Eastern District of Louisiana

NEW ORLEANS— U.S. Attorney Peter G. Strasser recognizes the service and sacrifice of federal, state, and local police officers on the occasion of Law Enforcement Appreciation Day (LEAD), which is being observed on January 9, 2021. Law Enforcement Appreciation Day was established in 2015.

U.S. Attorney Strasser said, “During Law Enforcement Appreciation Day, I encourage the nation to celebrate the selfless contributions from our brave men and women in law enforcement from around the country, and especially in the Eastern District of Louisiana, by recognizing their hard work, dedication, loyalty and commitment in keeping our communities safe.  As the United States Attorney for the Eastern District of Louisiana, I want to acknowledge the work performed by federal, state, and local law enforcement and the choice made by them to protect and serve with full knowledge that they could one day find themselves facing dangerous situations.  We want them and their families to know they have our unwavering support and appreciation. I encourage us as a community to take some time to reflect and honor the fallen and also continue to support those who continue to dutifully serve the public.”

NEW ORLEANS, LOUISIANA - United States Attorney Peter G. Strasser announced that VINCENT FELIX RIVERE, age 47, and MEGAN LYNN SHOEMAKER, age 35, former residents of Springfield, Louisiana, were charged on December 30, 2020 in a bill of information with selling Louisiana box turtles on July 13, 2017.

If convicted, they face a maximum term of imprisonment of not more than five years, not more than three years of supervised release, a fine of $250,000.00, and a: mandatory special assessment of $100.00.

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

U.S. Attorney Strasser praised the work of the United States Fish and Wildlife Service ininvestigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.

                                                                                                                                                                                                    *  *  *

NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announces that ERIK MARTIN, aged 48, pleaded guilty on Tuesday, December 29, 2020, to a Bill of Information charging him with Conspiracy to Commit Bribery, in violation of Title 18, United States Code, Sections 371 and 201(b)(2). MARTIN faces up to five years imprisonment, followed by three years of supervised release, a $250,000 fine, and a mandatory special assessment of $100.  Sentencing is set for April 27, 2021, in front of the Honorable Judge Wendy B. Vitter.

According to the Factual Basis, in 2019, MARTIN was a civilian employee of the United States Marines Corps Marine Forces Reserve (MARFORRES) Distribution Management Office (DMO), located in New Orleans, Louisiana. Darrel Fitzpatrick was a Senior National Account Manager at Company A, a bus brokerage company based in Atlanta, Georgia.  MARTIN accepted bribes in exchange for directing transportation contracts to businesses associated with Darrel Fitzpatrick.

The conspiracy resulted in at least $1.9 million in transportation contracts being corruptly awarded to companies associated with Fitzpatrick.  In exchange for steering contracts to Fitzpatrick, MARTIN agreed to accept $250,000 in bribes.

U. S. Attorney Strasser praised the work of the Defense Criminal Investigative Service (DCIS), the Naval Criminal Investigative Service (NCIS), and the United States Secret Service for their investigation in this case. The prosecution is being handled by Assistant United States Attorney Myles Ranier.

*    *    *

NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that Darrel Fitzpatrick, aged 30, has been charged by a Bill of Information with Conspiracy to Commit Bribery, in violation of Title 18, United States Code, Sections 371 and 201(b)(1). If convicted, Fitzpatrick faces up to five years imprisonment, followed by three years of supervised release, a $250,000 fine, and a mandatory special assessment of $100.

According to the Bill of Information, in 2019 Darrel Fitzpatrick was a senior account manager at Company A, a bus brokerage company that provided transportation to the United States Marine Corps Reserves.  That same year, Fitzpatrick started a competing transportation brokerage company called National Charter Express.

In 2019, Fitzpatrick agreed to pay kickbacks to Erik Martin, a civilian employee of the United States Marine Corps Reserves, in exchange for Martin directing business to Company A, and then later, National Charter Express.

The conspiracy resulted in at least $1,900,000 in transportation contracts being corruptly awarded to companies associated with Fitzpatrick.  In exchange for steering contracts to Fitzpatrick, Martin agreed to accept over $250,000 in bribes.

U. S. Attorney Strasser praised the work of the Defense Criminal Investigative Service (DCIS), the Naval Criminal Investigative Service (NCIS), and the United States Secret Service for their investigation in this case. The prosecution is being handled by Assistant United States Attorney Myles Ranier.

U. S. Attorney Strasser stated that a Bill of Information is only an allegation, and that the defendant is presumed innocent until he pleads guilty or is found guilty by a jury or judge.

NEW ORLEANS –  U.S. Attorney Peter G. Strasser announced that BRANDON WARD, age 33, a resident of Covington, Louisiana, pleaded guilty as charged before United States District Judge Eldon E. Fallon to a one-count Indictment charging him with distribution of images and videos depicting the sexual exploitation of children, including children as young as less than one (1) year old, in violation of 18 U.S.C. ' 2252(a)(2).

According to court documents, in about October 2019, a special agent with the Federal Bureau of Investigation operating in an undercover capacity, accessed a chat room within an instant messaging mobile application known to be a haven for purveyors of digital files depicting the sexual victimization of children.  Between September 29, 2019, and October 13, 2019, an individual subsequently determined to be WARD posted over two dozen links to online file storage service accounts.  Each link contained hundreds of videos depicting pre-pubescent children engaging in sexually explicit conduct with adults.  In total, WARD uploaded to the accounts at least 47,000 files depicting the sexual victimization of children as young as one year old.

Additionally, a second FBI special agent acting in an undercover capacity participated in direct communication with WARD via Skype, phone, and text message.  In the conversations, WARD claimed he had been in contact with an 8-year-old female (Minor 1) who had a crush on him.  WARD sent non-sexually explicit pictures he took of Minor 1 to the undercover agent.   WARD also instructed the undercover agent, who claimed to be babysitting a six-year-old female, to engage in sexually explicit conduct with the child while WARD watched via Skype.

WARD faces a mandatory minimum term of imprisonment of five (5) years and a maximum term of imprisonment of twenty (20) years, followed by up to a lifetime of supervised release, and a $250,000 fine.  He can also be required to register as a sex offender.  Sentencing before Judge Fallon has been scheduled for March 18, 2021, at 2:00 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 Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

U.S. Attorney Strasser 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.

NEW ORLEANS - United States Attorney Peter G. Strasser announced that VALERIE YOREL MANSON (“MANSON”), age 51, of New Orleans, Louisiana, pled guilty to one count of Theft of Government Funds, in violation of Title 18, United States Code, Section 641.

According to the Bill of Information, beginning in 2010 and continuing through 2016, MANSON collected Social Security Administration benefits of approximately $700 per month paid to an account held in the name of a deceased relative. Accordingly, MANSON fraudulently received approximately $69,000.00 in Social Security Administration benefits in which she was not entitled.

MANSON faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment.

U.S. Attorney Strasser praised the work of the Social Security Administration, Office of Inspector General.  The prosecution of this case is being handled by Assistant U.S. Attorney Kathryn McHugh.

NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that ANTHONY ROBINSON (“A. ROBINSON”), age 67; AUDREY HARRIS (“HARRIS”), age 53; JERRY SCHAFFER (“SCHAFFER”), age 66; and KEISHIRA ROBINSON (“K. ROBINSON”), age 26, of New Orleans, Louisiana entered a plea of guilty today to Conspiracy to Commit Mail Fraud, in violation of Title 18, United States Code, Section 371, arising out of their involvement in a staged automobile accident that occurred on October 13, 2015.   

According to today’s guilty plea, A. ROBINSON, HARRIS, SCHAFFER, and K. ROBINSON intentionally collided with a tractor-trailer in the area of Alvar Street and France Road in New Orleans. Roderick Hickman (“Hickman”), who pled guilty to a previous indictment charging him and 10 others with staging automobile accidents, was driving A. ROBINSON’s vehicle at the time of this accident. Hickman intentionally struck a tractor-trailer owned and operated by C.R. England, and then was picked up from the collision site by Damian Labeaud (“Labeaud”), who has also pled guilty to a previous indictment as part of this investigation. After the accident, A. ROBINSON, who had been in Labeaud’s vehicle at the time of the accident, then got behind the wheel of his own vehicle to make it appear that he had been driving at the time of the staged accident. A. ROBINSON falsely reported to the NOPD that he had been driving and that the tractor-trailer had struck his vehicle.

 According to documents filed in federal court, all four defendants were referred to an attorney who paid Labeaud for staging this accident, among others. All of the defendants were treated by doctors and healthcare providers at the direction of their attorneys, and A. ROBINSON, HARRIS, and SCHAFFER underwent surgeries. In total, in July 2019, the victim trucking and insurance company paid out approximately $4.7 million for the fraudulent claims associated with this staged accident.         

Today’s guilty pleas bring the total number of defendants who have tendered guilty pleas in this federal probe into the staging of accidents with tractor-trailers to fifteen (15). A total of thirty-three (33) defendants, including one personal injury attorney, have been charged thus far.

A. ROBINSON, HARRIS, SCHAFFER, and K. ROBINSON face a maximum sentence of five (5) years imprisonment, a fine of $250,000.00 or 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 and a mandatory special assessment of $100.00. After any term of imprisonment that may be imposed, A. ROBINSON, HARRIS, SCHAFFER, and K. ROBINSON also face a term of supervised release of up to (3) three years.

Sentencing in this matter is scheduled for March 31, 2021 at 2:00 pm, before U.S. District Judge Ivan L.R. Lemelle.

The U.S. Attorney’s Office would also 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 Shirin Hakimzadeh, Brian M. Klebba, Supervisor of the Financial Crimes Unit, Assistant U.S. Attorney Maria Carboni, and Assistant U.S. Attorney Edward Rivera.

NEW ORLEANS – United States Attorney Peter G. Strasser announced that, DONALD PETER AUZINE, JR. (AUZINE), age 50, a resident of Baton Rouge, Louisiana, and BONNIE JEAN LAWLESS DIAZ (DIAZ), age 45, a resident of Slidell, Louisiana, were charged on December 11, 2020 with conspiracy to commit health care fraud and money laundering.

According to the Indictment, Prime Pharmacy Solutions (“Prime”), was located in Slidell, Louisiana.  Prime operated as a primarily closed-door pharmacy that was in the business of mixing and filling prescriptions for compounded medications that were reimbursed by health care benefit programs, including TRICARE, a health care benefit program for United States military personnel and their families. 

Between 2014 – 2016, AUZINE, DIAZ, and other co-conspirators, acting on behalf of Prime, selected formulas for compounded medications, not based on scientific evaluations of effectiveness or individualized patient need, but rather, to maximize reimbursement from TRICARE and other health care benefit programs. Prime then mass produced these High-Yield Compounded Medications and created a series of preprinted prescription forms encouraging and directing prescribers/doctors to prescribe these High-Yield Compounded Medications. The scheme involved defrauding TRICARE of approximately $16 million dollars.

If convicted, each defendant faces a possible maximum sentence of ten years’ imprisonment, up to three years of supervised release, a $250,000 fine, and a mandatory $100 special assessment fee per count.

The case is being investigated by the Defense Criminal Investigative Service – Office of Inspector General, the Department of Homeland Security, the Department of Veterans Affairs – Office of Inspector General, and the United States Postal Service – Office of Inspector General. 

The United States Attorney’s Office, Eastern District of Louisiana stated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.  The prosecution of the case is being handled by Assistant U.S. Attorney Kathryn McHugh.

NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser and Makan Delrahim, Assistant Attorney General for the Antitrust Division of the Department of Justice, announced that CAJAN WELDING & RENTALS, LTD., a company located in Opelousas, Louisiana, was sentenced by United States District Judge Greg G. Guidry after previously pleading guilty to one count of conspiracy to defraud the United States and to violate the Procurement Integrity Act, in violation of 18 U.S.C. § 371.

According to the plea agreement, CAJAN WELDING & RENTALS, LTD. conspired with unnamed co-conspirators to defraud the United States by corrupting and impairing the government procurement process, and by obtaining non-public pricing and cost information in order to obtain subcontract awards and payments from the U.S. Department of Energy in connection with its operation of the nation’s Strategic Petroleum Reserve. 

Judge Guidry sentenced CAJAN WELDING & RENTALS, LTD. to a criminal fine of $400,000 and a mandatory special assessment fee of $400.

“Fraud against the U.S. government, regardless of its scope and means of orchestration, is a serious crime. Especially egregious is fraud that undermines the government procurement processes, which erodes public trust,” said U.S. Attorney of the Eastern District of Louisiana Peter G. Strasser.  “It is imperative that fair bidding procedures are preserved.  This sentencing sends a clear message that our office will vigorously investigate and prosecute all such corruption cases.

“The investigation and prosecution of organizations that cheat, collude, and seek to undermine the integrity of government procurement remain priorities for the division,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division.  “The division is dedicated to protecting the public purse from conspiracies that rob taxpayers and critical federal programs — like the Strategic Petroleum Reserve — of the benefits of competition.”

The case is the result of a federal investigation being conducted by the United States Attorney’s Office in the Eastern District of Louisiana, the Department of Justice Antitrust Division’s Washington Criminal II Section, and the Department of Energy’s Office of the Inspector General.

                                                                                                                                                        *   *   *

NEW ORLEANS, LOUISIANA – JOSHUA HOCKLESS, age 29, a resident of Belle Chasse, was charged on December 11, 2020 with one count of bank fraud in violation of Title 18, United States Code, Section 1344, announced U.S. Attorney Peter G. Strasser. If convicted, HOCKLESS faces maximum penalties of 30 years imprisonment, a $1,000,000 fine, 5 years of supervised release, and a $100 special assessment.

According to the bill of information, between October 2013 and July 2014, HOCKLESS executed a scheme to fraudulently obtain approximately $87,489.34 from USAA Bank by taking advantage of USAA’s policy of honoring checks and cash transfers of enlisted personnel before the funds cleared the issuing bank. To that end, HOCKLESS opened, and caused to be opened, accounts at third-party banks. HOCKLESS used these accounts to make online transfers of cash to USAA even though the third-party bank accounts contained insufficient funds to cover the transfers. HOCKLESS then withdrew or caused these funds to be withdrawn from USAA before the fund transfers cleared the issuing bank.

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

U.S. Attorney Strasser praised the work of the Army Criminal Investigations Command. The prosecution of this case is being handled by Assistant U. S. Attorney G. Dall Kammer, Supervisor of the General Crimes Unit.

                                                                                                                                                               *   *   *

NEW ORLEANS – United States Attorney Peter G. Strasser announced that JAMIE MARIE KILLIAN (“KILLIAN”), age 40, of Chalmette, Louisiana, was indicted on December 11, 2020 by a federal grand jury for theft of government funds, in violation of Title 18, United States Code, Section 641.

According to today’s indictment, beginning in or about August 2013, and continuing until in or about June 2020, in the Eastern District of Louisiana and elsewhere, the defendant, JAMIE MARIE KILLIAN, did knowingly embezzle, steal, purloin, and convert to her use, money belonging to the United States and a department and agency thereof, namely, money of the Social Security Administration, to which she knew she was not entitled, when she utilized approximately $99,940.00 in Social Security Administration funds.

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

If convicted, KILLIAN faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment.

The U.S. Attorney’s Office would also like to acknowledge the assistance of the Social Security Administration, Office of the Inspector General with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.

NEW ORLEANS –  U.S. Attorney Peter G. Strasser announced that on December 9, 2020, MUSA FATTY, age 35, of Westwego, was sentenced by United States District Judge Lance M. Africk after previously pleading guilty to conspiracy to export stolen motor vehicles and criminal contempt. 

Specifically, FATTY previously pled guilty to one count of conspiracy to export motor vehicles, in violation of 18 U.S.C. §§ 553(a)(1) and 371; and one count of criminal contempt, in violation of 18 U.S.C. § 401(3). 

According to court records, FATTY and others conspired to export motor vehicles to The Gambia.  In addition, while on bond in this case, FATTY failed to surrender his passport, as required, and traveled out of the United States without permission, in violation of the conditions of his bond.

In total, Judge Africk sentenced FATTY to time served, 3 years of supervised release, and a $200 special assessment. 

U.S. Attorney Strasser praised the work of the Department of Homeland Security, Homeland Security Investigations in investigating this matter.  Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.

                                                                                                                                                                                                                                                                  *   *   *

NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that PENNY JOHNSON, age 52, a former resident of Avondale, Louisiana, who now lives in Mississippi, was sentenced on December 9, 2020 to three (3) years of probation for conspiracy to commit mail fraud by United States District Court Judge for the Eastern District of Louisiana Sarah S. Vance.  

According to the charging document, JOHNSON participated in a “work at home” re-shipping scam wherein internet fraudsters would direct items purchased from sellers such as eBay to JOHNSON’s residence. As part of the scheme, JOHNSON would then inspect the contents and re-ship the mail and other packages to the fraudsters. Prior to the Indictment, JOHNSON had been advised by United States Postal inspectors that she was facilitating a fraud upon eBay and other online customers, but she persisted. JOHNSON went on to make false statements to the inspectors when she was later questioned after the first warning.  The stolen/diverted mail included items such as a paintball gun, a drone, two Dyson vacuum cleaners, women’s shoes, two Apple Air Mac books, and a smart phone.

In addition to probation, JOHNSON was ordered to pay a $100 mandatory assessment.  

U.S. Attorney Strasser praised the work of the United States Postal Inspection Service for their investigation of the matter.  Assistant U.S. Attorney Edward J. Rivera is in charge of the prosecution.

                                                                                                                                                                                                                 *   *   *

NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that KELLY GAUTHIER, age 49, a resident of Covington, Louisiana, pleaded guilty on December 9, 2020 to one count of Theft of Government Funds in violation of Title 18, United States Code, Section 641. According to the Bill of Information to which GAUTHIER pled guilty, she filed an application with the Department of Homeland Security Federal Emergency Management Agency (FEMA) on or about March 14, 2016, following severe storms and flooding across Louisiana. GAUTHIER claimed that she needed assistance due to her ownership and occupancy of a home where she was living. In order to show her purported ownership of the home, GAUTHIER submitted fraudulent supporting documentation. GAUTHIER was issued a total of $29,075.56 in FEMA assistance, including assistance for home repairs, rental assistance, transportation, and personal property.

GAUTHIER faces a maximum sentence of ten years imprisonment, a fine of up to $250,000, up to three years of supervised release following any term of imprisonment, and a $100 mandatory special assessment. GAUTHIER’s sentencing hearing is scheduled before the Honorable U.S. District Judge Martin L.C. Feldman on March 10, 2021.

U.S. Attorney Peter G. Strasser praised the work of the Department of Homeland Security, Office of Inspector General, for its work in investigating this case. The case is being prosecuted by Assistant United States Attorney Shirin Hakimzadeh.

*      *      *

NEW ORLEANS –  U.S. Attorney Peter G. Strasser announced that COLBI TRENT DEFIORE, age 27, a resident of Carriere, Mississippi, was sentenced to 42 months imprisonment, 3 years of supervised release and payment of a $100 special assessment fee by United States District Judge Jay A. Zainey after previously pleading guilty to a one-count indictment with intentionally accessing a protected computer in excess of authorization for the purpose of commercial advantage and private financial gain, and in furtherance of the commission of a felony, in violation of 18 U.S.C. ' 1030(a)(2)(C).  Judge Zainey scheduled a hearing to determine the amount of restitution DEFIORE must repay for January 12, 2021.

According to court documents, DEFIORE worked as a seasonal employee for Company A, a Virginia-based company in the technology sector that supported the Centers for Medicare & Medicaid Services (CMS) by operating contact centers to assist with, among other things, Medicare enrollment.  One of the centers, at which DEFIORE worked, was located in Bogalusa, Louisiana.  Company A took a series of security measures to protects consumers’ PII and supervise its employees, including requiring all employees, including DEFIORE, to undergo training on how to handle consumers’ personal identifying information (PII) appropriately. 

On numerous occasions in November 2018, DEFIORE accessed and obtained without authorization, the personal identifying information of more than 8,000 individuals by improperly accessing the healthcare.gov database.  DEFIORE did so for the purpose of his private financial gain and in furtherance of criminal acts, including wire fraud.

Specifically, DEFIORE conducted “bulk searches” of the database, which he was prohibited from doing, and was able to view the personal information of healthcare.gov customers.  DEFIORE then copied the results of his searches onto a virtual clipboard and sent them to himself via email.  After work hours, DEFIORE accessed Company A’s network remotely without authorization to retrieve his work email.  DEFIORE used the personal information of at least five consumers to apply fraudulently for at least six credit cards, loans, and lines of credit for his personal benefit.  In total, DEFIORE’S conduct caused reasonably foreseeable loss to the companies that operated the call center, including costs associated with responding to the offense, conducting a damage assessment, responding to and remediating damage, contacting consumers who were potential victims, and providing theft protection services for consumer-victims, in the amount of $587,000.

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

                                                                                                                                                                                                                                                                                                 *   *   *

NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that ARNULFO FERRERA-ARRAZOLA, age 35, a citizen of Honduras, pleaded guilty on December 8, 2020 before U.S. District Court Judge Wendy B. Vitter today to a one-count indictment for illegal reentry of a removed alien, previously convicted of an aggravated felony.

According to court documents, on or about February 13, 2020, ARNULFO FERRERA-ARRAZOLA was found in the United States after having been officially deported and removed on April 29, 2009. ARNULFO FERRERA-ARRAZOLA was previously convicted on or about December 27, 2007 of an aggravated felony.  

ARNULFO FERRERA-ARRAZOLA faces a maximum term of imprisonment of twenty years, a fine of up to $250,000.00, three years supervised release after imprisonment, and a $100 special assessment. Sentencing is scheduled for February 9, 2020 before U.S. District Court Judge Vitter.

U.S. Attorney Strasser praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter.  Assistant United States Attorney Julia K. Evans is in charge of the prosecution.

                                                                                                                                                                                                                       *   *   *

The Justice Department announced today that it has opened a statewide civil investigation into Louisiana’s prisoner release practices.

The investigation will examine the Louisiana Department of Public Safety and Corrections’ policies and practices for ensuring the timely release of state prisoners in the custody of the Louisiana Department of Corrections who are incarcerated in state and local correctional facilities, including practices related to prisoners who are eligible for immediate release.

The department has not reached any conclusions regarding the allegations in this matter. The investigation will be conducted under the Civil Rights of Institutionalized Persons Act (CRIPA). Under CRIPA, the Department has the authority to investigate violations of prisoners’ constitutional rights that result from a “pattern or practice of resistance to the full enjoyment of such rights.” The department has conducted CRIPA investigations of many correctional systems, and where violations have been found, the resulting settlement agreements have led to important reforms.

The Civil Rights Division’s Special Litigation Section is conducting this investigation jointly with the U.S. Attorney’s Offices for the Eastern, Middle, and Western Districts of Louisiana. Individuals with relevant information are encouraged to contact the department via phone at 1-833-492-0097 or by email at community.louisianadoc@usdoj.gov.

Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.

# # #

The Justice Department announced today that it has opened a statewide civil investigation into Louisiana’s prisoner release practices.

The investigation will examine the Louisiana Department of Public Safety and Corrections’ policies and practices for ensuring the timely release of state prisoners in the custody of the Louisiana Department of Corrections who are incarcerated in state and local correctional facilities, including practices related to prisoners who are eligible for immediate release.

The department has not reached any conclusions regarding the allegations in this matter. The investigation will be conducted under the Civil Rights of Institutionalized Persons Act (CRIPA). Under CRIPA, the Department has the authority to investigate violations of prisoners’ constitutional rights that result from a “pattern or practice of resistance to the full enjoyment of such rights.” The department has conducted CRIPA investigations of many correctional systems, and where violations have been found, the resulting settlement agreements have led to important reforms.

The Civil Rights Division’s Special Litigation Section is conducting this investigation jointly with the U.S. Attorney’s Offices for the Eastern, Middle, and Western Districts of Louisiana. Individuals with relevant information are encouraged to contact the department via phone at 1-833-492-0097 or by email at community.louisianadoc@usdoj.gov.

Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.

NEW ORLEANS, LOUISIANA – HARRIS HENDERSON, age 44, a resident of Houma, Louisiana, pled guilty today before United States District Judge Carl J. Barbier to a one-count indictment charging him with distributing five grams or more of methamphetamine, announced U.S. Attorney Peter G. Strasser.

According to court records, in January 2018, a confidential source (CS) informed agents of the Drug Enforcement Administration and the Terrebonne Parish Narcotics Task Force that HENDERSON sold methamphetamine in the Terrebonne Parish area. On February 7, 2018, agents used the confidential source to make a controlled purchase of approximately two ounces of methamphetamine from HENDERSON in Schriever, Louisiana.

HENDERSON faces a mandatory minimum term of imprisonment of five years and a maximum of forty years’ imprisonment, a fine of up to $5,000,000.00, at least four years of supervised release following any term of imprisonment and a $100.00 special assessment fee.

This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF).  OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets. 

This case was investigated by the Drug Enforcement Administration, Office of Homeland Security Investigations, Terrebonne Parish Sheriff’s Office, and the Lafourche Parish Sheriff’s Office.  The prosecution is being handled by Assistant United States Attorney André Jones.

WASHINGTON – Pacific Carriers Limited (PCL), a Singapore-based company that owns subsidiaries engaged in international shipping, was sentenced today in federal court before U.S. District Court Judge Louise Flanagan in New Bern, North Carolina, after pleading guilty to violations of the Act to Prevent Pollution from Ships, obstruction of justice, and for a failure to notify the U.S. Coast Guard of a hazardous condition on the Motor Vessel (M/V) Pac Antares.

PCL pleaded guilty to a total of eight felony offenses across three judicial districts – the Eastern District of North Carolina, the Southern District of Texas, and the Eastern District of Louisiana.  PCL was sentenced to pay a fine of $12,000,000.00, placed on probation for a period of four years, and ordered to implement a comprehensive Environmental Compliance Plan as a special condition of probation.

In pleading guilty, PCL admitted that crew members onboard the M/V Pac Antares, a 20,471 gross-ton, 586-foot ocean-going commercial bulk carrier, knowingly failed to record in the vessel’s oil record book the overboard discharge of oily bilge water and oil waste without the use of required pollution-prevention equipment, from approximately April 2019 until the vessel arrived in Morehead City, North Carolina, on Sept. 29, 2019.  PCL also admitted that the crew discharged oily garbage and plastic overboard and falsified the garbage record book.

PCL also admitted that a large space along the keel of the vessel, known as the duct keel, was being used to store oily waste which constituted a hazardous condition under the Ports and Waterways Safety Act and it should have been immediately reported to the U.S. Coast Guard Sector North Carolina.  The Chief Engineer, Wenguang Ye, pleaded guilty to falsifying the oil record book, and was sentenced to a fine of $5,500 and banned from entering the United States for one year after choosing to cooperate in the investigation.  In 2008, the M/V Pac Antares was involved in another prosecution in Wilmington, North Carolina, for concealing the overboard discharge of oily bilge water and assessed a total criminal penalty of $2,100,000. 

“This kind of deliberate evasion of our pollution control laws will not be tolerated,” said Principal Deputy Assistant Attorney General Jonathan Brightbill of the Justice Department’s Environment and Natural Resources Division.  “The Environmental Crimes Section proudly works hand-in-hand with U.S. Attorneys Offices and law enforcement partners around the country to investigate and prosecute the intentional violation of our laws that protect our oceans by commercial ship owners, operators, and personnel.  It’s also essential that we demand the safe operation of ships in our ports.”

“The defendants in this case knowingly, intentionally and illegally discharged oily waste and other garbage into the waters along the North Carolina coast,” said U.S. Attorney Robert J. Higdon Jr. of the Eastern District of North Carolina.  “That coastline is among the great natural treasures of this country and we are committed to its protection.  To that end we will hold companies and individuals responsible when they fail to follow federal law designed to protect these valuable resources.”

“U.S. Attorneys all over the country work together enforcing federal laws,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas.  “Some laws, like environmental crimes, can impact multiple districts at the same time.  Foreign ships, because of corruption, incompetence or parsimony that dump their sewage or oil bilge in our waters will be held accountable.  The Houston ship channel is a vital engine to the world’s economy and it requires all vessels to respect our laws if they want access to our port.”

“Safeguarding the environment is one of the highest priorities for the Department of Justice,” said U.S. Attorney Peter G. Strasser for the Eastern District of Louisiana.  “The U.S. Attorney’s Office is committed to continue working with its federal partners to investigate and hold entities accountable when they neglect their professional and legal obligations and threaten the environment, which places the public and the ecosystem in Southeastern Louisiana at risk.”

“The Coast Guard remains dedicated to preserving the marine environment and protecting our living marine resources,” said Rear Adm. Laura Dickey, Coast Guard Fifth District Commander.  “The results of this case showcase the commitment and meticulous efforts of our marine safety professionals, pollution responders and Coast Guard agents in North Carolina, and the great partnership we share with the Department of Justice.”

According to the plea agreement, PCL is the parent company of two other companies that owned and operated the M/V Pac Antares.  On Sept. 29, 2019, the M/V Pac Antares arrived in Morehead City, North Carolina.  A crewmember walked off the ship and informed a Customs and Border Protection officer that he had information about illegal discharges that had taken place on the vessel.  The U.S. Coast Guard was sent that information and conducted an inspection and examination.  Examiners discovered and seized a large trove of evidence that oily waste and garbage had been discharged from the vessel to include a configuration of drums, flexible hoses and flanges to bypass the vessel’s oily water separator. 

Examiners also discovered that oily waste had been discharged through a laundry sink which subsequently discharged directly overboard or through the vessel’s sewage system.  Examiners discovered the sewage system was contaminated with oil.  Crewmembers also admitted that bags filled with oily rags were thrown over the side of the ship.  These discharges were knowingly not recorded in the M/V Pac Antares’s oil record book and garbage record book when they were presented to the U.S. Coast Guard during the vessel’s inspection.  The examiners also found over 60,000 gallons of oily water being stored in the “duct keel” which took several days and a third-party contractor to properly clean out.

Senior Trial Attorney Kenneth Nelson of the Environment and Natural Resources Division’s Environmental Crimes Section, with the assistance of Assistant U.S. Attorney Banumathi Rangarajan of the Eastern District of North Carolina, Assistant U.S. Attorney Steven Schammal of the Southern District of Texas, and Assistant U.S. Attorney Julia Evans of the Eastern District of Louisiana are prosecuting the case.  The prosecution is the result of an investigation by the Coast Guard Investigative Service – Wilmington Office, Marine Safety Detachment Fort Macon, and Coast Guard Sector North Carolina.

###

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years

Pacific Carriers Limited (PCL), a Singapore-based company that owns subsidiaries engaged in international shipping, was sentenced today in federal court before U.S. District Court Judge Louise Flanagan in New Bern, North Carolina, after pleading guilty to violations of the Act to Prevent Pollution from Ships, obstruction of justice, and for a failure to notify the U.S. Coast Guard of a hazardous condition on the Motor Vessel (M/V) Pac Antares.

PCL pleaded guilty to a total of eight felony offenses across three judicial districts – the Eastern District of North Carolina, the Southern District of Texas, and the Eastern District of Louisiana.  PCL was sentenced to pay a fine of $12,000,000.00, placed on probation for a period of four years, and ordered to implement a comprehensive Environmental Compliance Plan as a special condition of probation.

In pleading guilty, PCL admitted that crew members onboard the M/V Pac Antares, a 20,471 gross-ton, 586-foot ocean-going commercial bulk carrier, knowingly failed to record in the vessel’s oil record book the overboard discharge of oily bilge water and oil waste without the use of required pollution-prevention equipment, from approximately April 2019 until the vessel arrived in Morehead City, North Carolina, on Sept. 29, 2019.  PCL also admitted that the crew discharged oily garbage and plastic overboard and falsified the garbage record book.

PCL also admitted that a large space along the keel of the vessel, known as the duct keel, was being used to store oily waste which constituted a hazardous condition under the Ports and Waterways Safety Act and it should have been immediately reported to the U.S. Coast Guard Sector North Carolina.  The Chief Engineer, Wenguang Ye, pleaded guilty to falsifying the oil record book, and was sentenced to a fine of $5,500 and banned from entering the United States for one year after choosing to cooperate in the investigation.  In 2008, the M/V Pac Antares was involved in another prosecution in Wilmington, North Carolina, for concealing the overboard discharge of oily bilge water and assessed a total criminal penalty of $2,100,000. 

“This kind of deliberate evasion of our pollution control laws will not be tolerated,” said Principal Deputy Assistant Attorney General Jonathan Brightbill of the Justice Department’s Environment and Natural Resources Division.  “The Environmental Crimes Section proudly works hand-in-hand with U.S. Attorneys Offices and law enforcement partners around the country to investigate and prosecute the intentional violation of our laws that protect our oceans by commercial ship owners, operators, and personnel.  It’s also essential that we demand the safe operation of ships in our ports.”

“The defendants in this case knowingly, intentionally and illegally discharged oily waste and other garbage into the waters along the North Carolina coast,” said U.S. Attorney Robert J. Higdon Jr. of the Eastern District of North Carolina.  “That coastline is among the great natural treasures of this country and we are committed to its protection.  To that end we will hold companies and individuals responsible when they fail to follow federal law designed to protect these valuable resources.”

“U.S. Attorneys all over the country work together enforcing federal laws,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas. “Some laws, like environmental crimes, can impact multiple districts at the same time. Foreign ships, because of corruption, incompetence or parsimony that dump their sewage or oil bilge in our waters will be held accountable. The Houston ship channel is a vital engine to the world’s economy and it requires all vessels to respect our laws if they want access to our port.”

“Safeguarding the environment is one of the highest priorities for the Department of Justice,” said U.S. Attorney Peter G. Strasser for the Eastern District of Louisiana.  “The U.S. Attorney’s Office is committed to continue working with its federal partners to investigate and hold entities accountable when they neglect their professional and legal obligations and threaten the environment, which places the public and the ecosystem in Southeastern Louisiana at risk.”

