Eastern District of Louisiana

U.S. Attorney Kenneth A. Polite announced that JARVIS WHEELER, age 28, of New Orleans, was charged today in a one-count Indictment for conspiracy to alter U.S. Postal money orders. 

According to the Indictment, WHEELER conspired with others to buy U.S. Postal money orders in small amounts, typically $1.00.  The money orders were then sent out of state where they were altered to much higher amounts. WHEELER, working with other conspirators, enlisted individuals to deposit the altered U.S. Postal money orders into local bank accounts. Once the money orders cleared, the funds were withdrawn and split by WHEELER and the co-conspirators.

If convicted, WHEELER faces up to five years imprisonment, a fine of up to $250,000, up to three year of supervised release following any term of imprisonment, and $100.00 special assessment.   

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

 U.S. Attorney Polite praised the work of the United States Postal Inspector Office in investigating this matter.  Assistant U.S. Attorney Edward J. Rivera is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that OLVIN CASTILLO-CRUZ, age 34, was charged today in a one-count Indictment for illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a).

According to the Indictment, CASTILLO-CRUZ reentered the United States after he was previously deported on January 19, 2011. 

If convicted, CASTILLO-CRUZ faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment. 

U. S. Attorney Polite 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 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 ERICA EDWARDS, age 31, of New Orleans, and JEFF KOON, age 43, of Lockport, each pleaded guilty today to one count of health care fraud.

On April 21, 2016, EDWARDS and KOON were charged along with 12 other defendants in a 31-count superseding indictment charging approximately $30,252,906 in Medicare fraud. According to court documents, EDWARDS and KOON worked as RNs for ABIDE. Their duties included assessing the status of their patients, initiating a plan of care, evaluating patient needs, providing comprehensive nursing care, among other things. KOON and EDWARDS pleaded guilty to fraudulently recertifying patients for home health by recording false changes in medications and exacerbations in medication conditions that did not occur and falsely documented that patients were homebound.

EDWARDS and KOON each face a maximum term of imprisonment of ten years, a $250,000 fine, and three years of supervised release following imprisonment. U.S. District Judge Susie Morgan set sentencing for February 1, 2017.

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

U.S. Attorney Kenneth A. Polite announced that ALMA DE JESUS MOJICA HERRERA, age 52, and LEONARDO SERRATO POLANIA, age 42, both of Bogota, Colombia, pled guilty today to making false statements on their U.S. Nonimmigrant Online VISA applications.

According to court records, while in Colombia, MOJICA HERRERA and SERRATO POLANIA each completed a U.S. Nonimmigrant Online Visa Application (“Visa Application”) with the U.S. Department of State (“State Department”) and did not answer truthfully questions concerning their travel companions, the persons paying for their trip, and the location of their stay.  These Visa Applications were relied upon by federal agencies of the Executive Branch including by the U.S. Customs and Border Protection in New Orleans and the U.S. State Department.  On September 28, 2015, MOJICA HERRERA and SERRATO POLANIA travelled from Bogota, Columbia and arrived in the United States at the New Orleans International Airport using the VISAs containing materially false statements.  On September 29, 2015, MOJICA HERRERA and SERRATO POLANIA were taken into custody by special agents with the U.S. Department of Homeland Security-Homeland Security Investigations (“HSI”).

MOJICA HERRERA and SERRATO POLANIA each face a maximum term of imprisonment of five years.  In addition, both face a fine of $250,000 per count and up to three years of supervised release.  U.S. District Judge Sarah S. Vance set sentencing for August 24, 2016. 

U.S. Attorney Polite praised the work of the U.S. Department of Homeland Security-HSI,   U.S. Customs and Border Protection, and the U.S. Department of State in investigating this matter.  Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that BRADER YELVERTON, age 24, of Thibodaux, was charged today in a one-count Bill of Information with obtaining unauthorized access to protected computers to acquire information.

