Eastern District of Louisiana

U.S. Attorney Kenneth A. Polite announced that ANDRES VILLALVA-GUADARRAMA, age 53, a citizen of Mexico who recently resided in Gretna, Louisiana, pled guilty yesterday to a one-count indictment for illegal use of a Social Security Number. 

According to the indictment, on or about January 22, 2014, VILLALVA-GUADARRAMA, for the purpose of obtaining employment and for other purposes, knowingly and with intent to deceive, did falsely represent on an US Citizenship and Immigration Services Employment Eligibility Verification Form that a Social Security Number not issued to him, was assigned to him; all in violation of Title 42, United States Code, Section 408(a)(7)(B).

VILLALVA-GUADARRAMA faces a maximum term of imprisonment of five years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory special assessment of $100.00.  U.S. District Judge Eldon E. Fallon set sentencing on 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 Irene Gonzàlez is in charge of the prosecution.

(Download Factual Basis )

U.S. Attorney Kenneth A. Polite announced that MARINE MANAGERS LTD., a Liberian corporation headquartered in Piraeus, Greece, was sentenced today to a three-year term of probation.  In addition, U.S. District Judge Carl J. Barbier ordered MARINE MANAGERS LTD. to pay an $800,000 fine and a $100,000 community service payment.  MARINE MANAGERS, LTD. previously pled guilty to a two-count bill of information charging the company with violating Title 33, United States Code, Section 1908(a) for knowingly failing to maintain an oil record book while in port and within the internal waters of the United States, and Title 18, United States Code, Section 1519 for the submission of a knowingly false document to the U.S. Coast Guard.

According to court documents, MARINE MANAGERS LTD. was the operator of the Motor Vessel (“M/V”) Trident Navigator, a vessel that transported bulk cargo between various ports and places in the world, including the Port of New Orleans and other locations in the Eastern District of Louisiana.   The Act to Prevent Pollution from Ships (“APPS”), makes it a crime to knowingly violate protocols established regarding discharges of waste and documentation of same.  On or about December 28, 2013, while the M/V Trident Navigator was sailing, the Chief Engineer instructed the Second Engineer to construct a bypass system (often referred to as a “magic pipe”) that could be connected between the vessel’s bilge pump and overboard discharge valve.  The purpose of the bypass was to discharge the contents of the ship’s bilge tank directly into the sea, circumventing the ship’s Oil Water Separator and Oil Content Monitor.  On or about December 31, 2013, the Chief Engineer ordered the Second Engineer to hook up the “magic pipe” and to discharge several metric tons of oily bilge waste from the bilge tank directly into the sea.  The “magic pipe” was removed after the discharge was completed and the discharge was not recorded in the vessel’s Oil Record Book as required.  The Chief Engineer additionally confiscated a crew member’s cell phone, which contained a photograph of the installed “magic pipe,” and caused that photo to be deleted. 

On or about January 18, 2014, U.S. Coast Guard personnel boarded the M/V Trident Navigator while it was anchored in the Mississippi River near New Orleans, Louisiana, and within the Eastern District of Louisiana.  A tip from a crewmember led them to the discovery of the “magic pipe.”   The Chief Engineer was uncooperative and further obstructed the Coast Guard investigation by instructing crewmembers to deny knowledge of the “magic pipe.”

The actions of the crewmembers on the vessel were contrary to defendant MARINE MANAGERS LTD.’s written policies and procedures.  However, defendant MARINE MANAGERS LTD. accepts that it is vicariously liable for their actions.

U.S. Attorney Polite stated, “Today’s sentence ensures that Marine Managers will be held responsible for the criminal actions of its employees who illegally dumped waste into our region’s waterways.”

"The Coast Guard is committed to uncovering and investigating regulatory and criminal violations that threaten the health of our marine environment.  The successful prosecution of this case is due to the outstanding cooperation between Coast Guard Sector New Orleans, the Coast Guard Investigative Service, and the Department of Justice," said Rear Admiral Kevin S. Cook, Eighth Coast Guard District Commander.

U.S. Attorney Polite praised the work of the United States Coast Guard Criminal Investigative Service in this matter.  Assistant United States Attorney Gregory M. Kennedy and DOJ Environmental Crimes Section Attorney Kenneth Nelson are in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that RICHARD GARRETT, age 20, a resident of New Orleans, Louisiana, was sentenced today by U.S. District Judge Edson E. Fallon to a 120-month term of imprisonment and 5 years of supervised release following his guilty plea to Conspiracy to Distribute and Conspiracy to Possess with Intent to Distribute Cocaine Baser. On July 19, 2013, GARRETT was one of 12 defendants charged in a 30-count superseding indictment.

This investigation targeted a violent Drug Trafficking Organization that operated out of the Lincoln Manor area of Kenner.  During the course of the investigation, two major sources of supply of “crack” cocaine for the Lincoln Manor are of Kenner, were identified and dismantled along with their distribution network.  Most of the street level distributors for this Drug Trafficking Organization were identified as being affiliated with a local gang who called themselves the “Flippa Squad.”

U.S. Attorney Polite praised the work of the Drug Enforcement Administration, the High Intensity Drug Trafficking Area, Kenner Police Department, Homeland Security Investigation, Jefferson Parish Sheriff’s Office, Criminal Intelligence Center, Louisiana State Police, Alcohol, Tobacco, Firearms, and Explosives, U.S. Marshals, U.S. Border Patrol, and the St. John Parish Sheriff’s Office 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 today, a federal grand jury indicted PABLO E. PAZ, 45, a resident of New Orleans, Louisiana, and RAMON E. MADRID, 29, a resident of Kenner, Louisiana, for conspiracy to commit theft of government funds and identity theft.

According to court documents, PAZ was a recruiter for the Louisiana Army National Guard.  In this capacity, he obtained personally identifiable information (PII), such as names, dates of birth and social security numbers, from potential soldiers that came to the recruiting station for the purpose of becoming a soldier.  PAZ  provided the PII of potential soldiers to MADRID without the knowledge or consent of the soldiers, to obtain Guard Recruiter Assistance Program (G-RAP) incentive payments to which they were not entitled.  MADRID received approximately $30,000 in fraudulently obtained recruitment incentive payments, and provided a portion of the funds to PAZ.

If convicted, PAZ and MADRID face a maximum term of five years imprisonment, a fine of up to $250,000, and up to three years of supervised release.

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 Army Criminal Investigation Division Command and the Defense Criminal Investigative Service in investigating this matter.   Public Integrity Unit Chief and Assistant United States Attorney Tracey N. Knight is in charge of the prosecution.

(Download Indictment )

U.S. Attorney Kenneth Polite announced that DAYRON OTONIEL MADRID-GUILLEN, 28, a Honduran national illegally residing in the United States, pled guilty today to possession of a handgun by a person illegally present in the United States, in violation of 18 U.S.C. Section 922(g)(5)(A). 

According to court documents, MADRID-GUILLEN was spotted by a New Orleans Police Officer riding a bicycle in an erratic manner.  The officer continued to observe MADRID-GUILLEN as MADRID-GUILLEN got off the bicycle and walked away from the officer.  The officer saw what appeared to be the outline of a handgun completely concealed in MADRID-GUILLEN’s rear pocket.  The officer stopped MADRID-GUILLEN, patted him down, and found a fully loaded handgun and six small bags of marijuana in his possession.  MADRID-GUILLEN was later questioned by agents from Homeland Security Investigations and admitted that is a Honduran national who had entered the United States illegally.

U.S. District Judge Carl J. Barbier set sentencing for January 8, 2015.

U.S. Attorney Polite praised the work of the Homeland Security Investigations and the New Orleans Police Department in investigating this matter.   Assistant United States Attorney Gregory M. Kennedy is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that JABARI RAGAS, age 40, a resident of New Orleans, Louisiana, was sentenced today for one count of money laundering and one count of tax fraud. RAGAS previously pled guilty to embezzling nearly $1,700,000 from clients, and failing to pay nearly $260,000 in tax due and owing to the Internal Revenue Service.

U.S. District Judge Eldon E. Fallon sentenced RAGAS to serve 42 months of incarceration, to be followed by 3 years of supervised release.    RAGAS was also ordered to pay nearly $1,700,000 in restitution for the money laundering count, and $259,210 for the tax fraud count.

According to court documents, RAGAS was employed by Ameriprise Financial Services, Inc. (“Ameriprise”) as a registered broker and investment adviser from 2005 - 2009. RAGAS previously pled guilty to embezzling nearly $1,400,000 from clients, and failing to pay nearly $260,000 in tax due and owing to the Internal Revenue Service.

In early 2006, a client of RAGAS indicated to him that he wished to open a Simplified Employee Pension (“SEP”) account to allow him to contribute towards retirement. The client made contributions from 2006 – 2009. Without authorization, RAGAS began moving money from the Ameriprise SEP account, into an account controlled by RAGAS.  The client later checked the account balance and inquired as to why the account balance was lower than it should have been and was told by RAGAS that the funds had been transferred to a different financial institution located in Texas.  RAGAS was later asked by the client to supply him with written account statements showing the balance, account number, and institution name. RAGAS then supplied the client with a fraudulent account statement for an account that did not exist, along with a fraudulent balance. After using the interstate wire to embezzle funds from the client’s Ameriprise account, RAGAS then committed money laundering by further transferring $20,000 into a different account that he controlled.  Additionally, on October 12, 2008, RAGAS signed and filed a 2007 U.S. Individual Income Tax Return (Form 1040) with the Internal Revenue Service. The tax return allegedly did not report approximately $288,000 in income.

U.S. Attorney Polite stated, “Ragas defrauded the government out of tax revenue and his clients out of nearly $1.7 million in investments.  Today’s sentence ensures that he pays for his fraudulent conduct by serving a lengthy prison sentence and paying full restitution to make his victims whole.”

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

U.S. Attorney Kenneth A. Polite announced that BRITTANY BAUER, age 23, of Huntsville, Alabama, pleaded guilty today to conspiracy to possess and transport stolen firearms in interstate commerce and transportation of stolen firearms in interstate commerce.  A five-count superseding indictment was returned on October 3, 2014, charging BAUER and co-defendants BRITTEN PARSONS and ALEX BRASINGTON with conspiracy, possession and transportation of stolen firearms in interstate commerce.
According to court documents, in January and February 2013, BAUER,  PARSON and BRASINGTON, transported nine stolen firearms in interstate commerce, from Alabama to Louisiana.  The investigation revealed that the firearms had been stolen during residence burglaries in Huntsville, Alabama.  On February 14, 2013, agents conducted a search of BAUER’s New Orleans apartment and found five stolen firearms and approximately 1700 rounds of ammunition. Court documents reflect that agents also recovered four stolen firearms and ammunition that BAUER, PARSONS and BRASINGTON sold to individuals in New Orleans.

U.S. District Judge Jane Triche Milazzo set sentencing for January 8, 2015.

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

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

(Download Factual Basis )

U.S. Attorney Kenneth Polite announced that NICHOLAS SAINE, age 27, a resident of Seattle, Washington, was sentenced today for possession of child pornography.

According to court documents, in November 2013, SAINE was arrested by special agents with the United States Department of Homeland Security, Homeland Security Investigations (“HSI”) and the United States Postal Inspection Service after they determined that SAINE possessed videos depicting the sexual exploitation of children on the Internet.  SAINE had received the videos through websites operated by Johnathan Johnson, who was based in Abita Springs, Louisiana.  On April 30, 2014, SAINE entered a plea of guilty to knowingly possessing several videos depicting the sexual exploitation of children.

U.S. District Judge Kurt Engelhardt sentenced SAINE to 37 months imprisonment, five years of supervised release, and ordered that SAINE will have to register as a sex offender.

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

This case was investigated by Homeland Security Investigations and the U.S. Postal Inspection Service.  The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba.

