Eastern District of Louisiana

U.S. Attorney Duane A. Evans announced that CHRISTOPHER MAZUR, age 34, and REBECCA COMSTOCK, age 36, pleaded guilty today to violations of the Federal Gun Control Act. MAZUR pleaded guilty to one count of possession of a firearm by a prohibited person, in violation of Title 18, United States Code, Sections 922(g)(1), 922(g)(9), and 924(a)(2). COMSTOCK pleaded guilty to making a false statement to a federally licensed firearms dealer, or a straw purchase, in violation of Title 18, United States code, Sections 922(a)(6), 924(a)(2), and 2.

According to court documents, COMSTOCK falsely stated in paperwork submitted to a federally licensed firearms dealer that she was the actual purchaser of three firearms that were intended for MAZUR. MAZUR could not purchase the firearms for himself because of his previous felony convictions in Louisiana and Mississippi, and because of a previous Louisiana conviction for a misdemeanor crime of domestic violence. In addition to the three guns purchased from the federally licensed firearms dealer, federal agents seized seven firearms and 2,825 rounds of ammunition from MAZUR and COMSTOCK’S residence.

MAZUR and COMSTOCK face as to each count a maximum term of imprisonment of ten years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment.

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.

U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives in investigating this matter. Assistant United States Attorney J. Ryan McLaren is in charge of the prosecution.

U.S. Attorney Duane A. Evans announced that RYAN SCOTT, age 40, of Kenner, was sentenced today after previously pleading guilty to one count of federal arson and one count of weapon violations.

U.S. District Judge Lance M. Africk sentenced SCOTT to 120 months incarceration as to each count, to run concurrently, to be followed by three years of supervised release. 

According to court documents, SCOTT set fire to an apartment building in LaPlace, Louisiana, on August 13, 2017, in violation of Title 18, United States Code, Section 844(i).  SCOTT also possessed a destructive device, a Molotov cocktail, in violation of Title 26, United States Code, Section 5861(d), on the same date.  SCOTT threw the destructive device at a vehicle in Kenner, Louisiana, causing a fire.

U. S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Louisiana State Fire Marshal, the Kenner Police Department, and the Sheriff’s Office for St. John the Baptist Parish in investigating this matter.  The case is being prosecuted by Assistant United States Attorneys Maria M. Carboni and Myles Ranier.

U.S. Attorney Duane A. Evans announced that ANITRA SMITH, age 38, a resident of New Orleans, was sentenced today after previously pleading guilty to one count of misdemeanor assault of a federal employee, in violation of Title 18, United States Code, Section 111(a).

U.S. District Judge Nannette Jolivette Brown sentenced SMITH to a term of probation of two years, the first six months of which are to be served in home detention, and a $25 mandatory special assessment.

According to court documents, SMITH exchanged words with a letter carrier after the letter carrier delivered mail to SMITH’S address. Later, SMITH drove to the block where the letter carrier was delivering mail to a different address. SMITH exited her vehicle and approached the letter carrier with an aluminum baseball bat. SMITH and the letter carrier were standing a distance away from each other. SMITH threatened the letter carrier with the baseball bat. A neighbor intervened and SMITH went back to her car and drove home.

U.S. Attorney Evans praised the work of the United States Postal Inspection Service in investigating this matter. Assistant United States Attorney J. Ryan McLaren was in charge of the prosecution.

U.S. Attorney Duane A. Evans announced that TONY RILEY, age 49, of Empire, Louisiana, was sentenced today to six months of home detention and three years of probation by U.S. District Judge Jane Triche Milazzo for committing mail fraud in relation to the BP settlement fund for the Deepwater Horizon oil rig explosion.  Judge Milazzo also ordered RILEY to pay restitution in the amount of $166,261.16 to the Deepwater Horizon Economic Claims Center.

According to court documents, RILEY submitted a claim for lost profits from his seafood business to the Gulf Coast Claims Facility (GCCF) and the Deepwater Horizon Economic Claims Center (DHECC).  Initially, due to RILEY’S incomplete information, GCCF made a “Quick Pay” settlement offer of $25,000.00.  RILEY did not accept that offer and subsequently submitted additional records that included false information to the GCCF and DHECC.  In those records, RILEY inflated his income from his seafood business in 2009 in order to qualify for additional reimbursement from the settlement fund.  In March 2013, due to the fraudulent information that RILEY submitted, the DHECC sent RILEY checks worth a total settlement of $221,681.62. 

U.S. District Judge Carl J. Barbier, who presided over the BP settlement litigation, already ordered RILEY’S attorneys to repay the portion of RILEY’S settlement that the attorneys retained as fees.  Those attorneys complied with Judge Barbier’s order, resulting in the total restitution amount of $166,261.16 that Judge Milazzo ordered RILEY to repay as part of his sentence.

U.S. Attorney Evans praised the work of the Secret Service New Orleans Field Office.  Assistant United States Attorney Matthew R. Payne is in charge of prosecution.

U.S. Attorney Duane A. Evans announced that JERRY R. NEWTON, age 54, of Slidell, Louisiana pleaded guilty to a one count Bill of Information charging Theft of Government Funds, in violation of Title 18, United States Code, Section 641. 

According to the Bill of Information, NEWTON applied for Social Security disability benefits under Title II of the Social Security Act.  A person receiving disability benefits must truthfully disclose to the Social Security Administration any employment or income while getting the government money.  In forms submitted to the SSA, NEWTON failed to disclose that he was the paid pastor of Bogalusa Baptist Church since May of 2007 and that he owned two businesses, Still Dreaming Graphics, LLC and Kclean Sweep, a cleaning service.  Due to his concealing of his salary and income produced from his businesses, NEWTON received a total of $95,316 in DIB benefits to which he was not entitled.

NEWTON 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 well as restitution to the Social Security Administration.

A sentencing hearing is set for October 25, 2018 before United States District Court Judge Jane Triche Milazzo.  U.S. Attorney Evans praised the work of the Social Security Administration, Office of Inspector General.  Assistant U.S. Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.

WASHINGTON – A federal grand jury in New Orleans, Louisiana, returned a six-count human trafficking and hate crime indictment relating to the abuse of D.P., a 22-year-old woman with disabilities, in Amite, Louisiana. Raylaine Knope, 42, Terry J. Knope, II, 45, Jody Lambert, 23, and Taylor Knope, 20, are charged with one count of conspiring to obtain the forced labor of D.P., in violation of 18 U.S.C. § 1594(b); one count of forced labor, in violation of 18 U.S.C. § 1589; and one count of using force and threats of force to interfere with D.P.’s federal Fair Housing Act rights because of her disability, in violation of 42 U.S.C. § 3631. Raylaine Knope and Terry J. Knope, II are also charged with one count of attempted sex trafficking of D.P., in violation of 18 U.S.C. §§ 1591 and 1594(a); and Terry J. Knope, II is charged with one count of a hate crime for shooting D.P. with a BB gun because of her disability, in violation of 18 U.S.C. § 249(a)(2), and one count of theft of government funds for stealing D.P.’s federal disability benefits, in violation of 18 U.S.C. § 641. In addition, in a related matter, Bridget Lambert, 21, was separately charged in a one-count Bill of Information for conspiring to obtain the forced labor of D.P., in violation of 18 U.S.C. § 371.

The forced labor, forced labor conspiracy, and Fair Housing Act charges against Raylaine Knope, Terry J. Knope, II, Jody Lambert, and Taylor Knope carry a statutory maximum penalty of life imprisonment. The sex trafficking charge against Raylaine Knope and Terry J. Knope, II, carries a mandatory minimum penalty of fifteen years imprisonment, with a statutory maximum penalty of life imprisonment. The hate crime charge and the theft of government funds charge against Terry J. Knope, II, each carry a statutory maximum penalty of ten years imprisonment. The separate conspiracy charge against Bridget Lambert carries a statutory maximum penalty of five years’ imprisonment.

An indictment and a bill of information are formal accusations of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless and until proven guilty.

This case was investigated by the FBI Field Office in New Orleans, Louisiana, and is being prosecuted by Trial Attorneys Risa Berkower and Nicholas Reddick of the Justice Department’s Civil Rights Division, and Assistant United States Attorney Julia Evans, of the U.S. Attorney’s Office for the Eastern District of Louisiana.

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18-990

United States Attorney Duane A. Evans announced that MILTON OMAR SANCHEZ, age 43, a native of El Salvador, was sentenced today after pleading guilty to a one-count indictment for illegal reentry of a removed alien.