According to the Bill of Information, between about 2013 and December 15, 2015, YELVERTON obtained access to the personal Apple iCloud, Facebook, and email accounts of not fewer than fifty victims, many of whom resided within the Eastern District of Louisiana, without their knowledge or authorization.  After accessing the accounts, YELVERTON acquired copies of the contents, including personal photographs and other private information.  According to the Bill of Information, the collective value of the information YELVERTON obtained without authorization was more than $5,000. 

If convicted, YELVERTON faces a maximum term of imprisonment of up to five years in prison, followed by up to three years of supervised release, and a $250,000 fine.

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

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

U.S. Attorney Kenneth A. Polite announced that DONALD FONTENOT, age 63, of Bogalusa, was sentenced today after previously pleading guilty to four counts of selling oxycodone tablets to an undercover Drug Enforcement Administration agent.  Oxycodone is a prescription-only Schedule II controlled substance and a highly addictive and abused opioid drug.

U.S. District Judge Kurt D. Engelhardt sentenced the defendant to a term of imprisonment of 24 months, 3 years of supervised release, and a $400 special assessment.

U.S. Attorney Polite praised the work of the DEA Tactical Diversion Squad in investigating this matter.  Assistant United States Attorney Michael B. Redmann was in charge of the prosecution

U.S. Attorney Kenneth A. Polite and Orleans Parish District Attorney Leon A. Cannizzaro, Jr. announced that BRANDON LICCIARDI, age 31, of Mereaux, Louisiana, pleaded guilty today to conspiracy to distribute Schedule IV controlled substances with the intent to commit crimes of violence, including rape, before the Honorable Jane Triche Milazzo, United States District Court Judge, Eastern District of Louisiana.

Pursuant to a plea agreement, the parties stipulated that LICCIARDI would be sentenced to a term of imprisonment of 17 years, to be served concurrently and co-terminously with any sentence he may receive in the Criminal District Court for the Parish of Orleans.  The statutory maximum punishment for the offense is twenty years imprisonment and a fine of $250,000.   LICCIARDI’s plea today was part of a global resolution of the charges against him in federal court and the Criminal District Court for the Parish of Orleans.  Sentencing is set for October 13, 2016.

LICCIARDI, a former St. Bernard Parish deputy sheriff admitted that he, along with former New Orleans Saint DARREB SHARPER and ERIK NUNEZ, a former waiter at Morton’s Steak House, distributed controlled substances to unsuspecting women and then had sexual relations with them while they were incapacitated. 

Most recently, on July 11, 2016, co-defendant ERIC J. NUNEZ pleaded guilty to conspiracy to distribute controlled substances to victims without their knowledge, and with the intent to commit a crime of violent, to wit: sexual battery.  Sentencing for NUNEZ is scheduled for October 13, 2016 at 9:30 am.

Previously, on March 22, 2016, co-defendant DARREN SHARPER pleaded guilty to Conspiracy to Distribute a Schedule IV Controlled Substance with the intent to commit rape and two counts of Distribution of a Schedule IV Controlled Substance with intent to commit rape; Sentencing for SHARPER is set for August 18, 2016 at 9:30 am.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter and thanked District Attorney Cannizzaro and the Orleans Parish District Attorney’s Office for their invaluable cooperation.  Assistant United States Attorneys Michael E. McMahon, Theodore R. Carter, III, and Brandon Long are in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that CLIFF DURIO, age 25, of New Orleans, pled guilty today to a one-count Indictment charging him with fraud in connection with access devices. 

According to court documents, DURIO knowingly and with intent to defraud, possessed numerous counterfeit and unauthorized access devices, including credit cards and gift cards.  DURIO was arrested at the New Orleans Airport after TSA screeners, while investigating a suspicious object in his luggage, discovered a bundle of over 500 credit cards.  The cards were encoded and embossed with stolen accounts numbers, several of which had reported fraud.

DURIO faces a minimum term of imprisonment of ten years, a fine of up to $250,000 and three years of supervised release following any term of imprisonment.   U.S. District Judge Lance M. Africk set sentencing for October 6, 2016.