“The Coast Guard remains dedicated to preserving the marine environment and protecting our living marine resources,” said Rear Adm. Laura Dickey, Coast Guard Fifth District Commander.  “The results of this case showcase the commitment and meticulous efforts of our marine safety professionals, pollution responders and Coast Guard agents in North Carolina, and the great partnership we share with the Department of Justice.”

According to the plea agreement, PCL is the parent company of two other companies that owned and operated the M/V Pac Antares.  On Sept. 29, 2019, the M/V Pac Antares arrived in Morehead City, North Carolina.  A crewmember walked off the ship and informed a Customs and Border Protection officer that he had information about illegal discharges that had taken place on the vessel.  The U.S. Coast Guard was sent that information and conducted an inspection and examination.  Examiners discovered and seized a large trove of evidence that oily waste and garbage had been discharged from the vessel to include a configuration of drums, flexible hoses and flanges to bypass the vessel’s oily water separator. 

Examiners also discovered that oily waste had been discharged through a laundry sink which subsequently discharged directly overboard or through the vessel’s sewage system.  Examiners discovered the sewage system was contaminated with oil.  Crewmembers also admitted that bags filled with oily rags were thrown over the side of the ship.  These discharges were knowingly not recorded in the M/V Pac Antares’s oil record book and garbage record book when they were presented to the U.S. Coast Guard during the vessel’s inspection.  The examiners also found over 60,000 gallons of oily water being stored in the “duct keel” which took several days and a third-party contractor to properly clean out.

Senior Trial Attorney Kenneth Nelson of the Environment and Natural Resources Division’s Environmental Crimes Section, with the assistance of Assistant U.S. Attorney Banumathi Rangarajan of the Eastern District of North Carolina, Assistant U.S. Attorney Steven Schammal of the Southern District of Texas, and Assistant U.S. Attorney Julia Evans of the Eastern District of Louisiana are prosecuting the case.  The prosecution is the result of an investigation by the Coast Guard Investigative Service – Wilmington Office, Marine Safety Detachment Fort Macon, and Coast Guard Sector North Carolina.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

WASHINGTON – An Indian national was sentenced on November 30, 2020 to 20 years in prison followed by three years of supervised release in the Southern District of Texas for his role in operating and funding India-based call centers that defrauded U.S. victims out of millions of dollars between 2013 and 2016.

Hitesh Madhubhai Patel, aka Hitesh Hinglaj, 44, of Ahmedabad, India, was sentenced by U.S. District Judge David Hittner for the charges of wire fraud conspiracy and general conspiracy to commit identification fraud, access device fraud, money laundering, and impersonation of a federal officer or employee.  Patel was also ordered to pay restitution of $8, 970,396 to identified victims of his crimes.

“The defendant defrauded vulnerable U.S. victims out of tens of millions of dollars by spearheading a conspiracy whose members boldly impersonated federal government officials and preyed on victims’ fears of adverse government action,” said Acting Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division.  “Today’s sentence demonstrates the department’s commitment to prosecuting high-level perpetrators of such nefarious schemes.  Even fraudsters operating scams from beyond our borders are not beyond the reach of the U.S. judicial system.”

“The long arm of federal law enforcement was key to bringing this con artist to justice,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas.  “Transnational call center scams are complex cases to investigate and prosecute but our agencies are up to the task.  Many of these fraudsters prey on the most vulnerable from the perceived safety of foreign lands so there is no sorry in seeing him head to prison.  His access to a phone is now greatly diminished. Across the globe, U.S. law enforcement is chasing and dismantling these schemes.”

“For years, this individual preyed on the fears of his victims to perpetuate a global scheme to manipulate U.S. institutions and taxpayers,” said Special Agent in Charge Mark B. Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Houston. “Working with our law enforcement partners around the globe we have successfully executed the first ever large-scale, multi-jurisdictional investigation and prosecution targeting the India call center scam industry to hold him accountable for his illegal acts and deter similar scams in the future.”

 “Since 2013, American taxpayers have been subjected to unprecedented attempts to fraudulently obtain money by individuals utilizing Indian call centers to impersonate IRS employees and scam American taxpayers,” said J. Russell George, the Treasury Inspector General for Tax Administration (TIGTA).  “We appreciate the support of our law enforcement partners.”

“The sentence imposed today provides a clear deterrent to those who would seek to enrich themselves by extorting the most vulnerable in our society through these types of scams,” said Special Agent in Charge David Green of the Department of Homeland Security Office of Inspector General (DHS-OIG).  “These foreign call center operators and their U.S. based affiliates should know that their actions carry real life consequences, both for their victims and for themselves, and that there are dedicated agents and prosecutors who will work tirelessly to identify them, find them and hold them accountable for their crimes.”

According to admissions in his plea agreement, Patel and his co-conspirators perpetrated a complex scheme in which employees from call centers in Ahmedabad, India, impersonated officials from the IRS and U.S. Citizenship and Immigration Services (USCIS), and engaged in other telephone call scams designed to defraud victims throughout the United States.  U.S. victims were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government.  Those who fell victim were instructed how to provide payment, including by purchasing general purpose reloadable (GPR) cards or wiring money.  Upon payment, the call centers would immediately turn to a network of “runners” based in the United States to liquidate and launder the fraudulently obtained funds.

In his plea, Patel admitted to operating and funding several India-based call centers from which the fraud schemes were perpetrated, including the call center HGLOBAL.  Patel corresponded by email and WhatsApp messaging frequently with his co-defendants to exchange credit card numbers, telephone scam scripts, and call center operations instructions.  The scripts included IRS impersonation, USCIS impersonation, Canada Revenue Agency impersonation, Australian Tax Office impersonation, payday loan fraud, U.S. Government grant fraud, and debt collection fraud.

A co-defendant described Patel as “the top person in India and the boss for whom most of the other defendants worked,” and the owner of multiple call centers.  Another co-defendant stated that Patel was arrested in India in 2016, but then paid a bribe and was released.  Additionally, Patel admitted that a reasonably foreseeable loss of more than $25 million but less than $65 million was attributable to him, based on the government’s evidence against him.  

Patel was prosecuted in the United States after being extradited from Singapore in April 2019 to face charges in this large-scale telefraud and money laundering scheme.  Singapore authorities apprehended Patel at the request of the United States pursuant to a provisional arrest warrant in September 2018, after Patel flew there from India.

The indictment in this case, which was unsealed in October 2016, charged Patel and 60 other individuals and entities with general conspiracy, wire fraud conspiracy and money laundering conspiracy.  A total of 24 domestic defendants associated with this transnational criminal scheme were previously convicted and sentenced to terms of imprisonment of up to 20 years in the Southern District of Texas, District of Arizona and Northern District of Georgia.  The defendants were also ordered to pay millions of dollars in victim restitution and money judgments and to forfeit seized assets. Some defendants were ordered to be deported based on their illegal immigration status, with another defendant having his U.S. citizenship revoked due to a separate conviction for immigration fraud.  Charges remain pending for other India-based defendants.  They are presumed innocent unless and until convicted through due process of law.  

HSI, DHS-OIG and TIGTA led the investigation of this case.  The Justice Department’s Office of International Affairs and HSI Singapore provided significant support in securing and coordinating Patel’s arrest and extradition, working in concert with their counterparts at the Singapore Attorney General’s-Chambers and the Singapore Police Force.

Also providing significant support during the course of the investigation and prosecutions related to this scheme were: the Ft. Bend, Texas, County Sheriff’s Department; the Hoffman Estates, Illinois, Police Department; the Leonia, New Jersey, Police Department; the Naperville, Illinois, Police Department; the San Diego County District Attorney’s Office Family Protection/Elder Abuse Unit; the U.S. Secret Service; U.S. Small Business Administration Office of Inspector General; IOC-2; INTERPOL Washington; USCIS; U.S. State Department’s Diplomatic Security Service; and the U.S. Attorney’s Offices of the Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Georgia, Northern District of Illinois, Northern District of Indiana, Eastern District of Louisiana, District of Nevada, and the District of New Jersey.  The Federal Communications Commission’s Enforcement Bureau provided assistance in TIGTA’s investigation.  Additionally, the Executive Office for U.S. Attorneys, Legal and Victim Programs, provided significant support to the prosecution. 

Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP), former Trial Attorney Amanda S. Wick of the Criminal Division’s Money Laundering and Asset Recovery Section, and Assistant U.S. Attorneys Mark McIntyre and Craig Feazel of the Southern District of Texas prosecuted the case.  Kaitlin Gonzalez of HRSP was the paralegal for this case.       

A Department of Justice website has been established to provide information about the case to already identified and potential victims, and the public.  Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the FTC via this website.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

# # #

NEW ORLEANS - United States Attorney Peter G. Strasser announced that ASHLY HOWARD (“HOWARD”), age 33, of LaPlace, Louisiana, was charged November 24, 2020 by a Bill of Information for Theft of Government Funds, in violation of Title 18, United States Code, Section 641 and Identity Theft, in violation of Title 18, United States Code, Section 1028(a)(7).

According to the Bill of Information, beginning in 2018 and through 2019, HOWARD fraudulently submitted Free Applications for Federal Student Aid (FAFSA) and/or Master Promissory Notes (MPN) in individuals’ names in an effort to obtain federal financial aid. HOWARD facilitated the submission of thirty (30) applications for admission to Nunez Community College in Chalmette, Louisiana in these individuals’ names. HOWARD facilitated the creation of debit cards in these individuals’ names so that the student loan proceeds could be disbursed. HOWARD accepted the grants and student loans and used the federal financial aid funds under the names of these individuals; some with, and some without, their knowledge or consent. Accordingly, HOWARD fraudulently received approximately $280,000 in Department of Education funds she was not entitled to receive.

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

If convicted, HOWARD faces a maximum penalty of fifteen (15) years imprisonment, followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment.

U.S. Attorney Strasser praised the work of the U.S. Department of Education, Office of Inspector General.  The prosecution of this case is being handled by Assistant U.S. Attorney Kathryn McHugh.

NEW ORLEANS, LOUISIANA –  BRIAN TILLMAN, a/k/a “Cosca,” a/k/a “Costa,” a/k/a “Speedy,” age 33, pleaded guilty today to conspiracy to distribute and possess with the intent to distribute over 100 grams of heroin and over 28 grams of cocaine base and a quantity of marijuana in violation of Title 21 United States Code, Sections 841(a)(1), 841(b)(1)(B), 841(b)(1)(D) and 846. TILLMAN faces a maximum sentence of 40 years imprisonment, at least four years of Supervised Release and a $100.00 special assessment fee.

TILLMAN and his co-conspirators sold drugs in the Hollygrove neighborhood in and around a corner-store named “Mel’s” in 2017 and 2018. TILLMAN was intercepted on a Title III wiretap arranging to purchase and/or sell heroin and cocaine base during multiple days in March and April of 2018. 

This case was brought as part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

The U.S. Attorney’s Office, Eastern District of Louisiana praised the work of the Federal Bureau of Investigation’s New Orleans Gang Task Force.  The prosecution is being handled by Assistant United States Attorneys Myles Ranier and Kathryn McHugh.

NEW ORLEANS, LOUISIANA –  HAFIZ ALKHAWAJAH, a/k/a “Ock” age 59, pleaded guilty on November 18, 2020, to aiding and abetting a conspiracy to distribute and possess with the intent to distribute heroin and cocaine base in violation of Title 21 United States Code, Sections 841(a)(1), 841(b)(1)(C) and 846, and Title 18, United States Code, Section 2, and to being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). ALKHAWAJAH faces a maximum sentence of 20 years imprisonment and at least three years of Supervised Release as to Count One, and up to 10 years imprisonment and three years of Supervised Release as to Count Two. Additionally, ALKHAWAJAH faces $100.00 special assessment fee for each count.