United States District Court Judge Ivan L.R. Lemelle sentenced SANCHEZ to time served (10 months), followed by one year of supervised release. The defendant will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.

According to court documents, on September 13, 2017, SANCHEZ was found in the United States after having been previously deported from the United States on July 13, 2004.

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

U.S. Attorney Duane A. Evans announced that BRENT ANTHONY SILVA, age 52, a resident of Covington, Louisiana, was charged yesterday in a one-count bill of information with conspiracy to make false statements and representations in connection with a multiple employer welfare arrangement, in violation of 18 U.S.C. ' 371, for his role the operation of the Total Financial Group (“TTFG”), a Covington-area business that created and marketed what it claimed to be a Medical Reimbursement Program.

According to the bill of information, TTFG was a Louisiana business incorporated with the Louisiana Secretary of State on about January 6, 2005, that was most recently located at 406 N. Florida Street, Covington, Louisiana.  TTFG and its owners created and marketed a Medical Reimbursement Account program called “Classic 105.”  Classic 105 claimed to be a multiple employer welfare arrangement that was marketed to employers as a supplemental benefits plan for their employees to reimburse for medical expenses such as co-pays and deductibles; participants in Classic 105 were required to have a primary health insurance plan unrelated to and in addition to Classic 105.  Classic 105 claimed to be comprised of several components: a tax-exempt contribution of between $1,000 and $1,600 per month made by an employee (which reduced the employee’s taxable income), a loan from a lender back to the employee to make up for the contribution, an insurance policy payable to the lender at the employee’s death to repay the loan, and fees paid by the employee and the employer directly to TTFG.  TTFG told prospective employer-customers that participants would never have to make out-of-pocket payments to repay the loan and that as a result of the tax savings, most participants would receive an increase in their net take home pay.  TTFG also told prospective employer-customers that the contributions would be stored in a unique account for each employee and that any money not used by the end of each calendar year would revert to TTFG.  TTFG also charged employees a fee of between $150 and $250 per month and the employer a fee of five (5) percent of each employee’s contribution amount.  At its peak, in late 2016, over 350 employers and 4,400 employees (“participants”) nationwide were enrolled in TTFG’s Classic 105 program.

According to the Bill of Information, TTFG never obtained a single loan or insurance policy for the Classic 105 program, and participants never made any actual contributions.  Rather, TTFG arranged for the contribution, loan, and insurance policy to appear as a series of “paper transactions” that, in effect, did nothing more than reduce participants’ taxable wages and employers’ FICA payments improperly, without their knowledge of the impropriety.  In truth, the only money actually paid to TTFG were the fees.                                  

SILVA was hired by the owners of TTFG in about 2013.  SILVA performed numerous functions at TTFG, including preparing the federal and state income tax returns for TTFG and its owners, as well as serving as the primary point of contact for all accounting-related issues that arose.  In his role with TTFG, SILVA knowingly caused false statements to be made to employer-clients and employee-participants about the financial condition, solvency, and benefits provided by Classic 105 during the marketing and sale of the program, including statements on December 17, 2014 and January 15, 2015. 

“This criminal action demonstrates the Labor Department’s resolve to vigorously prosecute those who scheme, misappropriate, misrepresent and deceive small business health plans, as well as, the health insurance market for their own financial gain are brought to justice,” said James Purcell, Regional Director of the Kansas City Regional Office for the U.S. Department of Labor, Employee Benefits Security Administration.

If convicted, SILVA faces 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.

U. S. Attorney Evans 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 Evans praised the work of the Internal Revenue Service – Criminal Investigations; Federal Bureau of Investigation; and United States Department of Labor – Office of Inspector General and Employment Benefits Security Administration and expressed appreciation for the support provided by Senior Trial Attorney Rebecca Pyne, Department of Justice, Organized Crime and Gang Section, Labor-Management Racketeering Unit.  Assistant United States Attorney Jordan Ginsberg and Department of Justice, Tax Division Trial Attorney Melanie Smith are in charge of the prosecution.

U.S. Attorney Duane A. Evans announced that DUSTIN DINET, age 31, of New Orleans, and STEVEN DINET, age 44, of Jonesboro, Arkansas, who are brothers, were charged today in a seven-count Indictment with conspiracy to distribute 28 grams or more of crack and 100 grams or more of heroin, distribution of crack, possession with the intent to distribute heroin, possession of a firearm in furtherance of a drug trafficking crime, possession of a firearm by a convicted felon.

According to the indictment, the DINET brothers conspired to distribute crack and heroin and sold crack on three different occasions.  The indictment also charges DUSTIN DINET with possessing a gun in furtherance of drug trafficking and possessing a gun after being convicted of a felony.  Each defendant faces a mandatory minimum five years up to forty years on the drug conspiracy.  The possession of a firearm in furtherance of drug trafficking carries a mandatory consecutive sentence of five years up to life and being a felon in possession of a firearm carries a sentence of up to ten years. 

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

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.   Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority.   In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.

U.S. Attorney Evans praised the work of the Drug Enforcement Administration and the Jefferson Parish Sheriff’s Office in investigating this matter.  Assistant U.S. Attorney David Haller is in charge of the prosecution.

DAVID KLIMENKO (“KLIMENKO”), age 30, of Houma, Louisiana, was sentenced on July 10, 2018, for Failure to Register as a Convicted Sex Offender and Distribution of Child Pornography, announced United States Attorney Duane A. Evans.

United States District Judge Jay C. Zainey sentenced KLIMENKO to seventeen years’ incarceration to be followed by 25 years of supervised release.

According to court records, the case against KLIMENKO developed as a result of a lead from the Louisiana Bureau of Investigation’s Cyber Crimes Unit (“LBI”) concerning a registered sex offender who absconded from Maryland.  On April 6, 2017, special agents with the U.S. Department of Homeland Security, Homeland Security Investigations (“HSI”) obtained federal search warrants for two addresses in Houma, LA.  That same day, KLIMENKO was arrested during the execution of the search warrants.   Agents advised KLIMENKO of his Miranda rights and KLIMENKO waived his rights and completed a written Miranda waiver.  During an interview, KLIMENKO admitted to knowingly failing to register as a sex offender after fleeing from Maryland and traveling to Louisiana.   KLIMENKO also admitted to distributing child pornography on multiple occasions. 

Specifically, KLIMENKO told HSI agents that he was a convicted sex offender in Maryland and was sentenced to two years of probation, two years of a suspended sentence, and required to register as a Tier II sex offender in Maryland or any other state in which he resided.  KLIMENKO confirmed that he signed sex offender registration forms in Maryland upon his conviction.  KLIMENKO stated that out of fear that his Maryland Probation Officer would violate his probation, he cut off his court mandated GPS ankle monitor and traveled to Louisiana.  KLIMENKO lived in Houma, LA. 

KLIMENKO confirmed that on February 2, 2017, he used the Internet service from the next door residence and used various Facebook profiles to distribute child pornography on the Internet.  Records obtained from Facebook confirmed that KLIMENKO used his Facebook account to distribute four (4) videos and eight (8) images depicting the sexual victimization of children on February 2, 2017.  Facebook records further establish that KLIMENKO used another Facebook account to distribute two (2) additional images depicting the sexual exploitation of children on the same date, February 2, 2017.  KLIMENKO also admitted to sending child pornography to a woman he was communicating with using Facebook.

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

U.S. Attorney Evans praised the work of the U. S. Department of Homeland Security, Homeland Security Investigations and the Louisiana Bureau of Investigation in investigating this matter.  The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U. S. Attorney Brian M. Klebba.

U.S. Attorney Duane A. Evans announced that STEFEN DAIGLE, age 31, of New Orleans pled guilty today to one count of conspiring to traffic 500 grams or more of a mixture containing methamphetamine in the Eastern District of Louisiana.  DAIGLE faces a mandatory minimum sentence of 10 years in prison, a maximum life sentence, a fine of up to $10,000,000 and at least 5 years of supervised release.  

U.S. District Judge Susie Morgan set sentencing for DAIGLE on October 24, 2018.

U.S. Attorney Evans praised the work of the United States Postal Inspection Service, Louisiana State Police, Jefferson Parish Sheriff’s Office, Texas Department of Public Safety, Texas Highway Patrol, Montgomery County (Texas) Sheriff’s Office, Immigration and Customs Enforcement, AMTRAK Police, and the Orleans Parish District Attorney’s Office.  Assistant United States Attorney Brandon S. Long is in charge of the prosecution.

