Eastern District of Louisiana

NEW ORLEANS, LOUISIANA – SANDRA RAVEN, age 53, a resident of Laplace, Louisiana, pled guilty Thursday, April 4, 2019 to one count of wire fraud before the Honorable Barry W. Ashe. Sentencing is scheduled for July 11, 2019 at 1:30 p.m.

According to Court documents, RAVEN owned and operated S & R Tax Service out of her home in LaPlace, Louisiana. Beginning in 2012, RAVEN filed fraudulent tax returns with the IRS in the names of others. The tax returns claimed false wages, and RAVEN directed the tax refunds and tax preparation fees to her custody and control.   

RAVEN faces a maximum term of imprisonment of 20 years, a maximum period of (3) three years supervised release and a $250,000 fine.

U.S. Attorney Strasser praised the work of the Internal Revenue Service, Criminal Investigations Division for its work in investigating this case. The case is being prosecuted by Assistant U. S. Attorney G. Dall Kammer, Supervisor, General Crimes.

                                                                      *   *   *

NEW ORLEANS – United States Attorney Peter G. Strasser announced that DARRYL SANDERS, a/k/a Daryl Saunders (“SANDERS”), age 61, of Slidell, Louisiana, was indicted on March 28, 2019, by a federal grand jury for Theft of Government Funds, in violation of Title 18, United States Code, Section 641 and for False Statements in an Application for a Passport, in violation of Title 18, United States Code, Section 1542. The Indictment was unsealed Wednesday, April 3, 2019 after SANDERS was arrested by federal agents at the New Orleans Passport Office.

According to Count One of the Indictment, beginning in December 2013, and continuing until March 2019, SANDERS, did knowingly embezzle, steal, purloin, and convert to his use, money belonging to the Social Security Administration (“SSA”), to which he knew he was not entitled, when he submitted a fraudulent application for SSA benefits that contained a false name, false date of birth, and a fraudulently obtained Social Security number, and as a result, he was paid approximately $44,838.00 in SSA SSID benefits.

According to Count Two of the Indictment, on March 27, 2018, SANDERS, knowingly made false statements in an application for a 2018 U.S. Passport when he falsely claimed his name was Daryl Saunders, with a date of birth of 09/03/XXXX.

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, SANDERS 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 as to each count.

On April 3, 2019, SANDERS appeared before U.S. Magistrate Judge Dana M. Douglas who detained SANDERS.

U.S. Attorney Strasser praised the work of the U.S. Department of State, Diplomatic Security Service and the Social Security Administration, Office of Inspector General.  The prosecution of this case is being handled by Assistant U. S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.

                                                                       *   *   *

NEW ORLEANS, LOUISIANA – JASON PICK, age 38, a resident of New Orleans, Louisiana, was charged yesterday in a one-count bill of information for wire fraud announced U.S. Attorney Peter G. Strasser.

According to court documents, PICK was employed as an accountant for Company A between August 2016 and June 2018. Part of PICK’s duties was handling the credit card accounts of Company A. Without authorization, PICK used Company A’s credit cards for his own personal expenses. In total, PICK stole approximately $129,741.40 from Company A.  

If convicted, PICK faces 20 years of imprisonment followed by up to three (3) years of supervised release and a fine up to $250,000.

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 United States Secret Service in investigating this matter.  The prosecution of this case is being handled by Assistant U. S. Attorney G. Dall Kammer, Supervisor, General Crimes.

NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that RICARDO MACHADA-BACA age 25, a citizen of Honduras, was sentenced yesterday by U.S. District Judge Lance M. Africk after previously pleading guilty to a one-count Bill of Information for illegally re-entering the United States in violation of Title 8, United States Code, Section 1326(a).

According to the Bill of Information, MACHADA-BACA was found in the United States on or about November 13, 2018, after having been previously removed therefrom on or about March 10, 2017.

RICARDO MACHADA-BACA was sentenced to 14 months incarceration, and three years of supervised release. 

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 Irene González is in charge of the prosecution.

*   *   *

NEW ORLEANS, LOUISIANA – JOSEPH R. ALEXANDER, age 60, a resident of Gretna, Louisiana, was sentenced yesterday to 19 months in federal prison for bank fraud.  He was indicted in December 2017 and pled guilty in December 2018.

According to papers filed with the court and signed by ALEXANDER, ALEXANDER was the minister at a Church of Christ congregation in Gretna, Louisiana.  Starting in 2006 and continuing until December 2013, ALEXANDER stole $321,491 from the church in three different schemes.  The first involved his writing church checks to himself, but creating false entries in church ledgers which indicated the checks were being written to legitimate church vendors, when in reality ALEXANDER was paying his bills and funding family vacations to Alaska and Las Vegas, among other places.  He also bought gifts for parishioners, shopping at the Apple Store and Victoria’s Secret.  He also paid his son’s college tuition with church funds.  The second method involved his opening of an online bank account without church permission and paying personal expenses from the online account.  Finally, he forged a church elder’s signature on checks which required two signatures.  He used these funds for personal expenses. 

JOSEPH R. ALEXANDER faced a maximum term of imprisonment of thirty (30) years, a fine of $250,000.00 and five (5) years of supervised release following any term of imprisonment.  He was ordered to report to federal prison on July 3, 2019 to begin serving his sentence.  He was also ordered to pay $321,491 restitution.     

The case was investigated by the United States Postal Inspection Service. 

The case was being prosecuted by Assistant U. S. Attorney Carter K. D. Guice, Jr. of the General Crimes Unit.

NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that AA STUCCO AND MASONRY, LLC., a company that does business within the Eastern District of Louisiana, was charged yesterday in a one-count bill of information with harboring two illegal aliens, in violation of Title 8, United States Code, Section 1324(a)(1)(A)(iii).

If convicted of the felony, the company faces up to 5 years of probation, a fine of $500,000, and a $400 special assessment fee.

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 Homeland Security Investigations and the Louisiana State Police in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.

NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that VALERIE SCHONES, age 54, of Tucson, Arizona, a former employee of an undisclosed entity, XYZ Financial, LLC, also located in Tucson, Arizona, has pleaded guilty yesterday to a Bill of Information charging her with Making False Statements to a Financial Institution.

According to court documents, beginning in or around October 2008 and continuing to on or about May 2009, SCHONES, along with co-defendants PATRICK HEALEY and JARED CASTELLAW made false statements to the Federal Housing Administration “FHA” in order to assist low-income borrowers wishing to purchase homes in St. Bernard in qualifying for FHA insured loans that they would not otherwise have qualified for. In total, due to the acts of the defendants, the FHA suffered a loss in excess of $852,415.

SCHONES faces a maximum of 30 years imprisonment, a fine of not more than $1,000,000, supervised release of up to 5 years, and a special assessment of $100. The Court set sentencing in this matter for July 10, 2019 at 2:00 p.m.

U.S. Attorney Strasser praised the work of the Department of Housing and Urban Development, Office of Inspector General and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Sharan E. Lieberman and Edward J. Rivera.

                                                                  *     *     *

A federal grand jury sitting in New Orleans, Louisiana, returned an indictment against two Louisiana residents, charging each with one count of conspiracy to harbor an alien, one count of conspiracy to defraud the United States, 48 counts of failure to withhold and pay over employment tax, and 12 counts of aiding and assisting in the preparation of a fraudulent tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana.

As alleged in the indictment, Imad “Eddie” Hamdan and Ziad “Z” Mousa owned and operated over 30 locations of Brothers Food Mart. Hamdan and Mousa are alleged to have hired undocumented workers to work in their stores and paid them in cash. To further conceal these undocumented workers, Hamdan and Mousa allegedly filed false employment tax returns with the Internal Revenue Service (IRS) that did not report the cash wages paid to the undocumented workers.