U.S. Attorney Polite praised the work of the U.S. Secret Service in investigating this matter.  Assistant United States Attorney David Haller is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that JUAN HUMBERTO HERNANDEZ-YONES, age 33, a citizen of Honduras, was charged today in a one-count Indictment with illegal re-entry of a removed alien.

According to the Indictment, on June 30, 2016, HERNANDEZ-YONES was found in the United States after having been deported previously on July 15, 2011.  

U. S. Attorney Polite 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 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 JULIO RAYMUNDO-SANTOS, age 41, a citizen of Guatemala, pled guilty to a one-count Indictment that charged him with illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a).

According to court records, RAYMUNDO-SANTOS was previously removed from the United States on or about April 4, 2014.  RAYMUNDO-SANTOS was later found in the Eastern District of Louisiana on or about May 10, 2016, and had not received permission from the Attorney General of the United States of the Secretary of the Department of Homeland Security to reenter. 

RAYMUNDO-SANTOS 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 Nannette Jolivette Brown set sentencing for August 11, 2016

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.

WASHINGTON – The Justice Department announced today that Christopher Williams, 31, and Laquentin Brown, 34, both of Memphis, Tennessee, were sentenced to 180 months and 99 months in prison, respectively, for their roles in a sex trafficking scheme that operated out of the Riviera Motel in New Orleans.  The sentencing was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana. 

Williams and Brown pleaded guilty on April 20, 2015, and March 4, 2015, respectively, to one count of conspiracy to engage in sex trafficking by force, fraud and coercion.  Brown also pleaded guilty to one count of interstate transportation for prostitution.

Five additional defendants have pleaded guilty and been sentenced for their roles in the sex trafficking scheme.  On May 4, 2016, Granville Robinson, 28, was sentenced to over 24 years in prison after pleading guilty to one count of conspiracy to commit sex trafficking and one count of sex trafficking.  On June 8, 2016, Duane Phillips, 31, was sentenced to over 21 years in prison; Anthony Ellis, 27, was sentenced to 15 years in prison and Zacchaeus Taylor, 23, was sentenced to 99 months in prison.  Phillips, Ellis and Taylor pleaded guilty to one count of conspiracy to commit sex trafficking.  Ellis and Taylor also pleaded guilty to one count of interstate transportation for prostitution.  Also on June 8, 2016, Kanubhai Patel, 75, the former owner of the Rivera Motel, was sentenced to five years probation and ordered to pay a $10,000 fine after pleading guilty to benefitting financially from sex trafficking.  U.S. District Judge Sarah S. Vance of the Eastern District of Louisiana scheduled a hearing for July 20, 2016, to determine the amount of restitution owed to the victims.

“The defendants orchestrated an extensive and violent sex trafficking scheme that forever impacted the lives of many young women,” said Principal Deputy Assistant Attorney General Gupta.  “The Civil Rights Division is unwavering in our commitment to seek justice on behalf of vulnerable victims and hold human traffickers accountable.”

“Today’s sentences culminate one of the most successful human trafficking investigations in our district,” said U.S. Attorney Polite.  “However, this case represents just the tip of the iceberg.  We will remain vigilant in our efforts to combat modern-day slavery in our area.”

“Human trafficking has become an increasing problem both in Louisiana and across the nation,” said Special Agent in Charge Jeff Sallet of the FBI’s New Orleans Division.  “Collectively, the FBI New Orleans Division is working in partnership with federal, state and local law enforcement agencies to combat this problem.  Human traffickers like these defendants, who continue to prey on vulnerable women and children, will be aggressively investigated by the FBI so the victims may be rescued and the perpetrators brought to justice.”

“Human trafficking is a form of modern-day slavery that ICE Homeland Security Investigations fights as one of its highest priorities via a coordinated global effort with the FBI and our state and local law enforcement partners,” said Special Agent in Charge Raymond R. Parmer Jr. of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) New Orleans.  “The results speak for themselves: over the past two years, HSI has doubled its number of human trafficking arrests.  HSI will continue to investigate and seek prosecution of these criminals while also ensuring the victims of this terrible crime are rescued and get the care they need.”

