Eastern District of Louisiana

NEW ORLEANS – KENISHA R. CALLAHAN, age 45, and a resident of Ponchatoula, Louisiana, was sentenced on November 9, 2022 to five (5) years of probation and one year of home confinement  by U.S. District Court Judge Ivan L.R. Lemelle after CALLAHAN had pleaded guilty to one count of filing a false tax return, one count of aiding and assisting in the preparation of a false tax return and one count of making a false statement to the Department of Education, announced U.S. Attorney Duane A. Evans of the Eastern District of Louisiana.

According to court records, count one alleges that CALLAHAN, the owner of Callahan Tax Service, prepared and filed a false 2015 U.S. Individual Tax Return Form 1040, wherein she underreported her earned income for the alleged time period. Count two charges that in 2015, CALLAHAN aided in the preparation and filing of a client’s tax return that falsely stated to the IRS that the client owned a business, and that the client had a business loss for the 2014 tax year. Count three alleges that CALLAHAN committed financial aid fraud by falsely reporting the amount of income that she earned in 2015 to the Department of Education while applying for student loan forgiveness.

In addition to the sentence, CALLAHAN was ordered to repay the IRS the amount of $353,834 and $191,738 to the Department of Education as mandatory restitution. 

U.S. Attorney Evans commended the special agents of IRS-Criminal Investigation and the Department of Education for their handling of the matter. The case was prosecuted by Assistant U.S. Attorney Edward J. Rivera.

NEW ORLEANS – United States Attorney Duane A. Evans announced that ERNEST DUNN, age 32 of New Orleans, Louisiana, was sentenced on November 10, 2022 for a violation the Federal Gun Control Act. He was convicted of a single count indictment charging him with possessing a firearm as a convicted felon in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).

According to court documents, DUNN was in the driver seat of a parked car in an area that had recently been the location of a drive by shooting. The Federal Bureau of Investigation was conducting surveillance and observed suspicious activity of individuals near the car. When agents approached, they asked DUNN to exit the car and observed two semi-automatic handguns at his feet.  DUNN was prohibited from possessing firearms due to his prior convictions for armed robbery and purse snatching in Orleans Parish.

DUNN was sentenced to 42 months of imprisonment, to be followed by a three-year term of supervised release. He was further ordered to pay a mandatory $100.00 special assessment fee.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

U.S. Attorney Evans praised the Federal Bureau of Investigation in investigating this matter. The prosecution is being handled by Assistant U.S. Attorney Charles D. Strauss.

NEW ORLEANS – U.S. Attorney Duane A. Evans announced the filing, on November 10, 2022,  of a one-count bill of information charging ALICE C. “SHANNON” CHABAUD, age 79, of New Orleans, with access device fraud in relation to her theft from her former accounting client, a New Orleans-based band named as “Band A” in the bill of information.

According to charging documents, CHABAUD is alleged to have illegally accessed Band A’s bank accounts after she was terminated as the band’s accountant in 2015. From the time of her firing in September 2015 until May 2020, she misappropriated $207,607.95 from Band A without band members’ knowledge or permission.

If convicted, CHABAUD could receive up to 10 years in prison, a $250,000.00 fine or the greater of twice the gross gain or twice the gross loss, and up to three years of supervised release after imprisonment. She would also pay a $100 mandatory special assessment fee.

U.S. Attorney Evans reiterated that a bill of information is merely an accusation and that the guilt of the defendants must be proven beyond a reasonable doubt.

U.S. Attorney Evans praised the work of the FBI New Orleans Field Office in investigating this matter. Assistant U.S. Attorney Matthew R. Payne is in charge of the prosecution.

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NEW ORLEANS – U.S. Attorney Duane A. Evans announced today that CHRIS BAO NGUYEN (“NGUYEN”), age 30, of Marrero, Louisiana, was indicted on November 10, 2022 for receipt of child pornography in violation of Title 18, United States Code, Sections 2252(a)(2) and (b)(1). If convicted, NGUYEN faces a mandatory minimum sentence of five (5) years and a maximum sentence of twenty (20) years imprisonment, and/or a fine of up to  $250,000.00, or the greater of twice the gross gain to the defendant or twice the gross loss to any person of the offense under Title 18, United States Code, Section 3571. In addition, NGUYEN faces a term of supervised release of no less than five (5) years and up to life after his release from prison and payment of a $100 mandatory special assessment fee.

According to documents filed in federal court, the case against NGUYEN began as a result of a CyberTip report from the National Center for Missing and Exploited Children (“NEMEC”) to the Louisiana Bureau of Investigation (“LBI”). Homeland Security Investigations (“HSI”) special agents along with the Jefferson Parish Sheriff’s Office and LBI executed a federal search warrant at NGUYEN’s home in Marrero. HSI’s investigation determined NGUYEN received images and videos depicting the sexual exploitation of minors.

U.S. Attorney Evans 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 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 Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

U.S. Attorney Evans praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations, the Louisiana Bureau of Investigation, and the Jefferson Parish Sheriff’s Office in investigating this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Project Safe Childhood Coordinator and Chief of the Financial Crimes Unit.

NEW ORLEANS – U.S. Attorney Duane A. Evans announced that, on November 9, 2022, U.S. District Court Judge Jane Triche Milazzo sentenced WILLIAM HARRISON FARRIS (“FARRIS”), age 43, of New Orleans, and KACIE DOUCET (“DOUCET”), age 41, of Larose, Louisiana, for their participation in a scheme to drug and kidnap an 18-year-old Slidell resident, resulting in the teenager’s death. FARRIS was sentenced to serve 87 months in prison, followed by two years of supervised release, along with a $100 mandatory special assessment fee. DOUCET was sentenced to serve 88 months in prison, followed by two years of supervised release, along with a $100 mandatory special assessment fee.

Both defendants previously pleaded guilty to one count of Conspiracy to Distribute Ketamine in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(E), and 846. According to court records, FARRIS and DOUCET conspired with co-defendant Leilani Aspuria, along with Carlos Mario Cantu-Cox and Christopher Cantu-Cox (who were charged in a separate case), to kidnap the teenage victim and transport him to Texas against his will. The Cantu-Coxes were a married couple based in the Houston area who distributed methamphetamine in New Orleans. At the time of his kidnapping, the victim owed money to the Cantu-Coxes and was deliberately trying to avoid the two men.

FARRIS, who was a drug customer of the Cantu-Coxes and was aware that the Cantu-Coxes were trying to find the victim, knew that DOUCET was connected to the victim on Facebook. At the direction of FARRIS, DOUCET contacted the victim over Facebook on multiple occasions and suggested that they meet for a sexual encounter.

FARRIS and DOUCET were aware that DOUCET’s offer of a sexual encounter with the teenage victim was a ruse, and that the real purpose of picking up the victim was to provide him with a cocktail of powerful drugs and thus render him incapacitated so he could be delivered to the Cantu-Coxes, who were staying at a hotel in downtown New Orleans.  The Cantu-Coxes supplied the drug cocktail, as well as instructions on how to mix the drugs with alcohol so that it could be administered to the victim without him knowing what he was taking.

To accomplish the scheme, FARRIS and DOUCET enlisted the help of Aspuria, the only one of the three with a car. On February 23, 2016, DOUCET and Aspuria picked up the victim from his grandfather’s home in Slidell. DOUCET gave the victim the Cantu-Coxes’ drug cocktail, which the couple referred to as an “elixir.” DOUCET, Aspuria, and the victim then drove around New Orleans for a number of hours, waiting for the victim to pass out. FARRIS, who was not in the car, assisted by serving as the intermediary between DOUCET, who was texting updates of the victim’s condition, and the Cantu-Coxes, who were waiting at the hotel.

At one point, DOUCET and Aspuria drove to the back of the hotel and attempted to deliver the victim to the Cantu-Coxes and FARRIS, who were waiting outside with a wheelchair. The victim was barely awake but not yet unconscious. When the car arrived, FARRIS attempted to pull the victim out of the car, but the victim woke up and became aggressive. DOUCET and Aspuria then drove off with the victim and continued to wait for the victim to pass out.

Later, DOUCET and Aspuria again drove to the hotel with the victim, who at that point was unconscious in the back seat. The Cantu-Coxes produced two needles containing ketamine. Aspuria injected one of the needles into the victim’s body, while DOUCET and FARRIS watched without objection. The victim did not move when he was injected, and no one checked to determine whether the victim was still breathing after the injection.

At that point, the teenager’s body was transferred to the Cantu-Coxes’ car, and the Cantu-Coxes began driving back to Texas. Somewhere near the Louisiana-Texas border, the Cantu-Coxes realized that the victim was no longer breathing.  The Cantu-Coxes continued driving to their home in Pasadena, Texas and parked in their driveway. Because it was still daylight, they left the victim’s body in the car. At nightfall on February 24, 2016, the Cantu-Coxes drove to a bridge over Sims Bayou in the Houston area and put the victim’s body into the bayou. The victim’s body washed to the shore a week later. The Cantu-Coxes later paid FARRIS a quantity of methamphetamine for his efforts in capturing the victim.

On February 5, 2020, Judge Milazzo sentenced Leilani Aspuria to ten years of imprisonment. On June 29, 2021, U.S. District Court Judge Wendy Vitter sentenced Carlos Mario Cantu-Cox and Christopher Cantu-Cox to twenty years of imprisonment.

U.S. Attorney Duane A. Evans praised the work of the United States Postal Inspection Service, Louisiana State Police, Houston Police Department, and the Drug Enforcement Administration.  Assistant United States Attorney Brandon S. Long is in charge of the prosecution.

NEW ORLEANS, LOUISIANA – ERIC METZ, age 39, a resident of Plaquemines Parish, Louisiana, pled guilty on November 1, 2022, before U.S. District Judge Susie Morgan to conspiracy to distribute and possess with intent to distribute cocaine, crack cocaine, and methamphetamine in violation of Title 21, United States Code, Sections 841(a)(1),  841(b)(1)(C), and 846, and possession of a firearm in furtherance of a drug trafficking offense in violation of Title 18, United States Code, Section 924(c)(1)(A)(i), announced U.S. Attorney Duane A. Evans.

According to court documents, a DEA investigation revealed that METZ was involved in a large narcotics distribution conspiracy in Plaquemines Parish. On June 5, 2021, Plaquemines Parish Sheriff’s Office  deputies conducted a traffic stop on a vehicle driven by METZ in Belle Chasse, Louisiana. During the traffic stop, deputies established probable cause to search the vehicle.  During the search, they discovered six clear plastic bags containing crack cocaine, a fully loaded FN, nine-millimeter, semi-automatic handgun, and $3,238.00 in U.S. currency. 

For the drug conspiracy charge, METZ faces up to twenty years imprisonment, a fine of up to $1,000,000.00, at least three years of supervised release following any term of imprisonment, and a mandatory $100 special assessment fee.  For possessing a firearm in furtherance of a drug trafficking offense, METZ faces a minimum of five years of imprisonment, up to life imprisonment, to run consecutive with any other sentence, a fine of up to $250,000, up to five years of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee. 

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

This case was investigated by the Drug Enforcement Administration and Plaquemines Parish Sheriff’s Office.  The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers.