In addition, the indictment charges that Hamdan and Mousa paid the salaries of the managers of the Brothers Food Mart stores partially in cash. Allegedly, employment taxes were also not withheld or reported in connection with these cash wages. Finally, according to the indictment, Hamdan and Mousa issued and filed false Forms W-2 that underreported their wages. The indictment further alleges that Hamdan and Mousa aided in the filing of fraudulent tax returns for the managers of Brothers Food Mart stores.

An indictment merely alleges that crimes have been committed.  The defendants are presumed innocent until proven guilty beyond a reasonable doubt.

If convicted, Hamdan and Mousa each face a statutory maximum sentence of ten years in prison for the conspiracy to harbor aliens count, five years for the conspiracy to defraud the United States count, five years for each count of willful failure to withhold and pay over employment tax, and three years for each count of aiding and assisting in the preparation of a fraudulent tax return.  They also face substantial monetary penalties, supervised release, and restitution.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Strasser commended Assistant United States Attorney Greg Kennedy and Trial Attorney Lauren Castaldi of the Tax Division, who are prosecuting this case. The case was investigated by special agents of IRS-Criminal Investigation and Homeland Security Investigations.

WASHINGTON –A federal grand jury sitting in New Orleans, Louisiana, returned an indictment against two Louisiana residents, charging each with one count of conspiracy to harbor an alien, one count of conspiracy to defraud the United States, 48 counts of failure to withhold and pay over employment tax, and 12 counts of aiding and assisting in the preparation of a fraudulent tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana.

As alleged in the indictment, Imad “Eddie” Hamdan and Ziad “Z” Mousa owned and operated over 30 locations of Brothers Food Mart. Hamdan and Mousa are alleged to have hired undocumented workers to work in their stores and paid them in cash. To further conceal these undocumented workers, Hamdan and Mousa allegedly filed false employment tax returns with the Internal Revenue Service (IRS) that did not report the cash wages paid to the undocumented workers.

In addition, the indictment charges that Hamdan and Mousa paid the salaries of the managers of the Brothers Food Mart stores partially in cash. Allegedly, employment taxes were also not withheld or reported in connection with these cash wages. Finally, according to the indictment, Hamdan and Mousa issued and filed false Forms W-2 that underreported their wages. The indictment further alleges that Hamdan and Mousa aided in the filing of fraudulent tax returns for the managers of Brothers Food Mart stores.

An indictment merely alleges that crimes have been committed.  The defendants are presumed innocent until proven guilty beyond a reasonable doubt.

If convicted, Hamdan and Mousa each face a statutory maximum sentence of ten years in prison for the conspiracy to harbor aliens count, five years for the conspiracy to defraud the United States count, five years for each count of willful failure to withhold and pay over employment tax, and three years for each count of aiding and assisting in the preparation of a fraudulent tax return.  They also face substantial monetary penalties, supervised release, and restitution.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Strasser commended Assistant United States Attorney Greg Kennedy and Trial Attorney Lauren Castaldi of the Tax Division, who are prosecuting this case. The case was investigated by special agents of IRS-Criminal Investigation and Homeland Security Investigations.

NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that SHALLON DAVIS DUNMILES, together with LASHONDA MELANCON, DANYELLE TUCO, ANDREA STALKS, EBONY STEWART, CORTAZ WILLIAMS, and DANIELLE ANDERSON, have pled guilty on Wednesday, March 27, 2019 to charges stemming from their arrest in St. John the Baptist Parish last year. WILFRED PERRILLOUX pled separately on an earlier date.

According to Court documents, DUNMILES, a former employee at a medical clinic in Laplace, Louisiana and MELANCON pled guilty to conspiracy to possess and possess with the intent to distribute illicitly obtained prescription medications, including dextroamphetamine/Adderall, a Schedule II drug controlled substance, and promethazine with codeine, a Schedule V drug controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 846. The investigation revealed that during the course of the conspiracy, DUNMILES wrote approximately 148 fraudulent prescriptions using her former employer’s prescription pad. Together with MELANCON, DUNMILES distributed the prescriptions, often in exchange for money. The maximum penalty that DUNMILES and MELANCON face for the conspiracy to distribute is twenty years of imprisonment, a fine of up to $1,000,000, and at least three years of supervised release following any term of imprisonment.

PERRILLOUX, STALKS, STEWART, TUCO, WILLIAMS, and ANDERSON all pled guilty to conspiracy to acquire or obtain possession of the prescription medication by misrepresentation, fraud, forgery, deception, or subterfuge, in violation of Title 21, United States Code, Sections 843(a) and 846.  The investigation revealed that these individuals were all involved with obtaining the fraudulent prescriptions from DUNMILES and MELANCON. The maximum penalty that they face is up to four years imprisonment, a $250,000 fine, and up to one year of supervised release.

The Court set sentencing hearings in this matter for April 25, 2019 for PERRILLOUX, June 26, 2019 for DUNMILES, MELANCON, and STALKS, and July 10, 2019 for STEWART, TUCO, WILLIAMS, and ANDERSON.

U.S. Attorney Peter G. Strasser also praised the work of the St. John the Baptist Parish Sheriff’s Office Special Operations Division and the Drug Enforcement Administration’s Tactical Diversion Squad (TDS) in investigating this matter. Assistant United States Attorney Shirin Hakimzadeh is in charge of the prosecution.

                                                                  *      *      *

NEW ORLEANS – United States Attorney Peter G. Strasser announced that KENDRA GRAVES, age 31, pled guilty yesterday to a two-count bill of information charging her with 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 court documents, GRAVES falsified federal student loan applications and used the stolen student aid monies in the amount of $195,432 for her own personal use.  As part of her scheme to defraud, GRAVES applied for federal financial aid at Delgado Community College in the name of 15 individuals without their knowledge or consent.

GRAVES faces a possible sentence up to 10 years imprisonment and a fine of $250,000 as to Count 1 and 15 years imprisonment and a fine of $250,000 as to Count 2. GRAVES also faces three (3) years of supervised release following any term of imprisonment and a $200 special assessment fee.  United States District Court Judge Lance M. Africk set sentencing for June 26, 2019.

U.S. Attorney Strasser praised the work of the U.S. Department of Education, Office of Inspector General, the U.S. Department of Treasury, Internal Revenue Service, and the Federal Bureau of Investigation.  Assistant United States Attorney Julia K. Evans is in charge of the prosecution.

                                                                        *   *   *

NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that JORGE AGUILAR-PEREZ, age 25, a citizen of Guatemala, pleaded guilty Tuesday, March 26, 2019 to a one-count bill of information charging him with illegal reentry of a removed alien, in violation of 8 U.S.C. ' 1326(a).

According to the bill of information, JORGE AGUILAR-PEREZ reentered the United States on or about December 20, 2018, after having been previously removed therefrom on or about May 25, 2006.

If convicted, JORGE AGUILAR-PEREZ faces a maximum term of imprisonment of two years, a fine of up to $250,000.00, one year supervised release after imprisonment, and a $100 special assessment.  U.S. District Judge Nannette Jolivette Brown set sentencing for May 2, 2019.

The United States Department of Homeland Security, Immigration and Customs Enforcement in investigated this matter.  Assistant United States Attorney Irene González is in charge of the prosecution.

NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that AARON SPRIGGS, age 42, TERBEN POUMIAN-RAMIREZ, age 31, RAFAEL MARTINEZ, age 28, and LUIS MARTINEZ-VEGA, age 28, all of the Atlanta, Georgia area, pled guilty Tuesday, March 26, 2019 to a Bill of Information charging drug trafficking and related offenses. SPRIGGS, POUMIAN-RAMIREZ, and MARTINEZ pled guilty to one count of conspiring to possess with the intent to distribute a quantity of cocaine, in violation of 21 U.S.C. § 841(a)(1), (b)(1)(C), and 846. MARTINEZ-VEGA pled guilty to actively concealing that felony, in violation of 18 U.S.C. § 4. 