During their respective plea hearings and in their respective court filings, Williams and Brown admitted that they, along with their co-defendants Robinson, Phillips and Ellis, conspired to recruit, groom, force, compel and coerce adult women to engage in prostitution, enforcing rules and means of control that included requiring the women to earn a certain amount of money each day, requiring them to turn over the proceeds and prohibiting them from speaking to or looking at other pimps.  Williams admitted to intentionally trying to impregnate his victims to make it harder for them to leave him, while some of the other defendants took the victims’ identification cards and documents.  Williams also noted that he attempted to avoid visible bruising so that the victims would not draw the attention of the police or scare off prospective customers.  Williams, Brown and the other co-conspirators frequently stayed at the Riviera Motel because they knew that the hotel staff would not stop them from pimping women. 

The case was investigated jointly by agents from the FBI and HSI New Orleans Field Offices, with assistance from the FBI’s Memphis Field Office.  The case was prosecuted by Trial Attorney Christine M. Siscaretti of the Civil Right Division’s Criminal Section and Assistant U.S. Attorney Julia K. Evans of the Eastern District of Louisiana.

Sex Trafficking Scheme Used Threats, Violence and Coercion to Compel Women into Prostitution in New Orleans and Elsewhere

The Justice Department announced today that Christopher Williams, 31, and Laquentin Brown, 34, both of Memphis, Tennessee, were sentenced to 180 months and 99 months in prison, respectively, for their roles in a sex trafficking scheme that operated out of the Riviera Motel in New Orleans.  The sentencing was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana.

Williams and Brown pleaded guilty on April 20, 2015, and March 4, 2015, respectively, to one count of conspiracy to engage in sex trafficking by force, fraud and coercion.  Brown also pleaded guilty to one count of interstate transportation for prostitution.

Five additional defendants have pleaded guilty and been sentenced for their roles in the sex trafficking scheme.  On May 4, 2016, Granville Robinson, 28, was sentenced to over 24 years in prison after pleading guilty to one count of conspiracy to commit sex trafficking and one count of sex trafficking.  On June 8, 2016, Duane Phillips, 31, was sentenced to over 21 years in prison; Anthony Ellis, 27, was sentenced to 15 years in prison and Zacchaeus Taylor, 23, was sentenced to 99 months in prison.  Phillips, Ellis and Taylor pleaded guilty to one count of conspiracy to commit sex trafficking.  Ellis and Taylor also pleaded guilty to one count of interstate transportation for prostitution.  Also on June 8, 2016, Kanubhai Patel, 75, the former owner of the Rivera Motel, was sentenced to five years probation and ordered to pay a $10,000 fine after pleading guilty to benefitting financially from sex trafficking.  U.S. District Judge Sarah S. Vance of the Eastern District of Louisiana scheduled a hearing for July 20, 2016, to determine the amount of restitution owed to the victims.

“The defendants orchestrated an extensive and violent sex trafficking scheme that forever impacted the lives of many young women,” said Principal Deputy Assistant Attorney General Gupta.  “The Civil Rights Division is unwavering in our commitment to seek justice on behalf of vulnerable victims and hold human traffickers accountable.”

“Today’s sentences culminate one of the most successful human trafficking investigations in our district,” said U.S. Attorney Polite.  “However, this case represents just the tip of the iceberg.  We will remain vigilant in our efforts to combat modern-day slavery in our area.”

“Human trafficking has become an increasing problem both in Louisiana and across the nation,” said Special Agent in Charge Jeff Sallet of the FBI’s New Orleans Division.  “Collectively, the FBI New Orleans Division is working in partnership with federal, state and local law enforcement agencies to combat this problem.  Human traffickers like these defendants, who continue to prey on vulnerable women and children, will be aggressively investigated by the FBI so the victims may be rescued and the perpetrators brought to justice.”

“Human trafficking is a form of modern-day slavery that ICE Homeland Security Investigations fights as one of its highest priorities via a coordinated global effort with the FBI and our state and local law enforcement partners,” said Special Agent in Charge Raymond R. Parmer Jr. of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) New Orleans.  “The results speak for themselves: over the past two years, HSI has doubled its number of human trafficking arrests.  HSI will continue to investigate and seek prosecution of these criminals while also ensuring the victims of this terrible crime are rescued and get the care they need.”