NEW ORLEANS –  U.S. Attorney Duane A. Evans announced that MICHAEL GERALD MARCHESE, age 45, a resident of Metairie, Louisiana, pleaded guilty on November 8, 2022 before United States District Judge Wendy Vitter after previously being charged  in a one-count indictment with receiving  images and videos depicting the sexual exploitation of children, including children as young as approximately one (1) year old, in violation of 18 U.S.C. ' 2252(a)(2). 

According to court documents, in about July 2021, law enforcement authorities received information that an unidentified individual, subsequently determined to be MARCHESE, was using an internet-based peer-to-peer network that allows users to anonymously share files, chat on message boards, and access websites within the network, to view, download, and store computer files depicting the sexual victimization of children.  FBI agents executed a search warrant on MARCHESE’S residence on December 9, 2021 and seized several electronic items, including four (4) portable external hard drives.  A review of the items revealed that MARCHESE used the internet and peer-to-peer platforms numerous times throughout 2020 and 2021 to download depictions of children being sexually exploited.  The review further confirmed that MARCHESE downloaded at least approximately 4,201 images and 339 videos depicting the sexual victimization of children, including prepubescent minors as young as less than one (1) year old, and that some of the images and videos portrayed sadistic or masochistic conduct or other depictions of violence.

MARCHESE faces a mandatory minimum term of imprisonment of five (5) years and a maximum term of twenty (20) years in prison.  MARCHESE also faces a lifetime of supervised release, up to a $250,000 fine, a mandatory $100 special assessment fee and  can be required to register as a sex offender.  Sentencing before Judge Vitter is scheduled for February 14, 2023, at 1:00 pm.

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 Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

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

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NEW ORLEANS – U.S. Attorney Duane A. Evans announced that a grand jury returned a superseding indictment on November 4, 2022 against GLENN E. DIAZ, age 71, of Arabi; PETER J. “PETE” JENEVEIN, age 57, of Panama City, Florida; and MARK S. GRELLE, age 67, of Chalmette, for bank fraud and money laundering charges related to defrauding First NBC Bank, the New Orleans-based bank that failed in April 2017.

According to the 31-count superseding indictment, from at least April 2016 through December 20, 2016, DIAZ, JENEVEIN, and GRELLE conspired to defraud First NBC Bank through a series of false invoices for work purportedly done at a Florida warehouse owned by DIAZ. As set forth in the superseding indictment, DIAZ was a customer of First NBC Bank from 2006 through the bank’s closure in 2017. By late 2015, DIAZ had been overdrawing his checking account for purported business expenses, although DIAZ was depositing these overdrafts into his personal account at another bank. In April 2016, First NBC Bank officers were asking DIAZ for additional information about the use of the overdrafts. In June 2016, bank officers began requiring invoices as proof that DIAZ was spending bank funds on improving the Florida warehouse.

Thereafter, DIAZ had his associate JENEVEIN provide invoices for improvements on the Florida warehouse performed by GRELLE’s company, Grelle Underground Services LLC. Bank officers then approved the overdrafts based on these invoices. However, after DIAZ wrote the check to GRELLE’s company, GRELLE would then write a check back to DIAZ, which DIAZ would deposit into his personal account at JPMorgan Chase bank. DIAZ then used the money for expenditures unrelated to the Florida warehouse project. In total, DIAZ, JENEVEIN, and GRELLE executed a total of 17 round-trip transactions through GRELLE’s accounts. The superseding indictment adds twelve additional counts in which DIAZ, JENEVEIN, and GRELLE sent fraudulent documents to First NBC Bank to support disbursements of money from the Bank that purportedly reimbursed DIAZ for additional fraudulent business costs. The defendants’ fraud resulted in a loss of over a half million dollars to First NBC Bank.

DIAZ and JENEVEIN are all charged in each of the 31 counts of the superseding indictment, and GRELLE is charged in 20 of the counts. Count 1 charges all three defendants with conspiracy to commit bank fraud, in violation of Title 18, United States Code, Sections 1344 and 1349. The maximum penalties that may be imposed upon conviction are thirty years in prison, a maximum fine of the greater of $1,000,000.00 or twice the gross gain to the defendants or twice the gross loss; up to five years of supervised release; and a $100 mandatory special assessment fee.

In Count 2, DIAZ, JENEVEIN, and GRELLE are charged with conspiring to commit money laundering, in violation of 18 U.S.C. §§ 1956(a)(1)(B)(i) and 1956(h). If convicted, they face a maximum of 20 years in prison, a maximum fine of the greater of $500,000.00 or twice the value of the property involved in the transaction, up to three years of supervised release, and $100 mandatory special assessment fee.

In Counts 3 through 31, DIAZ and JENEVEIN are charged with bank fraud, in violation of Title 18, United States Code, Section 1344, and GRELLE is also charged in Counts 3 to 6, 11, 14, 15, 18 to 25, and 28 to 30. As to each count, the defendants may receive a maximum of thirty years in prison, a maximum fine of the greater of $1,000,000.00 or twice the gross gain to the defendants or twice the gross loss, up to five years of supervised release, and a $100 mandatory special assessment fee.

U.S. Attorney Evans reiterated that a superseding indictment is merely an accusation and that the guilt of the defendants must be proven beyond a reasonable doubt. U.S. District Judge Jane Triche Milazzo has scheduled the trial in this case for April 17, 2023.

This case is being investigated by the Federal Bureau of Investigation; Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Office of Inspector General; and the Federal Deposit Insurance Corporation, Office of Inspector General. Assistant U.S. Attorneys Matthew R. Payne, Nicholas D. Moses, J. Ryan McLaren, and Rachal Cassagne are in charge of the prosecution.

NEW ORLEANS, LA – United States Attorney Duane A. Evans announced that DESEAN CHRISTY, age 37, of New Orleans, Louisiana, has pleaded guilty to the remaining two counts of a three-count indictment for violations of the Federal Gun Control Act and Federal Controlled Substances Act. He had previously pleaded guilty to only Count 3 of the indictment. He was charged in Count 1 with  possession with intent to distribute a controlled substance in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C); in Count 2 with possessing a firearm in furtherance of a drug trafficking crime in violation of Title 18, United States Code, Section 924(c)(1)(A)(i); and in Count 3 with being a felon in possession of a firearm in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).

According to court documents, CHRISTY was previously convicted of illegally possessing heroin, cocaine, and attempted possession of a firearm by a convicted felon in Orleans Parish. Due to his criminal history, he is prohibited from having a firearm. He is now convicted of possessing possessing a Glock 22, .40 caliber handgun as a felon and in furtherance of a drug trafficking crime when he was arrested while possessing cocaine base (“crack”) with the intent to distribute.

For Count 1, CHRISTY faces a maximum of twenty (20) years imprisonment, a fine of up to $1,000,000.00 and at least three (3) years of supervised release. For Count 2, he faces a mandatory minimum of five (5) years up to a maximum of life imprisonment, a fine of up to $250,000, and up to five (5) years of supervised release.  Any sentence imposed for Count 2 shall be served consecutive to any other term of imprisonment.  For Count 3, he faces a maximum of ten (10) years imprisonment, a fine of up to $250,000, and up to three (3) years of supervised release.  CHRISTY must also pay a $100.00 mandatory special assessment fee, per count.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

The case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Charles D. Strauss.

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NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on  November 10, 2022, TYRESE HARRIS, age 19, resident of Orleans Parish, was charged in a five-count superseding indictment for conspiracy, carjacking, and weapons violations.  Count 1 charges HARRIS with conspiracy to commit carjackings beginning August 19, 2021, through February 1, 2022 in violation of Title 18, United States Code Section 371.  Count 2 charges HARRIS with a carjacking that occurred on August 19, 2021, in the 600 block of Washington Avenue in New Orleans, LA in violation of Title 18, United States Code, Section 2119(1). Count 3 charges HARRIS with using a firearm in furtherance of the carjacking in violation of Title 18, United States Code, Section 924(c)(1)(A)(ii).  In Count 4, HARRIS is charged with an attempted carjacking at 700 block of Howard Avenue on January 18, 2022 in violation of Title 18, United States Code, Section 2119(1).  Finally, in Count 5, HARRIS is charged with a carjacking resulting in serious bodily injury that occurred on February 1, 2022, at the 3800 block of S. Carrollton Avenue in violation of Title 18, United States Code, Section 2119(2). 

In Count 1, HARRIS faces up to maximum of 5 years imprisonment, a fine of up to $$250,000.00, up to 3 years of supervised release, and a mandatory special assessment fee of $100.   For Counts 2 and 4, HARRIS faces a maximum sentence of 15 years of imprisonment, a fine of up to $250,000.00, a period of up to 3 years of supervised release, and a mandatory special assessment fee of $100.00 for each count.  In Count 3, HARRIS faces a mandatory minimum sentence of 7 years up to a maximum of life imprisonment, to be run consecutive to any other sentence imposed, a fine of up to $250,000.00, a period of up to 5 years of supervised release, and a mandatory special assessment fee of $100.00. In Count 5, HARRIS faces a sentence of a maximum 25 years of imprisonment, a fine of up to $250,000.00, a period of up to 5 years of supervised release, and a mandatory special assessment fee of $100.00.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department.  It is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.

NEW ORLEANS – U.S. Attorney Duane A. Evans announced that HAROLD FOSTER, age 31, and MARC DALTON, age 31, of New Orleans, Louisiana were found guilty as charged on November 8, 2022 after a two-day jury trial before United States District Judge Jay C. Zainey. The defendants were facing two counts of carjacking in violation of Title 18, United States Code, Section 2119(1) and two counts of brandishing a firearm during a crime of violence in violation of Title 18, United States Code Section 924(c)(1)(A)(ii).

Testimony at trial established that FOSTER and DALTON carjacked the driver of a white Chevrolet Equinox on April 10, 2020 at the Eastside Cash and Carry convenient store on Chef Menteur Highway in New Orleans. The defendants held the victim at gunpoint with a revolver in furtherance of the offense. They then forced him into his car, kidnapping him for a short time before leaving him on the side of the road.

The evidence at trial also showed that on  April 12, 2020, FOSTER and DALTON were caught  immediately after a second carjacking. The two victims were sitting in a Mercedes C300 on St. Peter Street in New Orleans when the defendants held them at gunpoint with a semi-automatic Taurus handgun. Like the previous offense, the defendants kidnapped the two victims and dropped them off on the side of the road after a period of time. The New Orleans Police Department located the defendants in the stolen Mercedes immediately after the carjacking and arrested them after a high-speed pursuit on Downman Road.

For each count of carjacking, FOSTER and DALTON face a maximum of 15 years imprisonment, up to a $250,000.00 fine, up to three years of supervised release, and a mandatory $100.00 special assessment fee.  For brandishing a firearm during a crime of violence, the defendants face a mandatory minimum of seven years imprisonment for each count, which must run consecutive to all other counts; the maximum sentence for each of those counts is life imprisonment, up to a $250,000.00 fine, up to five years of supervised release, and a mandatory $100.00 special assessment fee.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, New Orleans Police Department, and Jefferson Parish Sheriff’s Office in investigating this matter. Assistant United States Attorneys Charles D. Strauss, David E. Haller, and J. Benjamin Myers are in charge of the prosecution.

NEW ORLEANS, LA – United States District Judge Susie Morgan sentenced KYLE ARMSTRONG, 20, of New Orleans, Louisiana, on November 8, 2022 to three (3) years probation for theft or receipt of stolen mail matter in violation of Title 18, United States Code, Sections 1708 and 2 and with unlawful possession of a postal key in violation of Title 18, United States Code, Sections 1704 and 2, announced U.S. Attorney Duane A. Evans.   

