a fine of $250,000.  

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

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

(Download Indictment )

U.S. Attorney Kenneth A. Polite announced that TRACIE MEDUS, age 39, a New Orleans Police Department police officer, was charged yesterday with theft of government funds.  According to the New Orleans Police Department, MEDUS has been placed on unpaid emergency suspension pending the outcome of this case.

According to the Bill of Information, from in or about July 2009 to in or about March 2011, MEDUS stole $158,700 from the Louisiana Road Home’s Small Rental Property Program. MEDUS obtained the funds in the form of an award funded by the Department of Housing and Urban Development.

If convicted, MEDUS 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 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 the prosecution.

(Download Bill of Information )

U.S. Attorney Kenneth A. Polite announced that MELVIN JAMES, JR., a 43-year old resident of New Orleans, Louisiana, was sentenced today for possession with intent to distribute 98 grams of heroin and being a convicted felon-in-possession of four firearms.

U.S. District Judge Kurt D. Engelhardt sentenced JAMES to 198 months incarceration for possession with intent to distribute 98 grams of heroin and 120 months incarceration for being a felon-in-possession of a firearm, to be served concurrently.  Following his term of imprisonment, JAMES will be on supervised release for a term of 3 years.

According to the indictment, JAMES was arrested following an attempt to sell heroin in Slidell, Louisiana.  A search of his New Orleans residence uncovered 98 grams of heroin, digital scales, products used to “cut” the heroin prior to distribution, over $3,000 in U.S. currency, marijuana, and other tools of the narcotics trafficking trade including four firearms of various makes and calibers.

U.S. Attorney Polite praised the work of the Drug Enforcement Administration and thanked the St. Tammany Parish Sheriff’s Office and the New Orleans Police Department for providing assistance in investigating this matter.  Special Assistant United States Attorney Brian Ebarb is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that DUNWOODIE MCDUFFIE, 47. a resident of Metairie, Louisiana, and the owner of a Metairie moving company, plea guilty today to eight counts of conducting interstate household goods moves without the proper authority of the Department of Transportation. 

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

MCDUFFIE faces a maximum term of imprisonment of one year on each count and a fine of up to $100,000 on each count, for a total potential exposure of eight years and $800,000.  MCDUFFIE may also be sentenced to up to a year of supervised release following any term of imprisonment.

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

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U.S. Attorney Kenneth A. Polite announced that GALDINO MARTINEZ-CARRILLO, age 38, a citizen of Mexico, pled guilty today to a one-count indictment for illegal re-entry of a removed alien.

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

MARTINEZ-CARRILLO 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 March 4, 2015.

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

U.S. Attorney Kenneth Polite announced that URIS ORDONEZ-MENDOZA, age 27, a citizen of Honduras, pled guilty today to a one-count indictment for illegal re-entry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).

According to court records, URIS ORDONEZ-MENDOZA was found in the United States on September 20, 2014, after having been previously deported.  

ORDONEZ-MENDOZA 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 Helen G. Berrigan set sentencing for February 11, 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 Emily K. Greenfield is in charge of the prosecution.

(Download Factual Basis )

U.S. Attorney Kenneth A. Polite announced that AUNG GAW, a/k/a Michael Gaw, age 26, of Fremont, California, was sentenced today for Conspiracy to Produce Child Pornography.  According to court documents, beginning in December 2012, and continuing until May 2013, GAW conspired with Jonathan Johnson, the administrator of a multi-national child pornography website, to create and post videos depicting the sexual exploitation of children on the Internet.  On November 5, 2013, federal agents executed a federal search warrant at GAW’s Fremont, California residence.   GAW has been in custody since his arrest on November 5, 2013.

Chief U.S. District Judge Sarah S. Vance sentenced GAW to 157 months imprisonment, to be followed by a term of supervised release of 10 years.  In addition, GAW will be required to register as a sex offender pursuant to the Sex Offender Registration and Notification Act.

“Gaw and his co-conspirators victimized over 150 young people as part of their scheme to traffic child pornography,” stated U.S. Attorney Polite.  “Today’s sentence of 13 years underscores our commitment to bringing justice to anyone who engages in this despicable criminal conduct.”

“Individuals who conspire to produce child pornography are directly responsible for what is, in plain language, the rape of children. Production and distribution of child pornography steals the innocence of children and destroys lives,” said HSI New Orleans Special Agent in Charge Raymond R. Parmer Jr. "Operation Roundtable serves as a stark warning that HSI special agents are actively working to identity and disrupt the trade of these illegal images, and also to identify and seek prosecution of the criminals who produce and possess them.”

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

U.S. Attorney Polite praised the work of the U.S. Department of Homeland Security-Homeland Security Investigations and the U.S. Postal Inspection Service for investigating this matter.  Fraud Section Chief and Project Safe Childhood Coordinator, Assistant U. S. Attorney Brian M. Klebba is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that ANGELA LEMOINE, 43, of Amite, Louisiana, was charged in a Bill of Information today with one count of theft of funds.

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

If convicted, LEMOINE 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 in investigating this matter.  Assistant United States Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.

(Download Bill of Information )

U.S. Attorney Kenneth A. Polite announced today that Assistant U.S. Attorney Irene Gonzàlez will lead the efforts of her Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming general elections on November 4, 2014.  AUSA Gonzàlez has been appointed to serve as the District Election Officer (DEO) for the Eastern District of Louisiana.  In that capacity she is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.

U.S. Attorney Polite said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud.  The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”

The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur.  The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.

Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.   It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them.  For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law.  Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.

The franchise is the cornerstone of American democracy.  We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice.  In order to respond to complaints of election fraud or voting rights abuses on November 4, 2014, and to ensure that such complaints are directed to the appropriate authorities United States Attorney Polite stated that AUSA Irene Gonzàlez will be on duty in this District while the polls are open.  She can be reached by the public at the following telephone numbers: (504) 680-3000 and (504) 680-3077.

In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day.  The local FBI field office can be reached by the public at (504) 816-3000.

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington by phone at (800) 253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to voting.section@usdoj.gov or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.

U.S. Attorney Polite said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate.  It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”