During their respective plea hearings and in their respective court filings, Williams and Brown admitted that they, along with their co-defendants Robinson, Phillips and Ellis, conspired to recruit, groom, force, compel and coerce adult women to engage in prostitution, enforcing rules and means of control that included requiring the women to earn a certain amount of money each day, requiring them to turn over the proceeds and prohibiting them from speaking to or looking at other pimps.  Williams admitted to intentionally trying to impregnate his victims to make it harder for them to leave him, while some of the other defendants took the victims’ identification cards and documents.  Williams also noted that he attempted to avoid visible bruising so that the victims would not draw the attention of the police or scare off prospective customers.  Williams, Brown and the other co-conspirators frequently stayed at the Riviera Motel because they knew that the hotel staff would not stop them from pimping women.

The case was investigated jointly by agents from the FBI and HSI New Orleans Field Offices, with assistance from the FBI’s Memphis Field Office.  The case was prosecuted by Trial Attorney Christine M. Siscaretti of the Civil Right Division’s Criminal Section and Assistant U.S. Attorney Julia K. Evans of the Eastern District of Louisiana.

U.S. Attorney Kenneth A. Polite announced that MEINARDO ALONSO-CASTILLO, age 30, a citizen of Mexico, was sentenced today after previously pleading guilty to a one-count Bill of Information for the unlawful transfer of identification documents.

U.S. District Judge Martin L.C. Feldman sentenced ALONSO-CASTILLO to 10 months imprisonment followed by 1 year of supervised release, a $5,000 fine, and a $100 special assessment.

According to court documents, from on or about September 10, 2015, through December 9, 2015, ALONSO-CASTILLO sold altered identification documents, including Social Security cards, with the intent that the recipient could use the documents to gain employment unlawfully.

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

U.S. Attorney Kenneth A. Polite announced that CHEERY WAY, INC., and ELAINE CHIU, age 60, a resident of San Francisco, California, were sentenced today by the Honorable Susie Morgan to five years of probation, a $500,000 fine, and $162,520 in restitution to workers for medical monitoring costs for violating notification requirements under the Clean Air Act.

According to the court documents, on or about April 2, 2011, in the Eastern District of Louisiana, CHEERY WAY, INC., and CHIU did knowingly fail to notify and report to the Louisiana Department of Environmental Quality the demolition of the Mississippi Queen Riverboat which contained regulated asbestos containing material, to wit: wall and ceiling tiles, at least ten days prior to the start of the demolition as required by the Clean Air Act, in violation of Title 42, United States Code, Section 7413(c)(2)(B) and Title 40, Code of Federal Regulations, Section 61.145(b). 

Prior to the demolition of the Mississippi Queen, CHIU and agents of CHEERY WAY, INC., had been informed that samples of the wall and ceiling tiles on the old riverboat contained asbestos. However, CHEERY WAY, INC., did not inform the demolition contractor they hired that sampling had been performed.  CHEERY WAY, INC., merely told the contractor that the riverboat “might” have asbestos.  The inexperienced demolition contractor told CHIU and CHEERY WAY, INC., that he did not believe the vessel contained any asbestos.  As a result, workers were not required to take any precautions against the release of asbestos.  After receiving a tip about the worksite, the Louisiana Department of Environmental Quality issued the site a Notice of Deficiency and work was stopped.  The site was thereafter remediated by another CHIU company at a cost of $245,248.23.

During her five year term of probation, CHIU is prohibited from participating in any capacity in the construction, demolition, or renovation business anywhere in the United States and must ensure that none of the companies she owns or operates will engage in the construction, demolition, or renovation business. Similarly, neither CHEERY WAY, INC., or its agents or employees will engage in the construction, demolition, or renovation business anywhere in the United States.  