In July, 2022, ARMSTONG was indicted for theft or receipt of stolen mail matter and unlawful possession of a postal key

District Judge Morgan sentenced ARMSTRONG to  three (3) years probation.   She also ordered that ARMSTRONG pay a $200 mandatory special assessment fee. 

U. S. Attorney Evans praised the work of the U.S. Postal Service Inspection Service and the  Jefferson Parish Sheriff’s Office in investigating this matter. The case is being prosecuted by U. S. Attorneys Rachal Cassagne and Dall Kammer.

NEW ORLEANS, LA – United States Attorney Duane A. Evans announced that ANTHONY PITTMAN, age 33, of Metairie, Louisiana, was sentenced on November 1, 2022. His co-defendant, JOSEPH WOODS, age 31, of Metairie Louisiana, was sentenced on November 7, 2022. They both previously pleaded guilty as charged to a three-count indictment. Count 1 charged the defendants with possession with intent to distribute controlled substances in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C); Count 2 charged them with possession of a firearm in furtherance of a drug trafficking crime in violation of Title 18, United States Code, Section 924(c)(1)(A)(i); and Count 3 charged them with possession of a firearm by a convicted felon in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).

According to court documents, PITTMAN and WOODS were both previously convicted of drug trafficking, among other felony firearm and drug offenses in Jefferson Parish. Due to these convictions, it is unlawful for either of them to possess a firearm. They are now convicted of possessing multiple firearms and possessing with the intent to distribute cocaine, cocaine base (“crack”), and heroin. The two were apprehended after a high-speed chase during an attempted traffic stop on October 4, 2020 in Westwego, Louisiana. The drugs were found in two camouflage bags which were originally seen by officers inside the car but thrown on the side of the road as the defendants tried to escape. Additional evidence consistent with drug trafficking was found in the center console of the vehicle. 

PITTMAN was sentenced to a total term of imprisonment of  322 months. This consists of 240 months for Count 1, 262 months for Count 2, and 60 months for Count 3. Counts 1 and 2 are to run concurrently, while Count 3 will run consecutively. Upon release from prison, he will serve a term of three years of supervised release. 

WOODS was sentenced to a total term of imprisonment of  262 months. This consists of 202 months for Count 1, 120 months for Count 2, and 60 months for Count 3. Counts 1 and 2 are to run concurrently, while Count 3 will run consecutively. Upon release from prison, he will serve a term of three years of supervised release. 

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

The case was investigated by the Westwego Police department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Charles D. Strauss is in charge of the prosecution.

NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that STEVE C. MERGEY (“MERGEY”), age 52, of Houma, Louisiana, was sentenced on November 8, 2022 for Production of Child Pornography, in violation of Title 18, United States Code, Sections 2251(a) and (e). 

According to documents filed in federal court, the case against MERGEY developed as a result of a complaint to the U.S. Department of Homeland Security (“HSI”) Tip Line. On June 4, 2020, HSI Agents executed a federal search warrant at MERGEY’S residence located in Houma, LA. HSI’s investigation revealed that MERGEY groomed and coerced young male victims, as young as ten years old, who were living in Pennsylvania, New York, and Michigan to create and send sexually explicit images of themselves to MERGEY.

U.S. District Judge Wendy B. Vitter sentenced MERGEY to 210 months imprisonment, a life-term of supervised release and registration as a sex offender.

“The sentence is a gratifying outcome for the HSI special agents and law enforcement partners who are committed to protecting our nations’ innocense,” said Special Agent in Charge Dave Denton, HSI New Orleans. “We hope this serves as part of the healing process for the victims, and a reminder to those who harm children - HSI will not stop pursuing and bringing you to justice.”

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 Attorney’s 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.

The U.S. Attorney’s Office would also like to acknowledge the assistance of the U. S. Department of Homeland Security, Houma RAC and Pittsburg Office; Terrebonne Parish Sheriff’s Office; Houma Police Department; Louisiana State Police, Criminal Investigative Division; and Oswego County Sheriff’s Office, NY with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.

NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced today that Assistant United States Attorney (AUSA) M. Irene González will coordinate her Office’s efforts  in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2022, general election.  AUSA González serves  as the District Election Officer (DEO) for the Eastern District of Louisiana, and in that capacity is responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.

United States Attorney Evans said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election.  Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence.  The Department of Justice will always work tirelessly to protect the integrity of the election process.”

The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud.  The Department will address these violations wherever they occur.  The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.

Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice.  The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).  

United States Attorney Evans stated that: “The franchise is the cornerstone of American democracy.  We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice.  In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO González will be on duty in this District while the polls are open.  She can be reached by the public at the following telephone number – (504) 680-3041.

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

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/ .

United States Attorney Evans said, “Ensuring free and fair elections depends in large part on the assistance of the American electorate.  It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”

Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities.  State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.

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NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that defendant DEAMONTE BROWN, of New Orleans, Louisiana, was sentenced on October 27, 2022 by U.S. District Court Judge Barry Ashe to 60 months imprisonment, 3 years supervised release, and a $100 mandatory special assessment fee on Count One of a one-count indictment. 

Count One of the indictment charged BROWN with being a felon in possession of a firearm, in violation of Title 18 United States Code Section 922(g)(1) and 18 United States Code Section 924(a)(2). As to Count One, on June 10, 2021, investigators arrested BROWN and his co-defendant for being felons in possession of firearms.  The defendants were observed on crime camera footage carrying guns near the intersection of North Derbigny Street and Mandeville Street in New Orleans, LA.  Louisiana State Police elected to conduct a traffic stop on the vehicle, at which point the vehicle fled eastbound reaching a speed of 110 miles per hour.  Officers observed  BROWN throw firearms out of the vehicle.  Officers were later able to locate those firearms, which were both loaded with ammunition.  The vehicle eventually stopped in the 13000 block of Dwyer Street in New Orleans East.  Both individuals exited the vehicle, fled on foot and were  apprehended by the Louisiana State Police.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

U. S. Attorney Evans praised the work of ­­­­­the Louisiana State Police and the Federal Bureau of Investigation.  The case was prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit of the U.S. Attorney’s Office.

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NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced on October 25, 2022, that defendant CHRISTOPHER SMITH, age 31, resident of New Orleans, LA, pled guilty before U.S. District Court Judge Jay C. Zainey to a federal weapons violation of being a felon in possession of a firearm.

In Count 1 of the indictment, SMITH is charged with possessing three firearms on April 10, 2022, as a convicted felon, in violation of Title 18 United States Code, Sections 922(g)(1) and 924(a)(2).  SMITH faces a maximum sentence of 10 years of imprisonment, a fine of up to $250,000,  up to 3 years of supervised release, and a mandatory special assessment fee of $100.00.  SMITH’S sentencing is scheduled for January 17, 2023.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. The case is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit of the U.S. Attorney's Office.

NEW ORLEANS – U.S. Attorney Duane A. Evans announced that MICHAEL J. GOLL, age 47, of Kentwood, was sentenced on November 2, 2022, to three years in prison on charges of wire fraud and filing false federal tax returns by U.S. District Judge Wendy B. Vitter.

According to court documents, GOLL was the New Orleans branch manager of Company A, which provides material handling equipment to businesses. From January 2013 through September 2017, GOLL defrauded Company A of approximately $549,667.39. GOLL is alleged to have executed the scheme by sending Company A false invoices from shell companies that he had created, when in fact the work was either done by Company A’s own employees or the work was not done at all. Also, as part of the scheme, GOLL had a contractor who did personal work for GOLL inflate his bills to Company A to cover the work done for GOLL. GOLL justified the overbilling by telling the contractor that he planned on buying Company A in the future, although GOLL never did purchase Company A, and GOLL never told his employer about the overbilling.

Additionally, GOLL pleaded guilty to filing false federal tax returns. According to court documents, GOLL filed false personal income tax returns for tax years 2014 through 2017 in which he which he failed to accurately report his income, including the money that he embezzled from Company A. Moreover, GOLL also counseled three other people, all of whom personally knew GOLL, to file false tax returns. GOLL told each of them that he had graduated summa cum laude from the University of New Orleans with a Ph.D. in business administration, a degree that the University of New Orleans does not actually offer. GOLL persuaded the victims to become his business partners in a fake restaurant enterprise. GOLL then instructed them to file tax returns claiming false business losses, and then GOLL had them each pay to him a portion of their tax refund. Through his own false tax returns and those of the three others that he aided, GOLL caused a tax loss to the United States of $188,694.00.

 As to the charge of wire fraud, GOLL was sentenced to three years in prison and three years of supervised release. For filing false tax returns, GOLL was sentenced to three years in prison and one year of supervised release, to be served concurrently with the wire fraud charge. Additionally, GOLL was ordered to pay $200 in mandatory special assessment fees. No fine was issued.  A hearing regarding restitution will be held on a later date.

U.S. Attorney Evans praised the work of the U.S. Secret Service and Internal Revenue Service Criminal Investigation, which investigated this case jointly. Assistant U.S. Attorney Matthew R. Payne is in charge of the prosecution.

NEW ORLEANS –  U.S. Attorney Duane A. Evans announced that RANDI LEWIS (a/k/a “Teddy,” a/k/a “Teddy P.”), age 34, from Houston, Texas, pleaded guilty on November 2, 2022 before United States District Judge  Lance M. Africk to Count 2 of the indictment pending against him, charging LEWIS with sex trafficking of a child under the age of 14, in violation of Title 18, United States Code, Section 1591(a) and 1591(b)(1).  The charges stem from LEWIS’S role in bringing a thirteen-year-old female from Houston to New Orleans for the purpose of her engaging in commercial sex acts in June 2021. 

According to court documents, LEWIS met his co-conspirator, Chelsea Gee, a female born in 2003, in about late 2019 or early 2020.  LEWIS recruited Gee to engage in commercial sex acts under his direction, and she complied.  LEWIS also instituted a series of rules Gee was to follow, including how to behave, what to wear, with whom she was allowed to interact (i.e., look at and speak to), and how much she was expected to earn from engaging in commercial sex acts daily. LEWIS routinely tracked Gee’s location using a location sharing cellular phone application.  LEWIS also regularly engaged in sexual acts with Gee.

Together, LEWIS and Gee met the minor victim, who was thirteen years old, in the Houston, Texas area not later than June 21, 2021.  At LEWIS’s direction, Gee recruited the minor victim to perform commercial sex acts also under LEWIS’s direction.  Soon thereafter, Gee introduced the victim to LEWIS.  After the victim agreed, LEWIS arranged for he, Gee, and the victim to travel to New Orleans on a Greyhound bus for the purpose of his co-conspirator and the victim to engage in commercial sex acts.  Between June 22, 2021, and June 24, 2021, Gee and the victim performed multiple commercial sex acts in the New Orleans area.  LEWIS required the minor victim to turn over all, or most, of the money she earned from commercial sex acts to LEWIS.  LEWIS and Gee gave the minor victim instruction and guidance on matters related to the successful performance of commercial sex activities, including ways to behave, what to wear, how to identify and avoid law enforcement, and how to best solicit and engage in commercial sex activities under LEWIS’S direction.