U.S. Attorney Kenneth A. Polite and the U.S. Department of Justice, Office of Community Oriented Policing Services (“COPS”) today announced an award of $1,875,000 to the New Orleans Police Department.  The award will assist in recruiting and hiring 15 law enforcement positions.

“This grant of $1,875,000 to the New Orleans Police Department underscores DOJ’s commitment to ensuring public safety in our local communities,” stated U.S. Attorney Polite.  “This money is critical to reducing violent crime, not in select portions of the city, but in every New Orleans neighborhood.  As U.S. Attorney, I will continue to fight for the necessary federal resources to support our region’s law enforcement efforts.”

“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “Funding from this year’s program will allow many cities and counties to apply new sworn personnel to issues related to violent crime, property crime, and school safety.”

The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides salaries and benefits for officer and deputy hires for three years.

Grantees for the 2014 hiring program were selected based on their fiscal needs, local crime rates, and community policing plans.  Nearly $124 million will be awarded nationally.

The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.

For the entire list of grantees and additional information about the 2014 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.

A New Orleans grand jury today indicted seven defendants for their roles in a $56 million Medicare fraud scheme that operated in New Orleans and surrounding communities.  Thirteen defendants have now been charged in this case, three of whom pleaded guilty to their conduct yesterday. 

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite Jr. of the Eastern District of Louisiana, Special Agent in Charge Michael Anderson of the FBI’s New Orleans Field Office and Special Agent in Charge Mike Fields of the Dallas Regional Office of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) made the announcement.

Paige Okpalobi, 57, of Slidell, Louisiana; Joe Ann Murthil, 57, of New Orleans; Latausha Dannel, 34, of Laplace, Louisiana; Dr. Winston Murray, 62, of Hammond, Louisiana; Dr. Divini Luccioni, 53, of Kenner, Louisiana; Christopher White, 48, of Destrehan, Louisiana; and Beverly Breaux, 66, of New Orleans, were charged in connection with their roles in a home health care fraud scheme involving thousands of Medicare recipients.  Mark Morad, 51, of Slidell; Dr. Barbara Smith, 65, of Metairie, Louisiana; and Dr. Roy Berkowitz, 68, of Slidell, had been previously charged for their participation in the scheme, and today’s indictment added new charges against them.

The second superseding indictment comes one day after Dr. Alvin Darby, 58, of Slidell; Demetrius Temple, 54, of New Orleans; and Nicole Oliver, 44, of Napoleonville, Louisiana, each pleaded guilty to conspiracy to commit health care fraud for their roles in the scheme.  Sentencing for each is scheduled for Jan. 7, 2015 before U.S. District Judge Sarah S. Vance of the Eastern District of Louisiana.

The indictment alleges that the defendants operated a number of companies in and around New Orleans that purported to offer home health services and durable medical equipment to Medicare beneficiaries.  The companies, Interlink Health Care Services Inc., Memorial Home Health Inc., Lakeland Health Care Services Inc., Lexmark Health Care LLC, Med Rite Pharmacy Inc. and Medical Specialists of New Orleans, billed Medicare claiming that they provided home health services and durable medical equipment to Medicare beneficiaries, but the vast majority of these services and equipment were not medically necessary or not provided. 

The indictment further alleges that Morad and Okpalobi owned and directed operations at these companies.  Morad allegedly paid kickbacks to patient recruiters, including Temple and Oliver, to provide Medicare beneficiary numbers that were then used to bill Medicare.  To conceal these kickbacks, Morad allegedly laundered Medicare money through a separate company he owned. 

Court documents also allege that Okpalobi instructed doctors, including Smith, Berkowitz, Murray, Luccioni, and Darby, to falsely certify that beneficiaries were qualified for home health services, and to prescribe durable medical equipment that was not medically needed.  These false certifications and prescriptions were then used to bill Medicare for the unnecessary services and equipment. 

Murthil and Dannel were office managers who allegedly oversaw daily operations at the home health companies.  White allegedly performed accounting services for these companies, and helped conceal the scheme by fabricating false tax and employee records.  Breaux was a registered nurse who is alleged to have falsely certified that home health clients were homebound, and that she had provided home health care services when she had not.

From 2007 through 2014, the companies allegedly involved in the scheme submitted more than $56 million in claims to Medicare, the majority of which are allegedly fraudulent.  Medicare paid approximately $50.7 million on those claims.

The charges contained in this indictment are merely accusations, and the defendants are innocent unless and until proven guilty.

The case is being investigated by HHS-OIG and the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Louisiana.  The case is being prosecuted by Trial Attorney William G. Kanellis of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Patrice Harris Sullivan of the Eastern District of Louisiana.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion.  In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.justice.gov/criminal-fraud/health-care-fraud-unit.

(Download Factual Basis - Alvin Darby )

(Download Factual Basis - Demetrius Temple )

(Download Factual Basis - Nicole Oliver )

(Download Superseding Indictment )

United States Attorney Kenneth Polite and Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department’s Tax Division announced today that YONI PERDOMO, 35, was sentenced to 38 months in prison for conspiracy to defraud the United States by filing false income tax returns and for aggravated identity theft.  In addition, SANTOS MARTIN HERNANDEZ, 41, was sentenced to 24 months in prison for his role in the conspiracy to defraud the United States.  The defendants were further ordered to pay restitution and to serve terms of supervised release. 

Both defendants have been detained since their arrest, and as Honduran nationals they face possible deportation following the completion of their sentences.  They were charged with being part of a multi-jurisdictional conspiracy to file false income tax returns.  To date, 16 defendants have entered guilty pleas to various charges in the case, including JACQUELINE J. ARIAS, a tax return preparer in Spruce Pine, Alabama, who is pending sentencing.

According to the indictments in this case, the conspirators 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 indictments, ARIAS was a certified acceptance agent, 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 indictments charged that ARIAS and her coconspirators filed false applications for ITINs, in addition to false income tax returns, and that ARIAS collected preparation fees from the fraudulently-obtained tax refunds.  According to the second superseding indictment, the conspirators purchased identification documents from overseas and Forms W-2 from other aliens illegally present in the United States for use in filing false income tax returns with ARIAS.

The case was investigated by U.S. Immigration and Customs Enforcement’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 Trial Attorneys Hayden Brockett and Kevin Lombardi of the Justice Department’s Tax Division and Assistant U.S. Attorney David Haller.

U.S. Attorney Kenneth Polite announced that ANDREA BIRDOW, 22, of Sherman, Texas, pleaded guilty today to conspiring with her boyfriend, TAUREAN JACKSON, to trafficking of a minor from the Dallas, Texas-area into the New Orleans area for the purposes of that minor engaging in prostitution.

According to court documents, BIRDOW met JACKSON in 2012 after JACKSON recruited her to join “Star City Vixens,” an entity he created to foster and promote prostitution. JACKSON became BIRDOW’s pimp and arranged for her to engage in sexual acts with others in exchange for money.  JACKSON was responsible for advertising and scheduling prostitution calls with BIRDOW. JACKSON kept all, or most, of the proceeds from the prostitution calls.  As a means of controlling BIRDOW’s behavior and ensuring her compliance, JACKSON beat and choked BIRDOW on multiple occasions, often in front of others.  On several occasions, JACKSON burned BIRDOW with lit cigarettes to discipline her.

In mid-June 2013, JACKSON and BIRDOW met the victim, who was then 16-years-old, in the Dallas, Texas-area and recruited her to work for JACKSON as a prostitute.  Over the course of the next several weeks, JACKSON and BIRDOW drove the victim throughout Texas and Louisiana for the purpose of BIRDOW and the victim engaging in prostitution, which JACKSON advertised and arranged using an online classified advertisement.  JACKSON arranged for the victim to watch BIRDOW engage in prostitution acts as a means of educating her on the best way to perform sexual acts.  On July 10, 2013, BIRDOW and the victim were arrested in a Metairie hotel room by undercover law enforcement officers, who responded to an online classified advertisement offering a prostitution date. 

BIRDOW faces a maximum sentence of five years imprisonment, followed by three years of supervised release, and a $250,000 fine.  She may also be required to register as a sex offender.  Sentencing is scheduled for January 14, 2015 before U.S. District Judge Susie Morgan.

JACKSON’s trial is scheduled to begin on November 3, 2014.  JACKSON faces a mandatory minimum term of imprisonment of 15 years and a maximum of life, followed by up to a life term of supervised release, a $250,000 fine, and can also be required to register as a sex offender.

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

This case was initiated by the Jefferson Parish Sheriff's Office and is being investigated by agents from the Federal Bureau of Investigation, with assistance from the FBI Dallas Child Exploitation Task Force, and the Dallas Police Department High Risk Victims Unit. The prosecution of this case is being handled by Assistant United States Attorney Jordan Ginsberg.

(Download Factual Basis )

U.S. Attorney Kenneth Polite announced that FRANK FRABBIELE, 79, of Abita Springs, Louisiana pleaded guilty today to a two-count Bill of Information, charging him with the transmission of wagering information and money laundering.

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

FRABBIELE faces a maximum term of imprisonment of 12 years in prison, 3 years of supervised release after any term of imprisonment, and a $250,000 fine.  Sentencing is scheduled for January 14, 2015, before U.S. District Judge Helen G. Berrigan.

This case is being investigated by agents from the Internal Revenue Service-Criminal Investigation Division and the Federal Bureau of Investigation.  The prosecution of this case is being handled by Assistant United States Attorney Jordan Ginsberg.

(Download Factual Basis )

The United States Attorney’s Office announced today that CASEY THONN, 35, a resident of Slidell, Louisiana, was charged in a two-count Bill of Information with wire fraud in connection with claims he filed with the Deepwater Horizon Economic Claims Center (“DHECC”). 

According to the Bill of Information, on June 24, 2012, THONN submitted multiple claims with the Seafood Compensation Program administered by the DHECC based on losses he allegedly sustained as result of the April 2010 oil spill.  Subsequently, in early November 2012, the DHECC notified THONN that he was eligible to receive approximately $1,750.36 for these claims.

In turn, on December 3, 2012, THONN submitted Requests for Reconsideration of his original eligibility notices requesting his compensation be recalculated based on a false Federal tax return THONN provided to the DHECC.  In that false submission, THONN claimed he received $156,000 of gross revenue from commercial shrimping sales in 2009.  This fraudulent submission increased the defendant’s compensation from $1,750.36 to a total of $357,002.35 for these claims.  In March 2013, THONN received a total of $357,002.35 from the DHECC based on his fraudulent submissions.       

The case was investigated by the Federal Bureau of Investigation (“FBI”) and is being prosecuted by Assistant United States Attorney Matt Coman.

(Download Bill of Information )

U.S. Attorney Kenneth Polite announced today that STOKLEY AUSTIN, age 33, and DONALD JONES, JR., age 33, both residents of Marrero, Louisiana, pleaded guilty before U.S. District Judge Ivan L.R. Lemelle to conspiracy to distribute and possess with the intent to distribute five kilograms or more of cocaine hydrochloride and a quantity of cocaine base (“crack”) and firearms offenses.  AUSTIN and JONES also entered guilty pleas to possessing firearms in furtherance of a drug trafficking crime.  Additionally, AUSTIN pleaded guilty to being a felon in possession of a firearm.

According to court documents the conspiracy involved multiple kilogram quantities of powder cocaine being transported into the New Orleans metropolitan area and delivered to AUSTIN and JONES. At the time of AUSTIN’s arrest on July 23, 2013, agents discovered approximately 2485.7 gross grams of powder cocaine, approximately 39.7 gross grams of crack cocaine, approximately $45,870.00 cash, a loaded Smith and Wesson .22 caliber rifle,  a loaded Ruger P-89 9mm semi-automatic pistol, in addition to drug distribution and packaging materials at his residence.  On the same date, at the time of JONES’ arrest, agents discovered approximately 1907 gross grams of powder cocaine, approximately 63 gross grams of crack cocaine, approximately 269 gross grams of heroin, approximately $22,535.00 cash, and four guns: an AK-47 assault rifle, a Browning Arms 9mm pistol, a Smith & Wesson .22 caliber pistol, and Taurus 9mm pistol at his residence. 