NEW ORLEANS – U.S. Attorney Duane A. Evans announced that JOEL MADRIGAL-SANCHEZ, age 20, a citizen of Mexico, pleaded guilty to a one-count bill of information alleging illegal reentry of a removed alien, in violation of Title 8 United States Code, Section 1326(a).

According to the bill of information, JOEL MADRIGAL-SANCHEZ reentered the United States on or about March 8, 2018, after having been previously removed therefrom on or about December 8, 2015.

JOEL MADRIGAL-SANCHEZ faces a maximum term of imprisonment of two years, a fine of up to $250,000.00, one year of supervised release after imprisonment, and a $100 special assessment.  U.S. District Judge Eldon E. Fallon set sentencing for September 13, 2018.

U.S. Attorney Evans 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.

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NEW ORLEANS –  U.S. Attorney Duane A. Evans announced that LUIS J. COTTO, age 31, a resident of New York, pleaded guilty today to charges stemming from a heroin and cocaine trafficking conspiracy before U.S. District Judge Mary Ann Vial Lemmon.

According to court documents, beginning in 2015 through 2016, agents with the Drug Enforcement Administration conducted an investigation that revealed the existence of a drug trafficking ring operating in St. Rose and LaPlace, Louisiana.  Agents learned that COTTO was a source of narcotics for members of this conspiracy, driving narcotics into Louisiana from Texas, where he had owned a residence as well. 

Court documents also outline that, on August 7, 2016, COTTO was stopped for a traffic violation while headed southwest on Interstate 44 near Vinita, Oklahoma, by the Oklahoma Highway Patrol.  Based on COTTO’S suspicious conduct, the trooper called a trained drug canine to conduct an open-air sniff of COTTO’S vehicle.  The canine alerted to the presence of contraband in the car.  State troopers searched the vehicle and found approximately $225,000.00 in U.S. currency wrapped in plastic in one of the door panels.

COTTO pleaded guilty to the charges pending against him in the Third Superseding Indictment.  As to Count 1, conspiracy to distribute one kilogram or more of heroin and five kilograms or more of cocaine, he faces a mandatory minimum term of ten years in prison and a maximum of life imprisonment, a $10,000,000.00 fine, and at least five years of supervised release.  He also pleaded guilty to Count 12, use of a communications device in furtherance of drug trafficking, which carries up to four years in prison, a $250,000.00 fine, and up to one year of supervised release.  Judge Lemmon scheduled sentencing for October 25, 2018.  Four remaining defendants, Andre Staggers, Corey Session, Gregory London, Jr., and Leonard Morrison, are pending for trial on August 6th before Judge Lemmon.

U.S. Attorney Evans praised the conviction as the result of a coordinated effort of federal and state law enforcement authorities within the Drug Enforcement Administration’s Gulf Coast High Intensity Drug Trafficking Area (HIDTA) Program.  The DEA’s HIDTA Group #11, operating out of the New Orleans Field Division, includes members of the Louisiana State Police, Jefferson Parish Sheriff’s Office, and other local agencies.  U.S. Attorney Evans extended his thanks to the Oklahoma Highway Patrol for their assistance in this investigation.  Assistant United States Attorneys Matthew R. Payne, Brittany L. Reed, and David Howard Sinkman are in charge of the prosecution. 

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U.S. Attorney Duane A. Evans announced that MANUEL SERRATA, age 43, JOSE HINOJOSA, age 46, and JOSE CERVANTES-MARRON age 49, were sentenced today after being charged by an indictment with violating the Federal Controlled Substances Act.

According to court documents, SERRATA, HINOJOSA and CERVANTES-MARRON, along with two others, were arrested in November 29, 2016 with fifteen kilograms of cocaine hydrochloride while conducting a drug transaction in the parking lot of a Walmart in Houma, Louisiana. 

SERRATA was sentenced to 135 months imprisonment and five years of supervised release.  HINOJOSA was sentenced to 120 months imprisonment and five years of supervised release.  CERVANTES-MARRON was sentenced to 24 months imprisonment and two years of supervised release. 

U.S. Attorney Evans praised the work of the Drug Enforcement Agency, Louisiana State Police, Customs and Border Patrol, Jefferson Parish Sherriff’s Office, and the Terrebonne Parish Sherriff’s Office in investigating this matter. Assistant U.S. Attorneys David Haller and James S. C. Baehr are in charge of the prosecution.

U.S. Attorney Duane A. Evans announced that FRANCISCO MEDARDO-SANTOS, age 32, a native of El Salvador, was sentenced today to time served by U.S. District Court Judge Susie Morgan for illegal use of a Social Security number, in violation of Title 42, United States Code, Section 408(a)(7)(B).

In October 2015, MEDARDO-SANTOS applied for employment with a business in Jefferson Parish.  MEDARDO-SANTOS was a citizen of El Salvador and was not a citizen or a lawful permanent resident of the United States.  MEDARDO-SANTOS completed an Employment Eligibility Verification Form I-9 with the business.  Knowingly, willfully, with intent to deceive, and with the intent to obtain employment, MEDARDO-SANTOS falsely represented on the Form I-9 that he was another individual, that he was a lawful permanent resident, and that the other individual’s Social Security Number was assigned to MEDARDO-SANTOS by the Commissioner of Social Security.  MEDARDO-SANTOS also presented the business with the other individual’s Social Security card and a false permanent resident card that bore the other individual’s name and MEDARDO-SANTOS’s photograph.

U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement – Enforcement and Removal Operations in investigating this matter.  Assistant United States Attorney Chandra Menon was in charge of the prosecution.

U.S. Attorney Duane A. Evans announced that TRINA ROBAIR, age 44, and MICHAEL REED, age 62, both of New Orleans, Louisiana were charged yesterday with a one count Bill of Information charging them with Bank Larceny in relation to stealing at least $149,500 from an elderly deceased woman for whom ROBAIR was a caretaker, in violation of Title 18, United States Code, Section 2113(b).

According to the Bill of Information, REED was a handyman who performed work on the elderly woman’s home.

The charging document, filed in court, states that ROBAIR had access to the elderly woman’s accounts because she was incapacitated.  ROBAIR did not have permission to steal the money.  The Bill of Information further states that ROBAIR stole $149,500 and REED stole $20,000.

The statutory penalty for Bank Larceny is ten (10) years imprisonment, $250,000 fine, three (3) years supervised release, restitution and a $100 special assessment.

The case was investigated by the United States Postal Inspection Service and is being prosecuted by Assistant U.S. Attorney, Carter K. D. Guice, Jr.

U.S. Attorney Duane A. Evans announced that GLENN MELANCON, age 50, of New Orleans pled guilty today to one count of conspiring to traffic methamphetamine in the Eastern District of Louisiana.  MELANCON faces a maximum sentence of 20 years’ incarceration, a fine of up to $1,000,000 and at least 3 years of supervised release.  

U.S. District Judge Susie Morgan set sentencing for MELANCON on October 24, 2018.

U.S. Attorney Evans praised the work of the United States Postal Inspection Service, Louisiana State Police, Jefferson Parish Sheriff’s Office, Texas Department of Public Safety, Texas Highway Patrol, Montgomery County (Texas) Sheriff’s Office, Immigration and Customs Enforcement, AMTRAK Police, and the Orleans Parish District Attorney’s Office.  Assistant United States Attorney Brandon S. Long is in charge of the prosecution.

U.S. Attorney Duane A. Evans announced that DOMINIQUE WISE, age 32, of Franklinton, Louisiana, was sentenced today after having pled guilty to misprision of a felony, stemming from a September 27, 2015, traffic stop, during which police seized one-half kilogram of powder cocaine from the floorboard of her car. 

U.S. District Judge Martin L.C. Feldman sentenced WISE to 3 years probation.

U.S. Attorney Evans praised the work of the Drug Enforcement Administration, Plaquemines Parish Sheriff’s Office, and Kenner Police Department in investigating this matter. Assistant United States Attorney Brandon Long is in charge of the prosecution.

United States Attorney Duane A. Evans announced that JOEL FLORES-GONZALES, age 42, a native of Mexico, was sentenced today after pleading guilty to a one-count indictment for illegal reentry of a removed alien.

United States District Court Judge Jay C. Zainey sentenced FLORES-GONZALES to eight months of imprisonment, followed by one year of supervised release, and a $100 special assessment fee. The defendant will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.