Acting at LEWIS’S direction, Gee and the minor victim solicited commercial sex “dates” in several ways.  First, they walked along streets soliciting customers.  Additionally, LEWIS created and caused to be created advertisements on an online classified ad service commonly used to advertise sexual services in exchange for money, through which LEWIS received telephone calls, text messages, and messages via social media applications inquiring about, scheduling, and arranging prostitution calls with his co-conspirator and the minor  victim.  LEWIS arranged for sexually explicit pictures of the  minor victim to be used in the advertisements.  LEWIS and his co-conspirator also gave the  minor victim illicit and mood-altering drugs, including marijuana, to numb her senses, control her behavior, and/or to encourage her to engage in commercial sex acts.  Law enforcement authorities recovered the minor victim at a hotel in Terrytown, Louisiana, on June 24, 2021.      

LEWIS faces a mandatory minimum term of imprisonment of  fifteen (15) years and up to a maximum term of life in prison,  a fine of up to $250,000.00, a lifetime of supervised release after imprisonment, and a mandatory $100 special assessment fee.  LEWIS may also be required to register as a sex offender and make restitution payments to the minor victim.  Sentencing has been scheduled for March 8, 2023, at 2:00 pm before Judge Africk.

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

U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the Jefferson Parish Sheriff’s Office in this matter.  Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.

NEW ORLEANS – U.S. Attorney Duane A. Evans announced that, on November 2, 2022, U.S. District Court Judge Lance M. Africk sentenced BETTY ARRINGTON, a/k/a “Betty Callie Arrington,” a/k/a “Betty Francis C Miller,” a/k/a “Betty Miller” (“ARRINGTON”), age 73, to three years’ probation, of which she must serve six months of home detention. ARRINGTON was also ordered to pay restitution in the amount of $164,270.90.

ARRINGTON had pleaded guilty to one count of Theft of Government Funds, in violation of Title 18, United States Code, Section 641. According to court records, ARRINGTON engaged in a 35-year multifaceted scheme to defraud the Social Security Administration (“SSA”). From 1984 through 2019, ARRINGTON intentionally used a Social Security number (“SSN”) not assigned to her by the Commissioner of the SSA in order to conceal her employment and earnings. In 1997, ARRINGTON applied for and began receiving disability payments through the SSA. ARRINGTON’s use of another person’s SSN to conceal her ongoing work, along with her false statements to the SSA attesting that she qualified for disability benefits, allowed her to fraudulently obtain benefits totaling approximately $164,270.90.

U.S. Attorney Duane A. Evans praised the work of the Social Security Administration Office of Inspector General for its work in investigating this case. The case is being prosecuted by Assistant United States Attorney Brandon Long.

NEW ORLEANS –  U.S. Attorney Duane A. Evans announced that JOSEPH ANTHONY BORINO, age 65, a resident of Spring Hill, Texas, was sentenced on November 1, 2022 to 12 months and 1 day in prison by United States District Judge Wendy B. Vitter after previously pleading guilty to a one-count superseding bill of information charging him with misprision of a felony, namely, wire fraud, in violation of 18 U.S.C. § 4, for his role in a wide-ranging  scheme that defrauded thousands of individuals and companies across the United States.  Judge Vitter also sentenced BORINO to one (1) year of supervised release after his release from prison and ordered that he pay a $100 mandatory special assessment fee.  Judge Vitter scheduled a restitution hearing for February 13, 2023 at 10:00 am.

According to court documents, The Total Financial Group (TTFG) was a Louisiana business incorporated by Denis and Donna Joachim with the Louisiana Secretary of State on about January 6, 2005. TTFG  was most recently located in Covington, Louisiana and  had at least 13 employees and 56 independent sales agents.  BORINO, employed with TTFG since 2012, served as its National Executive Marketing Director.  In that capacity, BORINO supervised, trained, and instructed TTFG’s regional sales personnel.  BORINO primarily handled and resolved issues  that agents, prospective clients, and enrolled clients encountered.

TTFG and its owners, along with BORINO and others, created and marketed a Medical Reimbursement Account program called “Classic 105.”  Classic 105 claimed to be a multiple employer welfare arrangement that was marketed to employers as a supplemental benefits plan  to reimburse their employees  for medical expenses such as co-pays and deductibles. Participants in Classic 105 were required to have a primary health insurance plan unrelated to and in addition to Classic 105.  Classic 105 claimed to be comprised of several components: a tax-exempt contribution of between $1,000 and $1,600 per month made by an employee (which reduced the employee’s taxable income), a loan from a lender back to the employee to make up for the contribution, an insurance policy payable to the lender at the employee’s death to repay the loan, and fees paid by the employee and the employer directly to TTFG.  TTFG told prospective employer-clients that participants would never have to make out-of-pocket payments to repay the loan and that as a result of the tax savings, most participants would receive an increase in their net take home pay.  TTFG’s marketing program told prospective employer-clients that the contributions would be stored in a unique account for each employee-participant and that any money not used by the end of each calendar year would revert to TTFG.  TTFG also charged employee-participants a fee of between $150 and $250 per month and the employer a fee of five percent of each employee’s contribution amount.  At its peak, over 350 employer-clients and 4,400 employee-participants nationwide were enrolled in TTFG’s Classic 105 program.

According to court documents, TTFG committed wire fraud by virtue of how it actually operated Classic 105.  TTFG never obtained a single loan or insurance policy for the Classic 105 program, and participants never made any actual contributions.  The only money tendered to TTFG by employer-clients and employee-participants were fees. As a result, employee-participants and employer-clients were defrauded into enrolling in, and paying fees for, the Classic 105 program by means of fraudulent pretenses, representations, and promises.  Additionally, participants and employers were exposed to potential adverse financial consequences, including not only unpaid taxes, fees, and penalties, but also ineligibility from certain government programs, including unemployment payments, and reduced Social Security payments. 

Despite having knowledge of these events, which constituted wire fraud, on multiple occasions, BORINO did not make known the information and attempted to conceal it.  For example, in September 2014, BORINO was told that “TTFG has not made any deals with any banks in any state” and also had “not solicited nor [sic] received any pooling of funds from a group of individuals.”  In the subsequent months, when subordinates asked BORINO specific questions about the loan component and passed along concerns that Classic 105 was “a scam and likely an illegal tax dodge,” BORINO failed to disclose what he had been told: that there were no entities providing loans.  In subsequent years, BORINO continued to represent to subordinates and prospective customers that loans from “Wall Street banks,” community banks, and various “investing vehicles” funded the loan component. During her sentencing of  BORINO, Judge Vitter  noted  his senior level at TTFG, an organization that “was based on nothing but fraud.”

U.S. Attorney Evans praised the work of the  United States Department of Labor – Office of Inspector General and Employment Benefits Security Administration, the Federal Bureau of Investigation, and IRS-Criminal Investigations in investigating this matter.  Assistant United States Attorneys Jordan Ginsberg, Andre Lagarde, and Maria Carboni were in charge of the prosecution.

NEW ORLEANS, LA – United States Attorney Duane A. Evans announced that on October 25, 2022, MERVIN BAILEY, age 20, of New Orleans, Louisiana, pleaded guilty to a three-count superseding bill of information. The charges include Count 1, carjacking in violation of Title 18, United States Code, Section 2119(1); Count 2, brandishing a firearm in furtherance of a crime of violence in violation of Title 18, United States Code, Section 924 (c)(1)(A)(ii); and Count 3, attempted carjacking in violation of Title 18, United States Code, Section 2119(1).

According to court documents, Counts 1 and 2 arose from the carjacking of a BMW X7 SUV in New Orleans, Louisiana on June 3, 2021. As the victim was pulling out of her driveway, BAILEY jumped out of a white truck while brandishing a firearm. He forced the victim out of her car, demanding her keys and drove off in her vehicle. The victim immediately flagged down a pedestrian and used their cell phone to call the New Orleans Police Department (“NOPD”). BAILEY initially evaded NOPD on a high-speed chase, but officers later located the abandoned  SUV  and the K-9 unit found him hiding nearby.  A black CZ-PF10F 9mm Luger handgun with an obliterated serial number was found in the area and personal property belonging to the victim was found on BAILEY.

Court documents also reveal BAILEY committed an attempted carjacking on October 4, 2021 in New Orleans, Louisiana. In that instance, BAILEY used a cellular phone to request a ride on the Lyft ride-sharing application. When the victim arrived in her Kia Optima, BAILEY and an accomplice attempted to carjack the vehicle while brandishing a firearm.

The maximum penalty BAILEY faces for Counts 1 and 3 is up to 15 years imprisonment, a fine of up to $250,000.00, up to three years of supervised release, and a $100.00 mandatory special assessment fee,  as to each count. The maximum penalty he faces for Count 2 is a mandatory minimum of 7 years imprisonment up to  a maximum of life, to run consecutive to all other sentences, a fine of up to $250,000.00, up to five years of supervised release, and a mandatory $100.00 special assessment fee.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

The case was investigated by the New Orleans Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Charles D. Strauss is in charge of the prosecution.

NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that COREY THOMAS, age 49, from New Orleans, pled guilty to wire fraud, stemming from fraudulent charges he made in someone else’s name at local stores.

According to court documents, THOMAS used a victim’s personal identifying information to make fraudulent charges at Best Buy and several Lowe’s Home Improvement stores in New Orleans and the surrounding parishes. THOMAS attempted the purchases on behalf of other actual customers, offering to charge the goods on a store credit card in exchange for a cash payment that was less than the purchase price. Under the terms of the plea agreement, THOMAS agreed to repay a total of $77,781.98 to Synchrony Bank, which issued the Lowe’s credit cards that THOMAS used in his scheme.

At sentencing, THOMAS faces up to twenty years in prison. Following any term of imprisonment, THOMAS faces up to three years of supervised release, as well as a fine of up to $250,000 and a mandatory $100 special assessment fee. Judge Ivan L.R. Lemelle set sentencing for February 15, 2023.

U.S. Attorney Evans praised the work of the Federal Bureau of Investigation. Assistant United States Attorney Nicholas D. Moses is in charge of the prosecution.

NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today, that BROCK MELANCON, age 35 from Terrebonne Parish, was sentenced on October 27, 2022 to 262 months in federal prison for his role in a conspiracy to distribute methamphetamine as well as for  federal firearms violations.

Earlier this year MELANCON pled guilty to Counts 1, 2, and 3 of the superseding indictment pending against him.

Count 1 charged MELANCON with participating in a conspiracy to distribute 500 grams or more of methamphetamine.  Count 3 charged him with possession with the intent to distribute methamphetamine and heroin.  Count 2 charged him with being a felon in possession of a firearm.  At his sentencing hearing, United States District Judge Barry Ashe found that MELANCON was a “career offender” and imposed a sentence of 262 months as to Counts 1 and 2 and 120 months as to Count 3, all to run concurrently with each other.  He was also placed on supervised release for a term of five years after his  release from prison.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

The case was investigated by the Houma Police Department, the Terrebonne Parish Sheriff’s Office, and the United States Drug Enforcement Administration (D.E.A.).  Assistant United States Attorney Maurice Landrieu was in charge of the prosecution.

NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that JOEY J. STEVENSON, age 40, from New Orleans, pled guilty on October 25, 2022 for failing to pay the IRS employment taxes for his business, Community Care Solutions, Inc.

