Eastern District of Louisiana

U.S. Attorney Kenneth A. Polite announced that on Wednesday, October 19, 2016, over 10,000 students in 36 schools across Southeast Louisiana will participate in his Office’s second district-wide Student Pledge Against Gun Violence Day. 

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

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

U.S. Attorney Polite stated that his Office began using the pledge during the 2013-14 school year.  Because of the outstanding response from school leaders and students, the Office decided to expand the initiative district-wide to include all schools in all 13 parishes, including Assumption, Jefferson, Lafourche, Plaquemines, Orleans, St. Bernard, St. Charles, St. James, St.

John the Baptist, St. Tammany, Tangipahoa, and Terrebonne.  "Our Office is pleased to take this opportunity to reach out to students, engage in a dialogue about gun violence and the importance of making right choices, and encourage them to become peacemakers of our time," stated U.S. Attorney Polite.

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

Participating Schools include:

ASSUMPTION PARISH

Assumption High School

JEFFERSON PARISH

Alice Birney Elementary School       

C. T. Janet Elementary School

Fisher Middle-High School

Frederick Douglass Elementary School

Grand Isle School

Gretna No. 2 Academy for Advanced Studies

Hazel Park Elementary School

McDonogh 26 Elementary School

Shirley Johnson/Gretna Park Elementary

St. Mary Magdalen

T. H. Harris Middle School

Vic A. Pitre Elementary School

William Hart Elementary School

LAFOURCHE PARISH

South Thibodaux Elementary School

ORLEANS PARISH

De La Salle High School

Dwight D. Eisenhower Academy of Global Studies

Gentilly Terrace Charter School

James M. Singleton Charter School/Dryades YMCA

Lafayette Academy Charter School

Lake Forest Charter School

Milestone Academy

Pierre A. Capdau Charter School

Samuel J. Green Charter School

Schaumburg Elementary Charter School

St. Benedict the Moor

The Good Shepherd School

William J. Fischer Accelerated Academy

PLAQUEMINES PARISH

Our Lady of Perpetual Help School

ST. JOHN THE BAPTIST PARISH

Lake Pontchartrain Elementary

Ory Magnet Elementary School

West St. John Elementary School

West St. John High School                

ST. TAMMANY PARISH

Pope John Paul II High School

Florida Parishes Juvenile Detention Center

TERREBONNE PARISH

School for Exceptional Children

Participating Federal, State and Local Law Enforcement Agencies include:

Bureau of Alcohol, Tobacco, Firearms and Explosives

Drug Enforcement Administration

Federal Bureau of Investigation

Jefferson Parish Sheriff’s Office

New Orleans Police Department

Plaquemines Parish Sheriff’s Office

St. John Parish Sheriff’s Office

U.S. Attorney’s Office, Eastern District of Louisiana

U.S. Marshals Service

U.S. Attorney Kenneth A. Polite announced that KENNETH JACKSON, age 24, of New Orleans, pled guilty as charged to an Indictment charging one count of being a felon in possession of a firearm and ammunition and one count of possession of a firearm in a school zone.

According to court records, on March 9, 2016, JACKSON fired several shots from a firearm towards a red vehicle at the intersection of North Villere Street and Pauger Streets, where the Homer A. Plessy Community School is located.  When he was arrested, JACKSON gave a statement admitting that he had shot at two individuals inside of the red car on that day. 

JACKSON faces up to ten years imprisonment for the felon-in-possession charge and up to five years imprisonment for the school zone charge.  U.S. District Judge Jay C. Zainey scheduled sentencing for January 24, 2017. 

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter.  Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that KEVIN GONZALES, age 25, of Houston, pled guilty today to conspiracy to distribute and to possess with intent to distribute over one kilogram of heroin.  GONZALES is facing not less than 10 years and a maximum of life imprisonment, as well as a possible fine of up to $10,000,000.  U.S. District Judge Carl J. Barbier will sentence GONZALES on January 12, 2017. 

Also today, MARTHA QUINONES, age 51, of Houston, and REGINALD WASHINGTON, age 33, of New Orleans, were sentenced after having previously pled guilty to the same heroin conspiracy. Judge Barbier sentenced QUINONES to 120 months of incarceration, to be followed by 5 years of supervised release.  Judge Barbier sentenced WASHINGTON to 120 months of incarceration, to be followed by 8 years of supervised release. 

These three defendants were charged in a 21-count Superseding Indictment on September 18, 2015.  According to court documents, the Superseding Indictment resulted from an FBI investigation into a heroin-trafficking organization operating primarily around Loyola Avenue and Harmony Street in Central Citys.  During the timeframe of this conspiracy, GONZALES and QUINONES traveled via Megabus from Houston to New Orleans, carrying half-kilogram quantities of heroin for distribution by WASHINGTON and others in the New Orleans area. 

U.S. Attorney Polite praised the work of the FBI New Orleans Gang Task Force (NOGTF), St. Tammany Parish Sheriff’s Office, the Jefferson Parish Sheriff’s Office, and the New Orleans Police Department in investigating this matter.  Assistant United States Attorney Brandon S. Long is in charge of the prosecution

U.S. Attorney Kenneth A. Polite announced that OSCAR JEOVANY TORRES-LOPEZ, a/k/a OSCAR GEOVANY, age 31, a citizen of Honduras, was sentenced after previously pleading guilty to a one-count Indictment for illegal reentry of removed alien previously convicted of an aggravated felony.

U.S. District Judge Carl J. Barbier sentenced TORRES-LOPEZ to 24 months’ imprisonment followed by 3 years of supervised release, and a $100 special assessment.  Following his term of imprisonment, TORRES-LOPEZ will be surrendered to the custody of U.S. Immigration and Customs Enforcement for removal proceedings.

According to court records, on or about March 24, 2016, TORRES-LOPEZ was found in the United States after having been officially deported and removed on or about November 23, 2009.

U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement, in investigating this matter.  Assistant United States Attorney Irene González was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that MELVIN LEWIS II, age 53, of Gretna, was sentenced today after previously being convicted of thirty counts of mail fraud.

U.S. District Judge Carl J. Barbier sentenced LEWIS to served 240 months of imprisonment followed by 3 years of supervised release.  Additionally, restitution will be determined in a restitution hearing scheduled for December 1, 2016.

According court records, during the course of and subsequent to his employment by an off-shore services company located in Harvey, LEWIS devised a scheme to defraud various employees of that company and other public servants and officials.  As part of his mail fraud scheme, LEWIS caused “demand for payment” letters to be mailed to victims.  When his demands were ignored, LEWIS filed fraudulent liens against personal real property of the victims and sent additional demands for payment stating that the liens would not be removed until payment was received. 

U.S. Attorney Polite praised the work of the Special Agents of the Federal Bureau of Investigation in investigating this matter.  Assistant United States Attorneys Gregory M. Kennedy and Jonathan L. Shih were in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that DAMIEN WILSON, age 35, of Chalmette, was sentenced today after previously pleading guilty to violations of the Federal Controlled Substances Act.

U.S. District Judge Carl J. Barbier sentenced WILSON to serve 168 months incarceration, to be followed by 10 years of supervised release, and a $ 100 special assessment.

According to court records, WILSON conspired with others known and unknown to possess with the intent to distribute and to distribute one kilogram or more of a mixture or substance containing a detectable amount of heroin, a Schedule I drug controlled substance.  WILSON was caught on video during two heroin transactions with a confidential source.  The government also developed evidence that WILSON was laundering his drug proceeds by purchasing dilapidated houses, renovating them, and selling them for a profit.  The government is seizing the houses and/or proceeds from their sale, as well as two vehicles that contained secret compartments used to transport narcotics. 

U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter.  Assistant United States Attorney David Haller was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced today the sentencing of nine members and associates of the Hankton Organization. 