Due to a prior felony drug conviction, AUSTIN faces a mandatory minimum of 25 years in prison, a maximum of life imprisonment, a fine of up to $20 million, and at least 10 years of supervised release. JONES faces a mandatory minimum of 15 years in prison, a maximum of life imprisonment, a fine of up to $10 million, and at least 8 years of supervised release.  Sentencing is scheduled on January 7, 2015.

The case was investigated by the Drug Enforcement Administration, the Jefferson Parish Sheriff’s Office, and the Westwego Police Department. The case was prosecuted by Assistant U. S. Attorneys Theodore R. Carter, III and Spiro Latsis.

U.S. Attorney Kenneth Polite announced that JOHN LABEE, 36, a resident of Slidell, Louisiana, was sentenced today by U.S. District Judge Carl J. Barbier to 46 months imprisonment, followed by three years of supervised release.  In addition, LABEE was ordered to pay $412,781 in restitution.  On December 12, 2013, LABEE plead guilty to aiding and assisting in the preparation of false tax documents, lying on personal income tax returns, and making false declarations before the Grand Jury.  

According to court documents, LABEE owned and operated several tax preparation companies, including Millenium Bookkeeping Services (“Millenium” [sic]) and IP Financial Services (“IP”), which prepared the taxes of numerous clients.  As a regular part of his business, LABEE prepared tax returns that contained false or fraudulent information for his clients, including false W-2s that fabricated the amount of federal income tax that had been withheld and inflated business expenses and deductions.   LABEE’S conduct resulted in an intended loss to the United States of approximately $2,242,121 of federal income tax withholdings.  Between 2007 and 2012, LABEE also under-reported his gross receipts from his tax business and over-reported the amount of federal income tax that he withheld from his income, resulting in a failure to pay approximately $163,457 in federal taxes personally.

Additionally, on March 13, 2013, LABEE appeared before a federal grand jury and, after being placed under oath, answered numerous questions.  In particular, LABEE stated that in 2013, he had not prepared any tax returns other than his own.  In fact, LABEE continued operating his tax return preparation business in 2013, including preparing and filing a tax return for “J.C.”  LABEE’S preparation work with J.C. included numerous meetings and correspondence with “J.C.” between January 2013 and February 14, 2013, less than one month before he testified before the federal grand jury.

“The fraud perpetrated by John Labee and the related losses had far-reaching effects on the tax paying citizens of this community.  IRS – Criminal Investigation is working very hard to expose the tactics of unscrupulous return preparers that make victims of their clients and the federal government,” stated Samuel Zechenelly, Acting Special Agent in Charge of IRS – Criminal Investigation.  “I would also like to thank Mr. Polite and Assistant United States Attorney Jordan Ginsberg for their work toward the prosecution of this case.”  

The case was investigated by agents with the Internal Revenue Service and was prosecuted by Assistant United States Attorney Jordan Ginsberg.

U.S. Attorney Kenneth Politc announced that JERRY SPENCER, JR., 29, MITCHELL LEE, 28, and TERRANCE TIMMONS, 33, all residents of New Orleans,  were sentenced today for their roles in a conspiracy to distribute and possess with the intent to distribute a quantity of heroin and a quantity of cocaine base.   U.S. District Judge Carl J. Barbier sentenced  SPENCER, JR., LEE and TIMMONS to a term of imprisonment of 72 months, 78 months, and 60 months, respectively, followed by three years of supervised release for each. Another defendant, TROY ADAM, 50, also a resident of New Orleans, was sentenced to a three-year term of probation for his role in distributing a quantity of heroin.  Defendant DEVIN TIMMONS is scheduled to be sentenced on October 2, 2014.

On May 15, 2014, SPENCER, LEE, TIMMONS, and ADAM pled guilty to various counts contained in the indictment which charged them with distribution and possession with intent to distribute heroin and cocaine base.

According to court documents, after more than a yearlong investigation and numerous controlled purchases of narcotics by various federal and state law enforcement agencies, agents of the Federal Bureau of Investigations (“FBI”) arrested SPENCER, JR., LEE, DEVIN TIMMONS, TERRANCE TIMMONS, and ADAM on charges of conspiring to violate the Federal Controlled Substances Act.  The defendants’ drug trafficking activity occurred in an area of New Orleans referred to as the “horseshoe” or the “shoe” that includes McCoy Street, Across Street, and Darby Street, which are roadways situated in the shape of a horseshoe, off of Old Gentilly Road in eastern New Orleans.   

This case was investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, and the New Orleans Police Department.  It was prosecuted by Assistant United States Attorney Theodore Carter.

U.S. Attorney Kenneth Polite announced that TORRIE BRUMFIELD, a resident of Amite, Louisiana, was sentenced today by U.S. District Judge Carl J. Barbier to serve 16 years in prison for his role in a large-scale drug conspiracy.

On March 25, 2014, BRUMFIELD was convicted by a federal jury for conspiracy to possess and distribute, and distribution of more than 100 grams of crack cocaine.

In a separate trial in the same case, co-defendant MARCO DILLON was also found guilty of a conspiracy to possess and distribute more than 100 grams of crack cocaine.  DILLON received a sentence of 97 months in prison. Co-defendants FLOYD HAMPTON, WILL DUNN and DAVID CHANEY plead guilty to their role in the conspiracy and testified at the trials of BRUMFIELD and DILLON.  HAMPTON, DUNN and CHANEY were sentenced to 36 months, 12 months and a day, and 23 months, respectively.

U.S. Attorney Polite thanked the following investigating agencies for their efforts:   Drug Enforcement Administration (“DEA”) New Orleans Field Office, Tangipahoa Sheriff’s Office, and the Hammond Police Department.

The case was prosecuted by Assistant United States Attorneys John F. Murphy and Michael E. McMahon.

U.S. Attorney Kenneth Polite announced today that XPLOR ENERGY SPV-1, INC. (“XPLOR”), an Oklahoma corporation located in Southlake, Texas, was charged today in a one-count bill of information with knowingly violating the Clean Water Act, Title 33, United States Code, Section 1319(c)(2)(A), in connection with their oil and gas production activities in the Breton Sound Area of the Gulf of Mexico.

According to the bill of information, from on or about October 1, 2009, and continuing through November 18, 2011, in the navigable waters of the United States and within the Eastern District of Louisiana, XPLOR., by and through its agents and employees acting within the scope of their agency and employment and for the intended benefit of the defendant, did knowingly discharge and cause to be knowingly discharged a pollutant, namely, produced water containing oil, from a point source (injection lines and disposal wells attached to the MP 35 Platform) into a water of the United States without a permit.

The case was investigated by 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 Matthew Coman.

(Download Bill of Information )

United States Attorney Kenneth Allen Polite, Jr. and Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department’s Tax Division announced today that two men unlawfully residing in Louisiana were sentenced to prison for identity theft and tax fraud.

ARNULFO SANTOS-MEDRADO, 42, was sentenced to 38 months in prison for conspiracy to defraud the United States by filing false income tax returns and for aggravated identity theft.  In addition, MILLER PERDOMO-ACEITUNO, 22, was sentenced to 24 months in prison for his role in the conspiracy to defraud the United States.  Each defendant was further ordered to pay $400,000 in restitution and to serve one year of supervised release following their prison terms. 

Both defendants have been detained since their arrest, and as Honduran nationals they face possible deportation following the completion of their sentences.  They were charged with being part of a multi-jurisdictional conspiracy to file false income tax returns.  To date, sixteen defendants have entered guilty pleas to various charges in the case, including JACQUELINE J. ARIAS, a tax return preparer in Spruce Pine, Alabama, who is scheduled to be sentenced on October 22, 2014.

According to the indictments in this case, the conspirators 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 indictments, JACQUELINE J. 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 indictments charged that ARIAS and her coconspirators filed false applications for ITINs, in addition to false income tax returns, and that ARIAS collected preparation fees from the fraudulently-obtained tax refunds.  According to the second superseding indictment, the conspirators purchased identification documents from overseas and Forms W-2 from other aliens illegally present in the United States for use in filing false income tax returns with ARIAS.

The case was investigated by U.S. Immigration and Customs Enforcement’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, La. and Jefferson Parish, La. Sheriffs’ Departments. The case was prosecuted by Hayden Brockett and Kevin Lombardi of the Tax Division and Assistant U.S. Attorney David Haller.

U.S. Attorney Kenneth Polite announced today that CHARLES E. “CHUCK” MIZELL, JR., age 44, a resident of Bogalusa, Louisiana; JAMES CREEL, age 48, a resident of Bogalusa, Louisiana; WILLIAM DARRYL KING, age 47, a resident of Angie, Louisiana; and TENILLE NIELSON, age 34, a resident of Franklinton, Louisiana, pleaded guilty before U.S. District Judge Helen G. Berrigan to one count of conspiracy to commit mail fraud for their participation in a scheme to defraud the Louisiana Workforce Commission of unemployment benefits.  MIZELL also pleaded guilty to five counts of mail fraud.

In April 2014, MIZELL, CREEL, KING, and NIELSON were indicted, along with JACQUELINE MYERS, JERRY ATHEY, DAVID LOWE, TERRY CASTILOW, 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, 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 actually employed them at Chamico, Inc., a Bogalusa construction company that concentrates on public, municipal, and industrial contracts.

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

MIZELL, KING, NIELSON, and CREEL each face not more than five years in prison, a $250,000 fine, and three years supervised release on the conspiracy conviction. MIZELL faces an additional sentence of not more than 20 years in prison, a $250,000 fine, and three years of supervised release on each of the five counts of mail fraud.  Sentencing for all defendants is scheduled on December 17, 2014.

The trial of ROGER NADEAU, the only remaining defendant, is scheduled for September 15, 2014.

The case was investigated by the Department of Labor-OIG and the Federal Bureau of Investigation with assistance from the Louisiana Workforce Commission.  The case is being prosecuted by Assistant United States Attorney Emily K. Greenfield.

(Download Factual Basis - Mizell )

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(Download Factual Basis - King )

U.S. Attorney Kenneth Polite announced today that KENDALL O. MARQUAR, 36, a resident of Waveland, Mississippi, was sentenced by U.S. Magistrate Judge Sally Shushan to 12 months of home detention with electronic monitoring after pleading guilty to the one-count Bill of Information charging him with willfully failing to file taxes.  In additional to the term of home incarceration, MARQUAR was ordered to pay $156,941 in restitution to the Internal Revenue Service and a fine of $3,162.

According to court documents, from in or around 2000 through in or around 2012, MARQUAR, a Mississippi businessman, owned a company called K&D Earthworks that was a maintenance and construction vendor at the Orleans Parish Sheriff’s Office (“OPSO”).  During the years 2007, 2008, and 2009, MARQUAR and K&D Earthworks earned approximately $580,379 in taxable income, mainly from work performed at the OPSO.  As set forth in the factual basis, MARQUAR failed to file taxes during the years 2007 through 2009.

Special Agent in Charge Gabriel L. Grchan stated, "Kendall Marquar knew that failing to file his income tax returns was a violation of the law and would bring about severe consequences.  Now he must accept the punishment for his actions and will be required to pay his fair share.  IRS-CI also thanks the FBI and the U.S. Attorney’s Office for their partnership in the investigation and prosecution of this case."

The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigative Division. The case was prosecuted by Assistant U. S. Attorney Matt Chester.

U.S. Attorney Kenneth Polite announced that PATRICIA BLANCHARD, age 67, formerly of New Orleans, Louisiana, was charged today in a one-count Bill of Information with mail fraud.