According to court documents, on March 12, 2018, FLORES-GONZALES was found in the United States after having been previously deported from the United States on June 20, 2016.

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

VERNON SWEENEY, JR. (“SWEENEY”), age 52, of Tickfaw, Louisiana, was sentenced today for possession of child pornography, announced United States Attorney Duane A. Evans.

On October 12, 2017, law enforcement officers with the Louisiana State Police and the U.S. Department of Homeland Security, Homeland Security Investigations, arrested SWEENEY during the execution of a state search warrant at his Tickfaw home after finding that SWEENEY was in possession of several items, including a laptop computer, thumb drives and cellular phones that contained images depicting the sexual victimization of prepubescent children. 

U.S. District Judge Eldon E. Fallon sentenced SWEENEY to ten years incarceration to be followed by supervised release for life.  SWEENEY will also be required to register as a sex offender pursuant to the Sex Offender Registration and Notification Act.

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

U.S. Attorney Evans praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations and the Louisiana State Police in investigating this matter.  The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U. S. Attorney Brian M. Klebba.

U.S. Attorney Duane A. Evans announced that JERRY PEA, age 42 of Ponchatoula, and JAMES JACKSON, age 34 of Hammond, were indicted yesterday by a federal grand jury on one count of conspiring to distribute crack cocaine and heroin in violation of Title 21, United States Code, Sections 841(a)(1) and 846; five counts of distributing crack cocaine and/or heroin in violation of Title 21, United States Code, Section 841(a)(1), and one count each of possessing a firearm in furtherance of a drug trafficking offense in violation of Title 18, United States Code, Section 924(c)(1)(A).

According to the indictment and an earlier-filed complaint, PEA and JACKSON conspired to distribute, and did in fact distribute, over 28 grams of crack cocaine and quantities of heroin across five days between March and May 2018, and each of the men possessed a firearm during at least one of those narcotics transactions. If convicted of the narcotics charges, PEA and JACKSON face terms of imprisonment of 5-40 years, fines of up to $5 million, and at least four years of supervised release following any term of imprisonment. If convicted of the firearms charges, PEA and JACKSON face terms of imprisonment of 5 years to run consecutive to any other sentence, fines of up to $250,000, and up to five years of supervised release.

U.S. Attorney Evans 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. Assistant United States Attorney Jeffrey Sandman is in charge of the prosecution

U.S. Attorney Duane A. Evans announced that Carlos Alberto Andrade, age 34, a citizen of El Salvador, pleaded guilty yesterday to a one-count indictment for illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a).

At sentencing, which is set for August 23, 2018, Andrade faces a maximum term of imprisonment of not more than two years, a fine of $250,000.00, and a mandatory special assessment of $100.00.  Additionally, Andrade is subject to a period of supervised release after imprisonment of up to one year.

U.S. Attorney Duane A. Evans 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.

U.S. Attorney Duane A. Evans announced that United States District Judge Carl J. Barbier sentenced ASHLI MARTIN, age 34, and ANGELMICA AUGUSTINE, age 28, both of New Orleans, to terms of three years’ probation and time served, respectively, after they pled guilty to drug charges.  MARTIN pled guilty to one count of possession with intent to distribute a quantity of heroin and cocaine base (“crack”) and AUGUSTINE pled guilty to one count of possession with intent to distribute heroin. 

According to court documents, In March of 2017, members of the NOPD/HIDTA Task Force received information from a source of information that three individuals, including Chris Wells, MARTIN’S boyfriend, and Jason Craft, AUGUSTINE’S boyfriend, were heroin distributors in the area of Mandeville Street and Derbigny Street in New Orleans. 

In April 2017, officers conducting surveillance observed Wells and Craft conduct hand-to-hand narcotics transactions with several individuals.  Officers arrested one of the individuals who purchased heroin and seized the purchased heroin.  In a post-arrest statement, the individual admitted that he routinely purchased heroin by calling one telephone that was shared by Wells, Craft, and a third person.  According to the individual, any one of the three would answer the phone and sell him an ounce of heroin on a weekly basis.

Officers and DEA Special Agents obtained search warrants for the residence at 406 East Liberaux Street in Chalmette, Louisiana, shared by Wells and MARTIN and the residence at 14070 Wales Street in New Orleans, shared by Craft and AUGUSTINE.  During the search of the Chalmette residence, officers and agents seized 70 grams of heroin, 38 grams of crack, and a Smith & Wesson 9 mm semi-automatic pistol.  During the search of the Wales Street residence, officers and agents seized 4.9 grams of heroin and several firearms, including two semi-automatic rifles, a semi-automatic pistol, and a shotgun.

U.S. Attorney Evans praised the work of the Drug Enforcement Administration, the New Orleans Police Department, and the St. Bernard Parish Sheriff’s Office in investigating this matter.  Assistant United States Attorney André Jones was in charge of the prosecution.

U.S. Attorney Duane A. Evans announced that ROMALIS WILLIAMS, age 25, of Orleans Parish, was charged in a one-count Indictment with possession of a firearm by a convicted felon.

ROMALIS WILLIAMS was arrested by agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives and Louisiana State Police.  Following a brief foot pursuit, a Louisiana State Police trooper arrested ROMALIS WILLIAMS.  The trooper located a Hi-Point model JCP, .40 S&W caliber semi-automatic pistol in ROMALIS WILLIAMS waistband.  ROMALIS WILLIAMS is a convicted felon.

If convicted of the gun violation, ROMALIS WILLIAMS faces a maximum term of imprisonment of 10 years, a fine of up to $250,000.00, a period of up to 3 years supervised release, and a mandatory special assessment of $100.00.

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

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safe for everyone.  Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority.  In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.

U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and Louisiana State Police in investigating this matter.  Assistant United States Attorney Brittany Reed is in charge of the prosecution.

U.S. Attorney Duane A. Evans announced that DILLON DAVIS, age 25, of Destrehan, was charged in a one-count Indictment with bank robbery in violation of Title 18, United States Code, Section 2113(a).

The federal indictment alleges that DILLON DAVIS entered the Chase Bank located at 3540 Williams Boulevard, in Kenner, Louisiana, and demanded one thousand dollars in U.S. currency from a bank teller.

If convicted of the violation, DILLON DAVIS faces a maximum term of imprisonment of 20 years, a fine of up to $250,000.00, a period of up to 3 years supervised release, and a mandatory special assessment of $100.00.

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

U.S. Attorney Duane A. Evans praised the work of the Kenner Police Department and the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Brittany L. Reed is in charge of the prosecution.

U.S. Attorney Duane A. Evans announced today that ARLANDER CELIUS, age 23, of Marrero, Louisiana, was sentenced to 30 months in the Bureau of Prisons and to be followed by a term of three years of supervised release for his involvement in a plan to rob the Whitney Bank located on South Carrollton Avenue in New Orleans, Louisiana.

On the morning of Wednesday, September 27, 2017, members of the New Orleans Police Department responded to a complaint of an active burglary occurring in uptown New Orleans, Louisiana. Police entered the residence, and discovered CELIUS and his two co-defendants inside of the residence.  Law enforcement officers also located a loaded Harrington and Richardson “Pardner” Pump 12 gauge shotgun and a Taurus .38 caliber revolver handgun in the residence, as well as homemade ski masks. 

Following a lawful arrest, CELIUS admitted to law enforcement that he had agreed to rob the Whitney Bank with his co-defendants.  CELIUS had agreed to serve as a lookout during the robbery, and admitted that the three perpetrators were about to leave the burglarized residence to go rob the bank when the police arrived.

On December 28, 2017, CELIUS pleaded guilty to conspiracy to commit bank robbery with a firearm, in violation of Title 18, United States Code, Sections 371 and 2113, as well as felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g).

U.S. Attorney Evans praised the work of the Federal Bureau of Investigation’s Violent Crime Task Force and officers with the New Orleans Police Department’s Second District.  Assistant U.S. Attorney Myles Ranier is handling the prosecution.

U.S. Attorney Duane A. Evans announced that TOSH TOUSSAINT, age 27, was sentenced to 62 months in the Bureau of Prisons, with a term of three years of supervised release to follow.  TOUSSAINT previously pleaded guilty to one count of possession with the intent to distribute cocaine base, in violation of Title 18, United States Code, Section 841(b)(1)(C), and one count of possession and use of a firearm in furtherance of drug trafficking, in violation of Title 18, United States Code, Section 924(c), on January 25, 2018. 