ALKHAWAJAH operated a corner-store named “Mel’s” in the Hollygrove neighborhood of New Orleans in 2018 and allowed his co-conspirators to sell drugs in and around the store.  When he was arrested in February of 2019, he was also found in possession of firearm, after having been previously been convicted of a felony in Jefferson Parish in 2013.

This case was brought as part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

The U.S. Attorney’s Office, Eastern District of Louisiana praised the work of the Federal Bureau of Investigation’s New Orleans Gang Task Force.  The prosecution is being handled by Assistant United States Attorneys Myles Ranier and Kathryn McHugh.

                                                                                                                                                                                                   *    *     * 

NEW ORLEANS – United States Attorney Peter G. Strasser announced that ERNEST DUNN, age 30 of New Orleans, Louisiana, was charged, on November 20, 2020, in a single count indictment by a Federal Grand Jury for violating the Federal Gun Control Act, Title 18 United States Code, Sections 922 and 924.

According to court documents, DUNN was previously convicted of armed robbery and purse snatching. Being a convicted felon, DUNN is alleged to be in possession of five firearms including an assault rifle on November 6, 2020. If convicted of the firearms offense, DUNN faces a maximum term of ten years imprisonment, a fine of $250,000.00, three (3) years of supervised release following any term of imprisonment, and a $100 special assessment fee.     

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

Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.  Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.  For more information about Project Guardian, please see https://www.justice.gov/usao-edla/project-guardian.

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

                                                                                                                                                                                                           *   *   *

NEW ORLEANS – United States Attorney Peter G. Strasser announced that, on November 20, 2020, CURTIS EMILIEN, age 25 of Kenner, Louisiana, was charged in a two-count superseding indictment by a Federal Grand Jury for violating the Federal Gun Control Act, Title 18 United States Code, Sections 922 and 924.

According to court documents, EMILIEN was already under federal indictment for one count of being a felon in possession of a firearm which occurred in April of 2019. This superseding indictment alleges, in addition to that offense, EMILIEN was in possession of an assault rifle in August of 2020. If convicted of the firearms offenses, EMILIEN faces a maximum term on each count of ten years imprisonment, a fine of $250,000.00, three (3) years of supervised release following any term of imprisonment, and a $100 special assessment fee.     

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

Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.  Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives.  For more information about Project Guardian, please see https://www.justice.gov/usao-edla/project-guardian.

The case was investigated by the New Orleans Police Department, Kenner Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant U.S. Attorney Charles D. Strauss.

*   *   *

NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that SONJA DYSON EVANS, 58, of Ponchatoula, Louisiana, and SHAWANDA DOVE, 51, of Amite, Louisiana were charged on November 23, 2020, in a bill of information with one count of violating 18 U.S.C. §§ 1952(a)(3) and 2, use of an interstate facility with intent to carry on unlawful activity.

According to the bill of information, at the time of the offense, EVANS was employed by the Tangipahoa Parish Sheriff’s Office as a Criminal Records Division Supervisor.  From January 2016 through January 2017, both EVANS and DOVE used cell phones to carry out a bribery scheme.  EVANS solicited and accepted bribe money from DOVE in exchange for fraudulent bonds used for the release of incarcerated persons. If convicted, both women face a maximum penalty of five (5) years incarceration, a $250,000 fine, a three (3) year term of supervised release, and a mandatory special assessment of $100.00.

An information is merely an accusation.  All defendants are presumed innocent until proven guilty beyond a reasonable doubt.

U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation in investigating this matter.  Assistant United States Attorney Tracey Knight is in charge of the prosecution.

                                                                                                                                                                                        *   *   *

NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced on Friday, November 20, 2020 that KESHAWN PATTON, age 25, a resident of New Orleans, Louisiana, was charged in a three-count indictment by a Federal Grand Jury for violations of the Federal Gun Control Act and the Federal Controlled Substances Act.

PATTON is charged in Count 1 with possession with  intent to distribute a quantity of a substance containing a detectable amount of amphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(E)(i).  In Count 2, PATTON is charged 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).  In Count 3, PATTON is charged with possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1).

If convicted of Count 1, PATTON faces a maximum sentence of 10 years imprisonment, a $500,000 fine, up to 3 years of supervised release, and a special assessment fee of $100.  If convicted of Count 2, PATTON faces a mandatory minimum sentence of 5 years up to life imprisonment, which is to run consecutively to all other sentences, a $250,000 fine, up to 5 years of supervised release and a special assessment fee of $100.  If convicted of Count 3, PATTON faces a maximum term of imprisonment of 10 years, a $250,000 fine, up to 3 years of supervised release, and a special assessment fee of $100.

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

Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.  Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.  The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partner, The U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives. For more information about Project Guardian, please see https://www.justice.gov/usao-edla/project-guardian.

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

*   *   *

NEW ORLEANS – The United States Attorney’s Office announced, on November 20, 2020, the indictment of 31 individuals related to a test score-fixing scheme at a United States Coast Guard exam center.

As alleged in the indictment, DOROTHY SMITH was employed by the Coast Guard as a credentialing specialist at an exam center in Mandeville, Louisiana. SMITH’s position authorized her to enter scores for 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 licenses.

According to the indictment, for over seven years, SMITH engaged in a scheme to defraud the United States. SMITH took bribes to fix exam scores, enabling license applicants to bypass the required testing. This resulted in the applicants illegally obtaining a range of licenses for officer-level positions, including the most important positions on vessels, such as master, chief mate, and chief engineer.

As alleged in the indictment, SMITH used a network of intermediaries to connect her to maritime workers who were willing to pay for false exam scores. The intermediaries would funnel money and the mariners’ requests to SMITH, who would falsely report in a Coast Guard computer system that the mariners had passed the exams.

According to the indictment, two former Coast Guard employees, ELDRIDGE JOHNSON and BEVERLY MCCRARY, acted as intermediaries for SMITH, with MCCRARY participating in the scheme both during and after her Coast Guard employment and JOHNSON participating following his Coast Guard employment.  Additionally, four maritime industry workers—ALEXIS BELL, MICHEAL WOOTEN a/k/a Michael Wooten, SHARRON ROBINSON, and ALONZO WILLIAMS—acted as intermediaries in the scheme and also had their own scores fixed by SMITH.

In addition to the defendants referenced above, the indictment charges twenty-four current and former merchant mariners with unlawfully receiving officer-level licenses. As alleged in the indictment, each of these individuals received false scores from SMITH, with some receiving false scores on multiple occasions.

SMITH, JOHNSON, MCCRARY, BELL, WOOTEN, ROBINSON, and WILLIAMS are charged with conspiracy to defraud the United States.

The following defendants are charged with receiving, possessing, and intending to unlawfully use mariner licenses, to which they were not lawfully entitled: JONATHAN ABBEY, RAFAEL ATKINS, ANTHONY BROWN, JAMES CARR, CHARLES FRANKS, JERRY FUDGE, DAVID GALVAN, JUSTIN GANDY, ANTHONY GARCES, CARDELL HUGHES, HARRY JOHNSON, EDWARD JONES, ALEXIA LOVETT, BRANDON MACK, HUGO MARQUEZ, MILES MARTS, DEVERICK MORROW, FREDRICK NETTLES, STINSON PAYNE, OCTAVIAN RICHARDS, QUANG TRAN, ANTWAINE TRAVIS, SHUNMANIQUE WILLIS, and ROBERT WINTERS.

If convicted, each defendant faces a sentence of up to five years’ imprisonment, $ 250,000.00 fine, (3) three years of supervised release and a mandatory $100.00 special assessment.

The United States Attorney’s Office reiterated that the indictment is merely a charge and that the defendants’ guilt must be proven beyond a reasonable doubt.

This case is being investigated by the Coast Guard Investigative Service.  Assistant U.S. Attorney Chandra Menon is in charge of the prosecution.

NEW ORLEANS – U.S. Attorney Peter G. Strasser announces the sentencing, on November 18, 2020, of MYLES NICHOLAS, age 33, of Jamaica, New York, by U.S. District Judge Wendy Vitter.  Judge Vitter sentenced NICHOLAS to 25 months in prison pursuant to his prior guilty plea to one count of conspiracy to commit bank fraud and one count of aggravated identity theft.  These charges arose from NICHOLAS’S June 2019 trip with his co-defendant to southeast Louisiana where they attempted to commit fraud at several Baton Rouge-area Best Buy stores.

According to court documents, members of the Louisiana Financial Crimes Task Force received information that NICHOLAS and his co-defendant, Terrence Nealy, would be flying to New Orleans from New York on the morning of June 21, 2019.  Jefferson Parish Sheriff’s Office deputies and U.S. Secret Service agents initiated surveillance at New Orleans International Airport, where they observed NICHOLAS and Nealy arrive on their flight from New York’s JFK Airport.  NICHOLAS and Nealy then rented a car and immediately drove to Baton Rouge.  While in Baton Rouge, the defendants opened a $4,000 line of credit at a Best Buy store using a stolen identity.  Shortly thereafter, however, their attempt to purchase an Apple MacBook Pro using that line of credit was denied.  NICHOLAS and Nealy returned to their car and drove back to New Orleans.  Later that day, they were arrested near their hotel in downtown New Orleans by state and federal members of the Louisiana Financial Crimes Task Force.

Terrence Nealy has likewise pleaded guilty.  He is scheduled to be sentenced on January 20, 2021.

U.S. Attorney Strasser praised the agencies that contributed to this conviction, which represents a coordinated effort of federal and state law enforcement authorities within the Louisiana Financial Crimes Task Force.  The Task Force includes representatives from the U.S. Secret Service, the U.S. Postal Inspection Service, Homeland Security Investigations, U.S. State Department, Internal Revenue Service, Social Security Administration-Office of Inspector General, the Defense Criminal Investigative Service, the Louisiana Attorney General’s Office, the Jefferson Parish Sheriff’s Office, the New Orleans Police Department, the Covington Police Department, Hammond Police Department, Kenner Police Department, Louisiana State Police, Mandeville Police Department, Slidell Police Department, St. Bernard Parish Sheriff’s Office, St. John The Baptist Sheriff’s Office, St. Tammany Parish Sheriff’s Office, Tangipahoa Parish Sheriff’s Office, and the St. Tammany Parish District Attorney’s Office.  Assistant United States Attorney Matthew R. Payne is in charge of the prosecution.

*      *      *

NEW ORLEANS - U.S. Attorney Peter G. Strasser, announced that JOSEPH CAMPO (CAMPO), age 78, a resident of New Orleans, Louisiana, was charged on November 17, 2020 with one count of conspiracy to commit health care fraud and money laundering.

According to the Bill of Information, CAMPO was a licensed pharmacist in the State of Louisiana and worked as the Pharmacist-in-Charge (“PIC”) at Prime Pharmacy Solutions (“Prime”), which was located in Slidell, Louisiana.  Between 2014 and 2016, Prime operated as a primarily closed-door pharmacy that was in the business of mixing and filling prescriptions for compounded medications that were reimbursed by health care benefit programs, including TRICARE, a health care benefit program for United States military personnel and their families. 

CAMPO, and other co-conspirators, acting on behalf of Prime, selected formulas for compounded medications, not based on scientific evaluations of effectiveness or individualized patient need, but rather, to maximize reimbursement from TRICARE and other health care benefit programs.

Prime then mass produced these High-Yield Compounded Medications and created a series of preprinted prescription forms encouraging and directing prescribers/doctors to prescribe these High-Yield Compounded Medications.  The scheme involved defrauding TRICARE of approximately $16 million dollars.