According to the Bill of Information, BLANCHARD’S husband was hired in 2000 to be the Executive Director and President of a not-for-profit charitable organization that raised, collected, and distributed funds to local charities through workplace giving campaigns (“Charity A”).  In about 2005, he arranged for BLANCHARD to be hired as Charity A’s bookkeeper. 

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

If convicted, BLANCHARD faces a maximum term of imprisonment of 20 years in prison, 3 years of supervised release after any term of imprisonment, and a $250,000 fine.

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

This case is being investigated by agents from the Federal Bureau of Investigation.  The prosecution of this case is being handled by Assistant United States Attorney Jordan Ginsberg.

(Download Bill of Information )

U.S. Attorney Kenneth Polite announced that EFRAIN GRIMALDO, a resident of Mexico, was sentenced today by U.S. District Chief Judge Sarah S. Vance to serve 405 months in prison for his role in a large-scale drug conspiracy.

On February 26, 2014, GRIMALDO was convicted by a federal jury for conspiracy to possess and distribute 5 kilograms or more of cocaine.  GRIMALDO’s organization was responsible for distributing hundreds of kilograms of cocaine throughout the United States, to include Jackson, Mississippi; Pensacola, Florida; New York City, New York; Detroit, Michigan; Baltimore, Maryland, Dover, Delaware; and Houma, Louisiana.  During sentencing Judge Vance found that GRIMALDO was a member of the Los Zetas Cartel.  Further, she held that GRIMALDO was responsible for the importation of 1,640 kilograms of cocaine during the conspiracy.  The investigation revealed that the conspirators supplied cocaine to the “Up Da Bayou Boyz” (UBB), a violent street gang that operated in Houma, Louisiana.

Co-defendant SERGIO GRIMALDO has recently been extradited from Mexico on these same charges and is scheduled for trial on December 15, 2014.  Co-defendant SABINO DUARTE has pled guilty and is awaiting sentencing.

“Efrain Grimaldo was responsible for importing massive quantities of cocaine into the United States, including communities here in Southeast Louisiana,” stated U.S. Attorney Polite.  “As a member of the Los Zetas cartel, one of the most notorious criminal enterprises in Mexico or the United States, Grimaldo endangered the lives of innocent people on both sides of the border.  As a result of today’s sentencing, he will spend over 33 years in federal prison as punishment for his crimes.”

“The Los Zetas Drug Cartel, of which Efrain Grimaldo is a member, is responsible for death and suffering  from the cities and towns of Mexico, across the U.S. border, and into our communities in Louisiana,” stated Raymond Keith Brown, Special Agent in Charge of the Drug Enforcement Administration.  “DEA and the law enforcement community are committed to ending the destruction brought on by these international drug cartels.  The sentence handed down to Efrain Grimaldo is another step forward in our efforts to stop the flow of drugs into our country and city, and to halting the spread of drug abuse and violence.”

Assisting the DEA New Orleans in this investigation include the DEA Houston, High Intensity Drug Trafficking Area Task Force (HIDTA); FBI New Orleans; FBI Houston, Terrebonne Parish Sheriff’s Office; the Houma Police Department; the Lafourche Parish Sheriff’s Office; and the Louisiana State Police Troop “C” Narcotics.

The case was prosecuted by Assistant United States Attorneys John F. Murphy and Theodore R. Carter, III.

U.S. Attorney Kenneth Polite and Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department's Tax Division announced that OSCAR ARMANDO PERDOMO, 35, was sentenced to serve 42 months in prison for conspiracy to defraud the United States by filing false income tax returns that fraudulently claimed large tax refunds, mail fraud, and aggravated identity theft.  In addition, SUSANA CARILLO MENDOZA, 38, was sentenced to serve 19 months in prison for her role in the conspiracy to defraud the United States.  The defendants were further ordered to pay restitution and to serve terms of supervised release. 

Both defendants have been detained since their arrest.  MENDOZA is a Guatemalan national and PERDOMO is a citizen of Honduras, and both face possible deportation following the completion of their sentences.  They were charged with being part of a multi-jurisdictional conspiracy to file false income tax returns.  To date, 16 defendants have entered guilty pleas to various charges in the case, including JACQUELINE J. ARIAS, a tax return preparer in Spruce Pine, Alabama, who is pending sentencing.   Thus far, all defendants have been sentenced to prison.

According to the indictments in this case, the conspirators 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 indictments, ARIAS was a certified acceptance agent, 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 indictments charged that ARIAS and her coconspirators filed false applications for ITINs, in addition to false income tax returns, and that ARIAS collected preparation fees from the fraudulently-obtained tax refunds.  According to the second superseding indictment, the conspirators purchased identification documents from overseas and Forms W-2 from other aliens illegally present in the United States for use in filing false income tax returns with ARIAS.

The case was investigated by U.S. Immigration and Customs Enforcement - 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, La. and Jefferson Parish, La. Sheriffs’ Departments. The case was prosecuted by Department of Justice, Tax Division Trial Attorneys Hayden Brockett and Kevin Lombardi of the Justice Department’s Tax Division and Assistant United States Attorney David Haller.

United States Attorney Kenneth Polite announced that on Wednesday, October 15, 2014, members of the U. S. Attorney's Office for the Eastern District of Louisiana (the “Office”) and their law enforcement partners will meet with students across Southeast Louisiana as part of his Office’s first district-wide Student Pledge Against Gun Violence Day.   

Middle and high school students will sign a voluntary pledge promising that they will never take a gun to school, will never resolve a dispute with a gun, and will use their influence to prevent friends from using guns to resolve disputes.  Elementary school children will make a simpler commitment,  pledging that if they see a gun they will not touch it, they will assume that any gun they see might be loaded, and they will tell a teacher or a trusted adult.              

In coordination with the Department of Justice’s Project Safe Neighborhoods program, the Student Pledge Against Gun Violence is a national program that recognizes the role that young people, through their own decisions, can play in reducing gun violence.  This campaign against youth gun violence culminates each October in a Day of National Concern about Young People and Gun Violence. Students from around the country will join together in pledging to do their part to end gun violence.  Over 10 million students nationwide have signed the pledge since its inception in 1996.

U.S. Attorney Polite stated that his Office began using the pledge during the 2013-14 school year, with approximately 2500 students signing the pledge at seven schools.  Because of the outstanding response from school leaders and students, the Office decided to expand the initiative district-wide to include all schools in all 13 parishes, including  Assumption, Jefferson, Lafourche, Plaquemines, Orleans, St. Bernard, St. Charles, St. James, St. John the Baptist, St. Tammany, Tangipahoa, Terrebonne, and Washington.  "Our Office is pleased to take this opportunity to reach out to students, engage in a dialogue about gun violence and the importance of making right choices, and encourage them to become peacemakers of our time," stated U.S. Attorney Polite.

In addition to providing the pledges, the U.S. Attorney’s Office will coordinate with other state, local, and federal law enforcement agencies to provide speakers at several schools to talk to students about what they can do to reduce gun violence in their communities.

U.S. Attorney Kenneth Polite announced that CHRISTOPHER M. SCHWAB, age 25, a resident of New Orleans, was sentenced today for four counts of producing child pornography involving four different minor victims, one count of distributing child pornography and one count of receiving child pornography.

United States District Chief Judge Sarah Vance sentenced SCHWAB to serve 20 years incarceration in the Bureau of Prisons, to be followed by 25 years of supervised release.  Upon his release from incarceration, SCHWAB will have to register as a sex offender. 

According to court documents, in August 2013, SCHWAB was arrested by special agents with the United States Department of Homeland Security, Homeland Security Investigations (“HSI”) after they determined that SCHWAB was responsible for sending images depicting the sexual exploitation of children.  SCHWAB has been in custody since his arrest.

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.

This case was investigated by Homeland Security Investigations, the Jefferson Parish Sheriff’s Office, and the Kenner Police Department.  The prosecution of this case was handled by Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba.

U.S. Attorney Kenneth Polite announced today that MARCIA PETERSON, 61, a resident of Gretna, Louisiana, pleaded guilty to two counts of theft of government funds and one count of wire fraud.

According to court documents, 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. During the relevant time period, CDC’s primary sources of funding were federal grants from the U.S. Department of Education and the U.S. Department of Housing and Urban Development. These grants were administered by the Louisiana Department of Education, the Housing Authority of New Orleans, and the City of New Orleans. The funds were to be used only for approved purposes, including supportive services for residents of a public housing development, summer programs for children, and educational services. 

From 2011 through 2013, PETERSON improperly withdrew approximately $87,000 of these federal funds from CDC’s bank account and spent the money on gambling and other personal expenses. Additionally, in August 2012, while working as CDC’s director and accountant, PETERSON submitted a fraudulent claim for unemployment insurance benefits to the Louisiana Workforce Commission. From August 2012 to December 2012, PETERSON made weekly certifications in which she falsely represented that she was unemployed, resulting in the Louisiana Workforce Commission providing PETERSON approximately $4,199.

PETERSON faces a maximum term of 20 years on the wire fraud charge and 10 years imprisonment on each of the theft of government funds charges. Each count also carries a possible fine of up to $250,000 and up to three years of supervised release following any period of imprisonment. Sentencing is scheduled for December 17, 2014, before U.S. District Court Judge Martin L.C. Feldman.

The case was investigated by special agents 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. The prosecution is being handled by Assistant United States Attorney Chandra Menon.

(Download Factual Basis )

U.S. Attorney Kenneth Polite announced that JERRY ATHEY, age 56; DAVID LOWE, age 48; and TERRY CASTILOW, age 48, all residents of Bogalusa, Louisiana, pleaded guilty today before U.S. District Court Judge Helen G. Berrigan, to one count of conspiracy to commit mail fraud for their participation in a scheme to defraud the Louisiana Workforce Commission of unemployment benefits.  CASTILOW also pleaded guilty to one count of mail fraud.

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 basis 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.

When CASTILOW became Chamico’s office manager in 2013, she began assisting 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.

On May 7, 2014, JACQUELINE MYERS pleaded guilty to conspiracy to commit mail fraud for her participation in the same scheme.  MYERS is scheduled to be sentenced on September 24, 2014.  CASTILOW, LOWE, and ATHEY will be sentenced on December 3, 2014.  

CASTILOW, LOWE, ATHEY, and MYERS each face a maximum term of five years incarceration, a $250,000 fine, and three years supervised release on the conspiracy conviction.  CASTILOW faces an additional sentence of up to twenty years in prison, a $250,000 fine and three years supervised release for her mail fraud conviction.

The trial of the remaining defendants is scheduled for September 15, 2014.

The case was investigated by the Department of Labor-OIG and the Federal Bureau of Investigation with assistance from the Louisiana Workforce Commission.  The case is being  prosecuted by Assistant United States Attorney Emily K. Greenfield.

(Download Factual Basis - Athey )

(Download Factual Basis - Castilow )

(Download Factual Basis - Lowe )

U.S. Attorney Kenneth Allen Polite, Jr. announced that JEFFREY WILSON, age 29; JACOBI BOYD, a/k/a “CO,” age 22; ALFRED COBBINS, a/k/a “AL,” age 22; JAWAN FORTIA, a/k/a “TITTIE,” age 21; DEONTRE HILLS, a/k/a “SOULJA,” age 22;  DEDRICK KEELEN, a/k/a “ROY,” age 21;  RUBEN GEIGER, a/k/a “RUE,” age 21; SHAWN  GRACIN, a/k/a “GUNNER,” age 21; DELWIN MCLAREN, a/k/a “POO,” age 22;  BRYAN SCOTT, a/k/a “KILLER,” age 20; and DARIUS WILLIAMS, a/k/a “D-MAN,” age 22,  all residents of New Orleans, were charged yesterday in a five count superseding indictment which was unsealed today.  COBBINS and FORTIA remain at-large and should be considered Armed and Dangerous.  Photos of these two defendants are displayed below.