STEVENSON was indicted for failure to pay over employment taxes due to the IRS, in violation of 26 U.S.C. § 7202. According to court documents, STEVENSON owned and operated Community Care Solutions, Inc., and from 2015 through 2019, he withheld over $500,000 in Medicare, Social Security, and income taxes from his employees’ paychecks, but STEVENSON did not pay that money to the IRS. STEVENSON also failed to pay an additional $254,181.21 in taxes for the employer’s share of Medicare and Social Security taxes. In total, STEVENSON failed to pay $796,077.41 in taxes owed to IRS in connection with Community Care’s employees. STEVENSON agreed to repay that amount to the IRS as restitution.

STEVENSON faces up to five years in prison. STEVENSON also faces up to three years of supervised release after release from prison, a fine of up to $250,000 or twice the gross gain to STEVENSON or the gross loss to any victims, and a mandatory $100 special assessment fee per count. The Honorable Ivan L.R. Lemelle set sentencing for February 15, 2023.

U.S. Attorney Evans praised the work of IRS Criminal Investigations. Assistant United States Attorney Nicholas D. Moses is in charge of the prosecution.

NEW ORLEANS, LOUISIANA – JAKARI BROWN, a/k/a “Jakari Lemar,” age 24, a resident of Bogalusa, Louisiana, pled guilty on October 25, 2022, before U.S. District Judge Greg G. Guidry to a superseding bill of information which charged him with two counts of being a felon in possession of a firearm in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), announced U.S. Attorney Duane A. Evans.

According to court documents, on April 25, 2019, BROWN, a convicted felon, possessed an Iberia Firearm (HiPoint) Model JPC, .40 caliber pistol that he used during a shootout near the corner of Hickory and South Columbia Streets in Bogalusa. BROWN was again found to be in possession of a gun on December 27, 2021, when police discovered a Smith & Wesson Model SW9VE, 9 millimeter pistol under the driver’s seat in the vehicle BROWN was driving.

The maximum punishment BROWN faces for each offense is ten years imprisonment, a fine of up to $250,000, up to three years supervised release, and a $100 mandatory special assessment fee.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

This case was investigated by the Washington Parish Sheriff’s Office and the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives. The prosecution is being handled by Assistant United States Attorneys J. Benjamin Myers and Maurice Landrieu.

NEW ORLEANS - U.S. Attorney Duane A. Evans announced that former United States Coast Guard employees DOROTHY SMITH and ELDRIDGE JOHNSON were sentenced today for engaging in a bribery scheme at a U.S. Coast Guard exam center.

United States District Court Judge Barry W. Ashe sentenced SMITH, age 67, to five years imprisonment for the crime of Conspiracy to Defraud the United States and a $100 mandatory special assessment fee.  Judge Ashe sentenced JOHNSON, age 70, to concurrent sentences of six years imprisonment for Bribery and five years for Conspiracy to Defraud the United States and a $200 mandatory special assessment fee.  After completing their prison terms, the defendants will be placed on supervised release for three years.

The defendants had been employed at a Mandeville, Louisiana Coast Guard exam center known as Regional Exam Center (REC) New Orleans, which administered examinations that merchant mariners were legally required to pass in order to obtain licenses to serve in various positions on vessels. The examinations tested mariners’ knowledge and training to safely operate under the authority of the licenses. SMITH was a credentialing specialist and JOHNSON was an examination administrator.

As admitted during her plea of guilty to Conspiracy to Defraud the United States, SMITH accepted bribes to fix exam scores in a scheme that began prior to April 2012. Mariners participating in SMITH’S scheme would usually not appear for the examinations. SMITH would create Coast Guard records and data entries to make it appear to the Coast Guard that the mariners had appeared and tested. SMITH would make up passing scores and enter them in a Coast Guard computer system. SMITH would then send emails to a Coast Guard office falsely stating that the mariners had passed the examinations and should receive the desired licenses. While SMITH would at times directly interact with credential applicants (for example, by soliciting bribes from them when they came to the exam center), she primarily relied on intermediaries. By using intermediaries, SMITH typically avoided having any contact with the mariners to whom she sold passing scores.

One of Smith’s intermediaries was former Coast Guard employee Beverly McCrary, who pleaded guilty and is scheduled to be sentenced by Judge Ashe on December 8, 2022. McCrary had her own network of intermediaries, which included mariners Alexis Bell, Micheal Wooten, and Sharron Robinson, who each pleaded guilty to Conspiracy to Defraud the United States and who collectively admitted to having obtained false scores for a total of 31 mariners, including themselves. Earlier this year, Bell was sentenced to 42 months imprisonment and Wooten and Robinson were each sentenced to 54 months imprisonment. In December 2021, another intermediary in the scheme, Alonzo Williams, received a 40-month sentence for Conspiracy to Defraud the United States.

JOHNSON pleaded guilty to two crimes—one count of Bribery and one count of Conspiracy to Defraud the United States. The Bribery conviction relates to JOHNSON’S conduct as an examination administrator at REC New Orleans. Beginning no later than 2011 and continuing until around the time of his January 2018 retirement, JOHNSON engaged in a scheme to receive bribes from mariners who had applied for licenses. JOHNSON offered and sold various forms of improper assistance including reporting false information to the Coast Guard and, more commonly, selling examination questions and answers to mariners before they took the tests. JOHNSON recruited mariners by approaching them when they appeared at REC New Orleans and by calling their telephone contact numbers listed in United States Coast Guard records.

JOHNSON’S conspiracy conviction relates to him having acted as an intermediary for SMITH after his Coast Guard retirement. JOHNSON recruited mariners to engage in SMITH’S scheme in various ways, including by soliciting mariners who had bribed him when he was a Coast Guard employee and by encouraging those mariners to refer others to JOHNSON.

In addition to the three former Coast Guard employees and the four intermediaries mentioned above, 32 mariners were charged with, and pleaded guilty to, the felony offense of unlawful receipt of a mariner license. Some of these defendants were charged in the case presided over by Judge Ashe while others were charged in a separate case assigned to United States District Court Judge Eldon E. Fallon, who sentenced the last of these defendants, Derrick Ward, to probation and community service in August 2022.

The wide range of fraudulently obtained licenses included the Master Unlimited Oceans endorsement, which authorizes the holder to serve as the captain of vessels of any tonnage in any waters, as well as licenses for other high-level positions such as Chief Mate and Chief Engineer.

“These former Coast Guard exam center employees risked public safety for personal gain,” said U.S. Attorney Evans. “Today’s sentencings hold them accountable for their egregious breaches of trust.”

“Credentialed mariners are entrusted with the safety and security of commercial vessels, and the vast majority are dedicated, safety-conscious individuals who work hard to earn their professional credentials and endorsements.  By enabling a group of mariners to circumvent the Coast Guard’s credentialing protocols through fraud, these individuals undermined our credentialing system and threatened our waterways,” said Rear Admiral Wayne R. Arguin, Assistant Commandant for Prevention Policy. “These sentences demonstrate the tireless efforts of the Coast Guard and Department of Justice, and ensures the United States’ Marine Transportation System remains one of the safest in the world. We are confident this ruling sends a strong message that the U.S. government will not tolerate these types of acts and will vigorously take action against such misconduct.”

U.S. Attorney Evans commended the work of the Coast Guard Investigative Service Gulf Region. Assistant U.S. Attorney Chandra Menon is in charge of the prosecution.

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NEW ORLEANS, LOUISIANA – DERECK CELESTIN, JR., age 37, a resident of Terrebonne Parish, Louisiana, pled guilty on October 25, 2022, before U.S. District Judge Susie Morgan to a two-count indictment which charged him with distribution of methamphetamine in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), and 841(b)(1)(A), announced U.S. Attorney Duane A. Evans.

According to court documents, a DEA investigation revealed that CELESTIN was a methamphetamine distributor in Terrebonne Parish. Drug Enforcement Administration agents arranged two controlled purchases of methamphetamine from CELESTIN. On July 13, 2021, agents coordinated the purchase of 48.73 grams of methamphetamine from CELESTIN. On August 9, 2021, agents arranged the purchase of 130.35 grams of methamphetamine from CELESTIN.

CELESTIN is scheduled to be sentenced on February 14, 2023.

For Count 1, CELESTIN faces a mandatory minimum sentence of five years, up to forty years imprisonment, a fine of up to $5,000,000, and at least four years of supervised release following any term of imprisonment. For Count 2, CELESTIN faces a mandatory minimum sentence of ten years, up to life imprisonment, a fine of up to $10,000,000, and at least five years of supervised release following any term of imprisonment. For both counts of the indictment, CELESTIN faces payment of a $100 mandatory special assessment fee.

This case was investigated by the Drug Enforcement Administration and Terrebonne Parish Sherriff’s Office. The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers.

NEW ORLEANS, LOUISIANA – LENDELL WALLACE, age 38, a resident of LaPlace, Louisiana, pled guilty on October 13, 2022, before U.S. District Judge Carl J. Barbier to a two-count indictment which charged him with conspiracy to possess with intent to distribute tramadol and possession with intent to distribute tramadol in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(E), announced U.S. Attorney Duane A. Evans.

According to court documents, 800 dosage units of tramadol were seized from WALLACE’s residence pursuant to a search warrant. The investigation revealed that on multiple occasions WALLACE had tramadol mailed to his home from Singapore. He then distributed and conspired with others to distribute the tramadol.

WALLACE is scheduled to be sentenced on January 19, 2023. The maximum punishment WALLACE faces for each offense is five (5) years imprisonment, a fine of up to $250,000, at least one (1) year of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee.

This case was investigated by St. John the Baptist Parish Sheriff’s Office, Homeland Security Investigations, United States Postal Inspection Service, and United States Customs and Border Protection. The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers.

NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced today that,  on October 25, 2022,  DEVIN CHANEY (“CHANEY”), age 32, agreed to plead guilty to one count of Armed Bank Robbery in violation of Title 18, United States Code, Sections 2113(a) and (d) (Count 9); and one count of Hobbs Act Robbery, in violation of Title 18, United States Code, Section 1951(a) (Count 3).  In pleading guilty to the Armed Bank Robbery, the defendant faces a maximum penalty of twenty-five (25) years’ imprisonment; a term of supervised release of up to five (5) years; a fine of up to $250,000.00; and a mandatory special assessment fee of $100.00. In pleading guilty to the Hobbs Act Robbery, the defendant faces a maximum penalty of twenty (20) years’ imprisonment; a term of supervised release of up to three (3) years; a fine of up to $250,000.00; and a mandatory special assessment fee of $100.00. In exchange for pleading guilty, the government has agreed to dismiss the remaining counts in the superseding indictment.

As part of his plea, CHANEY admitted that on Christmas Eve 2021, he entered the Capital One Bank located on Carondelet St. in New Orleans. He presented a demand note to one teller and received some money but was disappointed in the amount. CHANEY then approached a second teller, pointed a firearm at the teller, and received additional money before leaving the bank. In total, CHANEY robbed the Capital One of approximately $2,506.00. Additionally, on December 12, 2021, CHANEY entered the Subway sandwich shop located on North Broad Street, New Orleans, pointed a firearm at the cashier, and demanded the money in the register. The cashier handed over approximately $600.00 to CHANEY.

Sentencing in this matter is scheduled for February 21, 2023,  before United States District Judge Greg G. Guidry.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

U.S. Attorney Evans praised the work of the Federal Bureau of Investigation Violent Crimes Task Force and New Orleans Police Department in investigating this matter. This case is being prosecuted by Assistant United States Attorneys Brandon Long and Charles Strauss.