If convicted, CAMPO faces a possible maximum sentence of five years’ imprisonment, up to three years of supervised release, a $250,000 fine, and a mandatory $100 special assessment fee.

The case is being investigated by the Defense Criminal Investigative Service – Office of Inspector General, the Department of Homeland Security, the Department of Veterans Affairs – Office of Inspector General, and the United States Postal Service – Office of Inspector General. 

The United States Attorney’s Office, Eastern District of Louisiana stated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.  The prosecution of the case is being handled by Assistant U.S. Attorney Kathryn McHugh.

NEW ORLEANS -  U.S. Attorney Peter G. Strasser announced that NATALIE BARTON, age 41, of Mandeville, Louisiana, pled guilty on November 18, 2020 to one count of misbranding prescription drugs, in violation of 21 U.S.C. §§ 331(a) and 333(a)(2). 

Court records indicate that BARTON and her husband distributed prescription medications through websites and in a brick-and-mortar store.  These prescription drugs were dispensed without valid prescriptions issued by licensed practitioners, and without labels that complied with the Food, Drug, and Cosmetic Act.  Instead, these substances included labels that were misleading, in that they stated that the substances were not for human consumption, which was false.  BARTON and E.B. were not practitioners licensed by law to administer prescription drugs.

If convicted, BARTON faces a maximum term of imprisonment of 3 years of imprisonment followed by up to 1 year of supervised release on the anabolic-steroid conspiracy count and a $100.00 special assessment fee.

U.S. Attorney Strasser praised the work of the Drug Enforcement Administration, the Food and Drug Administration, the United States Postal Inspection Service, and the Department of Homeland Security, Homeland Security Investigations in investigating this matter.  U.S. Attorney Strasser expressed appreciation for the support provided by the United States Anti-Doping Agency and the Sports Medicine Research and Testing Laboratory.  Assistant United States Attorney Jonathan Shih is in charge of the prosecution

This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (“OCDETF”). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.

*      *      *

NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that BRUCE D. COX, age 62, of Mandeville, was charged on November 12, 2020 with theft of government funds in connection a false application for disaster assistance.

According to the Bill of Information, COX is charged with submitting a falsified application to the Federal Emergency Management Administration (“FEMA”) for disaster assistance. The application sought disaster assistance for a rental property in Robert, Louisiana that COX managed, following the August 2016 storms and flooding in Tangipahoa Parish. In the application, COX falsely stated that property in Robert was the owner’s primary residence, when in fact COX rented out the property to a tenant and knew that the property’s owner had never lived there. As a result of false statements in the application, FEMA paid disaster benefits to the property’s owner, despite the property owner not qualifying for those benefits.

If convicted, COX faces up to one year in prison, a fine of up to $100,000, and up to one year of supervised release following any term of imprisonment. U.S. Attorney Strasser reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.

U.S. Attorney Strasser praised the work of the Department of Homeland Security’s Office of Inspector General. Assistant U.S. Attorney Nicholas D. Moses is in charge of the prosecution.

                                                                                                      *   *   *

NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that ANTOINE MERCHANT, age 32, and ANTHONY SMALLS, age 32, both of New York, New York, were charged today in a four-count indictment by the Grand Jury in the Eastern District of Louisiana with conspiracy to pass altered U.S. Postal money orders, passing altered U.S. Postal money orders and possessing stolen U.S. government property.

According to court records, MERCHANT and SMALLS travelled from New York to Louisiana in October of 2019 to cash stolen U.S. Postal money orders that had been altered to show amounts worth hundreds of dollars. MERCHANT and SMALLS cashed two such postal money orders, each with an altered face value of $850.00, in Kenner and Metairie, LA. When arrested, the defendants also possessed 58 U.S. Postal money orders that they had stolen from an Ascension Parish U.S. Post Office the day before.

MERCHANT and SMALLS face a sentence of up to ten years in prison on the possession charge and up to five years in prison for the Postal money order charges, up to $250,000 in fines, up to three years of supervised release and a special assessment of $100 for each count per each defendant. 

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

U.S. Attorney Strasser praised the work of the United States Postal Inspection Service, along with assistance from the Louisiana State Police - Criminal Investigations Department, Jefferson Parish Sheriff’s Office and Ascension Parish Sheriff’s Office, in investigating this matter.  Assistant U.S. Attorney Edward J. Rivera is in charge of the prosecution.

*     *     *

NEW ORLEANS –  U.S. Attorney Peter G. Strasser announced that on November 12, 2020, JAVIER CONTRERAS-CASTILLO, age 28, of Houston, was sentenced by United States District Judge Barry W. Ashe after previously pleading guilty to conspiracy to distribute and to possess with the intent to distribute a kilogram or more of heroin. 

According to court records, CONTRERAS-CASTILLO, who was located in Houston, Texas, served as a source of heroin supply for co-defendants located in the New Orleans metropolitan area.

Judge Ashe sentenced CONTRERAS-CASTILLO to 43 months of imprisonment followed by two years of supervised release and a $100 mandatory special assessment. 

U.S. Attorney Peter G. Strasser praised the work of the Federal Bureau of Investigation, the Drug Enforcement Administration, and the New Orleans Police Department in investigating this matter. Assistant United States Attorneys Maria Carboni and Jonathan L. Shih were in charge of the prosecution.

                                                                                                          *   *   *

NEW ORLEANS –  U.S. Attorney Peter G. Strasser announced that two women, KEYIRA GABLE, age 33, of Harvey and BRITTANY WHITE, age 34, of New Orleans, were sentenced today by U.S. District Judge Barry W. Ashe for their participation in a years-long credit card fraud conspiracy. 

Judge Ashe sentenced GABLE to a total of 61 months in prison.  She had previously pleaded guilty to conspiracy to commit access device fraud and aggravated identity theft.  Judge Ashe sentenced WHITE to a total of 37 months in prison based on her previous guilty plea to conspiracy to commit access device fraud and possession of fifteen or more counterfeit or unauthorized access devices.

GABLE and WHITE were the second and third defendants to be sentenced in this seven-defendant conspiracy case.  According to court documents, GABLE, WHITE, and their co-conspirators engaged in a scheme to obtain merchandise and cash from stores through fraud.  The defendants obtained stolen credit and debit card information, encoded it onto cards, and then used that information to purchase items at stores.  The defendants would then return the items at a different store of the same chain, but they would deceive store workers in order to have the chargeback credited to their own bank accounts.  Federal agents were able to determine that members of this conspiracy took flights around the country to execute the scheme, including Oregon, South Carolina, Illinois, Tennessee, Missouri, and Florida. 

U.S. Attorney Strasser praised the agencies that contributed to this conviction, which represents a coordinated effort of federal and state law enforcement authorities within the Louisiana Financial Crimes Task Force.  The Task Force includes representatives from the U.S. Secret Service, U.S. Postal Inspection Service, Louisiana Attorney General’s Office, Jefferson Parish Sheriff’s Office, New Orleans Police Department, Covington Police Department, Hammond Police Department, Kenner Police Department, Louisiana State Police, Mandeville Police Department, Slidell Police Department, St. Bernard Parish Sheriff’s Office, St. John The Baptist Sheriff’s Office, St. Tammany Parish Sheriff’s Office, Tangipahoa Parish Sheriff’s Office, St. Tammany Parish District Attorney’s Office, Homeland Security Investigations, U.S. State Department, Internal Revenue Service, Social Security Administration-Office of Inspector General, and the Defense Criminal Investigative Service.  U.S. Attorney Strasser also thanked the Franklin (TN) Police Department, the Mobile Police Department, the Gulfport Police Department, the Minnetonka (MN) Police Department, the Jefferson Parish District Attorney’s Office, and the Orleans Parish District Attorney’s Office for their assistance.  Assistant United States Attorneys Matthew R. Payne and K. Paige O’Hale are in charge of the prosecution.

                                                                                                    *   *   *

NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that INDIAN RIDGE SEAFOOD COMPANY, LLC, ("INDIAN RIDGE SEAFOOD") a Louisiana Limited Liability Company located in Terrebonne Parish, Louisiana, pled guilty today to a one count Bill of Information for the illegal sale of oysters in violation of the Lacey Act.   

According to court records, from January 1, 2017 through March 19, 2019, INDIAN RIDGE SEAFOOD did knowingly sell and transport oysters in interstate commerce with a market value in excess of $350.00, when, in the exercise of due care, INDIAN RIDGE SEAFOOD should have known that said oysters were acquired and possessed in violation of and in a manner unlawful under the laws of the State of Louisiana, specifically, Louisiana Revised Statutes, R.S. 56:306.4; R.S. 56:306.5;  R.S. 56:306.6.  INDIAN RIDGE SEAFOOOD failed to report to Louisiana Department of Wildlife and Fisheries approximately 14,346 sacks of Louisiana oysters, valued at approximately $656,865.

INDIAN RIDGE SEAFOOD faces a maximum fine of not more than $200,000 and a special assessment of $125.00.  Sentencing in this matter is scheduled for February 18, 2021 before U.S. District Judge Susie Morgan.

“NOAA’s Office of Law Enforcement is dedicated to enforcing federal marine resource laws, including the Lacey Act, to ensure the sustainability of our natural resources,” Tracy A. Dunn, Assistant Director, National Oceanic and Atmospheric Administration, Office of Law Enforcement said. “This investigation is an example of how we collaboratively work with other federal and state partners, such as the Food and Drug Administration and the Louisiana Department of Wildlife and Fisheries.”

“Accurate and timely recordkeeping about the harvesting, holding, and sale of shellfish is not only required by law, but exists to protect the public health,” said Special Agent in Charge Justin C. Fielder, FDA Office of Criminal Investigations Miami Field Office. “We will continue to work with our federal partners to investigate such matters and keep our food supply safe.”

U.S. Attorney Peter G. Strasser praised the work of the National Oceanic and Atmospheric Administration, the Food and Drug Administration Office of Criminal Investigations and the Louisiana Department of Wildlife and Fisheries in investigating this matter.  Assistant United States Attorney Julia K. Evans is in charge of the prosecution.

                                                                     *   *   *

NEW ORLEANS – The U.S. Attorney’s Office, Eastern District of Louisiana (EDLA) announced that IRVIN MAYFIELD, age 43, a resident of New Orleans, and RONALD MARKHAM, age 42, also a resident of New Orleans, pleaded guilty today to one count of conspiracy to defraud the New Orleans Public Library Foundation out of approximately $1,316,232. Sentencing is currently set for February 9, 2020 before the Honorable Jay C. Zainey.

According to court documents, MAYFIELD founded the New Orleans Jazz Orchestra (NOJO) in 2002. MAYFIELD also acted as Artistic Director and featured performer. MARKHAM was a long-time friend of MAYFIELD and served as NOJO’s President and Chief Executive Officer. MAYFIELD and MARKHAM both received salaries of $100,000 from NOJO as well as compensation for compositions and performances through Mayfield Publishing Company. Throughout its existence, NOJO relied on donations to fund its operations and pay its expenses. Between December 16, 2008, until May 31, 2010, NOJO relied on grants from the Edward Wisner Donation, a charitable trust administered by the City of New Orleans. In February 2011, support for NOJO through the Edward Wisner Donation was terminated by the City of New Orleans, causing great financial distress to NOJO and its ability to pay expenses.