Defendant WILSON had previously been indicted in July 2014 for drug conspiracy and two cocaine distribution counts.  The superseding indictment charges all defendants with conspiring to distribute and possess with the intent to distribute 28 grams or more of cocaine base or “crack.”   Defendants BOYD, COBBINS, FORTIA, HILLS, KEELEN, GEIGER, GRACIN, MCLAREN, SCOTT, and WILLIAMS, who are part of a Central City gang called “The Young Melph Mafia” or “YMM,” were also charged with conspiracy to possess firearms in furtherance of drug trafficking crimes.  The third count charges GRACIN and COBBINS with carrying and discharging a firearm in relation to a drug trafficking crime. The superseding indictment also re-alleges that WILSON distributed a quantity of cocaine hydrochloride on or about May 13, 2014, and that on May 30, 2014, he distributed 28 grams or more of cocaine base or “crack.”

Based upon the ongoing investigation, these defendants, most of whom grew up in and around the former Melpomene Housing Development, engaged in high volume street level drug dealing over the course of several years.  During the course of this investigation, it was also determined that the defendants connected to the Young Melph Mafia routinely carried firearms to protect themselves while engaged in distributing illegal narcotics.

If convicted of the drug conspiracy, all defendants face a minimum of five years and a maximum of forty years of incarceration, a fine of $5,000,000 and at least four years of supervised release.  If convicted of the gun conspiracy, the named defendants face a maximum of twenty years of incarceration, a fine of $250,000 and up to three years of supervised release.

GRACIN and COBBINS face a minimum of ten years of incarceration to be served consecutively to any other sentence imposed if convicted of carrying and discharging a firearm in relation to a drug trafficking crime. If convicted of the cocaine hydrochloride distribution count, WILSON faces a maximum of twenty years of incarceration, a fine of $1,000,000 and at last three years of supervised release.  If convicted of the cocaine base or “crack” distribution, WILSON faces a minimum of five years and a maximum of forty years of incarceration, a fine of $5,000,000 and a minimum of four years of supervised release.

“As alleged, these defendants were responsible for dealing significant quantities of narcotics in their own community, and then using firearms as a means of protecting and enforcing their drug-trafficking enterprise,” state U.S. Attorney Polite.  “They all now face the prospect of spending 40 years in prison.  Those who are engaging in similar criminal conduct should take note.  Our federal, state, and local law enforcement agencies are working in unison to eliminate large-scale drug trafficking and the violence that often accompanies it."

“This indictment is evidence that narcotics and firearms crimes are a dangerous mixture and will not be tolerated in our community,” said New Orleans ATF Special Agent in Charge Phillip Durham.  “These crimes inevitably lead to violence.   ATF, NOPD and our Multi-Agency Gang Unit partners will continue to combat firearms and narcotics crimes as well as gang activity in order to keep our citizens safe. ”       

“Our message in this Group Violence Reduction effort is simple -- our community is demanding that the violence stop,” said Mayor Landrieu.  “With this indictment, the Multi-Agency Gang Unit has led to the indictments of 95 individuals associated with 9 groups since the fall of 2012. Through NOLA FOR LIFE, we will continue to focus on keeping our citizens safe, reclaiming our neighborhoods, and offering opportunities to those who want to make better choices.”  

"This is a signal to other gangs in New Orleans:  If you keep up the violence, we will put you away," said Interim NOPD Police Chief Michael Harrison. "Our Homicide detectives are working closely with the U.S. Attorney’s Office as well as the DA’s Office to unravel complex and very dangerous groups who terrorize our community.  Together this team collected the evidence necessary to arrest these gang members, who now face the potential of spending decades in prison."

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

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Orleans Police Department as partners in the metro area’s Multi Agency Gang Unit. As an integral component of NOLA FOR LIFE’s Group Violence Reduction Strategy, the Multi-Agency Gang (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); Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Drug Enforcement Administration (DEA); United States Marshal’s Service (USMS); and the United States Probation & Parole Office for the Eastern District of Louisiana.  Valuable assistance to the investigation was provided by the United States Customs and Border Protection (CBP) Air and Marine Division.  The case is being prosecuted by Assistant U. S. Attorneys Maurice Landrieu, Jr. and Edward Rivera.

(Download Superseding Indictment )

U.S. Attorney Kenneth Allen Polite, Jr. announced that ROBERT BECKMANN, age 52, of Durham, North Carolina, pleaded guilty as charged yesterday before U.S. District Judge Kurt D. Engelhardt, to criminal infringement of a copyright, a misdemeanor, and his company, BECKMANN TECHNOLOGIES, INC., pleaded guilty to creating and selling non-authentic Mercedes-Benz diagnostic equipment.

According to court documents, BECKMANN owned BECKMANN TECHNOLOGIES, INC., a company that, among other things, sold remanufactured parts for Mercedes-Benz automobiles.  Between about 2001 and July 2012, BECKMANN TECHNOLOGIES, INC., in conjunction with “Company A,” located in Harahan, Louisiana, “Company B,” located in Rancho Palos Verdes, California, and an individual in the United Kingdom, “J.C.,” produced and sold unauthorized, non-authentic versions of the Mercedes-Benz Star Diagnostic System (SDS), a hand-held computer containing proprietary, confidential software.  The SDS is used by mechanics to diagnose problems with and assure the safety of Mercedes-Benz vehicles employing electronic control systems.

BECKMANN TECHNOLOGIES, INC. was responsible for creating hardware for the fake SDS units, including a “black box,” while Company A, with assistance from BECKMANN TECHNOLOGIES, INC. and others, obtained, modified, and duplicated the authentic SDS software so that it would operate on ordinary laptop computers and without Mercedes-Benz’s authorization or license.  After learning that Mercedes-Benz had notified J.C. that his conduct was in violation of civil and/or criminal laws, representatives of BECKMANN TECHNOLOGIES, INC., Company A, and Company B discussed a plan to have J.C. “go underground and off the radar” and continue working on making fake SDS.

The “real” SDS sold for between $8,300 and $22,000 each, while the fake SDS sold for up to $11,000, depending on market factors.  In total, Company A and Company B sold at least 795 fake SDS. 

BECKMANN faces a maximum term of imprisonment of one (1) year and a $100,000 fine.  BECKMANN TECHNOLOGIES, INC. faces a maximum fine of $500,000.  Sentencing before Judge Engelhardt has been scheduled for December 10, 2014, at 9:00 a.m.

This case was investigated by agents from the Federal Bureau of Investigation.  The prosecution of this case was handled by Assistant United States Attorney Jordan Ginsberg and Computer Crime and Intellectual Property Section (CCIPS) Senior Counsel Evan Williams.

(Download Factual Basis )

U.S. Attorney Kenneth Allen Polite, Jr. announced that AARON ORTLOFF, age 42, of Kenner, Louisiana, plead guilty as charged yesterday before U.S. District Judge Stanwood R. Duval, Jr. to a one-count Bill of Information alleging a wire fraud investment scheme.

According to documents filed in court, ORTLOFF was an investment broker doing business as Ortloff Trading, L.L.C.  ORTLOFF used a “gmail” email address to conduct business. Gmail servers are all located outside of the State of Louisiana, which gives federal authorities jurisdiction of interstate electronic transmissions. 

From August 2007 through May 2012, ORTLOFF defrauded a victim of $191,000 by emailing monthly statements that represented that the victim’s investments were making a profit, when in reality Ortloff was stealing the money. 

ORTLOFF faces a maximum of twenty years incarceration, a $250,000 fine, restitution and three years supervised release. Sentencing before Judge Duval has been scheduled for December 10, 2014.

This case was investigated by agents from the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Carter K.D. Guice, Jr. of the Fraud Unit.

(Download Factual Basis )

U.S. Attorney Kenneth Allen Polite, Jr. announced that THEODORE PLATANITIS, age 44, of Rancho Cordova, California, pleaded guilty as charged yesterday before U. S. District Judge Kurt D. Engelhardt, to Conspiracy to Commit Health Care Fraud and Bank Fraud. 

According to court documents, PLATANITIS worked as a money mule 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 stores with the capability of wiring money via Western Union located in Rancho Cordova, California, and 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 Bank of America business account. 

PLATANITIS faces a maximum term of imprisonment of five years.  Sentencing has been scheduled for December 10, 2014 at 9:00 a.m.

This case was investigated by the Federal Bureau of Investigation.  The prosecution was handled by Assistant United States Attorney Jordan Ginsberg.

(Download Factual Basis )

United States Attorney Kenneth Allen Polite, Jr. and Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department's Tax Division announced that GIRAY BIYIKLIOGLU, a/k/a “Johnny Bryan,” age 31, a Turkish national and resident of New Orleans, was sentenced today by U.S. District Judge Jay C. Zainey to 192 months in prison for conducting a scheme to defraud PayPal, in which he used the names, addresses, and/or Social Security numbers of dozens of identity theft victims.  On October 31, 3013, following a four-day jury trial, BIYIKLIOGLU was convicted of thirteen counts of wire fraud, six counts of aggravated identity theft, two counts of tax evasion, and nineteen counts of money laundering, related in part to his purchases of expensive motorcycles and his wiring of fraud proceeds to his native Turkey.  The Court further ordered BIYIKLIOGLU to pay restitution of $324,551.89 and to forfeit fraud proceeds, including a Ducati motorcycle, a Kawasaki jet ski, and more than $85,919.77 in U.S. currency.

According to court documents and proceedings, BIYIKLIOGLU devised a scheme to defraud PayPal, Inc. using PayPal accounts he had fraudulently set up in the names of other persons.  As proven at trial, the defendant wired funds from bank accounts in his name, through the fraudulent PayPal accounts, and then back to bank accounts in his name.  The trial evidence further showed that the defendant then falsely claimed to the original banks that the wire transfers he had initiated to PayPal were unauthorized.  These false claims caused the banks to debit PayPal and credit the defendant’s original bank accounts.  According to the evidence adduced at trial, the defendant in fact maintained control over all funds throughout the scheme. 

The aggravated identity theft charges stem from the BIYIKLIOGLU’s use of the personal information of six victims in furtherance of his wire fraud scheme. The criminal tax violations relate to BIYIKLIOGLU’s evasion of his 2010 and 2011 individual income taxes.  The money laundering charges pertain to BIYIKLIOGLU’s concealment of the fraud proceeds, including by wiring funds to Turkish banks, as well as his purchases of the motorcycles and jet ski.

“Biyiklioglu stole the identities of innocent victims to finance his own lavish lifestyle,” stated U.S. Attorney Kenneth Allen Polite, Jr.  “The sentencing imposed today ensures that he will be brought to justice for defrauding these individuals and several financial institutions as part of his scheme.”

“Mr. Biyiklioglu’s criminal conduct violated many laws, including tax evasion, identity theft, and money laundering,” stated Gabriel L. Grchan, Special Agent in Charge, IRS Criminal Investigation.   “Let his sentence serve as a warning to others considering this type of criminal activity.  Giray Biyiklioglu will not only have to serve time in federal prison, but will also be required to forfeit the fruits of his criminal enterprise.”   

The case was investigated by Special Agents of the United States Secret Service and the Internal Revenue Service, Criminal Investigation.  The case was prosecuted by Trial Attorney Hayden Brockett of the U.S. Department of Justice, Tax Division and Assistant United States Attorney Chandra Menon.

The Justice Department announced today that it has entered into a settlement agreement with the Louisiana Supreme Court that will resolve the department’s investigation of the court’s policies, practices and procedures for evaluating bar applicants with mental health disabilities. The department’s investigation found that during the Louisiana bar admissions process licensing entities based recommendations about bar admission on mental health diagnosis and treatment rather than conduct that would warrant denial of admission to the bar.