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NEW ORLEANS, LOUISIANA  U.S. Attorney Duane A. Evans announced that WILLIE WALKER, age 56, was sentenced on October 14, 2022 by Chief United States District Judge Nannette Jolivette Brown to a probationary term of five years for failure to report international travel as a sex offender under the federal Sex Offender Registration and Notification Act (SORNA).

According to court documents, WALKER was convicted in Washington State in 2002 of a sex offense that required him to register as a sex offender for life.  In addition to registering as a sex offender, WALKER was also required to timely notify law enforcement at least 21 days prior to any travel outside of the United States.  In February 2020 and  April 2021, WALKER traveled to Ethiopia without informing law enforcement of either trip in violation of SORNA.

U.S. Attorney Evans praised the work of the United States Marshals Service for their investigation of the matter. Assistant United States Attorneys Spiro G. Latsis and Rachal Cassagne are in charge of the prosecution.

NEW ORLEANS – U.S. Attorney Duane A. Evans announced today that IVAN MARTINEZ-ESTRADA, “a/k/a “Julio Martinez-Estrada”, a/k/a “Julio Martinez”, age 51, was charged in a one-count indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a).

According to the indictment, IVAN MARTINEZ-ESTRADA (“MARTINEZ ESTRADA”) reentered the United States after he was previously deported on February 13, 2017.  If convicted, MARTINEZ-ESTRADA faces a maximum term of imprisonment of two years, a maximum fine of up to $250,000, a maximum term of supervised release of up to one year, and a mandatory $100 special assessment fee.  He faces sentencing enhancement of 20 years because of prior felony convictions.

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

U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement in investigating this matter.  Assistant U.S. Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.

NEW ORLEANS, LOUISIANA – A federal grand jury in New Orleans, Louisiana returned a four-count indictment on October 20, 2022 charging a man for violations of the Federal Controlled Substances Act.

According to court documents, CODY SHAUGHNESSY, age 38, is charged in Counts 1, 2 and 3 with distribution of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B).  In Count 4, SHAUGHNESSY is charged with possession with intent to distribute methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B). 

If convicted, SHAUGHNESSY faces a mandatory minimum sentence of 5 years and up to 40 years imprisonment, up to a $5,000,000 fine, at least 4 years of supervised release, and a mandatory special assessment fee of $100. 

According to the indictment, SHAUGHNESSY distributed 50 grams or more of methamphetamine during August and September 2022.  SHAUGHNESSY also possessed with the intent to distribute 50 grams or more of methamphetamine on August 25, 2022. 

U.S. Attorney Duane A. Evans reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.

This case was investigated by the Drug Enforcement Administration, Homeland Security Investigations,  Hammond Police Department, and the Tangipahoa Parish Sheriff’s Office.  The prosecution of this case is being handled by Assistant United States Attorney Lynn E. Schiffman.

NEW ORLEANS – United States Attorney Duane A. Evans announced that NICOLE COCKERHAM (“COCKERHAM”), age 43, of Houma, Louisiana, was sentenced on October 18, 2022 for  Theft of Government Funds, in violation of Title 18, United States Code, Section 641.

According to documents filed in federal court, from March 2019 to July 2020, COCKERHAM knowingly converted approximately $38,851.00 in Social Security Administration and Coronavirus Aid, Relief, and Economic Security Act (“CARES ACT”) funds.

United States District Judge Wendy D. Vitter sentenced COCKERHAM to three (3) years probation, restitution in the amount of $37,651.00 to the Social Security Administration and $1,200.00 to the Internal Revenue Service, 100 hours of non-paid community service, and payment of a mandatory $100.00 special assessment fee.

The U.S. Attorney’s Office would also like to acknowledge the assistance of the Social Security Administration, Office of the Inspector General, and the United States Department of Treasury, Inspector General for Tax Administration, in investigating this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.

NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that SLOANE SIGNAL-DEBOSE, age 51, a resident of Slidell, pled guilty to misappropriating funds from a veteran while SIGNAL was the veteran’s fiduciary.

The government filed a one-count bill of information that charged SIGNAL with misappropriation by a veteran’s fiduciary, in violation of Title 38, United States Code, Section 6101. According to court documents, from 2016 until 2018 SIGNAL was a fiduciary for a veteran who needed assistance with the management of his affairs, and controlled the veteran’s finances and bank accounts. During that time, SIGNAL took over $100,000 from the veteran’s accounts, routed it through bank accounts in her own name, ultimately using it as the down payment on a home for SIGNAL that was only in SIGNAL’s name. SIGNAL also used additional funds from the veteran to pay contractors working on SIGNAL’s home. SIGNAL then submitted false records to the Department of Veteran’s Affairs to hide her misuse of the veteran’s funds.

SIGNAL faces up to five years in prison, up to three years of supervised release after release from prison, a fine of up to $250,000 or twice the gross gain to SIGNAL or the gross loss to any victims, and a mandatory $100 special assessment fee. Judge Sarah S. Vance set the sentencing hearing for February 15, 2023.

U.S. Attorney Evans praised the work of the Department of Veterans Affairs Office of Inspector General. Assistant United States Attorney Nicholas D. Moses is in charge of the prosecution.

NEW ORLEANS –  U.S. Attorney Duane A. Evans announced that DR. CHARLES J. SOUTHALL, III, age 64, pleaded guilty today before United States District Judge Jay Zainey after previously being charged in a one-count bill of information with laundering proceeds unlawfully obtained from a wire fraud scheme, in violation of Title 18, United States Code, Sections 1957 and 2. 

According to court documents, SOUTHALL has served as the Executive Pastor of First Emanuel Baptist Church (FEBC) since about 1989.  FEBC maintained houses of worship in New Orleans, Louisiana, and Baton Rouge, Louisiana, owned multiple parcels of real property in New Orleans, and created housing ministry entities to provide affordable housing to low-income New Orleans residents as well as   to receive income from renting some of the properties FEBC owned.  As Executive Pastor, SOUTHALL led and counseled the FEBC congregation, participated in the administration and operation of charitable organizations affiliated with FEBC, including its housing ministries, and solicited donations purportedly for specific repair, developmental, and charitable projects and tithes in support of FEBC and its mission.  SOUTHALL received a salary in accordance with the terms of his employment contract, as well as monetary gifts from the FEBC congregation throughout the year. 

Exploiting his position as Executive Pastor, SOUTHALL defrauded FEBC and some of its members in several ways.  First, SOUTHALL solicited tithes and donations from several members and then improperly diverted the money to his personal use.  For example, SOUTHALL solicited a $10,000 tithe from Victim A in July 2019, the proceeds of which he deposited into his personal financial accounts and used to pay for personal expenses.  Between August 2016 and July 2020, SOUTHALL solicited multiple donations from Victim B ostensibly for various charitable purposes and the improvement of FEBC’s New Orleans building.  SOUTHALL improperly diverted approximately $106,408.38 of the funds Victim B donated to FEBC to financial accounts under SOUTHALL’S personal control and to pay for SOUTHALL’S personal expenses unrelated to FEBC or its mission without the knowledge or authorization of Victim B.

Second, SOUTHALL diverted approximately $150,000 of income that resulted from the rental of properties owned by FEBC and its affiliated housing ministries to his personal use and benefit without the knowledge or authorization of FEBC. 

Third, SOUTHALL developed and implemented a scheme to defraud FEBC by causing real properties owned by FEBC to be sold and diverting a portion of the profit from the sale of the real properties to and for SOUTHALL’S personal benefit without the knowledge or authorization of FEBC or the FEBC Board of Trustees.  In total, SOUTHALL improperly caused approximately $537,805.51 of profit from the sale of FEBC-owned real properties located on Amelia Street,  Fourth Street, and Baronne Street to be diverted to SOUTHALL’S personal benefit improperly and without authorization.

Additionally, SOUTHALL and others created the Spirit of Excellence Academy for the purpose of operating a charter school in New Orleans.  In about 2013, SOUTHALL secured funding to create an affiliated school in Baton Rouge.  Although Spirit of Excellence received funding in the form of grants and loans, the Baton Rouge school never opened.   According to rules promulgated by the State of Louisiana, Board Members of charter schools were prohibited from receiving compensation for providing services to the school other than for reimbursement of actual expenses.  As President of the Board of Directors of Spirit of Excellence Academy, SOUTHALL submitted financial statements that represented he had no personal or financial interest with Spirit of Excellence Academy. 

Notwithstanding these representations, in about September 2013, SOUTHALL hired Person A to be employed and compensated by Spirit of Excellence Academy for consulting work related to the creation of Spirit of Excellence Academy – Baton Rouge.  Between about September 2013 and September 2017, Spirit of Excellence Academy paid Person A approximately $220,600, all of which was deposited into a financial account SOUTHALL and Person A jointly controlled.  SOUTHALL regularly diverted a portion of the funds paid to Person A to SOUTHALL’S personal use, including by transferring some of the funds from one or more of the accounts he controlled jointly with Person A to other financial accounts under SOUTHALL’S sole control or by causing the funds to be used to pay SOUTHALL’S personal credit card bills.  In total, between about September 2013 and September 2017, SOUTHALL improperly caused approximately $85,351.97 of the funds paid to Person A by Spirit of Excellence Academy to be diverted to SOUTHALL’S personal benefit and use in the manner described above.

In total, SOUTHALL obtained approximately $889,565.86 through his fraudulent schemes.  SOUTHALL then engaged in a series of financial transactions using the proceeds of the criminally derived proceeds he obtained that included: negotiating a check in the amount of $11,841 to purchase tickets; using funds originating from the sale the Fourth Street property in the amount of $100,000 to open and fund a JPMC individual investment account for himself; negotiating a cashier’s check in the amount of $95,000 to purchase a vehicle; and negotiating a cashier’s check in the amount of $10,764.11 for the down payment of another vehicle.

As part of his guilty plea, SOUTHALL agreed to pay restitution to Spirit of Excellence Academy or its designee in the amount of $85,351.97, to FEBC in the amount of $687,805.51; to Victim A in the amount of $10,000; and Victim B in the amount of $106,408.38.

SOUTHALL faces a maximum term of imprisonment of ten (10) years in prison, up to three years of supervised release, up to a $250,000 fine, and a $100 mandatory special assessment fee.  Sentencing before Judge Zainey has been scheduled for Jan. 17, 2023 at 10:00 am.

U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and United States Attorney’s Office, EDLA Forensic Accountant Josephine M. Beninati, CPA, CFE in this matter. Assistant United States Attorneys Jordan Ginsberg, Chief of the Public Corruption Unit, and Asset Forfeiture Coordinator Alexandra Giavotella are in charge of the prosecution.

NEW ORLEANS – U.S. Attorney Duane A. Evans announced today that the Department of Justice has awarded $134,999 to support the Project Safe Neighborhoods Program in the Eastern District of Louisiana. Funding will support community efforts to address the epidemic of gun crime and serious violence in the district. The grant, to the City of New Orleans, is one of a number of awards being made to state and local agencies across the country. Funds are administered by the Bureau of Justice Assistance, part of the Department’s Office of Justice Programs.