On November 13, 2013, members of the Jefferson Parish Sheriff’s Office and the New Orleans FBI’s Gang Task Force arrested TOSH TOUSSAINT when they found him in possession of approximately 10 grams of cocaine base (crack cocaine) and Taurus 9mm semi-automatic handgun.

The U.S. Attorney wishes to thank the hard work of the FBI’s New Orleans Gang Task Force and the Jefferson Parish Sheriff’s Office in investigating this matter.  Assistant United States Attorney Myles Ranier is in charge of the prosecution.

U. S. Attorney Duane A. Evans announced that NORWIN CASTELLON-LOPEZ, age 35, a citizen and national of Nicaragua, was sentenced today after previously pleading guilty to a one-count Bill of Information charging him with illegally re-entering the United States having previously been deported as an illegal alien who had been previously convicted of a felony.

According to court documents, CASTELLON-LOPEZ was found in the United States on or about January 11, 2017, after having been previously removed from the United States on December 22, 2010, and October 7, 2015.  Further, on August 30, 2010, CASTELLON-LOPEZ was convicted of a felony in Orleans Parish Criminal District Court. 

United States District Judge Lance M. Africk sentenced CASTELLON-LOPEZ to a term of imprisonment of thirty months, a term of supervised release of three years, and a mandatory $100 special assessment. 

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

U.S. Attorney Duane A. Evans announced that JOSE MARTINEZ-OSWALDO, age 33, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Bill of Information charging him with illegal reentry of a removed alien, in violation of Title 8 United States Code, Section 1326(a).

According to the court documents, MARTINEZ-OSWALDO was found in the United States on or about February 21, 2018, after having been previously removed on October 15, 2012.

United States District Judge Jane Triche Milazzo sentenced MARTINEZ-OSWALDO to a term of imprisonment of eight months, a term of supervised release of one year, and a mandatory $100 special assessment.

U.S. Attorney Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Michael M. Simpson is in charge of the prosecution.

U.S. Attorney Duane A. Evans announced that PEDRO BRITO-MARCOS, age 22, a citizen of Guatemala, pled guilty to a one-count bill of information alleging illegal reentry of a removed alien, in violation of Title 8 United States Code, Section 1326(a).

According to the bill of information, PEDRO BRITO-MARCOS reentered the United States on or about March 8, 2018, after having been previously removed therefrom on or about January 19, 2018.

PEDRO BRITO-MARCOS faces a maximum term of imprisonment of two years, a fine of up to $250,000.00, one year of supervised release after imprisonment, and a $100 special assessment.  U.S. District Judge Susie Morgan set sentencing for September 6, 2018.

U.S. Attorney Evans 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

U.S. Attorney Duane A. Evans announced that MISAEL BERNAL, age 33, a citizen of Guatemala, was sentenced today after previously pleading guilty to a one-count indictment for violating the Federal Gun Control Act. Court records indicate that BERNAL was in the country illegally when he was observed by neighbors repeatedly shooting a gun into the air. Officers of the New Orleans Police Department responded to the scene and took BERNAL into custody after confiscating a 9mm handgun and ammunition. It is a violation of federal law for illegal aliens to possess firearms or ammunition.

U.S. District Court Judge Eldon E. Fallon sentenced BERNAL to 12 months in the custody of the Bureau of Prisons. Following the completion of his sentence, BERNAL will be surrendered to the custody of U.S. Immigration and Custom Enforcement for removal proceedings.

U.S. Attorney Evans praised the agents of Homeland Security Investigations and the officers of the New Orleans Police Department in investigating this matter.  Assistant United States Attorney Jon Maestri is in charge of the prosecution.

U.S. Attorney Duane A. Evans announced that DERRICK WILSON, age 34, of Franklinton, Louisiana, pled guilty today to conspiring to distribute a quantity of cocaine hydrochloride, stemming from a September 27, 2015, traffic stop in Kenner, during which police seized one-half kilogram of powder cocaine from a car that he occupied with his girlfriend and codefendant, Dominique Wise.  WILSON faces a maximum sentence of 20 years in prison, a fine of up to $1,000,000 and at least three years of supervised release. 

U.S. District Judge Martin L.C. Feldman scheduled sentencing for WILSON on October 10, 2018.

U.S. Attorney Evans praised the work of the Drug Enforcement Administration, Plaquemines Parish Sheriff’s Office, and Kenner Police Department in investigating this matter. Assistant United States Attorney Brandon Long is in charge of the prosecution.

U.S. Attorney Duane A. Evans announced that REYNAUD KENDRELL VARISTE, age 29, a resident of New Orleans, Louisiana, was charged in a three-count indictment by a Federal Grand Jury for possessing heroin with the intent to distribute it, using a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm.

If convicted, VARISTE faces a maximum term of imprisonment of twenty (20) years for the drug trafficking offense, a maximum term of imprisonment of life for using a firearm in furtherance of a drug trafficking crime, and a maximum term of imprisonment of ten (10) years for being a felon in possession of a firearm.            

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

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.  Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority.  In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.

The case was investigated by the Federal Bureau of Investigation.  It is being prosecuted by the Strike Force/Violent Crimes Unit of the U.S. Attorney’s Office.

U.S. Attorney Duane A. Evans announced that JESUS MATEHUALA-CABALLERO, a/k/a Francisco Rodriguez, age 40, a resident of Amite, was sentenced today after previously pleading guilty to a  two count indictment charging him with fraud and misuse of a social security card and resident alien card, in violation of 18 U.S.C. 1546(a).

According to the court documents, on or about July 10, 2015, JESUS MATEHUALA-CABALLERO, used a fraudulent a social security card and fraudulent resident alien card for the purposes of obtaining employment knowing that he had never been lawfully issued a Social Security card or a resident alien card.

United States District Judge Carl J. Barbier sentenced JESUS MATEHUALA-CABALLERO to credit for time served and a mandatory $100 special assessment fee. 

U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter.   The prosecution is being handled by Assistant U.S. Attorney Michael M. Simpson

U.S. Attorney Duane A. Evans announced that RONALD THOMPSON, age 42, of St. Charles Parish, was sentenced today for charges relating to narcotics trafficking. 

Following a two-day trial, on April 3, 2018, a jury found THOMPSON guilty of possessing with the intent to distribute quantities of cocaine, crack cocaine, and heroin. The government filed a bill of information before trial, charging THOMPSON as a multiple offender for his two prior felony drug convictions, both of which also took place in federal court.

According to the evidence presented at trial, on July 27, 2017, St. Charles Parish Sheriff’s Office detectives witnessed what appeared to be a hand-to-hand drug transaction in a gas station parking lot. They effected a traffic stop on the vehicle involved, which ultimately led to the discovery of a bag containing powder cocaine, crack cocaine, heroin, and ecstasy in the back of a police car where THOMPSON had been placed pending the search of his car. Testimony and other evidence confirmed that Thompson had pulled the bag from inside his pants and shoved it into the seat behind him.

Judge Susie Morgan sentenced THOMPSON to 262 months in the Federal Bureau of Prisons, as well as 6 years of supervised release following the term of imprisonment.

U.S. Attorney Evans praised the work of the St. Charles Parish Sheriff’s Office and the Drug Enforcement Administration. Assistant United States Attorneys Jeff Sandman and Nicholas D. Moses were responsible for the prosecution.

U.S. Attorney Duane A. Evans announced that WAYNE SONIAT, age 61, of New Orleans, was sentenced today by United States District Judge Martin L.C. Feldman to fifteen (15) months in prison, followed by three years of supervised release, after previously pleading guilty to a two-count Bill of Information for wire fraud and making false statements on federal income tax returns.  SONIAT was also ordered to repay $481,231 in restitution.

According to court documents, SONIAT was employed as a warehouse manager for a New Orleans-based food production company headquartered in Metairie, Louisiana, which also operated a manufacturing plant in Reserve, Louisiana (“Company A”).  SONIAT was responsible for, among other things, ensuring that employees followed appropriate procedures, keeping track of when temporary employees worked, and submitting the requisite paperwork, including time sheets, to ensure that Company A paid the temporary employees and the staffing agency through whom the temporary employees were acquired for the time the temporary employees worked.  Between about November 2009 and October 2014, SONIAT embezzled approximately $437,346 from Company A in a series of approximately 200 wire transfers, without Company A’s knowledge or authorization.  SONIAT did so by signing and submitting paperwork, including time sheets, indicating that temporary, contract employees (“ghost employees”) had performed work for Company A when, in fact, they had not.  SONIAT obtained debit cards in the names of the ghost employees onto which payments were made for the time they allegedly worked.  SONIAT then used the money to pay for personal expenses to withdraw cash at area ATMs.  Additionally, SONIAT failed to report the income from his scheme on his federal income tax returns, which resulted in a loss to the United States Government in the form of tax due and owing in the amount of approximately $43,885.