"Unsafe handling of asbestos endangers human health and can seriously harm the environment,” said Ted Stanich, Acting Director for the U.S. EPA-Criminal Investigation Division.  “The defendants knowingly put unsuspecting workers at great risk and threatened the health and safety of the general public.  This case should serve notice that when companies and their top managers put Americans at risk, EPA and its partner agencies will hold them accountable.”

“Any business that breaks the law through false statements and illegal actions in order to pollute our soil, air and water does so with a blatant disregard for our health and environment,” said Dr. Chuck Carr Brown, DEQ Secretary.   “Crimes of this nature affect all of us, so we encourage anyone with information on any type of illegal environmental activity to contact DEQ and local law enforcement as soon as possible so that we may investigate and bring these violators to justice.”

U.S. Attorney Polite praised the work of the Environmental Protection Agency-Criminal Investigation Division and the Louisiana Department of Environmental Quality-Criminal Investigation Division in investigating this matter.  Assistant U.S. Attorney Emily K. Greenfield of the National Security Unit of the United States Attorney’s Office of the Eastern District of Louisiana is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that RENE MARTINEZ-QUIJANO, age 34, a citizen of El Salvador, was sentenced today after previously pleading guilty to a one-count Indictment for illegal entry of a removed alien.

U.S. District Judge Mary Ann Vial Lemmon sentenced MARTINEZ-QUIJANO to time served, followed by one year of supervised release, and a $100 special assessment fee. MARTINEZ-QUIJANO will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.

According to court documents, on March 1, 2016, MARTINEZ-QUIJANO was found in the United States after having been previously deported from the United States on June 27, 2014.

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

U.S. Attorney Kenneth A. Polite announced that FRANCISCO MENDOZA-ZAVALA, age 41, a citizen of El Salvador, was sentenced today after previously pleading guilty to a one-count Indictment for illegal reentry of a removed alien.

U.S. District Judge Mary Ann Vial Lemmon sentenced MENDOZA-ZAVALA to time served, followed by one year of supervised release, and a $100 special assessment fee.  MENDOZA-ZAVALA will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.

According to court documents, on March 30, 2016, MENDOZA-ZAVALA was found in the United States after having been previously deported from the United States on September 6, 2012.

U.S. Attorney Polite praised the work of United States 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 OMAR RICO-ALMANZA, age 34, a citizen of Mexico, was sentenced today after previously pleading guilty a one-count Indictment for violations of the Federal Gun Control Act.

U.S. District Judge Carl J. Barbier sentenced RICO-ALMANZA to time served, to be followed by one year of supervised release, and a $100 special assessment.  Additionally, RICO-ALMANZA will be surrendered to the custody of the U.S. Immigration and Custom Enforcement for removal proceedings.

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 U.S. Attorney Spiro G. Latsis was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that TRACY NICHELSON, age 42, a resident of Metairie was charged today in a Bill of Information with one count of bank fraud.

According to the Bill of Information, 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.

If convicted, NICHELSON faces up to thirty years imprisonment and up to a $1,000,000 fine as well as restitution for the money embezzled.

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

U.S. Attorney Kenneth A. Polite announced that MARTHA QUINONES, age 51, of Houston, Texas, pled guilty today to conspiracy to distribute and to possess with intent to distribute over one kilogram of heroin.  

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

QUINONES 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 set sentencing on October 13, 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 United States Attorney Brandon S. Long is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that JORGE PULIDO-HERRERA, a/k/a JORGE LICONA-CERRATO, age 46, a citizen of Honduras, was sentenced after previously pleading guilty to a one-count Bill of Information for illegal reentry of removed alien.

U.S. District Judge Carl J. Barbier sentenced PULIDO-HERRERA to time served, followed by one year of supervised release, and a $100.00 special assessment.  Additionally, PULIDO-HERRERA will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.

According to the Bill of Information, on or about March 15, 2016, PULIDO-HERRERA was found in the United States after having been officially deported and removed on or about December 8, 1999.

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 JEFFERY WILSON, age 31, of New Orleans, pled guilty today to two counts of distributing cocaine hydrochloride and cocaine base as charged in a Superseding Bill of Information.  