Launched two decades ago as an evidence-based and community-oriented response to serious gun crime, Project Safe Neighborhoods, known as PSN, is a key component of the Department’s Comprehensive Strategy for Reducing Violent Crime, outlined by Deputy Attorney General Monaco in May 2021. The PSN approach is guided by four key principles: fostering trust and legitimacy in our communities; supporting community-based organizations that help prevent violence from occurring in the first place; setting focused and strategic enforcement priorities; and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.

“Unfortunately, we continue to deal with the negative effects that violent crime brings to our communities,” said U.S. Attorney Evans.  “The announcement of this award highlights the steadfast commitment from the Department of Justice to give our state and local community partners the tools needed to enhance public safety and combat violent crime through programs that address an array of public safety initiatives.”

“Reducing violence and sustaining those reductions will require strong partnerships between criminal justice agencies and community stakeholders and a shared commitment to the safety and well-being of every community member,” said OJP Deputy Assistant Attorney General Maureen Henneberg. “The investments we are making through Project Safe Neighborhoods will enable every stakeholder to play a part in building safer and healthier communities.”

PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies and community organizations. The programs’ emphasis on community engagement, prevention and intervention measures, focused and strategic enforcement, and measurement and accountability has helped achieve overall reductions in violent crime, including gun homicides, in neighborhoods where PSN strategies have been implemented.

“Over its two-decade history, Project Safe Neighborhoods has evolved to meet the complex challenges of community violence by enlisting the insights and expertise of local partners and by relying on the latest evidence,” said BJA Director Karhlton F. Moore. “We are proud to support our U.S. Attorneys and their allies in their critical work to curb violent crime and build the mutual trust necessary to ensure lasting success.”

The awards announced above are being made as part of the regular end-of-fiscal year cycle. More information about awards under PSN and other OJP grants can be found on the OJP Grant Awards Page

The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law.  More information about OJP and its components can be found at  www.ojp.gov.

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NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that JOSE CASTRON MURCIA, age 22, a citizen of Honduras, was indicted on October 13, 2022 for illegally using a social security number belonging to another individual, in violation of Title 42, United States Code, Section 408(a)(7)(B).

The maximum penalty for the offense is five years imprisonment, followed by up to three years of supervised release, a fine of up to $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim, and a mandatory special assessment fee of one hundred dollars. 

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

U.S. Attorney Evans praised the work of the Department of Homeland Security in investigating this matter. Assistant United States Attorney Richard R. Pickens, II is in charge of the prosecution.

NEW ORLEANS – U.S. Attorney Duane A. Evans announced that LOUIS AGE JR., and AGE JR.’s son, LOUIS AGE III, a/k/a “Big Lou”, RONALD WILSON a/k/a “Tank”, and STANTON GUILLORY a/k/a “Nan-Nan”, all from New Orleans, were all sentenced yesterday by United States District Judge Barry W. Ashe to multiple terms of life imprisonment for their roles in the murder of a federal witness in a health care fraud case out of the Middle District of Louisiana.

In April 2022, LOUIS AGE JR., and AGE JR’s son, LOUIS AGE III, a/k/a “Big Lou”, RONALD WILSON a/k/a “Tank”, and STANTON GUILLORY a/k/a “Nan-Nan” were tried before a federal jury in New Orleans.  The trial lasted two weeks and included numerous witnesses.  The jury found all the defendants guilty of numerous crimes, including conspiracy to commit murder for hire, murder for hire, obstruction by murder, retaliation, and other related offenses. 

The evidence at trial established that AGE JR. pursued a plan, implemented by AGE III and WILSON, and carried out by GUILLORY, to murder a cooperating defendant in a massive health care fraud case being prosecuted out of the U.S. Attorney’s Office in Baton Rouge.  AGE JR. was ultimately convicted of the health care fraud and now stands convicted and sentenced to life in prison for his role in the murder for hire plot. 

Judge Ashe sentenced each of the defendants to life imprisonment without parole, which was the required sentenced under several of the statutes the defendants were convicted of violating. AGE JR. and AGE III received terms of 120 and 240 months on additional related counts.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter.  This case was prosecuted by Assistant United States Attorneys Elizabeth Privitera, David Haller, Brandon Long and Ted Carter.

NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today that on October 13, 2022, TEVIS STANTON, age 21, a resident of Orleans Parish, was charged in a four-count indictment for carjacking, drug, and weapons violations.  Count 1 of the indictment charges STANTON with a carjacking that occurred on March 22, 2022. Count 2 charges STANTON with using a firearm in furtherance of a crime of violence.   Count 3 of the indictment charges STANTON  with possession with intent to distribute cocaine and methamphetamine.  Finally, Count 4 of the indictment charges STANTON with possessing a firearm in furtherance of a drug trafficking offense. 

In Count 1 of the indictment, STANTON is charged with committing a carjacking, in violation of Title 18, United States Code, Section 2119(1).  If convicted, STANTON faces a maximum sentence of 15 years of imprisonment, a fine of up to $250,000.00, a period of up to 3 years of supervised release, and a mandatory special assessment fee of $100.00.  In Count 2, STANTON is charged with using a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A)(ii).  If convicted, STANTON faces a mandatory minimum sentence of 7 years up to a maximum of life imprisonment, to be run consecutive to any other sentence imposed, a fine of up to $250,000.00, a period of up to 5 years of supervised release, and a mandatory special assessment fee of $100.00. In Count 3 of the indictment, STANTON is charged with possession with the intent to distribute cocaine and methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C).  If convicted, STANTON faces a sentence of a maximum 20 years of imprisonment, a fine of up to $1,000,000.00, a period of at least 3 years of supervised release, and a mandatory special assessment fee of $100.00. Finally in Count 4, STANTON is charged with possessing a firearm in furtherance of a drug trafficking offense, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i).  If convicted, STANTON faces a mandatory minimum sentence of 5 years to life imprisonment, to be run consecutive to any other sentence imposed, a fine of up to $250,000.00, a period of up to 5 years supervised release, and a mandatory special assessment fee of $100.00. 

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

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

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department.  It is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.

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NEW ORLEANS - U.S. Attorney Duane A. Evans announced today that RAYCHAEL DEPLAND, age 33, of New Orleans, plead guilty today to Identity Theft, in violation of Title 18, United States Code, Section 1028(a)(7).

According to documents filed in federal court, DEPLAND, while working at University Medical Center in New Orleans as a patient access representative,  sent personal information of UMC patients to Acia Gray who, along with others, used this information in a check cashing scheme at Wal-Mart stores, primarily in Texas. Gray and other members of this check cashing scheme were charged and convicted of Conspiracy to Commit Wire Fraud in violation of Title 18, United States Code, Sections 1343 and 1349 in the United States District Court for the Eastern District of Texas, and Gray received a sentence of fifty-seven (57) months imprisonment.

DEPLAND faces a maximum penalty of five (5) years imprisonment, followed by up to three (3) years of supervised release, a fine up to $250,000.00, and a mandatory $100 special assessment fee.

Sentencing in this matter is scheduled for March 2, 2023 before Chief United States District Judge Nannette Jolivette Brown.

The U.S. Attorney’s Office would also like to acknowledge the assistance of the United States Department of Treasury, Inspector General for Tax Administration, in investigating this matter.  The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.

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NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced today that HERBERT ALLEN (“ALLEN”), age 37, and DION RIDLEY (“RIDLEY”), age 23, agreed to plead guilty to count one (1) of their indictment, charging Conspiracy to Commit Mail Fraud in violation of Title 18, United States Code, Section 371.  In pleading guilty, each defendant faces a maximum penalty of five (5) years’ imprisonment; a term of supervised release of up to three (3) years; and a fine up to $250,000.00, or the greater of twice the gross gain to the defendant or twice the gross loss to any person under Title 18, United States Code, Section 3571, as well as a mandatory special assessment fee of $100.00. Today’s guilty plea brings the total number of defendants convicted in Operation Sideswipe to 41.

As part of their plea, the defendants admitted to conspiring to commit mail fraud in connection with a staged automobile collision.  In the scheme, ALLEN falsely claimed that he was the driver of a car that was struck by a tractor-trailer on June 28, 2017. RIDLEY, a passenger in the car, falsely claimed that ALLEN was driving the car when they were struck by a tractor-trailer. In fact, the government’s evidence showed that the defendants conspired with Damien Labeaud (“Labeaud”), Roderick Hickman (“Hickman”), and others to intentionally collide ALLEN’s 2007 Chevrolet Impala with a tractor-trailer in the area of Tchoupitoulas Street and Calliope Street in New Orleans. Both defendants lied in civil depositions, falsely claiming that ALLEN was driving the car that collided with the tractor-trailer, when in fact Hickman was driving the car and intentionally hit the tractor-trailer. Both defendants hoped that, through their false statements, they would secure lucrative monetary settlements from the owner, driver, and insurer of the tractor-trailer.

Sentencing is set for both defendants on February 15, 2023, before United States District Judge Sarah S. Vance.

The U.S. Attorney’s Office would like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brandon S. Long; Brian M. Klebba, Chief of the Financial Crimes Unit; Assistant U.S. Attorney Maria M. Carboni; and Assistant U.S. Attorney Edward J. Rivera.

NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that JOSE GARCIA-NUNEZ, age 33, a citizen of Mexico, was sentenced on October 11, 2022 for illegally using a social security number belonging to another individual, in violation of Title 42, United States Code, Section 408(a)(7)(B). JOSE GARCIA-NUNEZ was sentenced by the Honorable Susie Morgan, U.S. District Judge, Eastern District of Louisiana, to serve one year of probation.

According to documents filed in federal court, JOSE GARCIA-NUNEZ used the social security number of another individual to secure employment and orientation training with a local company. 

U.S. Attorney Evans praised the work of the Department of Homeland Security in investigating this matter. Assistant United States Attorney Richard R. Pickens, II is in charge of the prosecution.

NEW ORLEANS - The U.S. Attorney’s Office for the Eastern District of Louisiana, announced that, ERIKA JAMES (“JAMES”), age 49, from New Orleans, Louisiana, pleaded guilty to one count of health care fraud on October 4, 2022.

According to court documents, JAMES was a Denial Specialist at Company 1, a Federally Qualified Health Center and AIDS Service Organization. From March 2020 through April 2021, JAMES created fraudulent invoices with falsified supporting documents, such as explanation of benefits documents from insurance companies. JAMES endorsed checks that were issued to patients that were in higher amounts than the usual range of the refund amount. JAMES made claims in the system that made it appear that patients came into Company 1 and paid out of pocket for services. JAMES would have the Finance Department issue the patient refund check, and would then deposit the refund check into her personal bank account.

JAMES filed additional claims with the Louisiana Health Access Program (“LAHAP”) in December 2020 and told LAHAP to mail the checks to her residence. The checks that were sent to JAMES’s residence were made out to Company 1. JAMES then proceeded to deposit those checks into her personal bank account.

JAMES faces a possible maximum sentence of ten years’ imprisonment, up to three years of supervised release, up to a $250,000 fine, and a mandatory $100 special assessment fee. Judge Sarah S. Vance set the sentencing hearing for January 25, 2023.

U.S. Attorney Evans praised the work of the United States Department of Health and Human Services – Office of Inspector General. Assistant U.S. Attorneys J. Ryan McLaren and Kathryn McHugh are in charge of the prosecution.