According to the court documents, members of this organization and their associates ran a violent drug ring in and around the City of New Orleans dating back to 1996.  During the course of this organization’s life, its members and associates killed rival drug dealers, intimidated witnesses who dared to cooperate with law enforcement, attempted to obstruct the state criminal justice system by having associates provide false alibi testimony in state court, and killed witnesses, along with a witness’ family member, in an effort to obstruct justice.   U.S. District Judge Martin L.C. Feldman sentenced the defendants as follows: 

SHIRLEY HANKTON, age 61 –  Pled guilty on May 16, 2016, to a Racketeer Influenced and Corrupt Organizations Act (RICO) violation; sentenced to serve 60 months’ incarceration, followed by three years of supervised release.

THOMAS HANKTON, age 40 – Pled guilty on May 16, 2016, to a RICO violation (Count 1), conspiracy to distribute controlled substances (Count 2), and assault with a dangerous weapon in aid of racketeering (Count 15); sentenced to serve 300 months’ incarceration, followed by 10 years of supervised release as to Counts 1 and 2, with credit for time served.   As to Count 15, THOMAS HANKTON was sentenced to serve 240 months’ incarceration, followed by 5 years of supervised release, all sentences to be served concurrently.

TROY HANKTON, age 32 – Pled guilty on April 27, 2016, to conspiracy to possess firearms; sentenced to serve 168 months’ incarceration, followed by 3 years of supervised release.

NAKIA HANKTON, age 38 – Pled guilty on April 27, 2016, to a RICO violation and conspiracy to distribute controlled substances; sentenced to serve 132 months’ incarceration, followed by 5 years of supervised release.

GEORGE JACKSON, age 42 – Pled guilty on June 1, 2016, to a RICO violation and conspiracy to distribute controlled substances; sentenced to serve 168 months’ incarceration (with credit for time served), followed by 5 years of supervised release.

DERRICK SMOTHERS, age 38 –  Pled guilty on May 4, 2016, to a RICO violation and conspiracy to distribute controlled substances; sentenced to serve 235 months’ incarceration (with credit for time served), followed by 5 years of supervised release.

TERRELL SMOTHERS, age 40 – Pled guilty on May 4, 2016, to a RICO violation and conspiracy to distribute controlled substances; sentenced to serve 144 months’ incarceration (with credit for time served), followed by 5 years of supervised release.

NETTHANY SCHEXNAYDER, age 37 – Pled guilty on May 16, 2016, to misprision of a felony; sentenced to serve 3 years’ probation. 

SANA JOHNSON, age 41 – Pled guilty on June 6, 2016, to misprision of a felony; sentenced to 1-year probation.

All of the above-listed defendants pled guilty to charges in the Third Superseding Indictment.  Co-defendants TELLY HANKTON, WALTER PORTER, ANDRE HANKTON, and KEVIN JACKSON, were found guilty after a three-week jury trial in June 2016.  TELLY HANKTON, WALTER PORTER, ANDRE HANKTON, and KEVIN JACKSON, are scheduled to be sentenced on November 9, 2016 at 1:30 p.m.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorneys Elizabeth Privitera, William J. Quinlan, Jr., David Haller, and Brittany Reed were in charge of the prosecution.

United States Attorney Kenneth A. Polite announced that on Wednesday, October 19, 2016, members of the U.S. Attorney's Office for the Eastern District of Louisiana (the “Office”) and their law enforcement partners will meet with students across Southeast Louisiana as part of his Office’s third district-wide Student Pledge Against Gun Violence (“SPAGV”) Day.

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

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

Last year, over 27,000 students at approximately 60 schools participated in the Office’s second SPGV Day.  This year’s event already includes schools from 9 of the 13 parishes in the Eastern District of Louisiana, namely Assumption, Jefferson, Lafourche, Orleans, Plaquemines, St. John the Baptist, St. Tammany, Terrebonne, and Washington.

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

If your school is interested in participating in the SPAGV Day, please contact Shane M. Jones at 504-680-3000 or shane.jones@usdoj.gov, or visit our website at www.justice.gov/usao-edla.

U.S. Attorney Kenneth A. Polite announced that EARL BROWN, age 31, of New Orleans, pled guilty today to conspiracy to distribute and to possess with intent to distribute heroin.  

BROWN was one of eight defendants charged in a 21-count Superseding Indictment on September 18, 2015.  According to court documents, this Superseding Indictment resulted from an FBI investigation into a heroin-trafficking organization operating primarily around Loyola Avenue and Harmony Street in Central City.  The sources of heroin for this organization traveled via Megabus from Houston to New Orleans, carrying half-kilogram quantities of heroin for distribution in the New Orleans area. 

BROWN is facing a maximum sentence of 20 years’ imprisonment, as well as a possible fine of up to $1,000,000.  U.S. District Judge Carl J. Barbier will sentence BROWN on January 12, 2017. 

U.S. Attorney Polite praised the work of the FBI New Orleans Gang Task Force (NOGTF), Saint Tammany Parish Sheriff’s Office, the Jefferson Parish Sheriff’s Office, and the New Orleans Police Department in investigating this matter.  Assistant U.S. Attorney Brandon S. Long is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that ROYLEY A. FOLSE, JR., age 69, a resident of St. James Parish, was sentenced today after previously pleading guilty to one count of selling migratory game birds, in violation of 16 U.S.C. §§703 and 707.

U.S. District Judge Stanwood Duval sentenced FOLSE to a probationary term of two years.

According to court documents, from June 2010 to December 2011, FOSLE illegally bartered and sold for cash four yellow-crowned night herons and sixty-two white ibis, which are migratory birds protected under the Migratory Bird Treaty Act (MBTA).

U.S. Attorney Polite praised the work of the Louisiana Department of Wildlife and Fisheries and the United States Fish and Wildlife Service in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that JOHN WAYNE THOMAS, age 36, of New Orleans, was sentenced today after previously pleading guilty to a one-count Bill of Information for possession of stolen mail, in violation of 18 U.S.C. § 1708.

U.S. District Judge Ivan L.R. Lemelle sentenced THOMAS to 37 months imprisonment followed by 3 years of supervised release, and a $100 special assessment.

According to the Bill of Information, THOMAS was found in possession of mail matter that he had taken from a mail receptacle on or about May 23, 2015.

U.S. Attorney Polite praised the work of the United States Postal Inspection Service and Louisiana State Police in investigating this matter.  Assistant United States Attorney Irene González was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that NATANAEL MORALES-TRINIDAD, a/k/a SAMAEL MORALES, a/k/a NATANAEL K. MORALES, a/k/A NATHANIEL MORALES, age 46, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Bill of Information for illegal reentry.

U.S. District Judge Susie Morgan sentenced MORALES-TRINIDAD to twelve months imprisonment followed by two years of supervised release, and a $100 special assessment.

According to the Bill of Information, on or about May 1, 2016, MORALES-TRINIDAD was found in the United States after having been officially deported and removed on or about May 8, 2013.

U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter.  Assistant United States Attorney Irene González was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that GEOFFREY RICKETTS, age 48; his wife, MARLA RICKETTS, age 38; SAMUEL KIM, age 41, all of Porter Ranch, California, and his cousin, SUNYUP KIM, age 40, of Granada Hills, California pled guilty to conspiracy to commit health care fraud.

GEOFFREY RICKETTS, MARLA RICKETTS, SAMUEL KIM, and SUNYUP KIM were indicted on June 11, 2015, for their direction of a $38 million fraud scheme centering around the distribution of "talking glucose meters" that were not medically needed and were often not even requested.  The defendants operated Care Concepts, LLC, which was based in Metairie and Choice Home Medical Equipment and Supplies (Choice), which was based in Chatsworth, California.  According to court documents, the defendants paid kickbacks to workers at call centers in California and South Carolina, from which operators would cold-call Medicare recipients to convince them to accept talking glucose meters and related supplies.  From 2007 through 2015, the defendants caused thousands of claims to be submitted to Medicare through Care Concepts and Choice, virtually all of which were fraudulent.