According to the Bill of Information and an earlier-filed complaint, the men traveled to New Orleans intending to purchase several kilograms of cocaine from a man whom they believed to be a Colombian source of supply importing narcotics via the Port of New Orleans. SPRIGGS, who arrived with a gun and more than $100,000 in cash, was to purchase the narcotics; POUMIAN-RAMIREZ and MARTINEZ acted as middlemen brokering the deal between SPRIGGS and the source of supply; and MARTINEZ-VEGA was the driver of one of the two vehicles that made the trip.

For the narcotics offense, SPRIGGS, POUMIAN-RAMIREZ, and MARTINEZ face up to 20 years imprisonment, a fine of up to $1 million, and at least three years of supervised release following any term of imprisonment. For the misprision of a felony offense, MARTINEZ-VEGA faces a term of imprisonment of up to three years, a fine of up to $250,000, and up to one year of supervised release.

Sentencing is set before Judge Eldon E. Fallon on July 11, 2019, at 2:00 p.m.

United States Attorney Strasser praised the work of the Department of Homeland Security and the Jefferson Parish Sheriff’s Office. Assistant United States Attorney Jeffrey Sandman is in charge of the prosecution.

NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that RICARDO SALAZAR-ESQUIVEL, age 30, a native of Mexico, plead guilty Thursday, March 21, 2019 to a one-count indictment, which charged him with illegal reentry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).

According to the indictment, SALAZAR-ESQUIVEL was previously removed from the United States on July 9, 2008. He was later found in the Eastern District of Louisiana on September 16, 2008 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.  He is set to be sentenced on May 2, 2019.

SALAZAR-ESQUIVEL faces a maximum term of imprisonment of 2 years, a fine of $250,000, one year of supervised release, and a $100 special assessment fee.

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

                                                                     *   *   *

NEW ORLEANS – United States Attorney Peter G. Strasser announced Thursday, March 21, 2019 that a federal grand jury returned a three-count indictment against defendant DAVID HUNTER, of Metairie, for possession of stolen firearms in violation of 18 U.S.C. § 922(j) (Count 1), being a prohibited person under indictment in possession of firearms in violation of 18 U.S.C.§ 922(n) (Count 2); and possession of a suppressor not registered to him in the National Firearms Registration and Transfer Record in violation to 26 U.S.C. § 5861(d).  For Count 1, HUNTER faces a maximum term of imprisonment of ten years and a $250,000 fine.  For Count 2, HUNTER faces a maximum term of imprisonment of five years and a $250,000 fine. For Count 3, HUNTER faces a maximum term of imprisonment of ten years and a $10,000 fine.  For each of the charged counts, HUNTER faces up to three years supervised release following any term of imprisonment and a $100 special assessment fee.

The indictment alleges that in December of 2016, HUNTER stole a gun safe containing various firearms from a location in Tylertown, Mississippi and transported the firearms to the Eastern District of Louisiana.

An indictment is merely an accusation.  The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

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 matter was handled by the Bureau of Alcohol, Tobacco, Firearms and Explosives along with the Louisiana State Police.  Assistant United States Attorney Duane A. Evans is prosecuting the case. 

NEW ORLEANS – United States Attorney Peter G. Strasser announced that DAVIN D. THOMAS (“THOMAS”), age 32, of Ponchatoula, Louisiana, a former Delgado Community College ("DCC") Financial Aid Officer, was sentenced Thursday, March 21, 2019 to four years probation and ordered to pay $6,700 in restitution by United States District Court Judge Eldon E. Fallon.  THOMAS was also ordered to perform 150 hours of unpaid community service. THOMAS previously pleaded guilty to a one count Bill of Information charging him with soliciting money from students in exchange for awarding students financial aid.

According to court documents, THOMAS was responsible for the verification of student financial aid applications and for identifying the students who were eligible for financial aid funds. From April 2014 through August 2016, THOMAS solicited funds from three DCC students in exchanged for awarding the students financial aid. THOMAS admitted to federal law enforcement that he accepted $6,700 in exchange for awarding the students financial aid.

U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation and United States Department of Education, Office of Inspector General.  The prosecution of this case is being handled by Assistant U. S. Attorney Julia K. Evans.

NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that BRIA DAVIS, age 25, of New Orleans, Louisiana, entered a plea of guilty yesterday before United States District Judge Carl J. Barbier to Theft of Mail by an Officer or Employee of the U.S. Postal Service.

According to court documents, DAVIS was a U.S. Postal Service Postal Support Employee/Sales Distribution Clerk at the Slidell Post Office, and worked at the retail window counter and performed a variety of tasks including Postal sales, delivering mail to customer P.O. Boxes, and assisting customers with P.O. Box related business.  After an investigation by the Office of Inspector General for the U.S. Postal Service, it was determined that on various dates from September 2016 to January 2017, DAVIS stole several pieces of mail containing checkbooks, gift cards, cash, and checks.  Postal agents also discovered approximately ten additional articles of stolen mail in DAVIS’s personal vehicle.

DAVIS faces a maximum penalty of five (5) years imprisonment, followed by up to three (3) years of supervised release, and a $250,000.00 fine.  Sentencing before Judge Barbier has been scheduled for June 27, 2019.

The case was investigated by special agents from the U.S. Postal Service, Office of Inspector General (“USPS-OIG”).  Additionally, the Slidell Police Department assisted the USPS-OIG in the DAVIS matter.  The prosecution of the case is being handled by Assistant U. S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.

                                                                        *   *   *

NEW ORLEANS – The United States Attorney’s Office announced that GREGORY ST. ANGELO (“ST ANGELO”), age 54, a resident of St. Tammany Parish, was charged today with conspiracy to defraud First NBC Bank, the New Orleans-based bank that failed in April 2017.

According to the Bill of Information, from in or around 2006 through the fall of 2016, ST. ANGELO was the general counsel of First NBC Bank. During this time, he and several businesses owned or controlled by him (the “Entities”) were First NBC Bank borrowers. Bank President A was a founder of First NBC Bank and acted as its president and Chief Executive Officer from in or around May 2006, until in or around December 2016. From in or around 2006 through April 2017, Bank Officer B was employed by First NBC Bank as its Chief Credit Officer, and was responsible for, among other things, the overall quality of the bank’s lending function.

Beginning at a time unknown, but at least in or around 2006, through in and around April 2017, in the Eastern District of Louisiana and elsewhere, the defendant, ST. ANGELO, and others known and unknown conspired to defraud First NBC Bank by means of false and fraudulent pretenses, representations, and promises, relating to a material fact.

The purpose of the conspiracy was for the defendant, ST. ANGELO, Bank President A, Bank Officer B, and others to enrich themselves unjustly by disguising the true financial status of ST. ANGELO, the Entities, and other borrowers, concealing the accurate performance of loans, and misrepresenting the nature of payments to ST. ANGELO and certain Entities.

ST. ANGELO, Bank President A, Bank Officer B, and others sought to accomplish the conspiracy by engaging in the below activities:

ST. ANGELO, Bank President A, Bank Officer B, and others provided First NBC Bank with materially false and fraudulent documents and personal financial statements, which, among other things, overstated the value of ST. ANGELO’s and the Entities’ assets, understated their liabilities, and omitted material information. The materially false and fraudulent personal financial statements, collateral summaries, and other documents concealed ST. ANGELO’s and the Entities’ true financial condition.

Bank President A, Bank Officer B, and others disguised ST. ANGELO’s and the Entities’ true financial condition by, among other things, issuing new loans to ST. ANGELO and certain Entities to pay older loans that ST. ANGELO was unable to repay and to cover his overdrafts. The new loans then appeared to be current, while the old loans and overdrafts appeared to have been paid. In reality, the new loans were designed to avert the downgrading or impairment of ST. ANGELO’s and several Entities’ loans and to avoid reporting them as nonperforming or losses to the bank.  

Another means the conspirators used to disguise ST. ANGELO’s and the Entities’ true financial condition was to extend the maturity date of older loans on which ST. ANGELO was unable to make payments, which allowed First NBC Bank to avoid downgrading, impairing, or reporting the loans as nonperforming or losses to the bank.