The settlement agreement ensures the right of qualified bar applicants with mental health disabilities to have equal access to the legal profession as required by the Americans with Disabilities Act (ADA). It prohibits the court from asking unnecessary and intrusive questions about bar applicants’ mental health diagnosis or treatment. It also requires the court to refrain from imposing unnecessary and burdensome conditions on bar applicants with mental health disabilities, such as requests for medical records, compulsory medical examinations or onerous monitoring and reporting requirements. Title II of the ADA prohibits public entities, including licensing entities, from imposing unnecessary eligibility criteria that tend to screen out individuals with disabilities, or imposing unnecessary burdens on individuals with disabilities that are not imposed on others.

The department found that diagnosis and treatment, without problematic conduct, did not effectively predict future misconduct as an attorney and did not justify restrictions on admission. Yet the Louisiana bar admissions process imposed unnecessary burdens on applicants and attorneys based on their diagnosis and treatment, in violation of the ADA. Questions about mental health diagnosis and treatment, such as those used by Louisiana, are counterproductive to licensing entities’ interest in attorney fitness because individuals who would benefit from mental health treatment may be deterred from obtaining it by the knowledge that they will have to disclose their treatment to licensing authorities.

“Today’s agreement will ensure that qualified bar applicants with mental health disabilities are able to pursue their dream of becoming licensed attorneys, without discrimination based on diagnosis or treatment,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “Qualified individuals with disabilities, including mental health disabilities, have valuable contributions to make to the legal profession and to their communities. Their diagnosis should not hinder or prevent them from doing so. Though bar licensing entities have the important responsibility of ensuring that all licensed attorneys are fit to practice law, licensing entities must discharge this responsibility in a manner that is consistent with civil rights laws.”

“This agreement is a testament to the United States Department of Justice’s commitment to fighting discrimination against persons with disabilities and further ensures that qualified individuals will have the opportunity to pursue their career goals and make valuable contributions to our community,” said U.S. Attorney Kenneth Allen Polite Jr. for the Eastern District of Louisiana. “The cooperation between the parties in reaching this agreement demonstrates a shared priority of protecting against discrimination.”

Under the agreement, the court will, among other actions:

• Revise its character and fitness screening questions so that they focus on applicants’ conduct or behavior, and ask about an applicant’s condition or impairment only when it currently affects the applicant’s ability to practice law in a competent, ethical and professional manner or is disclosed to explain conduct that may otherwise warrant denial of admission;
•  
• Refrain from imposing unnecessary burdens on applicants with mental health disabilities by placing onerous disability-based conditions on their admission, invading their privacy, or violating their confidentiality;
•  
• Re-evaluate prior and pending applications of applicants who disclosed mental health disabilities under the revised, non-discriminatory procedures set forth in the agreement; and
•  
• Pay $200,000 to compensate a number of affected bar applicants and attorneys.

Since the department’s letter of findings concluding that the court was in violation of Title II of the ADA was issued in February, the court has worked cooperatively with the department to negotiate an agreement and to implement corrective measures.

The department has also raised issues about unnecessary bar application questions related to mental health disabilities with the states of Vermont and Connecticut and with the National Council of Bar Examiners (NCBE). The NCBE revised two of its questions about mental health on February 24, 2014.

More information about this settlement agreement and the obligations of licensing entities under the ADA may be found at www.ada.gov or by calling the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TTY).

United States Attorney Kenneth Allen Polite, Jr. and Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department's Tax Division announced that four undocumented aliens were sentenced today to jail terms ranging from 24 to 42 months for their roles in a large conspiracy to defraud the United States by filing false income tax returns that fraudulently claimed large tax refunds. Three defendants were also sentenced for aggravated identity theft.  All defendants have been detained since their arrest in June 2013.  To date, sixteen defendants have entered guilty pleas to various charges in the case, including JACQUELINE J. ARIAS, a tax return preparer in Spruce Pine, Alabama, who has yet to be sentenced.

ELSIDES EDGARDO ALVARADO-CANALES, 36, was sentenced to serve 36 months in prison, after pleading guilty to conspiracy to defraud the United States and aggravated identity theft.  CESAR ALEJANDRO SORIANO, 30, was sentenced to serve 42 months in prison on his guilty pleas to conspiracy and aggravated identity theft charges.  OCTAVIO JOSUE PERDOMO, 25, was sentenced to serve 34 months in prison for his role in the conspiracy and for aggravated identity theft.  AURELIO MONTIEL-MARTINEZ, 35, was sentenced to 24 months incarceration, after pleading guilty to conspiracy.  ALVARADO-CANALES, PERDOMO, and SORIANO are natives of Honduras, while MONTIEL-MARTINEZ is a Mexican citizen.  All of the defendants were present in the United States illegally and face possible deportation following the completion of their sentences.  The defendants were further ordered to pay restitution and to terms of supervised release.

According to the indictments in this case, the conspirators 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 indictments, JACQUELINE J. 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 indictments charged that ARIAS and her coconspirators filed false applications for ITINs, in addition to false income tax returns, and that ARIAS collected preparation fees from the fraudulently-obtained tax refunds.  According to the second superseding indictment, the conspirators purchased identification documents from overseas and Forms W-2 from other aliens illegally present in the United States for use in filing false income tax returns with ARIAS.

"Today's announcement exemplifies IRS Special Agents' intense focus on the rigorous pursuit of identity theft and refund fraud," said Gabriel L. Grchan, Chief IRS Criminal Investigation. “These individuals demonstrated a blatant disregard of the integrity of the United States tax system and caused immeasurable hardship to innocent victims. IRS Criminal Investigation remains committed to the pursuit of identity theft and, together with our partners at the U.S. Attorney’s Office, we will hold those who engage in similar conduct accountable.”

“Defrauding the government in the fashion these defendants pleaded guilty to has a direct, negative impact on law-abiding taxpayers,” said Special Agent in Charge Raymond R. Parmer Jr., ICE Homeland Security Investigations (HSI) in New Orleans. “The money stolen from the government in this case might have been used to feed hungry children, pay our soldiers or make needed repairs on a local highway. HSI stands ready with our partners at the IRS and other agencies to hold those who seek to enrich themselves at the expense of others through tax fraud and other criminal schemes accountable for their actions.”

The case was investigated by U.S. Immigration and Customs Enforcement, which oversees 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 Attorneys Hayden Brockett and Kevin Lombardi and Assistant United States Attorney David Haller.

(Download Superseding Indictment )

U.S. Attorney Kenneth Allen Polite, Jr. announced that TRINA MARIE BOURG, age 45, of Houma, Louisiana, was indicted today for crimes involving the solicitation of illegal bribes from immigrants and their family members.

According to court records, on May 7, 2014, the U.S. Department of Homeland Security-Homeland Security Investigations (“HSI”) received information that BOURG, who worked as a Spanish language interpreter contract employee for the Office of the District Defender for the 32nd Judicial District for Terrebonne Parish, was soliciting payments from individuals (“victims”) illegally present in the United States.  Unknown to the victims’ attorneys,  BOURG represented to the victims that she would use the money she received to bribe United States Immigration Officials in order to remove the immigration detainers or federal immigration charges from the victims’ criminal or administrative cases.  In 2011 and again in 2014, BOURG solicited two bribes totaling $4,000 from Victim “A” and his family members.  BOURG received a total of $3,500 from Victim “A’s” family member who paid BOURG because BOURG represented to the victim’s family members that she would use the money to influence federal immigration officials. 

If convicted, BOURG faces a term of incarceration of up to of twenty (20) years.

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

This case was investigated by special agents from the U. S. Department of Homeland Security-HSI, the Louisiana State Police-Criminal Investigation Division, and the Terrebonne Parish Sheriff’s Office.  The prosecution of this case is being handled by Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba.

(Download Indictment )

U.S. Attorney Kenneth Allen Polite, Jr. announced today that ROBERT TAYLOR, 35, a resident of New Orleans, was sentenced by Chief U.S. District Judge Sarah S. Vance to a term of 170 months imprisonment, followed by five years of supervised release.  In addition to the term of imprisonment, TAYLOR was ordered to pay $65,505.00 in restitution to Capital One Bank.

On May 1, 2014, TAYLOR pled guilty to armed bank robbery and to violating the Federal Gun Control Law by illegally brandishing a firearm during a robbery. According to court documents, on July 6, 2011, TAYLOR and his accomplices entered and robbed the Capital One Bank located at 6357 Elysian Fields Avenue in New Orleans stealing $65,505.00.  During the robbery, the robbers drew, displayed and brandished their weapons, pointing them at customers and tellers, all while demanding all of their money.

This case was investigated by the Special Agents of the Federal Bureau of Investigation, and prosecuted by Assistant United States Attorney Tony Gordon Sanders, of the Violent Crimes Unit.

U.S. Attorney Kenneth Allen Polite, Jr. announced that YIPING QU, 30, a Chinese national who was living in New Jersey, was sentenced yesterday by U.S. District Judge Nannette Jolivette Brown to a 36-month term of imprisonment.

According to court documents, QU pled guilty to an indictment charging him with conspiring to illegally export United States defense articles to China without obtaining required licensing from the Department of State.  Upon release from imprisonment, QU is subject to deportation to China.

This case was investigated by Special Agents U.S. Immigration and Customs Enforcement/Homeland Security Investigations and prosecution was handled by Assistant United States Attorney Gregory M. Kennedy.

U.S. Attorney Kenneth Allen Polite, Jr. announced today that DWAYNE E. HUPP, age 51, a resident of Bay St. Louis, Mississippi, pled guilty before the U.S. District Judge  Kurt D. Engelhardt, to four counts of bank robbery.  

According to court documents, HUPP admitted that he robbed the Liberty Bank on August 6, 2013 and 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 bank 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 robbing all four banks.  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. 

The maximum penalty for bank robbery is twenty years imprisonment and a $250,000 fine.  Any term of imprisonment must be followed by a term of supervised release of three years.  HUPP may face a maximum of life imprisonment as a result of his two prior convictions for armed robbery in Jefferson Parish.  Sentencing is scheduled for November 5, 2014 at 9:00 am.

The case was investigated by the Federal Bureau of Investigation with the invaluable assistance of New Orleans Police Department.  Assistant United States Attorneys Mark A. Miller and Michael M. Simpson are prosecuting the case.

(Download Factual Basis )

U.S. Attorney Kenneth Allen Polite, Jr. announced today that GREGORY STEWART, a/k/a “Rabbit,” 22, a resident of New Orleans, pled guilty before U. S. District Judge Nannette Jolivette Brown, to participating in a wide-ranging heroin conspiracy and several gang- related murders.  Specifically, STEWART pled guilty to participating in the murder of Quelton Broussard, a/k/a “Gutter,” on April 12, 2010; the murder of Calvin Celestine, a/k/a “Plucky,” on February 6, 2011; and the murder of Gregory Keys and shooting of Kendrick Smothers on May 24, 2011.  All of these murders were committed during the course of and as part of the conspiracy to distribute heroin.  STEWART also pled guilty to participating in a conspiracy to use firearms in furtherance of his drug crimes and admitted that the conspiracy to distribute heroin involved 10 to 30 kilograms of heroin.   

Court documents reflect that STEWART admitted to being one of the five individuals responsible for the high-profile murders of bounce-rapper Renetta Lowe, a/k/a “Magnolia Shorty” and Jerome Hampton, a/k/a “ManMan,” which occurred on December 20, 2010. 

STEWART’s guilty plea to these murders and drug trafficking crimes was the culmination of a multi-year investigation of a heroin trafficking organization and violent gang that operated in an area known as the “G-Strip” in New Orleans.  The G-Strip is an area encompassing the 1300 block of Gallier Street in the 9th Ward of New Orleans. Many of the members of the G-Strip were also affiliated with a gang known as the 39ers, an alliance of gang members from 3NG (Third and Galvez) and from the 9th Ward of New Orleans.  To date, fifteen individuals related to the G-Strip/39ers organization have pled guilty to federal drug trafficking related offenses.  Additionally, numerous members of 3NG/39ers are currently facing racketeering charges as a result of investigations done by the NOPD Multi-Agency Gang Unit (MAG) and the Orleans Parish District Attorney’s office.