Each defendant faces a maximum term of ten years’ imprisonment, a fine of $250,000, and a term of three years supervised release.  In addition, GEOFFREY RICKETTS owes restitution in the amount of $1,338,210; MARLA RICKETTS in the amount of $39,880; SAMUEL KIM in the amount of $988,593 and SUNYUP KIM in the amount of $93,927. U.S. District Judge Eldon E. Fallon set sentencing for January 5, 2017.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the Office of Inspector General for the United States Department of Health and Human Services for investigating this matter.  Assistant U.S. Attorneys Patrice Harris Sullivan, Jordan Ginsberg, and DOJ Trial Attorney William Kanellis are in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that CHAMPION ES HOLDINGS, INC., (CHAMPION), a Texas corporation, pled guilty today before the Honorable Susie Morgan to a one-count Bill of Information for misprision of a felony, and was sentenced to a one-year term of probation and ordered to pay a $1 million fine and a $250,000 community service payment to the Barataria-Terrebonne Estuary Foundation.

According to court documents, on or about February 23, 2010, CHAMPION’s former affiliate, Champion Technologies, Inc., entered into a Master Service Agreement with the facility operator of the Innovator, an offshore oil and gas production facility that was located 80 miles south of Empire, Louisiana, to provide chemical management services.  Between October 2010 and March 2012, CHAMPION, however, failed to report to law enforcement its knowledge that the Innovator’s operator was violating the National Pollutant Discharge Elimination System General Permit No. 290000 by discharging one of the chemicals CHAMPION sold it into the Gulf of Mexico to hide oil sheens. Despite the fact that CHAMPION knew the facility operator was discharging the chemical, known as Cleartron ZB-103, into the Gulf of Mexico to use as a dispersant to hide oil sheens, it nevertheless continued to supply Cleartron ZB-103 to the operator. Between October 2010 and March 2012, production foremen on the Innovator ordered a total of 4,025 gallons of Cleartron ZB-103 from CHAMPION that was injected into the produced water piping past the floatcell of the production facility and used as a dispersant to hide oil sheens from the produced water coming from the Innovator.

As part of its plea agreement, CHAMPION agreed to discontinue the sale of Cleartron ZB-103 and to provide offshore personnel with training on the Clean Water Act and its restrictions governing the use of dispersants and surfactants on offshore oil and gas platforms.

U.S. Attorney Polite praised the work of the Environmental Protection Agency-Criminal Investigation Division and Department of Interior-OIG in investigating this matter.  Assistant United States Attorney Emily K. Greenfield of the National Security Unit was in charge of the prosecution.

WASHINGTON – An accountant who participated in and attempted to cover up a $50 million New Orleans-area Medicare fraud scheme was sentenced today to 48 months in prison for his involvement in the scheme.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Field Office, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Dallas Regional Office and the Louisiana Attorney General’s Medicaid Fraud Control Unit made the announcement.

Christopher White, 50, of Destrehan, Louisiana, was sentenced by U.S. District Judge Sarah S. Vance of the Eastern District of Louisiana, who also ordered White to pay $2,272,241.96 in restitution.

According to admissions made in connection with his plea agreement, White was an accountant for multiple companies in a home health care fraud scheme carried out in and around New Orleans over the course of more than 10 years.  Among other things, White coordinated the payment of illegal kickbacks to patient recruiters who canvassed the streets of New Orleans to collect Medicare numbers from elderly and disabled Medicare recipients.  When a grand jury subpoena was issued to certain companies, he and others fabricated and backdated tax and employment records to conceal the fact that illegal kickbacks were being paid to these recruiters. 

According to the plea agreement, from 2007 through 2014, the companies involved in the scheme submitted more than $56 million in claims to Medicare, the vast majority of which were fraudulent.  Medicare paid approximately $50.7 million on these claims.

The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Louisiana.  Fraud Section Trial Attorneys William Kanellis and Antonio Pozos prosecuted the case.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,900 defendants who have collectively billed the Medicare program for more than $10 billion.  In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.  

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

An accountant who participated in and attempted to cover up a $50 million New Orleans-area Medicare fraud scheme was sentenced today to 48 months in prison for his involvement in the scheme.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Field Office, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Dallas Regional Office and the Louisiana Attorney General’s Medicaid Fraud Control Unit made the announcement.

Christopher White, 50, of Destrehan, Louisiana, was sentenced by U.S. District Judge Sarah S. Vance of the Eastern District of Louisiana, who also ordered White to pay $2,272,241.96 in restitution.

According to admissions made in connection with his plea agreement, White was an accountant for multiple companies in a home health care fraud scheme carried out in and around New Orleans over the course of more than 10 years.  Among other things, White coordinated the payment of illegal kickbacks to patient recruiters who canvassed the streets of New Orleans to collect Medicare numbers from elderly and disabled Medicare recipients.  When a grand jury subpoena was issued to certain companies, he and others fabricated and backdated tax and employment records to conceal the fact that illegal kickbacks were being paid to these recruiters. 

According to the plea agreement, from 2007 through 2014, the companies involved in the scheme submitted more than $56 million in claims to Medicare, the vast majority of which were fraudulent.  Medicare paid approximately $50.7 million on these claims.

The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Louisiana.  Fraud Section Trial Attorneys William Kanellis and Antonio Pozos prosecuted the case.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,900 defendants who have collectively billed the Medicare program for more than $10 billion.  In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.  

To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.

U.S. Attorney Kenneth A. Polite announced today that his Office will observe National Community Policing Week through the following special events:

WEDNESDAY, OCTOBER 5, 2016

Event:                                       New Orleans Police Department/Youth Basketball Game

Location:                                KIPP Central City Academy

                                                      2514 Third Street

                                                      New Orleans, LA 70113

Time:                                         12:00 pm – 12:45 pm

Participating Agencies:    United States Attorney’s Office, Eastern District of Louisiana

                                                      New Orleans Police Department

                                                      KIPP New Orleans Schools

　

THURSDAY, OCTOBER 6, 2016

Event:                                       Law Enforcement Meet and Greet

                                                      Body-Worn Camera Seminar

Location:                                Joe W. Brown Memorial Park

                                                      5601 Read Boulevard

                                                      New Orleans, LA 70127

Time:                                          5:00 pm – 8:00 pm (Meet and Greet) (Shelter #1);

                                                      7:00 pm – 8:00 pm (Seminar) (Recreation Center)

Participating Agencies:     United States Attorney’s Office, Eastern District of Louisiana

                                                      Federal Bureau of Investigation

                                                      Drug Enforcement Administration

                                                      Bureau of Alcohol, Tobacco, Firearms and Explosives

                                                      United States Marshals Office

                                                      New Orleans Police Department

 In addition to the law enforcement "Meet and Greet," representatives from the New Orleans Police Department will be holding a "Body-Worn Cameras" seminar that is open to the public. Evidence    indicates that body-worn cameras help strengthen accountability and transparency, reducing community complaints, and can assist in de-escalating conflicts. There will be a short question and answer session, and attendees will have the opportunity to interact with the technology.

President Obama designated the week of October 2 – 8, 2016, as National Community Policing Week, with a mission to build on the Obama’s Administration engagement with law enforcement and other members of the community to implement key recommendations from the 21st Century Policing Task Force Report. Community policing is a public safety philosophy based on partnership and cooperation between law enforcement and the communities that they are sworn to protect. At the center of community policing is the idea that all members of the community, both officer and civilian, have a stake in the safety of their neighborhoods where they live and work.

U.S. Attorney Kenneth A. Polite announced that JADALLAH SAED, age 30; ANWAR ABDELMAJID-AHMAD, a/k/a Tony, age 29, both of Gretna; ATALLA ATALLA, a/k/a Tommy, age 38, of Wilmington, North Carolina; JUSTIN BROWN, age 29; JOSHUA CARTHON, age 32, and GARRETT PARTMAN, age 31, all of New Orleans, were arrested yesterday in connection with the unsealing of an Indictment charging them with  conspiring to traffic in contraband cigarettes and evading the federal excise tax imposed on tobacco; trafficking in contraband cigarettes, and interstate transportation in aid of racketeering enterprises, in Title 18, United States Code, Sections 371 and 1952(a)(3), respectively.