Bank President A, Bank Officer B, and others funded fraudulent tax credit investments that First NBC Bank purportedly made in certain Entities owned by ST. ANGELO. In reality, the supposed investments simply funneled money from First NBC Bank’s general ledger to ST. ANGELO and certain Entities, so that ST. ANGELO could make his loan payments and cure overdrafts, and so the bank could avoid downgrading, impairing, or reporting the loans as nonperforming or losses to the bank.  

On multiple occasions, Bank President A and ST. ANGELO executed false documents entitled “Agreements to Purchase Tax Credits” designed to make it appear that First NBC Bank was paying ST. ANGELO money in exchange for ownership interests in entities supposedly owned by ST. ANGELO. In reality, these agreements were a way for Bank President A, Bank Officer B, and ST. ANGELO to justify the diversion of bank funds to ST. ANGELO and certain Entities to cure overdrafts and avoid reporting requirements. On multiple occasions, Bank Officer B directed the disbursement of payments to ST. ANGELO and certain Entities from First NBC Bank’s general ledger, purportedly for tax credit investments, knowing that the tax credit investments were false.

Yet another means by which Bank President A, ST. ANGELO, Bank Officer B, and others concealed the true financial condition of ST. ANGELO’s loans was to lend funds to ST. ANGELO’s associates as nominees. Bank President A and ST. ANGELO caused the nominees to sign loan documents, making it appear that the nominee entity was taking out the loan solely for its own use. In fact, the loan proceeds often were paid to ST. ANGELO or the Entities, not the nominees, and were, in part, used to pay ST. ANGELO’s and the Entities’ existing debts to First NBC Bank or to enrich ST. ANGELO.

ST. ANGELO, Bank President A, and Bank Officer B caused employees of First NBC Bank to transfer the nominee loan proceeds directly to ST. ANGELO’s or the Entities’ deposit accounts, when ST. ANGELO, Bank President A, and Bank Officer B knew the loans were not solely for the nominee, but benefitted ST. ANGELO, who was not named in the loan documents or listed as a guarantor.

By April 28, 2017, First NBC Bank had advanced approximately $46 million to ST. ANGELO and the Entities based on the false personal financial statements, and practice of advancing loans to cover overdrafts and make loan payments. First NBC Bank had also paid ST. ANGELO an additional $9.6 million dollars in false tax credit investment money.

If found guilty, ST. ANGELO could face up to 30 years’ imprisonment, a fine of more than $1 million or twice the gross gain to him or the gross loss of any victims, five years of supervised release, and a special assessment of $100.

First Assistant United States Attorney Michael Simpson stated that a Bill of Information is merely an accusation and that the guilt of the defendant must be proven beyond a reasonable doubt.

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

                                                                    *      *      *

NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that defendant ALBERT VEREEN, JR., age 37, of Port Sulphur, LA, pleaded guilty yesterday to one count of conspiring to traffic cocaine hydrochloride and cocaine base (“crack”), in violation of Title 21, United States Code, Section 841(a)(1), 841(b)(1)(B), and 846.  VEREEN is facing a mandatory minimum sentence of 5 years in prison, a maximum sentence of 40 years in prison, a possible fine up to $5,000,000, and a period of supervised release of at least four years. 

U.S. District Judge Martin L.C. Feldman is scheduled to sentence VEREEN on June 12, 2019.

U.S. Attorney Strasser praised the work of the Plaquemines Parish Sheriff’s Office (PPSO), Drug Enforcement Administration (DEA), Alcohol, Tobacco and Firearms (ATF), New Orleans Police Department (NOPD), Kenner Police Department (KPD), Customs and Border Protection (CBP), and Houston Police Department (HPD) in their investigation of this case.  Assistant United States Attorney Brandon S. Long is in charge of the prosecution.

                                                                    *   *   *

NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that a Bill of Information was filed Tuesday, March 19, 2019 against a Georgia optician charging him with identity theft in connection with the submission of fraudulent claims to health care benefit programs. 

Specifically, JOHN ANTHONY MARSH, age 55, of the Atlanta, Georgia region was charged with one count of identity theft.  MARSH operated Magazine Medical Group & Associates, LLC in New Orleans.  MARSH is charged with submitting claims for reimbursement for medical services using a misappropriated National Provider Identifier of another physician to submit the claims. 

If convicted, MARSH faces a possible maximum sentence of 15 years imprisonment and a $250,000 fine as to Count 1 of the Information. 

U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation and the Department of Health and Human Services for their work investigating the case.  U.S. Attorney Strasser reiterated that the Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt. 

The case is being prosecuted by Jared Hasten of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Patrice Harris Sullivan. 

                                                                        # # #

NEW ORLEANS –  U.S. Attorney Peter G. Strasser announced that DAWN CONRAVEY, age 38, of New Orleans, was sentenced yesterday after previously pleading guilty to participating in a methamphetamine distribution conspiracy throughout the New Orleans area.  Specifically CONRAVEY pleaded guilty to conspiring to distribute and possess with intent to distribute 50 grams or more of a mixture of methamphetamine, in violation of 21 U.S.C. '' 841(a)(1), 841(b)(1)(B) and 846.

U.S. District Judge Ivan L.R. Lemelle sentenced CONRAVEY to time served, followed by 3 years of supervised release, with year one served as home confinement.

According to court documents, during the timeframe of this conspiracy, codefendant Steven LYONS was a major methamphetamine distributor in the New Orleans area.  LYONS obtained methamphetamine by U.S. Mail and other means from several sources, including codefendants Carlos Mario CANTU-COX and Christopher CANTU-COX in Texas (who also supplied Anna THOMPSON); Eric WILLIS in Texas; Trung PHAM in California; and Garret TEMPLETON in Louisiana.   Codefendants Tommy WELLS, Clark McALPIN, Dwayne CLAUSE, and CONRAVEY acted as sellers or brokers of methamphetamine for LYONS in the New Orleans area. 

U.S. Attorney Strasser praised the work of the United States Postal Inspection Service, Louisiana State Police, Amtrak Police, and St. Bernard Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Brandon Long is in charge of the prosecution.

                                                                        *   *   *

NEW ORLEANS –  U.S. Attorney Peter G. Strasser announced that ROY DAVID MELANCON, age 40, a resident of Independence, Louisiana, was sentenced today by United States District Judge Carl J. Barbier to 108 months after previously pleading guilty to a one-count Indictment charging him with receipt of images and videos depicting the sexual exploitation of children.  Judge Barbier also sentenced MELANCON to a period of 5 years of supervised release after he is released from prison and ordered him to pay $10,000 in restitution to those victims who sought restitution.  MELANCON will also have to register as a sex offender.

According to court documents, law enforcement officials executed a search warrant at MELANCON’S residence on February 20, 2018.  Probable cause for the search warrant came from information developed in the March 2016 arrest of an individual in Canada who had traded images and videos containing depictions of children engaged in sexually explicit conduct via a cellular phone application with an individual utilizing username “makemehappy74,” who law enforcement authorities determined to be MELANCON.  During the execution of the search warrant, special agents with the Louisiana Bureau of Investigation seized electronic items including one cellular telephone and one Amazon Kindle Fire tablet that contained images and videos depicting the sexual victimization of children.  A forensic examination of the devices revealed that MELANCON used them to search for, download, and save images and videos of child pornography.  Some of the child victims depicted in the materials possessed by MELANCON were less than three (3) months old. Agents determined that MELANCON also sought and traded images and videos depicting the sexual victimization of children via a cell phone application.  The forensic examination located not fewer than 1,000 images and 200 videos on MELANCON’S digital devices depicting children forced to engage in sexually explicit conduct.

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

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

                                                                  *   *   *

NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that STEVEN RE, age 41, was sentenced Tuesday, March 12, 2019 for possession of stolen firearms in violation of Title 18, United States Code, Sections 922(j) and 924(a)(2).