In October 1990, the New Orleans Public Library Foundation (NOPLF) was established to receive donations generated through private fund raising efforts; to oversee the prudent investment of said donations at an acceptable level of risk; and to authorize expenditures judiciously for the purpose of purchasing books, other information materials, and sponsoring New Orleans Public Library (NOPL) related programs. For these purposes, NOPLF maintained an investment account. Until approximately August 2011, the NOPLF used interest earned from its investment account to fund its mission at the direction of the board of directors. All board members were uncompensated volunteers.

In August 2006, MAYFIELD became a board member of NOPLF. He later became Chairman of the board in November 2010. During his time on the NOPLF board, MAYFIELD also maintained his position with NOJO. In December 2009, MARKHAM became a board member of NOPLF. He later became Chairman of the board in September 2013 upon MAYFIELD’s resignation as Chairman of NOPLF. During his time on the NOPLF board, MARKHAM also maintained his position with NOJO. Between August 23, 2011, and November 30, 2013, MAYFIELD and MARKHAM caused approximately $1,316,232 to be unlawfully transferred and paid directly from the NOPLF to NOJO and elsewhere.

Beginning in February 2011, and continuing until November 2017, the defendants committed mail and wire fraud by transferring $1,316,232 from the NOPLF investment account to NOJO and elsewhere without approval and while misleading the NOPLF and others with regard to the purpose of the transfers. The defendants sent materially false and misleading correspondence to NOPLF board members, investment account managers, and auditors regarding the purpose of the money transfers. They also prepared materially false and misleading records to make money transfers from NOPLF to NOJO appear legitimate when they were not. Examples of the unlawful money transfers include:

• The defendants used NOPLF money to support NOJO operating expenses and pay their NOJO salaries.
• The defendants caused tens of thousands of dollars to be transferred directly into the personal accounts of MAYFIELD and Mayfield Productions.
• The defendants used NOPLF money to pay for NOJO’s performance at Carnegie Hall and performance fees to MAYFIELD.
• The defendants used NOPLF money to pay for MAYFIELD’s stays at the Ritz Carlton and Park Central Hotel as well as the travel expenses of NOJO musicians for NOJO performances.
• MAYFIELD used NOPLF money to purchase a 24k gold-plated trumpet and spend money at Saks Fifth Avenue and Harrah’s Casino.

After receiving federal grand jury subpoenas in November 2013, MAYFIELD and MARKHAM gathered and fraudulently edited NOPLF board minutes by changing line items and dollar amounts with the intent to impede, obstruct, and influence the investigation by the FBI. They also used the fraudulently altered board minutes to convince the NOPLF board that the transfers were authorized.

Finally, MARKHAM falsely informed NOPLF board members, employees of NOPLF and NOPLF legal counsel that NOJO did not use NOPLF money to pay the NOJO salaries of MAYFIELD and MARKHAM and that NOJO was not dependent on NOPLF funding.

The defendants face up to 5 years imprisonment, a fine of $250,000, three years of supervised release, and a special assessment of $100.

“The New Orleans Public Library Foundation is a charitable organization with a mission to raise funds to support and strengthen the New Orleans Public Library system. As Foundation Board leaders, Grammy Award winning musician Irvin Mayfield and his business partner Ronald Markham siphoned over $1.3 million of the organization’s funds to support their already lavish lifestyles”, stated FBI New Orleans Special Agent in Charge Bryan Vorndran.  “Many citizens who do not have access to computers depend on local libraries to utilize their free resources to apply for jobs and other assistance. As a result of Mr. Mayfield and Mr. Markham’s greed the New Orleans Public Library Foundation has had a difficult time raising funds to support the mission of the public libraries in New Orleans. I would like to thank the efforts put forth by our partners at the New Orleans Office of Inspector General and the Metropolitan Crime Commission and for helping the FBI disrupt corruption like this.”

"Ed Michel, City of New Orleans Interim Inspector General advised in these times of increasing threats and limited resources, it is incumbent now more than ever to combine our resources with our local and federal law enforcement partners to spot, assess and mitigate threats in an efficient and effective manner. The City of New Orleans OIG looks forward to continuing our productive partnerships which will ensure the integrity of our operations."

The U.S. Attorney’s Office, EDLA would like to acknowledge the assistance of the Federal Bureau of Investigation, the New Orleans Office of the Inspector General and the Metropolitan Crime Commission with this matter. Assistant U.S. Attorneys G. Dall Kammer, Theodore Carter, and Brandon Long are in charge of the prosecution.

                                                                      *      *      *

NEW ORLEANS – United States Attorney Peter G. Strasser announced that NAVORIOUS HILLS, age 41, of Hammond, Louisiana, was charged on November 6, 2020 in a two-count indictment by a Federal Grand Jury for drug trafficking in violation of Title 21, United States Code, Section 841 and possession of a firearm during a drug trafficking crime in violation of Title 18, United States Code, Section 924.

According to court documents, HILLS was selling prescription pain pills within the Eastern District of Louisiana. On May 15, 2020, he was in possession of a Glock handgun during a drug trafficking crime. If convicted of drug trafficking and the firearm offense, HILLS faces a maximum term of life imprisonment, a fine of $1,000,000.00, five (5) years of supervised release following any term of imprisonment and a $100.00 special assessment fine.     

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

Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

The case was investigated by the Tangipahoa Parish Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant U.S. Attorney Charles D. Strauss.

                                                                       *   *   *

NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that MICHAEL R. MATHERNE (“MATHERNE”), age 60, of Slidell, Louisiana was charged by a grand jury on November 6, 2020, in a 1-count Indictment for Theft of Federal Funds.

According to the Indictment, the Social Security Administration (“SSA”), an agency or department of the United States of America, operated the Retirement Survivor Insurance Benefit program (“RSI Program”). The purpose of the RSI Program is to provide benefits to certain persons, including widows and widowers, in their retirement.

On or around January 1993, M.F. applied for and began receiving RSI Program benefits. The SSA sent the benefits to M.F. at her address in Slidell, Louisiana in the form of a paper check, which she regularly deposited into her Whitney bank account, ending in 5817.

On or about September 24, 2006, M.F. and MATHERNE were married. In or around July 2012, MATHERNE created a joint Whitney bank account ending in 5817. On about November 3, 2012, M.F. died. MATHERNE never advised the SSA of M.F.’s death.

From December 2012 through March 2019, SSA continued sending checks to M.F., at her home address in Slidell, Louisiana, and MATHERNE continued depositing the checks into the Whitney bank account, ending in 5817. From December 2012 through March 2019, MATHERNE received monthly SSA benefits totaling approximately $75,838, which he deposited into the Whitney bank account, ending in 5817, and used for his living expenses.

If convicted, MATHERNE faces a maximum of 10 years imprisonment, a fine of not more than $250,000, supervised release of at least 3 years, and a special assessment of $100 as to each count.

The case was investigated by the Social Security Administration, Office of Inspector General. U.S. Attorney Strasser reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.

The case is being prosecuted by Assistant U.S. Attorney Sharan E. Lieberman.

                                                               *     *     *

NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that ARLENE TRANCHINA, age 55, of Laplace, was charged in a one-count Bill of Information with bank fraud on November 6, 2020.

According to court records, TRANCHINA was employed as the office manager for a company located in Reserve, Louisiana. From 2017 to October of 2019, she embezzled approximately $234,000 from her employer by making over ninety (90) checks for company expenses payable to herself or cash.  

TRANCHINA faces a sentence of up to thirty years in prison, up to $250,000 in fines, up to five years of supervised release and a $100.00 mandatory special assessment fee.  

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

U.S. Attorney Strasser praised the work of the United States Secret Service, along with assistance from the St. John the Baptist Parish Sheriff’s Office, in investigating this matter.  Assistant U.S. Attorney Edward J. Rivera is in charge of the prosecution.

                                                                 *     *     *

NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that ACDANE CAMPBELL, age 24, a resident of Jamaica, was charged by a grand jury on November 6, 2020, in a 1-count Indictment for Conspiracy to Commit Mail and Wire Fraud.

According to the Indictment, from in or around August 2016, CAMPBELL and others conspired to operate a scheme to obtain money unlawfully by falsely informing elderly victims that they had won a lottery, sweepstakes, or car. The unknown co-conspirators called the victims and promised that the victims receive their winnings if they first paid taxes and fees.

After being instructed by an unidentified co-conspirator that they needed to send payments to CAMPBELL, the victims would send their payments electronically through a money services business or in the mail via FedEx or the United States Postal Service. CAMPBELL either kept the money that he received from the victims or sent it to unknown persons in Jamaica.

If convicted, CAMPBELL faces a minimum of 5 years imprisonment, a fine of not more than $250,000, supervised release of at least 3 years, and a special assessment fee of $100.00.

The case was investigated by the United States Postal Inspection Service and Homeland Security Investigations.

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

The case is being prosecuted by Assistant U. S. Attorney Sharan E. Lieberman.

Elder fraud complaints may be filed with the Federal Trade Commission at www.ftccomplaintassistant.gov or at 1-877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime at www.ovc.gov. Additional elder justice resources, training, and outreach materials can be found at the Elder Justice Website at www.elderjustice.gov.

                                                                  *     *     *

NEW ORLEANS – United States Attorney Peter G. Strasser announced that KENDALL PARKER, age 26, of Houma, Louisiana, was charged on November 6, 2020 in a three-count indictment by a Federal Grand Jury with possession of marijuana with intent to distribute, possession of a firearm during a drug trafficking crime, and possession of a machinegun in violation of Title 21, United States Code, Section 841 and Title 18, United States Code, Sections 922 and 924.

According to court documents, PARKER was found in possession of a quantity of marijuana for distribution purposes and a machine-gun within the Eastern District of Louisiana. If convicted of drug trafficking and the firearms offenses, PARKER face a maximum term of life imprisonment, a fine of $250,000, and five (5) years of supervised release following any term of imprisonment, and a $100.00 special assessment fee.     

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

Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

The case was investigated by the Terrebonne Parish Sheriff’s Office and Homeland Security Investigations. It is being prosecuted by Assistant U.S. Attorney Charles D. Strauss.
 

                                                                     *   *   *

NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced on Friday, November 6, 2020, that DEREK NOLAN, a/k/a “Pop,” age 25, a resident of New Orleans, Louisiana was charged in a ten-count indictment by a federal grand jury.  In Count 1, NOLAN is charged with a conspiracy to distribute and possess with the intent to distribute 100 grams or more of a mixture or substance containing a detectable amount of heroin; 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine; and a quantity of a mixture or substance containing a detectable amount of N-phenyl-N-[1-(2-phenylethyl)-4-piperidinyl] propanamide, that is fentanyl in violation of Title 21 U.S.C. §§ 841(a)(1), (b)(1)(B), (b)(1)(C) and § 846.  If convicted for the heroin and methamphetamine violations, NOLAN faces a term of imprisonment  with mandatory minimum sentence of 5 years and a maximum sentence of 40 years, a fine of up to $5,000,000, a period of supervised release of at least 4 years, and a mandatory special assessment fee of $100.  For the fentanyl offense, if convicted, NOLAN faces a maximum term of imprisonment of 20 years, a fine up to $1,000,000.00, a period of supervised release of at least 3 years, and a mandatory special assessment fee of $100.

In Counts 2 and 3, NOLAN is charged with distribution of a quantity of a mixture or substance containing a detectable amount of N-phenyl-N-[1-(2-phenylethyl)-4-piperidinyl] propanamide, that is fentanyl, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(C).  If convicted, NOLAN faces a maximum term of imprisonment of 20 years, a fine of up to $1,000,000.00, a period of supervised release of at least 3 years, and a mandatory special assessment fee of $100.