According to previously filed court documents, defendants would illegally receive, possess, and purchase contraband cigarettes and cigars in order to evade applicable taxes and receive higher profits for the retail sale of the tobacco products.  New Orleans Police Officers JUSTIN BROWN and JOSHUA CARTHON and Orleans Parish Sheriff’s deputy GARRETT PARTMAN, were utilized to protect and transport the shipment of contraband cigarettes across state lines.  The defendants would then distribute and sell the contraband cigarettes in North Carolina and other states where the cigarette taxes are higher than Louisiana, resulting in a substantial total tax loss to both federal and state governments.

The maximum penalties are as follows: as to Count 1, Conspiracy To Traffic In Contraband Cigarettes and Evade the Federal Excise Tax Imposed on Tobacco (18 U.S.C. § 371), 5 years imprisonment, $250,000 fine, 3 years supervised release.  As to Counts 2, 4, 6, and 7, Trafficking in Contraband Cigarettes (18 U.S.C. § 2342(a)), 5 years imprisonment, $250,000 fine, 3 years supervised release for each count.  As to Counts 3 and 5, Interstate Transportation in Aid of Racketeering Enterprises (18 U.S.C. § 1952(a)(3)), 5 years imprisonment, $250,000 fine, 3 years supervised release for each count.

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

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation New Orleans Division, Immigration and Customs Enforcement, Homeland Security Investigations, the New Orleans Police Department’s Public Integrity Bureau, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Department of Defense, Defense Criminal Investigative Service. Assistant United States Attorneys Tracey N. Knight and Irene Gonzalez are in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that SHANNON CHRISTOPHER CEASAR, M.D., age 43, a physician and former co-owner of the now defunct Gulf South Physicians Group in Metairie, was charged today in a two count Indictment related to violations of the Federal Controlled Substances Act and threatening to assault or murder federal law enforcement officers. 

According to the indictment, CEASAR conspired with others to distribute and to dispense, outside the scope of professional practice and not for a legitimate medical purpose, quantities of oxycodone, a Schedule II drug controlled substance.   In addition, CEASAR was charged with threatening to assault and/or murder federal law enforcement officers with the intent to impede, intimidate, or interfere with such law enforcement officers while engaged in the performance of official duties, or with the intent to retaliate against such law enforcement on account of the performance of official duties. 

If convicted on the drug charge pursuant to Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C) and 846, CEASAR will face a maximum of not more than 20 years in prison, a fine of up to $1,000,000, and at least three years of supervised release following any term of imprisonment.  If convicted on the threat charge pursuant to Title 18, United States Code, Section 115(a)(1)(B), CEASAR will face a maximum of not more than 10 years in prison, a fine of up to $250,000 and at least 3 years supervised following any term of imprisonment.

CEASAR was arrested by way of a criminal complaint on July 22, 2016.  He made his initial appearance before U.S. Magistrate Court Judge Daniel E. Knowles, III and was ordered detained after a hearing before U.S. Magistrate Court Judge Karen Wells Roby on July 25, 2016.

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

U.S. Attorney Polite praised the work of the Special Agents of the Federal Bureau of Investigations, U.S. Department of Health and Human Services OIG, and the Drug Enforcement Administration in investigating this matter.  Assistant United States Attorneys Shirin Hakimzadeh, Jordan Ginsberg, and Myles Ranier are in charge of the prosecution

U.S. Attorney Kenneth A. Polite, Jr., announced that JUAN HUMBERTO HERNANDEZ-YONES, age 33, a citizen of Honduras, pled guilty today to a one count Indictment charging him with illegal re-entry of a removed alien.

According to the court documents, on June 30, 2016, HERNANDEZ-YONES was found in the United States after having been deported on July 15, 2011. HERNANDEZ-YONES was previously convicted of the same offense in 2008 in the United States District Court for the Eastern District of Louisiana. 

HERNANDEZ-YONES faces a maximum penalty of 10 years imprisonment and 3 years supervised release following any term of imprisonment. U.S. District Judge Kurt D. Engelhardt set sentencing for December 21, 2016. 

U.S. Attorney Polite praised the work of the United States Immigration and Customs Enforcement in investigating this matter.   Assistant United States Attorney Emily K. Greenfield is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that DELRONE MOORE, age 38, of New Orleans, pled guilty today to two counts of distribution of heroin.

According to court documents, in the fall of 2015, a Jefferson Parish Sheriff’s Office detective conducted controlled undercover purchases of heroin from MOORE.  On October 14, 2015, the undercover detective met with MOORE in Kenner, buying approximately half of an ounce of heroin from MOORE.  On November 12, 2015, the undercover detective again met with MOORE in Kenner and conducted a second controlled undercover purchase, buying approximately one ounce of heroin from MOORE.  Both of the hand-to-hand transactions took place in the undercover detective’s vehicle and were captured on that vehicle’s audio and video recording system. 

MOORE faces a sentence of up to 20 years imprisonment, at least 3 years of supervised release, a fine of up to $1,000,000, and a mandatory special assessment of $100.  U.S. District Court Judge Nannette Jolivette Brown will sentence MOORE on January 12, 2017. 

U.S. Attorney Polite praised the work of the Drug Enforcement Administration and the Jefferson Parish Sheriff’s Office.  Assistant United States Attorney Nicholas D. Moses is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that JORGE EDUARDO VALLEJO, age 37, a citizen of Honduras, pled guilty today to a one-count Indictment charging him with violations of the Federal Gun Control Act.

According to the Indictment, on or about July 12, 2014, VALLEJO, an alien illegally in the United States, was found in possession of a SCCY, Model CPX-2, 9mm semi-automatic pistol. 

VALLEJO faces a maximum term of imprisonment of ten years, a fine of $250,000, three years supervised release after imprisonment, and a $100 special assessment.  U.S. District Judge Nannette Jolivette Brown set sentencing for January 12, 2017.

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

U.S. Attorney Kenneth A. Polite announced that CLARK JAMES PELLEGRIN, JR., age 41, of New Orleans, was sentenced today after previously pleading guilty to a one count Bill of Information charging him with wire fraud in connection with a fraudulent debt collection scheme.

U.S. District Judge Ivan L.R. Lemelle sentenced PELLEGRIN to 21 months home confinement and 5 years probation.  In addition, PELLEGRIN was ordered to pay restitution in the amount of $243,980.15.

According to court documents, PELLEGRIN, engaged in a multi-year scheme involving creditors on whose behalf he collected overdue debts from debtors. PELLEGRIN negotiated with debtors even though he had no authority to negotiate and made collections from debtors on behalf of 23 different creditors in the approximate amount of $243,980, which funds he converted to his own use, instead of paying the creditors.

U.S. Attorney Polite praised the work of the United States Postal Inspection Service.  Assistant U.S. Attorney Patrice Harris Sullivan was in charge of the prosecution.

 

U.S. Attorney Kenneth A. Polite announced that FAUSTINO JUAREZ-CASTILLO, age 31, plead guilty today 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 court documents, JUAREZ-CASTILLO was previously removed from the United States on October 28, 2011.  JUAREZ-CASTILLO was found in the Eastern District of Louisiana on August 2, 2016, and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter. 

JUAREZ-CASTILLO 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. District Judge Martin L.C. Feldman set sentencing on January 18, 2017.

U.S. Attorney Polite 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 Kenneth A. Polite announced that OGER FRANCISCO ISAOLA-PALMA, age 34, a citizen of Honduras, pled guilty today to a one-count Bill of Information charging him with  fraud and misuse of entry and employment documents in violation of Title 18, United States Code, Section 1546(a). 

According to court records, ISAOLA-PALMA knowingly used, possessed and obtained a social security card using an alias, which he obtained unlawfully and fraudulently, knowing that the information used to obtain that card including correct name and country of origin were false. 

ISAOLA-PALMA faces 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.  U.S. District Judge Martin L.C. Feldman set sentencing for January 18, 2017.

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

U.S. Attorney Kenneth A. Polite announces that LAVERT LAYMON, age 27, of Gretna, was sentenced today after previously pleading guilty to a one count Indictment charging him with bank robbery.

U.S. District Judge Jay C. Zainey sentenced LAYMON to 33 months imprisonment, to be followed by 3 years of supervised release, and a $100 special assessment. Additionally, LAYMON was ordered to pay $1,721 in restitution to Whitney Bank.