U.S. Attorney Evans praised the work of the Internal Revenue Service – Criminal Investigations in investigating this matter, with assistance from the United States Secret Service, the St. John the Baptist Sheriff’s Office, and the Louisiana Financial Crime Task Force.  The case was prosecuted by Assistant United States Attorney Jordan Ginsberg.

U.S. Attorney Duane A. Evans announced that DELIO ALFREDO LOPEZ-LOPEZ, age 42, of Honduras, pled guilty yesterday to one count of conspiring to traffic 500 grams or more of a mixture containing methamphetamine in the Eastern District of Louisiana, and one count of possessing a firearm as an illegal alien.  On the methamphetamine conspiracy count, LOPEZ-LOPEZ faces a mandatory minimum sentence of 10 years in prison, a maximum life sentence, a fine of up to $10,000,000 and at least 5 years of supervised release.  On the firearm possession count, LOPEZ-LOPEZ faces a maximum sentence of 10 years in prison, a fine of up to $250,000 and not more than 3 years of supervised release. 

U.S. District Judge Susie Morgan set sentencing for LOPEZ-LOPEZ on October 11, 2018.

U.S. Attorney Evans praised the work of the United States Postal Inspection Service, Louisiana State Police, Jefferson Parish Sheriff’s Office, Texas Department of Public Safety, Texas Highway Patrol, Montgomery County (Texas) Sheriff’s Office, Immigration and Customs Enforcement, AMTRAK Police, and the Orleans Parish District Attorney’s Office.  Assistant United States Attorney Brandon S. Long is in charge of the prosecution.

U.S. Attorney Duane A. Evans announced that JAMIRON BARNES, a/k/a “Miron,” a/k/a “Myron,” age 22, was sentenced today to 60 months imprisonment for one count of Possession of a Firearm in Furtherance of a Drug Trafficking crime in violation of Title 18, United States Code, Section 924(c)(1)(A).  U.S. District Court Judge Carl J. Barbier additionally sentenced BARNES to five years supervised release following his 60-month term of imprisonment and a $100.00 special assessment fee.

U.S. Attorney Evans praised the continued coordinated effort of federal and state law enforcement authorities, including the United States Attorney’s Office, the Federal Bureau of Investigation’s New Orleans Gang Task Force, and the New Orleans Police Department.  Assistant United States Attorney Elizabeth Privitera is in charge of the prosecution.

U.S. Attorney Duane A. Evans announced that SEAN BRIGGS, a/k/a “Big Sean,” a/k/a “Big C,”, age 33, was sentenced today to 60 months imprisonment for one count of Possession of a Firearm in Furtherance of a Drug Trafficking crime in violation of Title 18, United States Code, Section 924(c)(1)(A).  U.S. District Court Judge Carl J. Barbier additionally sentenced BRIGGS to five years supervised release following his 60-month term of imprisonment and a $100.00 special assessment fee.

U.S. Attorney Evans praised the continued coordinated effort of federal and state law enforcement authorities, including the United States Attorney’s Office, the Federal Bureau of Investigation’s New Orleans Gang Task Force, and the New Orleans Police Department.  Assistant United States Attorney Elizabeth Privitera is in charge of the prosecution.

U.S. Attorney Duane A. Evans announced that JENNIFER GUILLOT (GUILLOT), age 40, of Chalmette, Louisiana was charged on Monday, July 9, 2018 by a Bill of Information for Bank Larceny, in violation of Title 18, United States Code, Section 2113(b).

According to the Bill of Information, GUILLOTT began working at a local business, located in the Eastern District of Louisiana, in 1996 as a secretary/bookkeeper.  Sometime after she started working there GUILLOT and her husband began having financial difficulties.  GUILLOT, through three separate and distinct schemes stole money from the accounts of the victim in the custody of Hibernia National Bank, now Capital One Bank.  The accounts of Hibernia National Bank were then insured by the Federal Deposit Insurance Corporation (F.D.I.C.), thus giving the federal jurisdiction.

GUILLOT defrauded the company by writing company checks to herself without the permission of the victim.  The loss to the victim through GUILLOT’s first scheme was $563,927.26.

GUILLOT stole money in a second scheme by writing company checks to her credit card companies for personal expenses without the company’s permission.  The loss to victim through this scheme was $866,077.10.

GUILLOT stole money in a third scheme by logging on to the victim company’s Automated Clearinghouse Account (ACH) electronically and without the victim company’s permission and paying personal credit bills.  The loss to the victim through this scheme was $640,668.85.

When bank statements would arrive in the mail, GUILLOT would “white out” any entities which showed she stole money.  She made copies of the altered statements.  She would shred the originals and cancelled checks.  GUILLOT would further conceal her schemes by falsely showing payments made to herself to appear as payments to vendors of the victim. 

The grand total of GUILLOT’s schemes is $2,070,673.21. 

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

If convicted, GUILLOT 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 well as restitution to the victim.

U.S. Attorney Evans praised the work of the United States Postal Inspection Service.  The prosecution of this case is being handled by Carter K. D. Guice, Jr., Assistant U.S. Attorney.

NEW ORLEANS –  U.S. Attorney Duane A. Evans announced that PETER GIANDALONE, age 43, of New Orleans pled guilty today to one count of conspiring to traffic 500 grams or more of a mixture containing methamphetamine in the Eastern District of Louisiana.  GIANDALONE faces a mandatory minimum sentence of 10 years in prison, a maximum life sentence, a fine of up to $10,000,000 and at least 5 years of supervised release.  

U.S. District Judge Susie Morgan set sentencing for GIANDALONE on October 11, 2018.

U.S. Attorney Evans praised the work of the United States Postal Inspection Service, Louisiana State Police, Jefferson Parish Sheriff’s Office, Texas Department of Public Safety, Texas Highway Patrol, Montgomery County (Texas) Sheriff’s Office, Immigration and Customs Enforcement, AMTRAK Police, and the Orleans Parish District Attorney’s Office.  Assistant United States Attorney Brandon S. Long is in charge of the prosecution.                                                                             

DAVIN D. THOMAS (“THOMAS”), age 32, of Ponchatoula, Louisiana, was charged July 5, 2018 in a one-count Superseding Bill of Information with soliciting money from students in exchange for awarding students financial aid, announced United States Attorney Duane A. Evans.

According to the Bill of Information, THOMAS was employed as a Financial Aid Assistant Director at Delgado Community College ("DCC").  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 in the amount of $6,700 from three DCC students in exchange for awarding the students financial aid.

U. S. Attorney Evans 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, THOMAS faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, and a $250,000.00 fine.

U.S. Attorney Evans 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.

U.S. Attorney Duane A. Evans announced that KEYIRA GABLE, age 31, a resident of New Orleans, was charged today by a federal grand jury with attempted access device fraud and aggravated identity theft. 

If convicted, GABLE faces the following penalties.  If convicted of attempted access device fraud, she faces a sentence of up to 10 years in prison, a $250,000.00 fine, and up to three years of supervised release after imprisonment, pursuant to Title 18, United States Code, Section 1029(a)(2).  If convicted of aggravated identity theft, she would receive a mandatory two-year prison sentence consecutive to any other term of imprisonment, a $250,000.00 fine, and up to one year of supervised release.     

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

U.S. Attorney Evans praised the work of the United States Secret Service New Orleans Field Office and the Slidell Police Department in investigating this matter.  U.S. Attorney Evans thanked the District Attorney’s Office for the 22nd Judicial District for its assistance in this prosecution.  Assistant U.S. Attorney Matthew R. Payne is in charge of the prosecution.

ADRIAN F. DANIEL, 24, a resident of Tucson, Arizona, was indicted on the charge of possession with intent distribute one kilogram or more of heroin announced U.S. Attorney Duane A. Evans. 

According to court documents, a detective of the Amtrak Police Department reviewed the manifests for incoming passengers to the Amtrak Station in New Orleans and noticed DANIEL’S train travel patterns.    Specifically, the detective noticed that beginning in January 2018, DANIEL made multiple train trips from Tucson, Arizona to New Orleans.  The trips were paid for in cash and were usually booked the day before DANIEL’S departure from Tucson.  Also, DANIEL used a different telephone number each time he booked a reservation.