According to court documents, RE pawned a stolen 20-gauge Remington shotgun on or about September 8, 2017, in Hammond, Louisiana.  On or about September 15, 2017, RE also pawned a stolen .22 caliber Marlin rifle, and attempted to pawn a stolen .410 gauge shotgun, in Harvey, Louisiana.  RE admitted that he knew these firearms were stolen because he stole them during home burglaries.

United States District Court Judge Jay C. Zainey sentenced RE to serve a term of imprisonment of 108 months, to be followed by 3 years of supervised release.  The court also imposed a $200.00 special assessment.

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.

U.S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives in investigating this matter. Assistant United States Attorneys Maria Carboni and Ryan McLaren and are in charge of the prosecution.

*      *      *

NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that DARIUS STOKES, age 30, of New Orleans, pleaded guilty yesterday to a one count federal indictment charging him with being a felon in possession of a firearm.  Federal law prohibits individuals who have been convicted of certain crimes from possessing firearms after being convicted.

STOKES faces a maximum sentence of 10 years imprisonment, a fine of up to $250,000.00, a period of supervised release of 3 years, and a mandatory special assessment of $100.00. The Honorable Susie Morgan, United States District Court Judge of the Eastern District of Louisiana, will sentence STOKES on June 18, 2019.

STOKES’ case has been designated as a Project Safe Neighborhoods (PSN) case. 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.

U.S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Brittany L. Reed is in charge of the prosecution.

NEW ORLEANS – United States District Judge Ivan L.R. Lemelle sentenced JEROME KIEFFER, age 25, and his father, ARMSTEAD KIEFFER, age 54, both of New Orleans, to spend the rest of their lives in federal prison for their roles in a 2015 armored car robbery and a 2017 attempted armored car robbery in which Loomis guard James McBride was killed, announced U.S. Attorney Peter Strasser.

Following a week-long trial in October 2018, a jury convicted JEROME KIEFFER and ARMSTEAD KIEFFER, who are father and son, of charges related to two armored car robberies, a 2015 robbery at the Chase Bank on N. Board and a 2017 attempted robbery at the Campus Federal Credit Union on Tulane.  During the 2015 robbery, JEROME KIEFFER and co-defendant DELTOINE SCOTT, who pleaded guilty and testified against the KIEFFERs, approached a Brinks truck while it was servicing ATMs at the Chase Bank.  JEROME KIEFFER forced a guard back onto the truck at gunpoint, and the two robbers made off with approximately $160,000.  About a year and a half later, the pair attempted another armored car robbery at the Campus Federal, this time enlisting JEROME KIEFFER’s father, ARMSTEAD KIEFFER as a lookout.  During the second robbery, gunfire broke out between the robbers and the guards, and Loomis guard James McBride was shot and later died of his wounds.  Both of the KIEFFERs were convicted on all counts at trial.

U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter.  Assistant United States Attorneys David Haller and Michael McMahon are in charge of the prosecution.

                                                                *      *      *

NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that ALEXANDER JOSUE REYES-RAMIREZ, age 33, a native of Nicaragua, was charged Thursday, March 14, 2019 in a one-count indictment with illegal reentry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).

According to the indictment, REYES-RAMIREZ was previously removed from the United States on July 1, 2009. He was later found in the Eastern District of Louisiana on February 26, 2019 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.

If convicted, REYES-RAMIREZ faces a maximum term of imprisonment of 2 years, a fine of $250,000, one year of supervised release, and a $100 special assessment fee.

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

                                                                      *   *   *

NEW ORLEANS – U.S. Attorney Peter Strasser announced today that OMAR ORTIZ-HERNANDEZ, age 26, was charged Thursday, March 14, 2019 in a one-count indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a).

According to the indictment, OMAR ORTIZ-HERNANDEZ (“HERNANDEZ”), reentered the United States after he was previously deported on November 26, 2017.  If convicted, HERNANDEZ faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment. 

U. S. Attorney 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 the United States Department of Homeland Security in investigating this matter.  Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution.

                                                                        *   *   *

NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that OMAR ELI PEREZ-MURCIA, age 35, a native of Honduras, was charged Thursday, March 18, 2019 in a one-count indictment with illegal reentry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).

According to the indictment, PEREZ-MURCIA was previously removed from the United States on April 4, 2006. He was later found in the Eastern District of Louisiana on February 22, 2019 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.

If convicted, PEREZ-MURCIA faces a maximum term of imprisonment of 2 years, a fine of $250,000, one year of supervised release, and a $100 special assessment fee.

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

                                                                  *   *   *

NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that ELVIN FRANCISCO ALVAREZ-IZAGIRREZ, age 37, a native of Honduras, was charged Thursday, March 14, 2019 in a one-count indictment with illegal reentry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).

According to the indictment, ALVAREZ-IZAGIRREZ was previously removed from the United States on June 6, 2013. He was later found in the Eastern District of Louisiana on February 16, 2019 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.

If convicted, ALVAREZ-IZAGIRREZ faces a maximum term of imprisonment of 2 years, a fine of $250,000, one year of supervised release, and a $100 special assessment fee.

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

                                                                     *   *   *

NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that CIBONEY PARKER, age 25, of New Orleans, was sentenced Thursday, March 14, 2019 by Chief United States District Judge Nannette Jolivette Brown, to  (3) years of probation with (8) months home detention and location monitoring for her role in attempting to introduce controlled substances into the Orleans Justice Center.

According to court documents, PARKER pleaded guilty to one count of violating Title 21, United States Code, Section 843(b), using a telephone in the commission of a conspiracy to distribute controlled substances.   Elton Williams, an inmate at the Orleans Justice Center jail, solicited the assistance of his relative, PARKER (a civilian employee of the Orleans Parish Sheriff’s Office), and two friends, Brittany Theophile and Rachelle Kelson, to smuggle drugs into the jail.  Theophile and Kelson provided the drugs, including marijuana, heroin, and Tramadol, to PARKER during her work shift.  The Orleans Parish Sheriff’s Office Intelligence Division became aware of the plan through audio and visual surveillance and detained PARKER before she could gain access to Williams.   All co-defendants have pleaded guilty; only Williams awaits sentencing. 

U.S. Attorney Peter Strasser praised the work of the FBI and the Orleans Parish Sheriff’s Office Investigative Service Bureau.  Assistant United States Attorney Tracey Knight is in charge of this prosecution.                                                   

                                                                     *   *   *

NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that DANIEL JUSTIN MAHAN, age 43, a resident of Ponchatoula, Louisiana, was sentenced Thursday, March 14, 2019 by United States District Judge Mary Ann Vial Lemmon to 151 months imprisonment, having pleaded guilty to receipt of materials involving the sexual exploitation of minors and violation of the Federal Gun Control Act.  Upon release from imprisonment, he will serve a 5 year term of supervised release.

According to previously filed court documents, MAHAN was arrested on March 15, 2018, by Special Agents of the Federal Bureau of Investigation (FBI) subsequent to the execution of a search warrant at his home.  MAHAN was found to be in possession twenty-four (24) weapons and over 26,000 rounds of ammunition.  MAHAN has a prior felony conviction for bank robbery which prohibits him from possessing firearms and ammunition.  The FBI’s investigation further revealed that MAHAN was also in possession of a laptop computer which contained images depicting the sexual victimization of prepubescent children. 

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

NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that HECTOR EFRAIN LOBOS-CERNA, age 42, of Gulfport, Mississippi, was indicted Thursday, March 14, 2019 by a federal grand jury on one count of possessing with intent to distribute 500 grams or more of cocaine, in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(B).

If convicted, LOBOS-CERNA faces a terms of imprisonment of 5-40 years, a fine of up to $5 million, and at least four years of supervised release following any term of imprisonment.

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

This case is being investigated by the Drug Enforcement Administration, United States Border Patrol, and the Kenner Police Department. Assistant United States Attorney Jeffrey Sandman is in charge of the prosecution.

NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced Thursday, March 14, 2019 the guilty plea of CHRISTELLE SCHMIDT, age 65 of Thibodeaux, Louisiana to one count of violating Title 18, United States Code, Section 2113(b), Bank larceny. The indictment returned in November of 2018 alleged that SCHMIDT stole more than $550,000 from a local architectural firm while employed as a bookkeeper there.

The indictment alleged that starting in 2007 and continuing through 2017 through a series of fraudulent activities SCHMIDT committed the offense. The indictment further alleged that she used two different schemes to purloin the funds, which were in the care, custody of and control of several federally insured banks in the New Orleans area.

The indictment further alleged that her second scheme involved charging personal expenses on company credit cards issued to her. She paid the credit cards using the automated clearing house (ACH) accounts of the firm, without the permission of the firm.

SCHMIDT faces up to 10 years incarceration, a $250,000 fine and restitution and 3 years supervised release. Sentencing is set for June 13, 2019.

U.S. Attorney Strasser praised the work of the United States Secret Service in investigating the matter. The case is being prosecuted by Assistant United States Attorney Carter K.D. Guice Jr.

*      *      *

NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that THAI THAI, LLC. d/b/a Sticky Rice Thai Cuisine and SOMPHON CHIWABANDIT, age 47, a native of Thailand, entered guilty pleas yesterday to harboring and unlawfully employing illegal aliens, in violation of Title 8, United States Code, Section 1324(a)(1)(A)(iii) and Title 8, United States Code, Section 1324a(a)(1)(A).

According to court records, Special Agents of Homeland Security Investigations conducted surveillance on the restaurant as well as on a home owned, and an apartment rented by CHIWABANDIT. The defendant admitted in court that he provided housing, transportation, and employment to two illegal aliens. The defendant also acknowledged that he had been in the United States illegally for the past seven years, as he had overstayed a business visitor visa.

CHIWABANDIT also admitted to failing to list the illegal aliens on a Form I-9. By law, employers are required to maintain Form I-9’s for all employees, as it is a way to verify employment eligibility for a business’s employees.

THAI THAI, LLC. d/b/a Sticky Rice Thai Cuisine, which pleaded guilty to a felony charge of harboring illegal aliens, faces up to 5 years of probation, a fine of $500,000, and a $400 special assessment fee. CHIWABANDIT, the restaurant owner, pleaded guilty to a misdemeanour charge of hiring and employing illegal aliens, and faces up to 6 months of imprisonment, and/or a fine of $5,000, and a special assessment fee of $10.

United States District Court Judge Ivan L.R. Lemelle set sentencing for April 17, 2019.

U.S. Attorney Strasser praised the work of Homeland Security Investigations, the St. Tammany Parish Sheriff’s Office and the Covington Police Department in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.

                                                                *   *   *

NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that yesterday TROYNELL COOKS, age 39, of New Orleans, pled guilty to bank robbery, in violation of Title 18, United States Code, Section 2113(a).

According to court documents, on October 29, 2018, COOKS entered the Hancock Bank located at 2421 St. Claude Avenue, New Orleans, Louisiana, and robbed it of money.  After a brief chase, law enforcement officials successfully apprehended COOKS not far from the bank’s location and recovered the stolen money.

The Court set sentencing in this matter for June 19, 2019.  COOKS faces a maximum term of imprisonment of twenty (20) years, a maximum $250,000 fine, up to three (3) years supervised release following any term of imprisonment, and a $100 special assessment fee.

U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter.  Assistant United States Attorney Duane A. Evans is prosecuting the case. 

NEW ORLEANS –  U.S. Attorney Peter G. Strasser announced that TERRY MADISON, age 22, was sentenced yesterday for committing robbery of a Walmart Money Center located in Hammond, Louisiana, on April 14, 2018. Judge Jay C. Zainey sentenced MADISON to a sentence of 151 months in the Bureau of Prisons, three (3) years of Supervised Release following prison, and a $100 mandatory special assessment.  The Court also ordered MADISON to repay Walmart $3,448.10 taken in the robbery.

MADISON admitted that he entered the Walmart and passed a demand note to the cashier in the Money Center, and also reached to his waistband, implying that he was armed with a firearm.  The teller complied with the demand, and MADISON escaped with over $3,000 in cash.

U.S. Attorney Strasser praised the hard work of the Special Agents of the Federal Bureau of Investigation’s Violent Crime Unit and the Hammond Police Depart in investigating this matter.  Assistant United States Attorney Myles Ranier was in charge of the prosecution.

                                                                        *   *   *

NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that PATRICK SCHEXNAYDER, age 28, of New Orleans, was sentenced March 7, 2019 for heroin conspiracy and firearm possession charges.

According to court documents, SCHEXNAYDER conspired with others to possess with the intent to distribute 100 grams or more of heroin.  In addition, on February 23, 2018, SCHEXNAYDER, a convicted felon, was in possession of a firearm.

U. S. District Court Judge Eldon E. Fallon sentenced SCHEXNAYDER to serve 60 months in prison, to be followed by three years of supervised release.  Judge Fallon also imposed a $200 dollar special assessment. 

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.

U. S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department Multi-Agency Gang Unit in investigating this matter.  The case is being prosecuted by Assistant United States Attorneys Maria M. Carboni and Matthew R. Payne.

*   *   *

NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that JAYVONNE JOHNSON, age 49, of New Orleans, Louisiana, was sentenced on March 7, 2019 after having pleaded guilty to possession with intent to distribute 500 grams or more of cocaine hydrochloride.   

United States District Judge Carl J. Barbier sentenced JOHNSON to 120 months’ imprisonment and a supervised release period of 4 years.

According to court documents, on June 25, 2017, JOHNSON was stopped by law enforcement officers as he disembarked from an Amtrak train arriving in New Orleans from Houston, Texas and was found to be in possession of 1.3 kilograms of cocaine hydrochloride.

U.S. Attorney Strasser praised the work of the Amtrak Rail Police, the Kenner Police Department and the Drug Enforcement Administration. Assistant U.S. Attorneys Sharon D. Smith and Brandon S. Long are in charge of the prosecution.

                                                                        *   *   *

NEW ORLEANS, LOUISIANA – ANDREA HARRISON, age 57, a resident of New Orleans, Louisiana, pled guilty Thursday, February 28, 2019 before Chief United States District Judge Nanette Jolivette Brown to a one-count indictment for false statements in relation to programs under the jurisdiction of the U.S. Department of Housing and Urban Development, announced U.S. Attorney Peter G. Strasser.

According to court documents, a property owned by HARRISON received HUD grant funds as long as it was rented to low-income families. HARRISON submitted false documentation to make it appear that the property was being rented as required, when in truth and in fact, he was living in the property.

HARRISON faces 5 years of imprisonment and a $250,000 fine.    

U.S. Attorney Strasser praised the work of the Office of Inspector General for the U.S. Department of Housing and Urban Development in investigating this matter.  The prosecution of this case is being handled by Assistant U. S. Attorney G. Dall Kammer, Supervisor, General Crimes.

*   *   *

NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that JOHN L. MURRAY, age 65, was charged Thursday, February 28, 2019 in a one-count indictment for bank robbery in violation of Title 18, United States Code, Section 2113(a).

According to the indictment, MURRAY robbed the Hancock Whitney Bank located in New Orleans, Louisiana on February 13, 2019.

If convicted, MURRAY 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.

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 the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter.  Assistant United States Attorney Julia K. Evans is in charge of the prosecution.

                                                                        *   *   *

NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that ALFRED HUMBLES, age 48, was charged Thursday, February 28, 2019 in a one-count indictment with Stalking, in violation of Title 18, United States Code, Section 2261A(2)(B).