According to court documents, on March 31, 2016, LAYMON committed the robbery of the Whitney Bank branch located at 3740 Elysian Fields.  LAYMON pled guilty as charged to the Indictment on June 20, 2016.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter.  Assistant United States Attorney Myles Ranier was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that APRIL NICOLE GRIZZARD, age 32, of Atlanta, pled guilty today to two counts of a Superseding Indictment,  which charged her with conspiracy to possess with intent to distribute fifty grams or more of methamphetamine, and possession with intent to distribute fifty grams or more of methamphetamine.

According to court documents, in September of 2014, a woman in Atlanta agreed to deliver one-half pound of methamphetamine to an undercover Drug Enforcement Administration (DEA) Special Agent in Metairie.  The woman employed an individual named ALLISON CHRISWELL to deliver the drugs. GRIZZARD, who assisted in obtaining the drugs for delivery, accompanied CHRISWELL to Metairie to deliver the drugs.  When GRIZZARD and CHRISWELL arrived in Metairie with the methamphetamine, they were arrested by DEA Agents.

For each count, GRIZZARD faces a minimum term of ten years imprisonment, a maximum of life imprisonment, and a fine of $10,000,000.   U.S. District Judge Martin L.C. Feldman set sentenced for January 25, 2017.

U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter.  Assistant U.S. Attorney Andre’ Jones is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that DON FRANCIS, JR., age 46, of Metairie, was sentenced today after previously pleading guilty to crimes involving the sexual exploitation of children.

U.S. District Judge Sarah S. Vance sentenced FRANCIS to serve 15 years imprisonment to be followed by a lifetime term of supervised release.  FRANCIS was also ordered to pay restitution in the amount of $8,000 and he will be required to register as a sex offender under the Sex Offender Registration Notification Act.

According to court records, on February 5, 2014, Special Agents with the U.S. Department of Homeland Security-Homeland Security Investigations (“HSI”) assisted the Louisiana Department of Justice and the Jefferson Parish Sheriff’s Office with the execution of a search warrant at FRANCIS’s residence in Metairie.   HSI computer forensic agents located 5,378 images and 362 videos depicting the sexual victimization of children (some of whom were infants) on FRANCIS’s computer. 

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."

United States Attorney Polite praised the work of the U. S. Department of Homeland Security-HSI, the Louisiana Department of Justice, and the Jefferson Parish Sheriff’s Office in investigating this matter.   Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that the U.S. Attorney’s Office for the Eastern District of Louisiana – in collaboration with the U.S. Department of Homeland Security and the University of Findlay – will be co-hosting a free training session entitled “Crisis Management for School-Based Incidents” on Tuesday, September 20, 2016, from 8:00 am – 5:00 pm.  Topics include:

• Introduction to Incident Planning and Preparedness

• Proactive Threat Mitigation

• Incident Response

• Incident Recovery

• Vulnerability Assessments

• Threat Assessment Management

• Incident Defusing and Debriefing

• Parent Reunification

• Anniversaries, Memorials, “Copy-Cats”

 

WHO:         Rural Police and Sheriff Departments, School Administrators, School Resource Officers, 

                     Counselors, and others involved in school safety and security

WHEN:      Tuesday, September 20, 2016 from 8:00 am – 5:00 pm

WHERE:    U.S. Attorney’s Office for the Eastern District of Louisiana, 650 Poydras Street, Suite 1600,

                     Winters Conference Room

 

There is no registration fee for this event.

The U.S. Attorney’s Office for the Eastern District of Louisiana announced that STEVE COLLINS TURNER, SR., age 73, of Port Sulphur, was charged Friday with mail fraud in connection with a false claim of $300,000 related to the BP Oil Spill.

The Gulf Coast Claims Facility (GCCF) made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion that occurred on April 20, 2010.  The GCCF required individuals to verify loss of income.  According to the Bill of Information, TURNER applied for an Emergency Advance Payment seeking $300,000 in damages for lost money because of the Deepwater Horizon Disaster by submitting false documentation.  TURNER submitted false documents regarding oyster buying businesses showing he sold oysters to the businesses when he really did not. 

If convicted, TURNER faces a possible maximum sentence of twenty years imprisonment, followed by 3 years of supervised release, and a $100 special assessment.  Additionally, TURNER may be ordered to pay restitution.

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

The U.S. Attorney’s Office praised the work of the Special Agents of the U.S. Secret Service in investigating this matter.  Assistant U.S. Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.

 

U.S. Attorney Kenneth A. Polite announced that CAROL JOHN, a/k/a INES ISABEL RUIZ, a/k/a CAROL ATKINS, age 56, a citizen of Panama, pled guilty today to a two-count Indictment charging her with making a false statement in an application for a U.S. passport and reentry of a removed alien.

According to the Indictment, on or about March 4, 2016, JOHN submitted a false passport application using a fraudulent birth certificate. Further, JOHN was found in the United States after having been officially deported and removed on or about May 24, 1996, after having been convicted of a felony drug offense.

JOHN faces maximum term of imprisonment of ten years for Count 1 and twenty years for Court 2, respectively.  JOHN also faces maximum fines of up to $250,000, five years supervised release after imprisonment per count, and a $100 special assessment per count.   U.S. District Judge Ivan L.R. Lemelle set sentencing for December 7, 2016.

U.S. Attorney Polite praised the work of the United States Diplomatic Security Service in investigating this matter.   Assistant United States Attorney Irene González is in charge of the prosecution.

 

U.S. Attorney Kenneth A. Polite announced today that his Office will observe National Heroin and Opioid Awareness Week through the following special events:

Monday, September 19, 2016

• Private screening and panel discussion of the documentary “Chasing the Dragon: The Life of an Opioid Addict” for St. Bernard Parish students.

 

• Public screening and panel discussion of the documentary “Chasing the Dragon: The Life of an Opioid Addict.”

            Panel Participants will include:

            Kenneth A. Polite, U.S. Attorney, EDLA

            Jeffrey Sallet, FBI Special Agent in Charge

            Stephen Assam, DEA Special Agent in Charge

            Dr. Jeff Rouse, Orleans Parish Coroner

            Family members who have lost loved ones to heroin and opioid addiction                      

            Loyola University, Nunemaker Auditorium, Monroe Hall, 6363 St. Charles Avenue, at 7:00 pm.

           The event is free and open to the public.  Free parking will be available in the West Road garage.

 

Tuesday, September 20, 2016

• Private screening and panel discussion of the documentary “Chasing the Dragon: The Life of an Opioid Addict” for Jefferson Parish students.

• U.S. Attorney Polite to tour substance abuse facility and conduct panel discussion with patients of Bridge House, 4150 Earhart Blvd., New Orleans, LA at 2:00 pm.

        

Thursday, September 22, 2016

• Private screening and panel discussion of the documentary “Chasing the Dragon: The Life of an Opioid Addict” for Jefferson Parish and St. Tammany Parish students.

 

Attorney General Loretta E. Lynch has designated the week of September 19-23, 2016, as National Heroin and Opioid Awareness Week to raise awareness of the growing epidemic of heroin and opioid abuse in our country.  Heroin overdoses increased 244% between 2007 and 2013.  On an average day, 78 people die from an opioid-related overdose.

U.S. Attorney Polite stated, “We look forward to joining with all members of our community – law enforcement, educational institutions, and non-profit advocates – to bring greater attention to the problems and potential solutions to the heroin and opioid epidemic currently facing our region.”

U.S. Attorney Kenneth A. Polite announced that a Federal Grand Jury has returned a 46-count superseding indictment against six individuals charging approximately $13,655,094 in Medicare fraud.

Specifically, HENRY EVANS, age 71; MICHAEL JONES, age 47; PAULA JONES, age 45; SHELTON BARNES, age 62; GREGORY MOLDEN, age 60, all of New Orleans and JONATHON NORA, age 29, of River Ridge, were indicted yesterday for conspiracy to commit health care fraud, conspiracy to defraud the United States and to receive and pay health care kickbacks, and health care fraud. BARNES was also charged with obstruction of a federal audit.