For each of the murder counts, STEWART faces a maximum penalty of life imprisonment, a $250,000 fine, and up to 5 years of supervised release.  On the drug conspiracy, STEWART faces a mandatory minimum of 10 years up to life imprisonment, a $10,000,000 fine, and at least 5 years of supervised release.  As to the gun conspiracy, STEWART faces a maximum of 20 years imprisonment, a $250,000 fine, and up to 5 years of supervised release.  Sentencing is scheduled for October 9, 2014.

“Today’s guilty plea represents another strike against those who terrorize our streets through gun violence and murder,” stated U.S. Attorney Polite.  “As we have seen in the investigations that resulted in Mr. Stewart’s plea, a high level of collaboration amongst our local, state, and federal law enforcement agencies is absolutely essential to removing the most violent elements of our community from our streets.”

“This investigation serves as yet another example of law enforcement’s continued momentum in eradicating gang-related violence in the metropolitan New Orleans area,” stated Michael Anderson, Special Agent in Charge, Federal Bureau of Investigation, New Orleans Field Division.

The investigation is being conducted by the Federal Bureau of Investigation Violent Crime Task Force (FBI), which includes the New Orleans Police Department (NOPD), Jefferson Parish Sheriff’s Office, and the St. Tammany Parish Sheriff’s Office.  The case is being prosecuted by Assistant United States Attorneys Sharan Lieberman, Maurice Landrieu, and Matthew Payne.

(Download Factual Basis )

U.S. Attorney Kenneth Allen Polite, Jr. announced today that TRINA MARIE BOURG, age 45, of Houma, Louisiana, was arrested yesterday on a federal complaint for crimes involving the solicitation of illegal bribes from immigrants and their family members.

According to court records, on May 7, 2014, the U.S. Department of Homeland Security-Homeland Security Investigations (“HSI”) received information that BOURG, a Spanish language interpreter who provided interpreter services for Terrebonne and Lafourche Parish courts, was soliciting payments from individuals who were illegally present in the United States.  BOURG represented to these individuals that she would use the money she received to bribe United States Immigration Officials in order to remove the immigration detainers and/or federal immigration charges from their criminal and/or administrative cases.  According to the criminal complaint filed yesterday in federal court, in 2011 and again in 2014, BOURG solicited two bribes totaling $4,000 from an individual identified in the complaint as Victim A and his family members.  BOURG received a total of $3,500 from Individual A’s family member, who paid BOURG because BOURG represented to the family member that she would use the money to influence federal immigration officials.

If convicted, BOURG faces a term of incarceration of up to of twenty years.

This case was investigated by special agents from the U. S. Department of Homeland Security-HSI and the Louisiana State Police-Criminal Investigation Division.  The prosecution of this case is being handled by Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba.

U.S. Attorney Kenneth Allen Polite, Jr. announced today that RAFAEL DOBARD, age 39, and QUINCY JONES, age 33, both former New Orleans Police Department (“NOPD”) narcotics detectives, were sentenced by U.S. District Court Judge Nannette Jolivette Brown.  DOBARD and JONES were each sentenced to eighteen months incarceration to be followed by three years of supervised release.  Additionally, DOBARD and JONES were ordered to pay restitution to the City of New Orleans in the amount of $18,484.44 and $19,064.25, respectively.

On February 14, 2014, DOBARD and JONES pled guilty to conspiracy to commit theft from programs receiving federal funds and conspiracy to commit wire fraud.  According to court documents, both defendants admitted that they conspired to enrich themselves and others by obtaining NOPD confidential informant funds by fraud and by corruptly making payments to other officers in their unit.  They also admitted that they conspired to commit wire fraud by submitting NOPD timesheets that indicated they were working on duty for the NOPD when, in fact, they were working at non-NOPD detail jobs.

“The U.S. Attorney’s Office is committed to ensuring that no one is above the law,” stated U.S. Attorney Polite.  “These officers, both of whom swore to uphold and enforce our laws, instead broke the law by stealing public funds.”

"Few breaches of the public trust rival law enforcement corruption so the FBI and the NOPD's Public Integrity Bureau will continue to ensure that all such matters receive our utmost attention with extensive investigative resources to match," stated Michael Anderson, Special Agent in Charge, Federal Bureau of Investigation, New Orleans Field Division.

The case was investigated jointly by the Federal Bureau of Investigation and the NOPD Public Integrity Bureau.  The case is being prosecuted by Assistant United States Attorney Mark A. Miller and Special Assistant United States Attorney Michael B. Redmann, who is detailed to the U.S. Attorney’s Office from the Orleans Parish District Attorney’s Office.

C. RAY NAGIN (“NAGIN”), age 58, a resident of Frisco, Texas, was sentenced today to 10 years imprisonment by United States District Judge Helen G. Berrigan for conspiracy, bribery, honest services wire fraud, money laundering and tax violations, announced the U.S. Attorney’s Office.  In addition to the term of imprisonment, NAGIN was ordered to pay $84,264 in restitution to the Internal Revenue Service.  Also, a Preliminary Order of Forfeiture was signed by the judge on May 27, 2014, granting forfeiture in the amount of $501,200.56.

NAGIN served as the Mayor of New Orleans from 2002 to 2010.  A federal grand jury sitting in the Eastern District of Louisiana indicted NAGIN on January 18, 2013.  NAGIN stood trial from January 27, 2014 to February 12, 2014 when the jury found NAGIN guilty on 20 of 21 counts in the indictment.   

"Given the nature and extent of former Mayor Nagin's criminal conduct and betrayal of public trust over the course of several years, hopefully this result will bring at least some level of resolution to the City and its residents," stated Michael J. Anderson, Special Agent in Charge of the New Orleans Field Division of the Federal Bureau of Investigation.

"In February, a jury of New Orleans citizens sent Mr. Nagin the message, loud and clear, that public officials will be held accountable for public corruption and criminal activity. Today's sentence confirms that message - public servants are elected to serve the public, not benefit from the position," said Richard Weber, Chief IRS Criminal Investigation.  "No one is above the law and IRS Criminal Investigation will continue to investigate all financial crimes which undermine the public's confidence in its elected officials."   

“NOLAOIG discovered financial discrepancies when it conducted an evaluation of the City’s Crime Camera System in 2009,” stated Ed Quatreveaux, Inspector General for the City of New Orleans.  “The joint FBI-NOLAOIG investigation into those discrepancies eventually led to the convictions of Greg Meffert, Mark St. Pierre, and the former mayor.  NOLAOIG will continue its work to root out fraud and abuse in City operations to protect the City from those who would defraud it.”

“Ray Nagin’s sentencing brings to a close a sordid chapter in New Orleans’ history in which the man charged with leading a city out of crisis instead chose to enrich himself, his family, and friends,” stated Rafael C. Goyeneche III, President of the Metropolitan Crime Commission.  “This case epitomizes the vital role the public plays in exposing corruption as information supplied by citizens through the Metropolitan Crime Commission aided the FBI and U.S. Attorney’s Office in bringing this case to a just conclusion.”

“Our elected officials are entrusted to place the interests of the citizens above their own,” stated United States Attorney Kenneth Allen Polite, Jr. “When they violate that trust and break the law, the U.S. Attorney’s Office will pursue them zealously and bring them to justice.” 

The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation Division and the New Orleans Office of Inspector General.  The U.S. Attorney’s Office would also like to acknowledge the assistance provided by the Metropolitan Crime Commission. The case was prosecuted by Assistant U.S. Attorneys Matthew M. Coman, Richard R. Pickens, II and Matthew S. Chester.

United States Attorney Kenneth Allen Polite, Jr. and Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department's Tax Division announced that JACQUELINE J. ARIAS, 39, a tax return preparer from Spruce Pine, Alabama, pleaded guilty today before U.S. District Judge Helen Ginger Berrigan to one count of conspiracy to defraud the United States, five 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, her tax preparation business, and nineteen other individuals, all of them foreign nationals, have been charged as part of the case.  To date, sixteen defendants have entered guilty pleas to various charges.

According to court documents, ARIAS and her co-conspirators 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, 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 an application to the IRS.  The indictment charged that ARIAS filed false applications for ITINs, in addition to 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.

For each of the mail fraud and money laundering conspiracy charges, ARIAS faces a maximum term of twenty years’ imprisonment.  ARIAS also faces a maximum term of imprisonment of five years for conspiring to defraud the United States.  All of the charges to which ARIAS pleaded guilty carry the possibility for fines, restitution, and forfeiture.  As part of her plea agreement, ARIAS admitted that her actions caused at least $1 million in loss to the government, although she acknowledged that the government would present evidence of a larger loss at her sentencing.  ARIAS further agreed to forfeit nearly $400,000 in United States currency seized as part of the case.

“Defrauding the government in the fashion this defendant pleaded guilty to has a direct, negative impact on law-abiding taxpayers,” said Special Agent in Charge Raymond R. Parmer Jr., ICE Homeland Security Investigations (HSI) in New Orleans. “The money stolen from the government in this case might have been used to feed hungry children, pay our soldiers or make needed repairs on a local highway. HSI stands ready with our partners at the IRS and other agencies to hold those who seek to enrich themselves at the expense of others through tax fraud and other criminal schemes accountable for their actions.”

The case was investigated by U.S. Immigration and Customs Enforcement, which oversees 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, La. and Jefferson Parish, La. Sheriffs’ Departments. The case was prosecuted by Department of Justice, Tax Division Trial Attorneys Hayden Brockett and Kevin Lombardi and AUSA David Haller.

U.S. Attorney Kenneth Allen Polite, Jr. announced that ANDRE ADDISON, a resident of New Orleans, pled guilty today to possession with intent to distribute heroin.  On August 2, 2013, ADDISON was one of fifteen defendants charged in a seventeen-count superseding indictment for Violations of the Controlled Substances Act.  All fourteen defendants in custody have now pled guilty including: BYRON M. EVANS, a/k/a “B-Boy”; YULIAN GABRIEL VERA-OLIVEROS, a/k/a “Luis Angel Jimenez,” a/k/a “Paco”; ALVARO HERNEY CORTES, a/k/a “Ezequiel Padilla Romero,” a/k/a “Cookie”; JOVAN PATTERSON, a/k/a “Moon”; WILLIAM ROBERTSON III, a/k/a “Lil Will”; BRADLEY S. WILLIAMS, a/k/a “B”; KEYING EVANS, a/k/a “Mingo”; THEODIS HUDSON, a/k/a “Chicken”; DOMINIQUE BROWN, a/k/a “D”; ROBERT LEON JOHNSON a/k/a “Rob”; DAVON CHRISTOPHER MOSLEY, a/k/a “Lob”; ANDRE COSTIMINA ADDISON, a/k/a “Dooda”; KERRY B. MOLIERE, a/k/a “Duke”; SHEILA JENKINS, and FRANKLYN F. PHILLIP, a/k/a “Dre,” a/k/a “Jr.”.   ALVARO HERNEY CORTES, one of two Columbian Foreign Nationals indicted, remains an active fugitive.

         According to court documents, the investigation – entitled “Operation Megabusted” -- revealed that a heroin trafficking organization, led by EVANS, was responsible for distributing kilogram quantities of heroin and cocaine between Houston, Texas, and New Orleans, Louisiana.  This organization was supplied by two Columbian Foreign Nationals illegally present in the United States.  Various couriers for this drug trafficking organization transported kilogram quantities of heroin and cocaine from Houston to New Orleans via the Megabus and other methods of transportation.  Upon arrival in New Orleans, the heroin and cocaine were distributed throughout New Orleans, Avondale, St. Charles Parish, and Hattiesburg, Mississippi.  In total, this organization is responsible for the distribution of approximately 30 kilograms of heroin and cocaine over the span of a two year period.