According to the indictment, from November 2018 – January 28, 2019, HUMBLES sent harassing and intimidating texts and emails to a former girlfriend. On November 29, 2018, the former girlfriend sent an email to HUMBLES indicating to him that the relationship was over, to stop having contact with her, that law enforcement had been notified and that she felt that her life was being threatened. On December 11, 2018, HUMBLES sent black roses to her place of employment. Approximately 25 texts and emails are quoted in the indictment. Among them, on January 9, 2019, HUMBLES emailed the victim and stated “I can’t think of one reason why you should be walking around breathing.” On January 15, 2019, HUMBLES emailed the victim and stated “I’m tired of playing…..pick one, either your face gets pistol whipped, house burns...” On January 23, 2019, HUMBLES emailed the victim and stated “…you don’t know what I’m capable of and you’re not untouchable.” On January 25, 2019, HUMBLES emailed the victim and stated “when my pistol is in your mouth…”

If convicted, HUMBLES faces a maximum term of imprisonment of five (5) years, a fine of $250,000, three years of supervised release, and a $100 special assessment fee.

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 the Federal Bureau of Investigation and the Plaquemines Parish Sheriff’s Office. Assistant United States Attorney Jon Maestri is in charge of the prosecution.

                                                                     *   *   *

NEW ORLEANS, LOUISIANA – DANA ALVAREZ, age 49, a resident of Holden, Louisiana, was charged Friday, March 1, 2019 in a one count bill of information for conspiracy to defraud the United States with regard to tax returns announced U.S. Attorney Peter G. Strasser.

According to court documents, ALVAREZ worked for Crown Tax Service, LLC, located in Kenner, Louisiana. ALVAREZ and others conspired to defraud the United States by fraudulently minimizing tax liability and fraudulently inflating tax refunds claimed on the tax returns of Crown Tax Service’s clients, and for personal enrichment.

If convicted, the defendant faces 5 years of imprisonment as to Count 1, and a possible $250,000 fine.  

U.S. Attorney Strasser praised the work of the Internal Revenue Service, Criminal Investigations Division for its work in investigating this case. 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.  

The case is being prosecuted by Trial Attorney Lauren Castaldi, Department of Justice Tax Division, and Assistant U.S. Attorney G. Dall Kammer, Supervisor, General Crimes.

*   *   *

NEW ORLEANS –  U.S. Attorney Peter G. Strasser announced that DAVID HANSON, age 61, from Abita Springs, Louisiana, and CLIFFORD “SKIP” KEEN, age 50, from Covington, Louisiana,  pleaded guilty Wednesday, February 27, 2019 before United States District Judge Ivan L.R. Lemelle to conspiracy to commit honest services wire fraud and soliciting a bribe, in violation of 18 U.S.C. '' 371, 1343, 1346, and 666(a)(1)(B), for their roles in the privatization of a work release program in Slidell, Louisiana that operated between 2013 and 2016. 

According to court documents, HANSON and KEEN, each of whom worked most recently as Captains with the St. Tammany Parish Sheriff’s Office (STPSO) discussed with the then-Sheriff (“Public Official 1”) about becoming owners of a work release program in Slidell, Louisiana that Public Official 1 decided to privatize.  The Sheriff of STPSO had authority, among other things, to enter into certain contracts binding STPSO, including professional service contracts, unilaterally.  Because STPSO rules prohibited employees from “participating in a transaction in which he has a personal substantial economic interest of which he may be reasonably expected to know involving the governmental entity,” HANSON and KEEN would have had to resign from STPSO—thereby losing their salaries and future pension increases—if they wanted to assume ownership and control of the Slidell work release program.  HANSON, KEEN, and Public Official 1 discussed ways to allow HANSON and KEEN to maintain their employment and still profit from the Slidell work release program.  Ultimately, HANSON, KEEN, and Public Official 1 agreed to make KEEN’s adult son (Person 1) and HANSON’s adult daughter (Person 2) owners of the Slidell work release program. 

HANSON, KEEN, and Public Official 1 agreed that they needed to find another individual actually to operate the Slidell work release program because Person 1 and Person 2 lacked sufficient education, training, experience, or funding.  They decided on Person 3, to whom HANSON presented a series of conditions, including the following: Person 1 and Person 2 would each own forty-five (45) percent of the Slidell work release program and would each receive forty-five (45) percent of the profits, while Person 3 would own ten (10) percent, receive ten (10) percent of the profits, and receive a salary; and Person 3 would be responsible for the daily operations of the Slidell work release program.   Person 3 was also responsible for providing the capital necessary to initiate the program.  On about May 1, 2013, Person 1, Person 2, and Person 3 entered into an operating agreement that created St. Tammany Workforce Solutions, LLC, in which Person 1 and Person 2 each had a forty-five percent ownership interest and Person 3 had only a ten percent ownership interest.

On June 4, 2013, Public Official 1 entered into a cooperative endeavor agreement (“privatization agreement”) on behalf of STPSO with St. Tammany Workforce Solutions, LLC to operate the Slidell work release program.  Although Person 1 and Person 2 acted effectively as passive members and did not participate substantially in the operation, oversight, or administration of the Slidell work release program, Person 3 was required to pay Person 1 and Person 2 salaries in addition to their ownership disbursements.  Person 3 was also directed to pay Person 4, who was Public Official 1’s relative and an employee at STPSO, approximately $30,000 per year for a no-show job at the Slidell work release program.

During the time St. Tammany Workforce Solutions, LLC operated the Slidell work release program, Person 1 and Person 2 received not less than $1,195,000 from St. Tammany Workforce Solutions, LLC in the form of ownership disbursements, salary payments, and occasional lump sum miscellaneous payments.  Person 1 received no fewer than 145 payments totaling over $550,000, and Person 2 received no fewer than 131 payments totaling over $600,000.   Person 1 and Person 2 converted the majority of the money they received from St. Tammany Workforce Solutions, LLC to cash.  At the request of KEEN and HANSON, Persons 1 and 2 then transferred a significant portion of the funds back to their fathers. 

Additionally, HANSON, KEEN, and Public Official 1 understood that Public Official 1 would receive financial compensation from them in exchange for bestowing the right to operate the Slidell work release program on St. Tammany Workforce Solutions, LLC.   HANSON and KEEN each gave Public Official 1 a portion of the payments they received from St. Tammany Workforce Solutions LLC, through Person 1 and Person 2, in cash payoffs in amounts greater than $1,000 on a recurring basis in exchange for Public Official 1 bestowing the right to operate the Slidell work release program on St. Tammany Workforce Solutions LLC.  HANSON also arranged for Public Official 1’s son to receive a check in the amount of $4,000 because Public Official 1 gave the contract to operate the Slidell work release program to St. Tammany Workforce Solutions, LLC.  HANSON, KEEN, Public Official 1, and others attempted to conceal the scheme by, among other things, not including in the privatization agreement the fact that Public Official 1 would receive financial compensation in exchange for bestowing the right to operate the Slidell work release program on St. Tammany Workforce Solutions LLC, communicating by cellular telephone, and providing most of the money to Public Official 1 in the form of cash.

HANSON and KEEN each face a maximum term of imprisonment of five years, a fine of up to $250,000.00, three years supervised release after imprisonment, and a mandatory $100 special assessment.  Sentencing before Judge Lemelle has been scheduled for May 29, 2019. 

U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division and thanks the Metropolitan Crime Commission for its assistance.  Assistant United States Attorneys Jordan Ginsberg, Supervisor of the Public Corruption Unit, and Elizabeth Privitera, Supervisor of the Violent Crime Unit, are in charge of the prosecution.

                                                                        *   *   *

NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that BENITO ORBE-SANTANA, age 43, a native of Mexico, pleaded guilty Thursday, February 21, 2019 to a one-count indictment, which charged him with illegal reentry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).

According to the indictment, ORBE-SANTANA was previously removed from the United States on July 9, 2008. He was later found in the Eastern District of Louisiana on December 10, 2018 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter. According to documents filed in court, ORBE-SANTANA, was arrested in Tangipahoa Parish for DWI in December 2018.

ORBE-SANTANA faces a maximum term of imprisonment of 2 years, a fine of $250,000, one year of supervised release, and a $100 special assessment fee. His sentencing is set for March 14, 2019.

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

*   *   *

NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that ANTONIO OSORIO DIAZ, age 41, a native of Mexico, was charged Thursday, February 21, 2019 in a one-count indictment with illegal alien in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(5)(A).