The Indictment is the third one involving many of the same parties who were originally indicted in March of 2015. Nineteen individuals and/or companies have already pled guilty to charges associated with the original Indictment.

This Second Superseding Indictment is related to the Indictment returned in March 2015 charging Lisa Crinel and others, some of whom have entered guilty pleas. According to the Second Superseding Indictment, the defendants participated in a criminal organization for the purpose of fraudulently billing Medicare for medically unnecessary home health services for patients who were not homebound. DRS. BARNES, EVANS, MOLDEN and MICHAEL JONES, known as “House Doctors,” ordered home health services for Medicare beneficiaries who had no legitimate medical necessity.  The House Doctors falsely signed home health orders regardless of the beneficiary’s needs, homebound status, or diagnoses.  In return, DRS. BARNES, EVANS, and MOLDEN received monthly payments fraudulently characterized as medical consultant or director fees for which they provided no services other than fraudulently certifying Medicare beneficiaries for unnecessary home health services.  Instead of receiving monthly payments from the home health agency, Abide hired PAULA JONES, DR. MICHAEL JONES’ wife and, thereafter, inflated salary payments to PAULA JONES represented MICHAEL JONES’ fees for fraudulently certifying home health for ineligible Medicare beneficiaries.

Marketers contacted JONATHON NORA and others to confirm that the person fraudulently referred for home health was a Medicare beneficiary.  Once NORA determined the referred individual was a Medicare beneficiary, NORA scheduled a physician visit, usually with an Abide House Doctor, well knowing that the individual referral to Abide was by a Marketer, instead of the beneficiary’s own health care professional.

Abide generated plans of care reflecting the falsely created assessments. The plans of care were given to DRS. BARNES, EVANS, MOLDEN and MICHAEL JONES to falsely certify and recertify medically unnecessary episodes of home health. PAULA JONES fraudulently billed Medicare, on behalf of Abide, for the medically unnecessary home health services.

The Superseding Indictment also charges SHELTON BARNES with obstruction of a federal audit in connection with his billing to Medicare Part B of services related to the medically unnecessary home health services.

If convicted, DR. SHELTON BARNES faces a possible maximum sentence of 170 years imprisonment; DR. HENRY EVANS faces a possible maximum sentence of 95 years imprisonment; DR. GREGORY MOLDEN faces a possible maximum sentence of 115 years imprisonment; and DR. MICHAEL JONES faces a possible maximum sentence of 125 years imprisonment.  If convicted, JONATHAN NORA faces a possible maximum sentence of 25 years imprisonment and PAULA JONES faces a possible maximum sentence of 15 years imprisonment. For each count for which any defendant is convicted, they are subject to a maximum $250,000 fine.

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

U.S. Attorney Polite praised the work of the Special Agents of the Federal Bureau of Investigation in investigating this matter.  Assistant U.S. Attorneys Patrice Harris Sullivan, Hayden Brockett, Maria Carboni, and Sharan Lieberman are in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that SILVIA MARIA GARCIA-COYADO, age 34, last residing in Houma, pled guilty today to a three-count Indictment for unlawful transfer of identification documents.

According to the court documents, on or about January 20, 2016, GARCIA-COYADO provided a confidential informant with a Texas identification card and a Social Security card in exchange for $120.  The documents provided had the name, photograph, and date of birth specified by the informant. The Social Security number on the card was associated with an actual person who was not the person identified on the card.  On May 25, 2016, and June 2, 2016, GARCIA-COYADO provided an undercover agent with Texas identification cards and Social Security cards in exchange for money.  The documents had the name, photograph, and date of birth specified by the agent. The Social Security numbers on the cards were associated with actual people who were not those identified on the cards.

GARCIA-COYADO faces a maximum term of imprisonment of 15 years, a fine of $250,000, three years supervised release after imprisonment, and a $100 special assessment.   U.S. District Judge Nannette Jolivette Brown set sentencing for October 20, 2016.

U.S. Attorney Polite praised the Department of Homeland Security and the Louisiana State Police in investigating this matter.  Assistant United States Attorney Emily K. Greenfield is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that LORI BROADWAY, age 34, of Galveston, Texas, was sentenced today after pleading guilty to one count of possession with the intent to distribute one kilogram or more of heroin.

U.S. District Judge Lance M. Africk sentenced BROADWAY to 120 months imprisonment, to be followed by 5 years of supervised release.

According to court documents, on January 22, 2016, officers conducting narcotics interdiction at the AMTRAK station in New Orleans identified BROADWAY, a train passenger arriving from Houston, Texas, as a possible drug trafficker.  After officers obtained consent to search BROADWAY’s suitcases, they located and seized approximately six kilograms of heroin. 

U.S. Attorney Polite praised the work of the U.S. Drug Enforcement Administration and the Louisiana State Police in investigating this matter.   Assistant United States Attorney Andre’ Jones was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that JAMES MOORE, JR., age 47, of Talisheek, Louisiana, was charged today in a five-count Indictment with possession with the intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 21, United States Code, Section 841(a)(1) and Title 18, United States Code, Section 924(c)(1)(A), respectively.

According to previously filed court documents, beginning in January 2016, the Federal Bureau of Investigation (FBI) conducted numerous controlled purchases of methamphetamine from MOORE.  Their investigation further revealed MOORE to be in possession of numerous firearms.  On August 29, 2016, several search warrants were executed and MOORE was arrested by the FBI.

If convicted of Counts 1-3, Distribution of Methamphetamine, MOORE faces a maximum penalty of up to twenty years imprisonment, a $1,000,000 fine, and a five year term of supervised release.    

If convicted of Count 4, Possession with Intent to Distribute Methamphetamine, MOORE faces a minimum of five years to forty years imprisonment, a $5,000,000 fine, and a five year term of supervised release.    

If convicted of Count 5, Possession of a Firearm in furtherance of a Drug Trafficking Crime, MOORE faces a minimum of five years to life imprisonment (to be served consecutive to any other imposed terms of imprisonment), a $250,000 fine, and a three year term of supervised release.    

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

U.S. Attorney Polite praised the work of the FBI New Orleans Division JTTF for investigating this matter.   Assistant United States Attorney Gregory M. Kennedy is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that MIHAI ALEXANDRU DINU, age 41, of Romania, was sentenced today after previously pleading guilty to one count of bank fraud related to the use of ATM “skimming” devices.

U.S. District Judge Nannette Jolivette Brown sentenced DINU to 27 months imprisonment to be followed by two years of supervised release.  Additionally, DINU was ordered to pay $118,608.38 in restitution.  As an illegal alien, DINU is subject to immediate deportation after incarceration.

According to court records, in January 2015, the U.S. Secret Service and the Louisiana Financial Crimes Task Force began investigating the unauthorized collection of debit card numbers through the installation of “skimming devices” on various ATM machines and the subsequent illegal use of fake debit cards in the Eastern District of Louisiana.  In March 2016, DINU and another man were captured on surveillance video using fake debit cards to withdraw funds from three local bank accounts.  Subsequently, DINU admitted to investigators that he had illegally entered the United States and joined in with a group of individuals who used fake passports and fake driver’s licenses to travel within the United States for the purpose of making the illegal ATM withdrawals.  DINU also participated in a similar ATM skimming conspiracy in Virginia prior to arriving in Louisiana.

U.S. Attorney Polite praised the work of the Agents from the United States Secret Service and the Louisiana Financial Crimes Task Force, along with the St. Tammany Parish Sheriff’s Office in investigating this matter.  Assistant United States Attorneys Edward J. Rivera and Carter Guice were in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that CAREN BATTAGLIA, age 50, of New Orleans, pled guilty today to one count of misprision of a felony.  SUPRENIA WASHINGTON, age 60, of New Orleans, also pled guilty to one count of health care fraud in.

On March 12, 2015, BATTAGLIA and WASHINGTON were indicted along with 19 other defendants in a 26-count indictment charging approximately $30,052,295 in Medicare fraud.