When the train arrived at the station, the detective approached DANIEL and asked to speak to him.  DANIEL agreed to speak and became noticeably nervous.  When questioned about his prior train trips, DANIEL lied about the frequency of the trips further arousing suspicions. 

The detective asked to search DANIEL’S bags and DANIEL consented.  Among DANIEL’S belongings were bags containing approximately 2.6 kilograms of heroin.

DANIEL faces a minimum of ten years’ imprisonment, a maximum term of life imprisonment, and a fine of $10,000,000.00. 

The case was investigated by the Drug Enforcement Administration, the Louisiana State Police, and the Amtrak Police Department.  The case is being prosecuted by Assistant United States Attorney André Jones.

U.S. Attorney Duane A. Evans announced that ELTON WELLS, age 39, and JUSTIN CRAFT, age 29, of New Orleans, were sentenced today after pleading guilty to several drug charges, including conspiracy to distribute and possession with intent to distribute one hundred grams or more of heroin.  CRAFT also pled guilty to firearms offenses, including felon in possession of a firearm and possession of firearms in furtherance of a drug trafficking crime.  WELLS was sentenced to 120 months incarceration and eight years supervised release.  CRAFT was sentenced to 180 months incarceration and eight years supervised release.

According to court documents, In March of 2017, members of the NOPD/HIDTA Task Force received information from a source of information that three individuals, including WELLS and CRAFT, were heroin distributors in the area of Mandeville Street and Derbigny Street in New Orleans.  Based on that information, officers conducted surveillance in that area.

On April 5, 2017, surveillance officers in the area of Mandeville and Derbigny Streets observed WELLS conduct a hand-to-hand drug transaction and return to his vehicle.  Officers arrested WELLS and seized a quantity of heroin from WELLS. 

On April 11, 2017, officers conducted surveillance in the same area and observed CRAFT conduct a hand-to-hand narcotics transaction with an individual.  Officers arrested the individual and seized heroin that he purchased from CRAFT.  A second individual who was also arrested after purchasing heroin in the area, informed officers that he regularly called one telephone that was shared by CRAFT, WELLS and another individual, and that any one of them would sell him an ounce of heroin. 

Officers and DEA Special Agents obtained a search warrant for CRAFT’S residence at 14070 Wales Street in New Orleans.  During the search, officers and agents seized 4.9 grams of heroin and several firearms, including two semi-automatic rifles, a semi-automatic pistol, and a shotgun.

U.S. Attorney Evans praised the work of the Drug Enforcement Administration, the New Orleans Police Department, and the St. Bernard Parish Sheriff’s Office in investigating this matter.  Assistant United States Attorney André Jones was in charge of the prosecution.

WASHINGTON - Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Alex M. Azar III, announced today the largest ever health care fraud enforcement action by the Medicare Fraud Strike Force, involving 590+ charged defendants across 56 federal districts, including 150+ doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving approximately $2 billion in false billings. Of those charged, over 150 defendants, including doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Twenty-nine state Medicaid Fraud Control Units also participated in today’s arrests. In addition, HHS announced today that from June 2017 to the present, 587 providers have been served with exclusion notices for conduct related to opioid diversion and abuse. 

Attorney General Sessions and Secretary Azar were joined in the announcement by Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Deputy Director David L. Bowdich of the FBI, Assistant Administrator John Martin of the Drug Enforcement Administration (DEA), Inspector General Daniel R. Levinson of the HHS Office of Inspector General (OIG), Deputy Chief Eric Hylton of IRS Criminal Investigation (CI), Director Alec Alexander of the Centers for Medicare and Medicaid Services (CMS) Center for Program Integrity and Director Dermot F. O’Reilly of the Defense Criminal Investigative Service (DCIS).

Today’s enforcement actions were led and coordinated by the Criminal Division, Fraud Section’s Health Care Fraud Unit in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG.  In addition, the operation includes the participation of the DEA, DCIS, IRS-CI, Department of Labor, other various federal law enforcement agencies, and State Medicaid Fraud Control Units. 

The charges announced today aggressively target schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families), and private insurance companies for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries. The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. According to the CDC, approximately 115 Americans die every day of an opioid-related overdose.   

“Health care fraud is a betrayal of vulnerable patients, and often it is theft from the taxpayer,” said Attorney General Sessions.  “In many cases, doctors, nurses, and pharmacists take advantage of people suffering from drug addiction in order to line their pockets. These are despicable crimes. That’s why this Department of Justice has taken historic new steps to go after fraudsters, including hiring more prosecutors and leveraging the power of data analytics. Today the Department of Justice is announcing the largest health care fraud enforcement action in American history.  This is the most fraud, the most defendants, and the most doctors ever charged in a single operation—and we have evidence that our ongoing work has stopped or prevented billions of dollars’ worth of fraud. I want to thank our fabulous partners with the FBI, DEA, our Health Care Fraud task forces, HHS, the Defense Criminal Investigative Service, IRS Criminal Investigation, Medicare, and especially the more than 1,000 federal, state, local, and tribal law enforcement officers from across America who made this possible. By every measure we are more effective at finding and prosecuting medical fraud than ever.”

“Every dollar recovered in this year’s operation represents not just a taxpayer’s hard-earned money—it’s a dollar that can go toward providing healthcare for Americans in need,” said HHS Secretary Azar.  “This year’s Takedown Day is a significant accomplishment for the American people, and every public servant involved should be proud of their work.”

According to court documents, the defendants allegedly participated in schemes to submit claims to Medicare, Medicaid, TRICARE, and private insurance companies for treatments that were medically unnecessary and often never provided. In many cases, patient recruiters, beneficiaries and other co-conspirators were allegedly paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could then submit fraudulent bills to Medicare for services that were medically unnecessary or never performed. Collectively, the doctors, nurses, licensed medical professionals, health care company owners and others charged are accused of submitting a total of over $2 billion in fraudulent billings.  The number of medical professionals charged is particularly significant, because virtually every health care fraud scheme requires a corrupt medical professional to be involved in order for Medicare or Medicaid to pay the fraudulent claims.  Aggressively pursuing corrupt medical professionals not only has a deterrent effect on other medical professionals, but also ensures that their licenses can no longer be used to bilk the system.

Cases within the Eastern District of Louisiana include:

United States v. Luis Cabrera, Jr., et al. (E.D. La) (Opioids): On June 22, 2018, Luis R. Cabrera, Jr., Victoria J. Skeldon, Bennie R. Harris, Jesse J. Wildenfils, Stephanie N. Free, Jarrod A. Doubleday, John A. Doubleday, Whitney J. Swan, III, Stephanie M. Faciane, and Cynthia B. Foret, were charged in a twelve-count indictment related to their roles in violating the Controlled Substances Act. Cabrera, Jr., Skedon, Harris, Wildenfils, Free, Jarrod Doubleday, John Doubleday, Swan, III, and Faciane were charged with a dual-object conspiracy to acquire and obtain oxycodone by fraud and to possess oxycodone with the intent to distribute. Cabrera, Jr., and Skeldon were each charged with one count of possession of oxycodone with the intent to distribute. Harris, Wildenfils, Free, Jarrod Doubleday, John Doubleday, Swan, III, and Faciane were each charged with one count of obtaining oxycodone through fraud. Cabrera, Jr. and Foret were charged with a dual-object conspiracy to acquire and possess oxycodone through fraud and to possess oxycodone with the intent to distribute. Cabrera, Jr. and Foret were also charged with one count of possession of oxycodone with the intent to distribute.

The charges stem from the defendant’s involvement in a prescription drug ring in the greater New Orleans area where the defendants used stolen fraudulent prescriptions to obtain and sell oxycodone pills.  U.S. Attorney Evans praised the investigative work by the Federal Bureau of Investigation, HHS-OIG, the Drug Enforcement Administration, and the Jefferson Parish Sheriff’s Office.  The case is being handled by DOJ Trial Attorney Jared Hasten and Assistant United States Attorney Myles Ranier (AUSA).

United States v. Wayne Jerome Celestine (E.D. La) (Opioids):  On June 27, 2018, U.S. Attorney Duane A. Evans announced the unsealing of a superseding indictment against Wayne Jerome Celestine, age 57, a physician who practices in Gretna, Louisiana and resides in the New Orleans area.  The superseding indictment contained the original charge of distribution of controlled substances, plus a money laundering charge involving approximately $1.6 million.