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NEW ORLEANS –  U.S. Attorney Duane A. Evans announced that DAJANAE DRAKE, age 29, from Missouri City, Texas, pleaded guilty on October 6, 2022, before United States District Judge Mary Ann Vial Lemmon to a one-count bill of information charging her with obstruction, attempted obstruction, and interference with the enforcement of the federal criminal sex trafficking statute, in violation of Title 18, United States Code, Section 1591(d). 

According to court documents, Person 1, then approximately sixteen years old, met Randi Lewis in about early 2020.  Lewis recruited Person 1,a female, to engage in commercial sex acts under his direction, and she complied.  In about June 2021, Lewis and Person 1 met the minor victim, who was thirteen years old, in the Houston, Texas area.  At Lewis’s direction, Person 1 recruited the victim to perform commercial sex acts, which would also be  under Lewis’s direction.  Thereafter, Lewis arranged for he, Person 1, and the minor victim to travel to New Orleans on a Greyhound bus for the purpose of his co-conspirator and the victim to engage in commercial sex acts.  Between June 22, 2021, and June 24, 2021, Person 1 and the minor victim performed multiple commercial sex acts in the New Orleans area.  On June 24, 2021, law enforcement authorities recovered the victim and arrested Person 1 and Lewis at a hotel in Terrytown, Louisiana.  Thereafter, Person 1 and Lewis were charged criminally and incarcerated. 

Between June 25, 2021, and about  November 28, 2021, DRAKE held numerous telephone conversations with Person 1 and Lewis, including several conversations during which DRAKE knowingly encouraged Person 1 to sign a false affidavit saying that Lewis played no role in recruiting and trafficking the minor victim.  DRAKE did so with the purpose of obstructing the enforcement of criminal law, including Title 18, United States Code, Section 1591. 

DRAKE faces a maximum term of twenty-five (25) years in prison, a fine of up to $250,000.00, up to five (5) years of supervised release after imprisonment, and a mandatory $100 special assessment fee per count.  Sentencing before Judge Lemmon has been scheduled for January 19, 2023.

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

U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the Jefferson Parish Sheriff’s Office in this matter.  Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.

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NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced on Wednesday, October 5, 2022, that TIJON RICHARDS, a/k/a “Tay,” age 31, a resident of New Orleans, Louisiana was sentenced in the Eastern District of Louisiana for his conduct related to violations of the Federal Gun Control Act.  RICHARDS pled guilty to Counts Two and Three of the indictment, charging him, respectively with possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Sections 924(c)(1)(A) and 924(c)(1)(A)(i) and possession of a firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).

United States District Court Judge Sarah S. Vance sentenced RICHARDS to 46 and 60 months, respectively as to Counts Two and Three.  Count Three will be served consecutive to Count Two.  Following his release, RICHARDS will be placed on supervised release for 5 years.  RICHARDS must also pay a mandatory special assessment fee of $200.00.

On September 16, 2020, RICHARDS fled from a  Louisiana State Police (“LSP”) trooper on Interstate 10 in Metairie, Louisiana, during a traffic stop.  During a search of RICHARDS vehicle, LSP located a loaded FN Herstal, 5.7x28 mm firearm and 2 grams of cocaine base under the driver’s seat where RICHARDS was seated.  RICHARDS made good on his escape, but was later arrested in January 2021.  While attempting to arrest RICHARDS at his New Orleans residence, agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives observed that an air conditioning vent inside of the home appeared to be distorted.  Upon removing the vent, a high- capacity rifle magazine fell to the floor.  Agents observed two firearms inside of the unit.

While executing a search warrant at the residence, agents located four additional firearms and ammunition inside of the residence.  RICHARDS, a convicted felon, is prohibited from possessing firearms and ammunition.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and  Louisiana State Police.  The case is being prosecuted by Assistant United States Attorney Brittany Reed of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.

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NEW ORLEANS – U.S. Attorney Duane A. Evans announced that WARREN PICARD, age 28, of New Orleans, was sentenced on October 5, 2022, by U.S. District Judge Lance M. Africk to a 96-month term of imprisonment.

According to court records, on June 29, 2022, PICARD pleaded guilty to a two-count superseding bill of information charging him with conspiracy to possess a firearm by a felon, in violation of 18 U.S.C. § 371, and misprision of felony, in violation of 18 U.S.C. § 4.  The sentence imposed consists of 60 months imprisonment as to the firearms violation and 36 months imprisonment for misprision of a felon, said terms of imprisonment to be served concurrently.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

United States Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Greg Kennedy prosecuted this case.

NEW ORLEANS –  U.S. Attorney Duane A. Evans announced that RANDY JONAL SCHENCK (a/k/a RuRu, a/k/a “Shaq”), age 41, a resident of New Orleans, Louisiana and Downey, California, was sentenced on October 6, 2022 by United States District Judge Barry W. Ashe after previously pleading guilty to Counts 1 and 7 of a pending indictment, charging him with interstate transportation and use of an interstate facility with intent to carry on unlawful activity, in violation of Title 18, United States Code, Sections 1952(a)(3) (Count 1), and wire fraud, in violation of Title 18, United States Code, Sections 1343 and 2 (Count 7).  Judge Ashe sentenced SCHENCK to 60 months in prison as to Count 1 and 240 months as to Count 7, to run consecutively, for a combined total of 300 months in prison.  Judge Ashe ordered that the sentence run consecutively to the sentences Schenck received in two prior proceedings in Fulton County, Georgia, and Cobb County, Georgia.  Judge Ashe ordered SCHENCK to serve three years of supervised release after the conclusion of his prison term and pay a mandatory $200 special assessment fee.  SCHENCK is also subject to a restitution order after a hearing scheduled for December 29, 2022, at 1:30 pm.

According to court documents, SCHENCK met Dominique Berry in New Orleans in about early 2013 and soon developed a romantic relationship.  Shortly thereafter, SCHENCK encouraged Berry to engage in commercial sex activities (i.e., prostitution) with individuals in the New Orleans, Louisiana area and became involved in the scheduling, coordination, and facilitation of Berry’s commercial sex acts.  SCHENCK typically kept all, or most, of the proceeds of the commercial sex acts.

Beginning in about March 2014, and continuing through September 2017, SCHENCK and Berry travelled nationally engaging in their prostitution enterprise, including through California, Louisiana, New Mexico, Texas, Arizona, Tennessee, and Georgia.  In furtherance of the enterprise, Berry regularly engaged in commercial sex acts on multiple days of nearly every week between about March 2014 and September 2017.  SCHENCK and Berry posted numerous advertisements containing photographs of Berry on multiple location-specific online classified ad service websites and social media applications in that invited interested individuals to contact Berry to schedule sexual interactions, many of which were explicitly commercial. 

Beginning in about 2015, the prostitution enterprise evolved to include a scheme to defraud, whereby SCHENCK caused Berry to arrange “out call” interactions at the residences of men who met her through online postings.  While at those residences, Berry placed substances in the beverages of the men for the purpose of “spiking” their drinks and rendering them unconscious.  Berry then took items of value from the incapacitated men, including jewelry, firearms, electronics, cash, and debit and credit cards.  SCHENCK and Berry used the items, without the knowledge or authorization of the people to whom the items belonged, for their benefit and the benefit of individuals associated with them.  SCHENCK and Berry implemented the scheme numerous times throughout the United States.

In sentencing SCHENCK, Judge Ashe found that he utilized force, threats of force, fraud, and coercion in initially recruiting Berry to work for him and to keep her compliant and under his control.  Also, the Court heard substantial evidence of numerous acts of violence that SCHENCK committed against Berry and her family members, as well as threats to commit additional violent acts in the future, particularly after she attempted to leave his control or otherwise disobeyed his instructions.  At least one of the instances resulted in Berry’s hospitalization. 

In furtherance of the scheme, on about February 24, 2017, Berry met S.A., a resident of Metairie, Louisiana, through a social media application.  After exchanging text messages and phone calls, Berry and S.A. agreed to meet at S.A.’s apartment.  SCHENCK dropped Berry off at S.A.’s apartment. While at S.A.’s apartment, Berry, as directed by SCHENCK provided S.A. with various substances, including alcohol, to loosen S.A.’s inhibitions and to render him more susceptible to theft.  After S.A. became incapacitated, Berry stole S.A.’s personal property, including a debit card.  SCHENCK picked up Berry at approximately 1:00 am and then used S.A.’s debit card, later that day, without S.A.’s authorization, to make a purchase at a Walmart Supercenter in New Orleans.  Law enforcement authorities performed a wellness check on S.A.’s apartment the following day and found S.A. deceased.

U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter and expressed appreciation for the support provided by numerous law enforcement agencies and private entities involved in the investigation, including the Jefferson Parish District Attorney’s Office, the Jefferson Parish Sheriff’s Office, the Tucson (Arizona) Police Department, the Salt River (Arizona) Police Department, the Cobb County (Georgia) Police Department, the Sandy Springs (Georgia) Police Department, the Sacramento (California) Police Department, and Talking Stick Casino (Arizona).  Assistant United States Attorneys Jordan Ginsberg, chief of the Public Corruption Unit, and Melissa Bücher are in charge of the prosecution.

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NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that ROBERT JOHN, age 46, from St. Bernard Parish, Louisiana, pled guilty on to conspiring to commit student aid fraud.

According to court documents, JOHN conspired with others to submit fraudulent applications for student loans and grants to two local community colleges, using the names of seven different applicants. In total, the Department of Education paid over $74,000 in loan and grant funds in connection with the fraudulent applications. The applications contained false information for all applicants, and several of the applicants did not even qualify for community college because they had not graduated high school or obtained GEDs.

JOHN faces up to five years in prison, up to three years of supervised release, a fine of up to $250,000 or twice the gross gain to JOHN or the gross loss to any victims, as well as a mandatory $100 special assessment fee per count. Under the terms of the plea agreement, JOHN agreed to pay back $74,576.10 to the Department of Education as restitution. Judge Lance M. Africk set the sentencing hearing for January 11, 2023.

U.S. Attorney Evans praised the work of the Department of Education Office of Inspector General and the United States Postal Inspection Service. Assistant United States Attorney Nicholas D. Moses is in charge of the prosecution.

NEW ORLEANS, LOUISIANA – JACOB BANKS, age 32, of New Orleans, pleaded guilty on October 5, 2022 before United States District Judge Lance M. Africk to violating the Federal Gun Control Act and the Federal Controlled Substances Act, announced U.S. Attorney Duane A. Evans. 

According to the court documents, BANKS possessed a Springfield Arms .45 caliber pistol after he had already been convicted of several felony offenses.  BANKS also admitted to possessing crack cocaine with the intent to distribute it and that he possessed the firearm in furtherance of his drug trafficking activity.

BANKS pleaded guilty to 3 Charges.   BANKS faces a sentence of up to 10 years imprisonment, a fine of up to $250,000 and up to three years of supervised release following any term of imprisonment on the felon in possession of a firearm charge.  He faces an additional penalty on the drug count of 0-20 years in prison, a fine of up to $1,000,000, and at least three years of supervised release.  On the additional gun charge, BANKS faces a mandatory minimum sentence of at least five years up to life that must run consecutive to any other term of imprisonment, a fine of up to $250,000, and up to five years of supervised release. Finally, for each count to which he pled guilty , Banks faces payment of a mandatory special assessment fee of $100.  Sentencing is set for January 11, 2023.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

This case was investigated by the New Orleans Police Department and the Federal Bureau of Investigation.  The prosecution is being handled by Assistant United States Attorney David Haller.

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