In Counts 4 and 5, NOLAN is charged with distribution of a quantity of a mixture or substance containing a detectable amount of heroin, in violation of Title 21 U.S.C. §§ 841(a)(1) and (b)(1)(C).  If convicted, NOLAN faces a maximum term of imprisonment of 20 years, a fine of up to $1,000,000.00, a period of supervised release of at least 3 years, and a mandatory special assessment fee of $100.

In Counts 6 and 8, NOLAN is charged with distribution of a quantity of a mixture or substance containing a detectable amount of heroin and a quantity of a mixture or substance containing a detectable amount of methamphetamine, in violation of Title 21 U.S.C. §§ 841(a)(1) and (b)(1)(C).  If convicted, NOLAN faces a maximum term of imprisonment of 20 years, a fine of up to $1,000,000.00, a period of supervised release of at least 3 years, and a mandatory special assessment fee of $100.

In Counts 7 and 11, NOLAN is charged with possession of a firearm in furtherance of drug trafficking crimes, in violation of Title 18, United States Code, Sections 924(c)(1)(A) and 924(c)(1)(A)(i).  If convicted, NOLAN faces a consecutive mandatory minimum sentence of 5 years of imprisonment, a fine of up to $250,000.00, a period of supervised release up to 5 years and a mandatory special assessment fee of $100.

In Count 9, NOLAN is charged with distribution of 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine and a quantity of a mixture or substance containing a detectable amount of heroin, in violation of Title 21 U.S.C. §§ 841(a)(1), (b)(1)(B), and (b)(1)(C). If convicted for the methamphetamine violation, NOLAN faces a term of imprisonment with a mandatory minimum sentence of 5 years and a maximum sentence of 40 years, a fine of up to $5,000,000 fine, a period of supervised release of at least 4 years, and a mandatory special assessment fee of $100.  For the heroin offense, if convicted, NOLAN faces a maximum term of imprisonment of 20 years, a fine up to $1,000,000.00, a period of supervised release of at least 3 years supervised release, and a mandatory special assessment fee of $100.

In Count 10, NOLAN is charged with being a felon in possession of firearms and ammunition in violation of 18 U.S.C. §§ 922(g)(1) and 924(a)(2). If convicted, NOLAN faces a maximum sentence of 10 years imprisonment, a fine up to $250,000.00, a period of supervised release up to 3 years, and a mandatory special assessment fee of $100.00 for each charge.

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

Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.  Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.  The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: Bureau of Alcohol, Tobacco, Firearms and Explosives.  For more information about Project Guardian, please see https://www.justice.gov/usao-edla/project-guardian.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jefferson Parish Sheriff’s Office.  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.

United States Attorney Peter G. Strasser announced today the Indictment of DANNY PATRICK KEATING, Jr., age 51, of New Orleans, Louisiana, who was charged in a one-count federal indictment with Conspiracy to Commit Mail and Wire Fraud in violation of Title 18, United States Code, Section 371.  If convicted, KEATING faces a maximum term of five (5) years imprisonment, a fine of $250,000.00 or 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, KEATING faces a term of supervised release up to three (3) years after his release from prison. 

KEATING constitutes the thirty-third (33rd) defendant charged in the Government’s federal probe into the intentional staging of motor vehicle accidents with tractor-trailers and commercial vehicles in the metropolitan New Orleans area.  Thus far, eleven (11) of the 33 indicted defendants have tendered guilty pleas in federal court. 

According to today’s Indictment, KEATING was a personal injury attorney licensed to practice law in the State of Louisiana.  KEATING was charged with conspiring with Damian Labeaud and others to defraud insurance companies, commercial carriers, and trucking companies in a scheme involving intentionally staging automobile accidents. 

Labeaud referred staged accidents to KEATING and other New Orleans personal injury attorneys referenced in the Indictment as Attorneys A, B, and C, for $1,000.00 per passenger for accidents involving tractor-trailers and $500.00 per passenger for accidents not involving tractor-trailers.  KEATING advanced Labeaud thousands of dollars for these accidents and instructed Labeaud that he owed KEATING a certain number of accidents based on the amount of money advanced.  For instance, on July 17, 2017, KEATING gave Labeaud $15,000.00 so Labeaud could purchase a $15,000.00 Chase Bank cashier’s check to buy Mario Solomon’s truck.[1]  Additionally, on September 25, 2017, KEATING wrote a $17,000.00 to himself for “advertising” and used the proceeds to purchase a $17,000.00 cashier’s check payable to Labeaud.  The Indictment alleges KEATING paid Labeaud another $12,500.00 in checks during the month of June 2017. 

KEATING knowingly paid Labeaud for thirty-one (31) illegally staged tractor-trailer accidents.  KEATING represented 77 plaintiffs involved in the 31 accidents staged by Labeaud.  KEATING settled 17 of the 31 staged accidents.  The Indictment charges that KEATING and his 77 clients received approximately $1,500,000.00 in settlement resulting from his representation of his clients involved in the staged accidents and that KEATING kept approximately $358,000.00 in attorney’s fees.

The Indictment alleges that Labeaud and KEATING sometimes discussed the staging of accidents before they happened and communicated via coded language regarding staging accidents.  KEATING discussed with Labeaud about changing the locations of the staged accidents, varying the number of passengers, avoiding talking to the police, and avoiding cameras.  KEATING also discussed with his clients in the staged accidents that they would likely receive more money in settlement if they received medical treatment.

KEATING filed lawsuits in state and federal court in Louisiana on behalf of his clients who were involved in the staged accidents.  The lawsuits filed on behalf of the 77 plaintiffs fraudulently alleged who was driving the vehicles, misrepresented who was at fault in the staged accidents, and falsely claimed injuries.  KEATING used the U.S Postal Service to mail settlement demands on behalf of his clients who were involved in staged accidents from the Eastern District of Louisiana to various out-of-state locations.  In many cases, clients of KEATING provided false testimony in depositions taken in conjunction with lawsuits filed by KEATING.

”Mr. Keating was supposed to uphold the law rather than manipulate it to benefit himself and other co-conspirators financially”, said FBI Special Agent in Charge Bryan Vorndran. “This indictment is the culmination of an investigation conducted by Special Agents and Intelligence Analysts who worked tirelessly to bring Mr. Keating to justice and is one of many in this case that hopefully will deter others from fraudulently filing false auto and medical insurance claims.” 

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

The U.S. Attorney’s Office would also 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 Brian M. Klebba, Supervisor of the Financial Crimes Unit, Assistant U.S. Attorney Edward Rivera, Assistant U.S. Attorney Shirin Hakimzadeh, and Assistant U.S. Attorney Maria Carboni.

[1] Solomon was a spotter who worked with Labeaud in staging automobile accidents and pled guilty on May 28, 2020.

NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announces that ERIK MARTIN, aged 48, has been charged by a Bill of Information with Conspiracy to Commit Bribery, in violation of Title 18, United States Code, Sections 371 and 201(b)(2). If convicted, MARTIN faces up to five years imprisonment, followed by three years of supervised release, a $250,000 fine, and a mandatory special assessment of $100.

According to the Bill of Information, in 2019, MARTIN was a civilian employee of the United States Marines Corps Marine Forces Reserve (MARFORRES) Distribution Management Office (DMO), located in New Orleans, Louisiana. Co-Conspirator A was a Senior National Account Manager at Company A, a bus brokerage company based in Atlanta, Georgia.  MARTIN is charged with accepting bribes in exchange for directing transportation contracts to businesses associated with Co-Conspirator A.

The conspiracy resulted in at least $1.9 million in transportation contracts being corruptly awarded to companies associated with Co-Conspirator A.  In exchange for steering contracts to Co-Conspirator A, MARTIN agreed to accept $250,000 in bribes.

U. S. Attorney Strasser praised the work of the Defense Criminal Investigative Service (DCIS), the Naval Criminal Investigative Service (NCIS), and the United States Secret Service for their investigation in this case. The prosecution is being handled by Assistant United States Attorney Myles Ranier.

U. S. Attorney Strasser stated that a Bill of Information is only an allegation, and that the defendant is presumed innocent until he pleads guilty or is found guilty by a jury or judge.

NEW ORLEANS - United States Attorney Peter G. Strasser announced today that Assistant United States Attorney AUSA Irene Gonzalez will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 3, 2020, general election. AUSA Irene Gonzalez has been appointed to serve 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 complaints of election fraud and voting rights concerns in consultation with Justice Department Headquarters in Washington.

United States Attorney Strasser said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud.  The Department of Justice will always act appropriately to protect the integrity of the election process.”

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

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

The franchise is the cornerstone of American democracy.  We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice.  In order to respond to complaints of election fraud or voting rights concerns during the voting period that ends on November 3, 2020, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Strasser stated that AUSA/DEO Gonzalez will be on duty in this District while the polls are open.  The public, at the following telephone number (504) 680-3141 can reach her.

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/ .

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.

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

NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that RUDY GUNAWAN, age 40, a native of Indonesia, was charged on October 23, 2020 in a one-count indictment with possession of fraudulent immigration documents prescribed by statute or regulation for entry into or as evidence of authorized stay or employment in the United States, in violation of Title 18, United States Code, Section 1546(a).

GUNAWAN faces a maximum term of imprisonment of not more than ten (10) years, three (3) years of supervised release, a fine of $250,000.00, and a mandatory special assessment fee of $100.00.   

“This case is a great example of the team work done by our Border Patrol Agents and CBP Officers,” said Michael J. Harrison, Acting Chief Patrol Agent, U.S. Border Patrol, New Orleans Sector. “Fraudulent documents are commonly used by criminals and illegal aliens to rob the American people of their identities and finances. Every arrest we make is another citizen protected.” 

U.S. Attorney Strasser 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 Strasser praised the work of United States Customs and Border Protection and Social Security Administration agents in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.

                                                                     *   *   *

NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that MARVEL FRANCOIS (“FRANCOIS”), age 51, of Houma, Louisiana, entered a plea of guilty today to Conspiracy to Commit Mail Fraud, in violation of Title 18, United States Code, Section 371, arising out of staged automobile accidents with tractor-trailers occurring in New Orleans.

According to today’s guilty plea, on May 17, 2020, FRANCOIS, along with participants Damian Labeaud (“Labeaud”), Bernell Gale (“Gale”), Troy Smith (“Smith”), and another passenger, participated in a staged accident in the vicinity of Louisa Street and Chickasaw Street.  Labeaud fled the scene.  FRANCOIS falsely reported to the NOPD that she had been driving and that the tractor-trailer had struck her vehicle.  Labeaud, Gale, and Smith were also charged and already pled guilty.

According to documents filed in federal court, the passengers were referred to attorneys who paid Labeaud to stage the accidents.  In some cases, the attorneys knew that the participants were uninjured but referred them to medical providers for treatment to increase the value of subsequent lawsuits. 

FRANCOIS faces a maximum sentence of five (5) years. Upon release from prison, FRANCOIS also faces a term of supervised release up to (3) three years, and/or a fine of $250,000 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 371. Sentencing in this matter is scheduled for February 24, 2021, before U.S. District Judge Lance M. Africk.  Gale and Smith are also set to be sentenced before Judge Africk on February 10, 2021.  Damian Labeaud’s sentencing is set for February 18, 2021, before U.S. District Judge Eldon E. Fallon.

The U.S. Attorney’s Office would also 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 Brian M. Klebba, Supervisor of the Financial Crimes Unit, Assistant U.S. Attorney Edward Rivera, Assistant U.S. Attorney Shirin Hakimzadeh, and Assistant U.S. Attorney Maria Carboni.

*   *   *