This case was investigated by the New Orleans Gang Task Force (NOGTF) which includes members of the New Orleans Police Department (NOPD), Jefferson Parish Sheriff’s Office (JPSO), and the St. Tammany Police Sheriff’s Office (STPSO).  Also assisting in the investigation were members of the Houston Police Department (HPD)/HIDTA Task Force; Hattiesburg 12-NET Task Force; St. Charles Sheriff’s Office; and the Hattiesburg District Attorney’s Office.     The case was prosecuted by Assistant United States Attorney J. Collin Sims.

(Download Factual Basis )

Josh Jambon, 52, a resident of Grand Isle, Louisiana, pleaded guilty today in front of U.S. District Judge Susie Morgan to two counts of federal civil rights violations, announced Acting Assistant Attorney General Jocelyn Samuels for the Justice Department’s Civil Rights Division and U.S. Attorney Kenneth Allen Polite Jr. for the Eastern District of Louisiana.

In connection with his plea, Jambon admitted that he assaulted two female African-American Hurricane Isaac relief workers because of their race and because of their employment status.  On Sept. 18, 2012, in Grand Isle, Jambon approached a work crew tasked with cleaning up debris from Hurricane Isaac.  During an interaction with the work crew, Jambon used racial slurs against two female African-American crew members, M.R. and N.S.  Jambon then approached N.S. and hit her in the face, because of her race and because of her employment with the work crew, then proceeded to assault M.R. in the same manner.  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.

“Hate-fueled violence has no place in a civilized society,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division.  “The Justice Department is committed to using all the tools in our law enforcement arsenal to prosecute acts motivated by racial bias.”

“By holding Mr. Jambon accountable for his racially-motivated criminal conduct, our office once again demonstrates its commitment to protecting the civil rights of all residents in Southeast Louisiana,” said U.S. Attorney Kenneth Allen Polite Jr. for the Eastern District of Louisiana.

For each count, Jambon faces a statutory maximum penalty of one year in prison, up to one year of supervised release, a $100,000 fine and a $25 special assessment.

The case is being investigated by special agents of the FBI.

The case is being prosecuted by Trial Attorney Risa Berkower of the Civil Rights Division and Assistant U.S. Attorney Matt Chester for the Eastern District of Louisiana.

(Download Factual Basis )

United States Attorney Kenneth Allen Polite, Jr. announced that STACEY JACKSON, age 47, a resident of New Orleans, Louisiana, pleaded guilty today before U.S. District Judge Mary Ann Vial Lemmon to conspiracy to steal federal funds and demand kickbacks from a program receiving federal funds.

According to court documents, JACKSON, the former Executive Director of New Orleans Affordable Homeownership (“NOAH”), a city agency and non-profit corporation, conspired with Earl Myers, Trellis Smith, and others to misuse and personally benefit from federal funds that NOAH had received, in violation of the law.  The United States Department of Housing and Urban Development (“HUD”), both before and after Hurricane Katrina, had provided grant money to the City of New Orleans to address blight within the city and to remediate homes damaged by the storm. 

JACKSON, as the Executive Director of NOAH, was responsible for the day-to-day management of the agency and determined how much each contractor would be paid.  JACKSON arranged to overpay certain contractors, such as Myers and Smith, instructing them to kickback portions of the overpayments to JACKSON’S benefit.  

Specifically, court documents state that on numerous occasions, JACKSON instructed Myers and Smith to pay her kickbacks out of the NOAH money she paid them for work that could not be substantiated by invoices or work actually performed.  For example, in or near October 2005, JACKSON, wrote a check from NOAH to Parish Dubuclet, a company operated by her friend, Smith, for approximately $15,260, which was deposited into a bank account belonging to Smith and Parish Dubuclet.  On or about October 8, 2005, Parish Dubuclet wrote a check in the amount of $10,460 to JACKSON’S father, which was deposited into a bank account that JACKSON, controlled jointly with her father.  Several days later, JACKSON used this money to write a check to a tree removal service to pay for the removal of a tree from her mother’s yard.

Court documents state that from in or near December of 2006 through in or near July of 2007, JACKSON contracted with Myers to renovate properties that she owned, which were located on 6th Street and Danneel Street in New Orleans, Louisiana. JACKSON paid Myers tens of thousands of dollars toward the renovation project and used public funds belonging to the United States and distributed to NOAH to pay Myers a portion of the money she owed him for these renovations.

Documents in the court records also outline that on or about November 1, 2007, JACKSON wrote two checks to companies owned and operated by Myers. One check was for $47,899.50 to Myers & Sons.  JACKSON instructed Myers to give portions of this money to different entities, such as a school that JACKSON was affiliated with.  The second check for $32,842.50 was payable to Excel Development, also owned and operated by Myers.  JACKSON directed Myers to kickback a portion of this money to her by having him write two checks, one for $9,400 and one for $7,000 payable to Z.F., a person who JACKSON knew personally and to whose checking account she had access.  Myers complied with these instructions because he knew it would ensure that he would continue getting NOAH remediation work assignments from JACKSON.

Also according to court documents, on or around August 13, 14, and 15, 2008, after JACKSON became aware that Myers had received a subpoena from a federal grand jury ordering him to turn over documents supporting the work he had done for NOAH, JACKSON provided false and fraudulent documents to Myers in an effort to mislead the federal grand jury into finding that no fraud occurred at the defendant’s direction or while she was the Executive Director of NOAH.

JACKSON is scheduled to be sentenced on October 16, 2014, and faces a maximum term of imprisonment of five years, a fine of up to $250,000, and three years of supervised release.

“Today’s guilty plea stands as the most recent example of our Office’s continued vigilance in prosecuting public corruption,” stated U.S. Attorney Polite.  “By diverting federal funds from those most in need in our community, Ms. Jackson’s criminal conduct further eroded public confidence in our government.  On behalf of the residents of Southeast Louisiana, we will continue to demand lawful and ethical conduct from our public officials.”

“In the wake of the recent conviction of former mayor Ray Nagin and now the guilty plea of Ms. Jackson, the FBI and its law enforcement partners will continue their tireless pursuit of all those who unlawfully financially capitalize upon the Katrina tragedy event as its 10-year anniversary nears,” state Michael Anderson, Special Agent in Charge, Federal Bureau of Investigation, New Orleans Field Office.

Special Agent in Charge Gabriel L. Grchan, IRS – Criminal Investigation, stated, “Public corruption degrades the integrity of government leadership and erodes the trust instilled in public officials by the very individuals they are appointed or elected to serve.  It is a great accomplishment when an individual who has violated that trust is brought to justice.  The plea ensures that Stacey Jackson will be held accountable for her misdeeds and the detriment she caused the great city of New Orleans and its citizens.”

“This guilty plea was the result of outstanding investigative work conducted by HUD-OIG, and our law enforcement partners,” stated Wyatt J. Achord, Assistant Special Agent in Charge, U.S. Department of Housing and Urban Development-Office of Inspector General.  “This collaborative effort sends a clear message that if someone takes advantage of a government subsidized program they will be held accountable.”

The case was investigated by the Federal Bureau of Investigation, the Department of Housing and Urban Development - Office of Inspector General, the Internal Revenue Service Criminal Investigation, City of New Orleans - Office of Inspector General, and the United States Postal Inspection Service.  The U.S. Attorney’s Office would also like to acknowledge the assistance of the Metropolitan Crime Commission. 

The case was prosecuted by Assistant U.S. Attorney and Senior Litigation Counsel Fred P. Harper, Jr. and Assistant U.S. Attorney Sharan Lieberman.

(Download Factual Basis )

U.S. Attorney Kenneth Allen Polite, Jr. announced that today, MARINE MANAGERS LTD., a Liberian corporation headquartered in Piraeus, Greece, pled guilty to a two-count bill of information charging the company with knowingly failing to maintain an oil record book while in port and within the internal waters of the United States, and submitting a  false document to the U.S. Coast Guard.

 In addition, MATTHAIOS FAFALIOS, 64, a resident of Greece and Chief Engineer of the Motor Vessel (“M/V”) Trident Navigator, was indicted yesterday on three related charges, specifically failing to maintain an accurate oil record book, obstruction of justice, and witness tampering.

According to court documents, MARINE MANAGERS LTD., was the operator of the M/V Trident Navigator which transported bulk cargo between various ports and places in the world, including the Port of New Orleans and other locations in the Eastern District of Louisiana.  On or about December 28, 2013, while the M/V Trident Navigator was sailing, FAFALIOS instructed the Second Engineer to construct a bypass system (often referred to as a “magic pipe”) that could be connected between the vessel’s bilge pump and overboard discharge valve.  The purpose of the bypass was to discharge the contents of the ship’s bilge tank directly into the sea, circumventing the ship’s Oil Water Separator and Oil Content Monitor.  On or about December 31, 2013, FAFALIOS ordered the Second Engineer to hook up the “magic pipe” and to discharge several metric tons of oily bilge waste from the bilge tank directly into the sea.  The “magic pipe” was removed after the discharge was completed and the discharge was not recorded in the vessel’s Oil Record Book as required.  FAFALIOS additionally confiscated a crew member’s cell phone which contained a photograph of the installed “magic pipe,” and caused that photo to be deleted. 

On or about January 18, 2014, U.S. Coast Guard personnel boarded the M/V Trident Navigator while it was anchored in the Mississippi River near New Orleans.  A tip from a crewmember led them to the discovery of the “magic pipe.”   FAFALIOS was uncooperative and further obstructed the Coast Guard investigation by instructing crewmembers to deny knowledge of the “magic pipe.”

Although the actions of the crewmembers on the vessel were contrary to defendant MARINE MANAGERS LTD.’s written policies and procedures, the company accepts that it is vicariously liable for its employees’ actions.

MARINE MANAGERS LTD. faces a maximum fine of $500,000 for each count.  Sentencing has been scheduled for October 2, 2014, before U.S. District Judge Carl J. Barbier.

For each of his three counts, FAFALIOS faces a maximum fine of $250,000 and three years of supervised release.  In addition, he faces a maximum term of imprisonment of six years, five years, and twenty years for the records, obstruction, and witness tampering charges, respectively.  

“The Coast Guard is committed to uncovering and investigating regulatory and criminal violations that threaten the health of our marine environment.  The successful prosecution of this case is due to the outstanding cooperation between Coast Guard Sector New Orleans, the Coast Guard Investigative Service, and the Department of Justice," said Rear Admiral Kevin S. Cook, Eighth Coast Guard District Commander.

The case against MARINE MANAGERS LTD was investigated by Special Agents of the United States Coast Guard Criminal Investigative Service.  Prosecution is being handled by Assistant United States Attorney Gregory M. Kennedy and DOJ Environmental Crimes Section Attorney Kenneth Nelson.   The case against MATTHAIOS FAFALIOS was also investigated by Special Agents of the Coast Guard Criminal Investigative Service.  Prosecution is being handled by DOJ Environmental Crimes Section Attorney Kenneth Nelson and Assistant United States Attorney Emily K. Greenfield.

(Download Factual Basis - Marine Managers Ltd. )

(Download Indictment - Matthaios Fafalios )

U.S. Attorney Kenneth Allen Polite, Jr. announced that a federal jury has convicted a Gretna man guilty of crimes involving the sexual exploitation of children.

KEITH JOSEPH MCGEE, age 30, of Gretna, Louisiana, was found guilty of all three counts with which he was charged, specifically: attempting to coerce a minor to produce images of sexually explicit conduct; receiving sexually explicit images of a 14-year-old boy; and receiving sexually explicit images from a 15-year old boy.

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

MCGEE faces a mandatory minimum term of imprisonment of 15 years and a maximum penalty of 70 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 has been scheduled for September 23, 2014, at 9:00 a.m., before U.S. District Judge Jay C. Zainey.

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

This case was investigated by agents from the Federal Bureau of Investigation.  The prosecution of this case is being handled by Assistant United States Attorneys Jordan Ginsberg and Patrice Harris Sullivan.