WASHINGTON was a Registered Nurse and BATTAGLIA a Licensed Practical Nurse at Abide Home Care Services, a home health company operated by owner Lisa Crinel. BATTAGLIA’s and WASHINGTON’s guilty pleas involved their alleged care for Medicare beneficiaries, falsification of documents and failure to notify officials of the ongoing health care fraud at Abide.

WASHINGTON faces a maximum term of imprisonment of ten years, a $250,000 fine, and three years of supervised release following imprisonment.  BATTAGLIA faces a maximum term of imprisonment of three years, a $250,000 fine, and one year of supervised release following imprisonment. U.S. District Judge Susie Morgan set sentencing for both defendants on February 8, 2017.

U.S. Attorney Polite praised the work of the Special Agents of the Federal Bureau of Investigation, in investigating this matter.  Assistant U.S. Attorneys Patrice Harris Sullivan, Hayden Brockett, Maria Carboni, and Sharan Lieberman are in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that ERIC BROWN, age 38, from Kentwood, Louisiana, pled guilty to today to one count of Possession with Intent to Distribute a Quantity of Methamphetamine.

According to court documents, on June 22, 2014, a Tangipahoa Parish Sheriff’s deputy responded to a suspicious person report at 69062 South River Road in Kentwood.  When the deputy arrived at the residence, he observed individuals flee the residence.  He then noticed several males outside the rear of the residence.  As the deputy approached the rear of the residence, he detected an odor consistent with the manufacturing of methamphetamine.  Four individuals were outside the rear of the residence, including BROWN, who was sitting in a white Lincoln.  The deputy then noticed in plain view of the vehicle twenty-four zip-lock baggies containing approximately three grams of methamphetamine and a Smith and Wesson .38 special revolver on the vehicle’s floorboard. 

The deputy then met with a female at the residence who told the deputy that she and BROWN resided at the residence and that BROWN “cooked” methamphetamine in their bedroom the previous night.  Deputies and DEA Task Force Officers searched the residence and found three inactive methamphetamine labs in a refrigerator in the master bedroom.

BROWN faces a maximum term of 20 years imprisonment and a fine of $1,000,000.  U.S. District Judge Nannette Jolivette Brown set sentencing for

U.S. Attorney Polite praised the work of the U.S. Drug Enforcement Administration and the Tangipahoa Parish Sheriff’s Office in investigating this matter.  Assistant U.S. Attorney Andre’ Jones is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that TYLER DAVIS, age 21, of Montegut, Louisiana, was indicted today for crimes involving the sexual exploitation of children.

According to today’s Indictment, beginning at an unknown time to on or about July 13, 2015, DAVIS knowingly possessed images and videos depicting the sexual victimization of minors.  DAVIS is charged in a two-count Indictment with possessing a Samsung Galaxy cell phone and a Dell Inspiron laptop computer, both containing pre-pubescent images and videos of children less than twelve-years-old.

If convicted, DAVIS faces a maximum sentence of up to twenty (20) years imprisonment, followed by up to a lifetime term of supervised release, and a $250,000 fine.

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

This case was 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 Polite praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI Houma), HSI Ottawa, and the York Regional Police Special Victim’s Unit, Ottawa, Canada, in investigating this matter.  Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U.S. Attorney Brian M. Klebba is in charge of the prosecution.

WASHINGTON – Two clinical psychologists pleaded guilty today for their involvement in a fraudulent psychological testing scheme that preyed upon Medicare recipients living in nursing homes throughout the Southeastern United States.

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

Beverly Stubblefield, Ph.D., 62, of Slidell, Louisiana, and John Teal, Ph.D., 46, of Jackson, Mississippi, each pleaded guilty to one count of conspiracy to commit health care fraud before U.S. District Judge Carl Barbier of the Eastern District of Louisiana.  They were charged in a superseding indictment on Oct. 22, 2015, along with co-defendants Rodney Hesson, Psy.D., 46, and Gertrude Parker, 62, both of Slidell, who were originally charged in June 2015 in connection with a large-scale Medicare Fraud takedown.

According to admissions made in connection with their plea agreements, Stubblefield and Teal practiced as clinical psychologists at Nursing Home Psychological Services, Inc. (NHPS) and Psychological Care Services, Inc. (PCS).  Stubblefield and Teal admitted that NHPS and PCS were owned and operated by Hesson and Parker, who is Hesson’s mother.  NHPS and PCS billed Medicare claiming that NHPS and PCS psychologists, including Stubblefield and Teal, administered psychological tests to nursing home residents throughout Mississippi, Louisiana, Florida and Alabama.  In addition, Teal and Stubblefield admitted that a large number of these tests were not medically necessary and many testing services were not provided.   According to the plea agreements, Teal and Stubblefield repeatedly tested the same nursing home residents even though some were incapacitated and could not meaningfully participate in testing. 

From 2010 through 2015, Stubblefield and Teal were responsible for more than $5.6 million in fraudulent claims submitted to Medicare, according to the plea agreements.  

Hesson and Parker are scheduled to begin trial on Oct. 11, 2016.  An indictment is merely an allegation, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Louisiana.  Trial Attorneys William Kanellis, Katherine Payerle and Katherine Raut of the Criminal Division’s Fraud Section are prosecuting the case.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,900 defendants who have collectively billed the Medicare program for more than $10 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.  

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

Two clinical psychologists pleaded guilty today for their involvement in a fraudulent psychological testing scheme that preyed upon Medicare recipients living in nursing homes throughout the Southeastern United States.

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

Beverly Stubblefield, Ph.D., 62, of Slidell, Louisiana, and John Teal, Ph.D., 46, of Jackson, Mississippi, each pleaded guilty to one count of conspiracy to commit health care fraud before U.S. District Judge Carl Barbier of the Eastern District of Louisiana.  They were charged in a superseding indictment on Oct. 22, 2015, along with co-defendants Rodney Hesson, Psy.D., 46, and Gertrude Parker, 62, both of Slidell, who were originally charged in June 2015 in connection with a large-scale Medicare Fraud takedown.

According to admissions made in connection with their plea agreements, Stubblefield and Teal practiced as clinical psychologists at Nursing Home Psychological Services, Inc. (NHPS) and Psychological Care Services, Inc. (PCS).  Stubblefield and Teal admitted that NHPS and PCS were owned and operated by Hesson and Parker, who is Hesson’s mother.  NHPS and PCS billed Medicare claiming that NHPS and PCS psychologists, including Stubblefield and Teal, administered psychological tests to nursing home residents throughout Mississippi, Louisiana, Florida and Alabama.  In addition, Teal and Stubblefield admitted that a large number of these tests were not medically necessary and many testing services were not provided.   According to the plea agreements, Teal and Stubblefield repeatedly tested the same nursing home residents even though some were incapacitated and could not meaningfully participate in testing. 

From 2010 through 2015, Stubblefield and Teal were responsible for more than $5.6 million in fraudulent claims submitted to Medicare, according to the plea agreements.  

Hesson and Parker are scheduled to begin trial on Oct. 11, 2016.  According to the superseding indictment, from 2009 through 2015, NHPS and PCS submitted more than $25.2 million in claims to Medicare.  An indictment is merely an allegation, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Louisiana.  Trial Attorneys William Kanellis, Katherine Payerle and Katherine Raut of the Criminal Division’s Fraud Section are prosecuting the case.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,900 defendants who have collectively billed the Medicare program for more than $10 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.  

To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov. 

U.S. Attorney Kenneth A. Polite announced that DARION VEAL, age 21, of Gray, Louisiana, was sentenced today for crimes involving the sexual exploitation of children.

U.S. District Judge Sarah S. Vance sentenced VEAL to 150 months incarceration, to be followed by 20 years of supervised release.  In addition, VEAL will be required to register as a sex offender upon his release.

VEAL was indicted by a federal grand jury as a result of a child exploitation investigation conducted by the U.S. Department of Homeland Security-Homeland Security Investigations (“HSI”) and the Louisiana Bureau of Investigations’ Cyber Crime Unit (“LBICCU”).  According to court records, on January 7, 2015, HSI and LBICCU agents executed a search warrant at VEAL’s residence after determining he received and distributed images depicting the sexual victimization of children.  On March 3, 2015, VEAL was taken into federal custody pursuant to a federal criminal complaint.