According to the indictment, DIAZ was an illegal alien in possession of a firearm on February 3, 2019 who was found in the Eastern District of Louisiana.  He is an illegal alien from Mexico and has never been previously deported.  The indictment alleges he illegally possessed a Ruger. 45 caliber semi-automatic pistol.

If convicted, DIAZ faces a maximum term of imprisonment of 10 years, a fine of $250,000, and three years of supervised release and a $100.00 special assessment fee.

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

                                                                     *   *   *

NEW ORLEANS – United States Attorney Peter G. Strasser announced today that RYAN S. CORTEZ, age 46, of Des Allemands, Louisiana, entered a plea of guilty Friday, February 22, 2019 to Misappropriation of Postal Funds, in violation of Title 18, United States Code, Section 1711.

According to court records, special agents with the U.S. Postal Service, Office of Inspector General (“USPS-OIG”) were notified by PayPal and eBay regarding significant quantities of U.S. Postal stamps being sold by CORTEZ on eBay.  A subsequent investigation by Postal OIG revealed that, as manager, Cortez had increased the North Kenner Post Office’s reserve stamp stock by more than $600,000.  Subpoenaed records from Cortez’s Regions Bank account revealed substantial deposits, including more than $58,000 in a one-month period in the summer of 2018. 

During their investigation, Postal OIG agents determined CORTEZ withdrew thousands of dollars on a regular basis at the Harrah’s Casino in New Orleans.  Harrah’s records revealed CORTEZ lost over $667,000 since 2011 and lost over $220,000 in 2017.  Postal records indicate CORTEZ earned an annual salary of $70,818.  

On October 10, 2018, Postal OIG special agents executed a federal search warrant issued by a federal magistrate judge at CORTEZ’s residence in Des Allemands. Agents found evidence linking CORTEZ to the ordering of the stamps from the Stamp Fulfillment Center thus increasing the reserve stamp stock for the North Kenner Post Office.  During the search of the Post Office, Postal OIG special agents advised CORTEZ of his Miranda rights and advised him that they wanted to discuss financial issues with the Post Office.  CORTEZ admitted to Postal agents that he had stolen stamps from the North Kenner Post Office and sold them on eBay. When asked to estimate the dollar amount of stamp stock that had been stolen, CORTEZ responded, “Hundreds of thousands.” CORTEZ claimed he began selling stamps on eBay in 2015. CORTEZ said he was addicted to gambling and the money obtained from the illegal sale of stamps was to support his gambling addiction.  CORTEZ confirmed he manipulated stamp stock counts by using another supervisor’s password to access the computer system. As a result, existing internal controls failed to detect the theft of these stamps. 

In total, Postal records reveal that CORTEZ stole over $630,000 in U.S. stamps and sold them on eBay.  According to Postal authorities, CORTEZ’s illegal activities constitute one of the largest internal Postal thefts by a Postal Service employee in the history of the U.S. Postal Service.

CORTEZ faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, a $250,000.00 fine and a $100.00 special assessment fee. Sentencing in this matter is scheduled for May 30, 2019 at 1:30 pm.

U.S. Attorney Peter G. Strasser praised the work of the U.S. Postal Service, Office of Inspector General.  The prosecution of this case is being handled by Assistant

U.S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.

*   *   *

NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that HERVIN ADOLFO PINEDA, age 44, a native of Nicaragua, was charged Thursday, February 21, 2019 in a one-count indictment with illegal reentry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).

According to the indictment, PINEDA was previously removed from the United States on May 11, 2011. He was later found in the Eastern District of Louisiana on January 31, 2019 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.

If convicted, PINEDA faces a maximum term of imprisonment of 2 years, a fine of $250,000, one year of supervised release, and a $100 special assessment fee.

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

                                                                    *   *   *

NEW ORLEANS – United States Attorney Peter G. Strasser announced that COURTNEY C. DUPLESSIS (“DUPLESSIS”), age 30, of New Orleans, Louisiana, entered a plea of guilty on Thursday, February 21, 2019 to Theft of Mail, in violation of Title 18, United States Code, Section 1709.

According to court records, DUPLESSIS was employed by the United States Postal Service as a Letter Carrier originally assigned to the Carrolton Station Post Office and then to the Elmwood Station Post Office.  After an investigation by the Office of Inspector General for the U.S. Postal Service, it was determined that on various dates from October 2017 to June 2018, DUPLESSIS stole several pieces of mail containing gift cards and cash. On June 19, 2018, special agents with U.S. Postal Service Office of Inspector General (“USPS-OIG”) determined DUPLESSIS opened an envelope and removed cash from the envelope. The USPS-OIG agents confronted DUPLESSIS and advised her of her Miranda rights. During an interview, DUPLESSIS admitted to opening several articles of mail and removing cash and gift cards. Agents discovered an additional 54 articles of mail during a subsequent search of DUPLESSIS’s personal vehicle.

DUPLESSIS faces a maximum penalty of five (5) years imprisonment, a $100.00 special assessment fee 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 3571.  Sentencing is scheduled for May 2, 2019 at 2:00pm.

U.S. Attorney Peter G. Strasser praised the work of the USPS-OIG.  The prosecution of this case is being handled by Assistant U. S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.

*   *   *

WASHINGTON – Two St. John the Baptist Parish, Louisiana, residents were arrested today on an indictment charging them with conspiring to defraud the United States and aiding and assisting in the preparation of fraudulent tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana.

As charged in the indictment, Michegel Butler and Brittany Riquel Patterson prepared false tax returns in 2013 for clients of Crown Tax Service in Kenner, Louisiana. Butler is the alleged owner of Crown Tax Service, and Patterson is a return preparer at Crown. As part of the scheme, Butler and Patterson allegedly falsified returns by including fraudulent business income and expenses, dependents, and dependent care expenses. They allegedly sought to substantiate these false items by having clients sign blank declarations of business income and expenses, and false receipts. The indictment charges that some clients also were encouraged to buy or sell the personal identification information of others to facilitate the false reporting of dependents on returns.

An indictment merely alleges that crimes have been committed.  The defendants are presumed innocent until proven guilty beyond a reasonable doubt.

If convicted, Butler and Patterson face a maximum sentence of five years in prison for the conspiracy charge, and three years for each count of aiding and assisting in the preparation of a fraudulent tax return.  They also face substantial monetary penalties, supervised release, and restitution.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Strasser commended Assistant United States Attorney Dall Kammer and Trial Attorney Lauren Castaldi of the Tax Division, who are prosecuting this case. The case was investigated by special agents of IRS-Criminal Investigation.

# # #

Two St. John the Baptist Parish, Louisiana, residents were arrested today on an indictment charging them with conspiring to defraud the United States and aiding and assisting in the preparation of fraudulent tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana.

As charged in the indictment, Michegel Butler and Brittany Riquel Patterson prepared false tax returns in 2013 for clients of Crown Tax Service in Kenner, Louisiana. Butler is the alleged owner of Crown Tax Service, and Patterson is a return preparer at Crown. As part of the scheme, Butler and Patterson allegedly falsified returns by including fraudulent business income and expenses, dependents, and dependent care expenses. They allegedly sought to substantiate these false items by having clients sign blank declarations of business income and expenses, and false receipts. The indictment charges that some clients also were encouraged to buy or sell the personal identification information of others to facilitate the false reporting of dependents on returns.

An indictment merely alleges that crimes have been committed.  The defendants are presumed innocent until proven guilty beyond a reasonable doubt.

If convicted, Butler and Patterson face a maximum sentence of five years in prison for the conspiracy charge, and three years for each count of aiding and assisting in the preparation of a fraudulent tax return.  They also face substantial monetary penalties, supervised release, and restitution.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Strasser commended Assistant United States Attorney Dall Kammer and Trial Attorney Lauren Castaldi of the Tax Division, who are prosecuting this case. The case was investigated by special agents of IRS-Criminal Investigation.