On Monday, April 30, 2018, Dr. Celestine was arrested. According to court records, Dr. Celestine illegally dispensed and conspired with others to illegally dispense controlled substances, including oxycodone, oxycodone/acetaminophen, oxycontin HCL, oxymorphone HCL, hydromorphone, opana, fentanyl, suboxone, and morphine sulfate, a Schedule II drug controlled substances; hydrocodone/acetaminophen, a Schedule III drug controlled substance until October 6, 2014, thereafter, a Schedule II drug controlled substance; and alprazolam, diazepam, and carisoprodol, Schedule IV drug controlled substances.   

Celestine made his initial appearance on the original indictment before U.S. Magistrate Court Judge Daniel E. Knowles, III, on Monday, April 30, 2018.  A detention hearing was held on May 1, 2018, and he was detained.

If convicted of the original charge (Count 1), Celestine will face a maximum of not more than 20 years in prison on the drug conspiracy charge, pursuant to Title 21, United States Code, Sections 841(a)(1) and 846.  Celestine will also be subject to a fine of not more than one million dollars and a minimum term of supervised release of three years, following any term of imprisonment.

If convicted on the new additional charge (Count 2), Celestine faces not more than 20 years in prison, a $500,000 fine or twice the value of property involved, and three years of supervised release.

U.S. Attorney Evans praised the work of the Special Agents of the Drug Enforcement Administration, Internal Revenue Service, Jefferson Parish Sheriff’s Office, Harahan Police Department, Westwego Police Department, Louisiana State Police, St. Bernard Parish Sheriff’s Office, New Orleans Police Department, and New Orleans District Attorney’s Office in investigating this matter.  Assistant United States Attorney John F. Murphy is in charge of the prosecution.

The Medicare Fraud Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,700 defendants who collectively have falsely billed the Medicare program for over $14 billion.

A complaint, information, or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

# # #

U.S. Attorney Duane A. Evans announced that PHILLIP GUIDRY, age 48, a resident of Loranger, was charged today in a one count indictment by a Federal Grand Jury with being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1).

According to the indictment, PHILLIP GUIDRY possessed on March 2, 2018, two pistols and three shotguns.  PHILLIP GUIDRY had previously been convicted in Orleans Parish and in Tangipahoa Parish for state-law felonies. 

If convicted, PHILLIP GUIDRY faces up to 10 years imprisonment, a fine of up to $250,000, and up to three years of supervised release following any term of imprisonment.

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

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.   Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority.   In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.

This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Louisiana State Police.  The prosecution is being handled by Assistant United States Attorney David Howard Sinkman.

U.S. Attorney Duane A. Evans announced that SAMUEL RAY LUCK, age 40, a resident of Raceland, Louisiana, was charged in a one-count indictment by a Federal Grand Jury for possessing a firearm after having been convicted of a misdemeanor crime of domestic violence.

On January 21, 2005, LUCK was convicted in McLean County, Kentucky for a violation of Kentucky Revised Statue (KRS) 508.030, Assault in the Fourth Degree, a misdemeanor crime of domestic violence.

If convicted, LUCK faces a maximum term of imprisonment of ten (10) years, a fine of $250,000.00, and three (3) years of supervised release following any term of imprisonment.     

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

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.  Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority.  In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lafourche Parish Sheriff’s Office.  It is being prosecuted by the Strike Force/Violent Crimes Unit of the U.S. Attorney’s Office.

A Honduran man pleaded guilty in federal court yesterday for his role in a conspiracy to launder into the United States more than $1.3 million in foreign bribe payments and public funds from the Republic of Honduras.  Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Deputy Director Thomas D. Homan of U.S. Immigration and Customs Enforcement (ICE) made the announcement.

Carlos Zelaya, 47, a citizen of Honduras who was residing in the New Orleans area, pleaded guilty before U.S. District Judge Martin L.C. Feldman of the Eastern District of Louisiana to one count of conspiracy to commit money laundering.  Sentencing is set for Oct. 3 at 1:30 p.m. CT.

According to admissions made as part of the plea agreement, Carlos Zelaya conspired with his brother, the former Executive Director of the Honduran Institute of Social Security, and others to launder over $1.3 million in bribe payments.  These bribes were paid by two Honduran businessmen for the benefit of the Executive Director.  The funds were then laundered into the New Orleans area through international wire transfers and used to purchase real estate, including for a commercial property.  Carlos Zelaya collected and spent the rental income derived from the properties, even after a federal judge ordered him to preserve the funds pending resolution of a federal civil forfeiture suit.  During that case, he also made false statements to the U.S. government in written discovery responses and to a federal judge in the Eastern District of Louisiana while testifying under oath.  As part of the conspiracy, Carlos Zelaya also used his brother’s high-ranking official position to profit from lucrative Honduran government contracts and then laundered the misappropriated funds into the New Orleans area.  Under the terms of the plea agreement, Carlos Zelaya agreed to forfeit those properties.

The investigation was conducted by ICE Homeland Security Investigations New Orleans and Miami.  The case is being prosecuted by Trial Attorneys Stephen A. Gibbons, Marybeth Grunstra, and Michael B. Redmann of the Criminal Division’s Money Laundering and Asset Recovery Section with assistance from the U.S. Attorney’s Office for the Eastern District of Louisiana.  Valuable assistance was provided by the Justice Department’s Office of International Affairs.

This case was brought under the Department of Justice’s Kleptocracy Asset Recovery Initiative by a team of prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section.  These prosecutors partner with federal law enforcement agencies to prosecute those who engage in and facilitate foreign official corruption which has effects on the U.S. financial system, to forfeit assets purchased with the proceeds of that corruption, and, where appropriate, to repatriate the recovered funds for the benefit of the people of the country harmed by such abuse of public office.  Individuals with information about possible proceeds of foreign corruption located in, or laundered through, the United States should contact federal law enforcement or send an email to kleptocracy@usdoj.gov.

A Honduran man pleaded guilty in federal court yesterday for his role in a conspiracy to launder into the United States more than $1.3 million in foreign bribe payments and public funds from the Republic of Honduras.  Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Deputy Director Thomas D. Homan of U.S. Immigration and Customs Enforcement (ICE) made the announcement.

Carlos Zelaya, 47, a citizen of Honduras who was residing in the New Orleans area, pleaded guilty before U.S. District Judge Martin L.C. Feldman of the Eastern District of Louisiana to one count of conspiracy to commit money laundering.  Sentencing is set for Oct. 3 at 1:30 p.m. CT.

According to admissions made as part of the plea agreement, Carlos Zelaya conspired with his brother, the former Executive Director of the Honduran Institute of Social Security, and others to launder over $1.3 million in bribe payments.  These bribes were paid by two Honduran businessmen for the benefit of the Executive Director.  The funds were then laundered into the New Orleans area through international wire transfers and used to purchase real estate, including for a commercial property.  Carlos Zelaya collected and spent the rental income derived from the properties, even after a federal judge ordered him to preserve the funds pending resolution of a federal civil forfeiture suit.  During that case, he also made false statements to the U.S. government in written discovery responses and to a federal judge in the Eastern District of Louisiana while testifying under oath.  As part of the conspiracy, Carlos Zelaya also used his brother’s high-ranking official position to profit from lucrative Honduran government contracts and then laundered the misappropriated funds into the New Orleans area.  Under the terms of the plea agreement, Carlos Zelaya agreed to forfeit those properties.

The investigation was conducted by ICE Homeland Security Investigations New Orleans and Miami.  The case is being prosecuted by Trial Attorneys Stephen A. Gibbons, Marybeth Grunstra, and Michael B. Redmann of the Criminal Division’s Money Laundering and Asset Recovery Section with assistance from the U.S. Attorney’s Office for the Eastern District of Louisiana.  Valuable assistance was provided by the Justice Department’s Office of International Affairs.

This case was brought under the Department of Justice’s Kleptocracy Asset Recovery Initiative by a team of prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section.  These prosecutors partner with federal law enforcement agencies to prosecute those who engage in and facilitate foreign official corruption which has effects on the U.S. financial system, to forfeit assets purchased with the proceeds of that corruption, and, where appropriate, to repatriate the recovered funds for the benefit of the people of the country harmed by such abuse of public office.  Individuals with information about possible proceeds of foreign corruption located in, or laundered through, the United States should contact federal law enforcement or send an email to kleptocracy@usdoj.gov.