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 praised the work of the U.S. Department of Homeland Security-HSI and the Louisiana Bureau of Investigations’ Cyber Crime Unit in investigating this matter.  Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that WILBERT CLARK, age 30, of New Orleans, pled guilty today to conspiracy to distribute and to possess with intent to distribute heroin.  

According to court records, CLARK was one of eight defendants charged in a 21-count Superseding Indictment on September 18, 2015.  This Superseding Indictment resulted from an FBI investigation into a heroin-trafficking organization operating primarily around Loyola Avenue and Harmony Street in Central City.  The sources of heroin for this organization traveled via Megabus from Houston to New Orleans, carrying half-kilogram quantities of heroin for distribution in the New Orleans area. 

CLARK, who has a prior felony drug offense, is facing a maximum sentence of 30 years’ imprisonment, as well as a possible fine of up to $2,000,000.  U.S. District Judge Carl J. Barbier will sentence CLARK on December 15, 2016.

U.S. Attorney Polite praised the work of the FBI New Orleans Gang Task Force (NOGTF), Saint Tammany Parish Sheriff’s Office, the Jefferson Parish Sheriff’s Office, and the New Orleans Police Department in investigating this matter.  Assistant U.S. Attorney Brandon S. Long is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that TRACY NICHELSON, age 42, of Metairie pled guilty today to one count of bank fraud.

According to court records, NICHELSON worked as an assistant of rental management for a New Orleans real estate business.  From June 2012 until July 2013, NICHELSON embezzled $16,418 from her employer.  NICHELSON issued approximately 13 unauthorized checks to herself and others by forging the signature of the business’s owner.

NICHELSON faces up to thirty years imprisonment and/or a fine of not more than $1,000,000, a period of supervised release after imprisonment of up to three years, plus a mandatory special assessment of $100.00.  U.S. District Judge Carl J. Barbier set sentencing for December 15, 2016.

U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service in investigating this matter.  Assistant United States Attorney Julia K. Evans was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that SALVADOR ACOSTA-SALAS, age 34, a citizen of Mexico, pled guilty today to a one-count Indictment charging him with possession of a firearm by an illegal alien.

According to the court documents, on July 30, 2016, ACOSTA-SALAS was stopped by the Mandeville Police Department for driving over the speed limit. ACOSTA-SALAS exited his truck and produced a Mexican identification card but did not have a driver’s license.  The officer asked ACOSTA-SALAS if he had any weapons on him or in the vehicle. ACOSTA-SALAS advised that he had a pistol in the center console of the truck. The officer entered the cab of the truck and retrieved a Taurus Model PT 111 Pro, 9 mm semi-automatic pistol bearing serial number TDO85685. The officer also found two Taurus magazines loaded with ammunition.  ACOSTA-SALAS illegally entered the United States prior to July 30, 2016, and had no pending status adjustments with the Citizenship and Immigration Services.

ACOSTA-SALAS faces a maximum term of imprisonment of ten years, a fine of $250,000, three years supervised release after imprisonment, and a $100 special assessment.   U.S. District Judge Carl J. Barbier set sentencing for December 15, 2016.

U.S. Attorney Polite praised the work of the U.S. Immigration and Customs Enforcement - Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Mandeville Police Department in investigated this matter.  Assistant United States Attorney Emily K. Greenfield was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that RONY GAVARRETTE, age 23, a native of Honduras, was sentenced today after previously pleading guilty to a one-count Indictment charging him with illegal entry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).

U.S. District Judge Martin L.C. Feldman sentenced GAVARRETTE to 15 months incarceration.  Additionally, GAVARRETTE was ordered to pay a $4,000 fine and a $100 special assessment fee.

According to court documents, GAVARRETTE was encountered by federal agents at a residence in New Orleans on November 10, 2015. He had previously been deported from the United States on September 26, 2011 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.

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

U.S. Attorney Kenneth A. Polite announced that DARRYL B. STEWART, age 49, of Houma, was sentenced today after previously pleading guilty to one-count of theft of government funds.

U.S. District Judge Ivan L.R. Lemelle sentenced STEWART to 6 months’ probation and a $100 special assessment.  Additionally, STEWART was ordered to pay $15,925 in restitution.

According to court records, STEWART was the Narcotics Unit Supervisor for the Terrebonne Parish Sheriff’s Office (TPSO) during a time period when the TPSO applied for and received two separate federal grants from the Department of Justice. The two grants were for personnel overtime and equipment to support a Multi-Jurisdictional Narcotics Task Force.  From 2009 through 2012, STEWART claimed and approved his own overtime from the two grants. The Federal Bureau of Investigation began to look into the billing and discovered through documents and interviews that STEWART occasionally claimed overtime for the two federal grants at the same time that he was working private security details. There were other instances where STEWART claimed federal overtime hours from the grants but he did not actually participate in the narcotics enforcement work. The amount that was improperly billed totals $15,925.00.  STEWART resigned from the Terrebonne Parish Sheriff’s Office on or about April 12, 2016.  

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation for its handling of the matter.  Assistant U.S. Attorney Edward J. Rivera was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that DOMINIEL TRINETTE JONES, age 26, of New Orleans, was sentenced today after previously pleading guilty to conspiracy to steal federal funds, theft of federal funds, and aggravated identity theft.

United States District Court Judge Eldon E. Fallon sentenced JONES to 30 months in prison, 3 years of supervised release, and a $500.00 special assessment.  The court also ordered JONES to pay restitution of approximately $20,000 to Woodforest National Bank. 

According to court documents, in September 2014, JONES conspired with others to unlawfully acquire two United States Treasury checks that did not belong to her. The refund checks were the property of the United States and payable to two actual taxpayers who were owed tax refunds. JONES also obtained two false Georgia driver’s licenses in the names of S.H., and J.V., the two taxpayers who were payees on the refund checks. She obtained these fake licenses for the purpose of opening bank accounts to deposit and steal the Treasury funds. Using the fake driver’s license bearing the name S.H., JONES opened a bank account at Woodforest National Bank in Covington, LA, in S.H.’s name, but deposited the check later that day at a different branch in Gulfport, MS. JONES then traveled to the Woodforest National Bank in New Orleans, LA and withdrew $10,000 from the account bearing the name S.H. using the fake driver’s license. 

Additionally, JONES and a coconspirator opened an account in the names of S.V. and J.V. at Woodforest National Bank located in La Place, LA. JONES and the coconspirator presented fraudulent Georgia driver’s licenses in the names of S.V. and J.V. to open the account. The same day, JONES, and the co-conspirator used the Treasury check, payable to S.V. and J.V., as the initial deposit to open the account at Woodforest National Bank in Laplace.

U.S. Attorney Polite praised the work of the Internal Revenue Service, Criminal Investigation in investigating this matter.  Assistant U. S. Attorney Sharan E. Lieberman was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that KALI IRONS, age 39, of Luling, LA, was sentenced today by United States District Court Judge Eldon Fallon to three years of probation, which is to include six months of home confinement, after she pled guilty to one count of filing a false tax return.

According to court records, IRONS, a self-employed tax preparer, under-reported her taxable income for 2009 and 2010 to the IRS. This resulted in a tax loss to the United States in the amount of $88,203.00. In addition to probation and home confinement, IRONS was ordered to pay a $100 mandatory special assessment and full restitution to the Internal Revenue Service.

Jerome R. McDuffie, Special Agent in Charge of Internal Revenue Service Criminal Investigation, stated: "Special Agents of IRS Criminal Investigation will continue to aggressively work with the United States Attorney's Office to protect taxpayers’ interests and thoroughly investigate allegations of tax fraud. Today’s sentence of Ms. Irons is a reminder that those who file false tax returns will be investigated and prosecuted."

U.S. Attorney Polite praised the work of the Department of the Treasury/Internal Revenue Service Criminal Investigation team.  Assistant United States Attorney Edward J. Rivera was in charge of the prosecution.