According to court documents, WILSON made a sale of cocaine hydrochloride on May 13, 2014, to two confidential informants working with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in the area near the former Melpomene Housing Development near Martin Luther King Boulevard. On May 30, 2014, WILSON made a second sale of cocaine base (or crack) to the same two informants.

WILSON is facing a term of imprisonment of not more than twenty years for each count, a fine of not more than $1,000,000 and at least three years of supervised release following any term of imprisonment.  U.S. District Judge Kurt D. Engelhardt set sentencing for October 12, 2016.

U.S. Attorney Polite praised the work of the ATF in leading this investigation along with members of the NOPD led Multi-Agency Gang Unit (MAG UNIT).  Assistant United States Attorneys Edward Rivera, Maurice Landrieu, Jr., Nolan Paige and Nicholas Moses were in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that ANDREW HUTCHINSON, age, 25, of New Orleans, was sentenced today after previously pleading guilty to crimes involving the sexual exploitation of children.  Specifically, HUTCHINSON pleaded guilty to receiving and attempting to receive sexually explicit images of children.

U.S. District judge Ivan L.R. Lemelle sentenced HUTCHINSON to 60 months imprisonment, to be followed by 10 years of supervised release.  Additionally, HUTCHINSON is required to register as a sex offender pursuant to the Sex Offender Registration Notification Act.  HUTCHINSON was also ordered to pay $12,000 in restitution ($2,000 to victims in each of the six series that requested restitution).

According to court documents, HUTCHINSON used a mobile cellular phone chat application to converse with a twelve-year-old boy in Seattle, Washington, between July 24, 2014, and July 27, 2014.  HUTCHINSON and the boy exchanged approximately 113 chat messages.  Knowing that the boy was only twelve, HUTCHINSON requested and received approximately fifteen sexually explicit images of the boy via the messaging application.  In exchange, HUTCHINSON provided the boy with sexually explicit images of minor females as young as approximately five years old.  HUTCHINSON also provided the boy with a link to an online cloud storage account that contained approximately 1766 images and 19 videos depicting minor females as young as approximately eighteen months old being forced to engage in sexually explicit conduct.  

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 Federal Bureau of Investigation in investigating this matter.  Assistant United States Attorney Jordan Ginsberg 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, pled guilty today to a one-count Bill of Information for illegal reentry.

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, after a conviction for cocaine possession.

MORALES-TRINIDAD faces a maximum term of imprisonment of ten years and a fine of $250,000, three years supervised release after imprisonment, and a $100.00 special assessment.   U.S. District Judge Susie Morgan set sentencing for October 5, 2016.

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 is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that WAYLON GIVENS, age 42, of Amite, was sentenced today after having pled guilty to illegal possession of a machine gun and making a false statement the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

U.S. District Judge Susie Morgan sentenced GIVENS to 5 years of probation and 15 weekends of incarceration.  Judge Morgan also assessed GIVENS a $5000.00 fine and 100 hours of community service.  As part of GIVENS’ plea, he agreed to surrender his federal firearms license. 

According to court documents, in July 2014, ATF conducted an investigation into RH Custom, an internet company based in Sweden.  RH Custom was selling “Glock Switches,” “Lightning Links,” suppressor builder’s kits (silencers) and other firearms components to customers in the United States.  Some of these parts are designed to convert semi-automatic firearms to fully automatic firearms, in violation of the National Firearms Act.  As a result of the investigation, ATF learned that between June 2012 through August 2012, GIVENS, a Federal Firearms Licensee, doing business as Givens Firearms, ordered and received seven (7) Lightning Links and four (4) Glock Switches.  ATF learned of GIVENS’ purchases by reviewing invoices obtained in relation to the investigation of RH Custom.

On July 11, 2014, ATF interviewed GIVENS and informed him of the nature of the investigation and that agents were aware of his purchases from RH Custom.  Agents advised GIVENS that if he surrendered the parts to ATF, he would not be arrested and prosecuted for the federal offenses that he committed in relation to his purchase of the parts.  Agents advised GIVENS that the purpose of ATF’s investigation was to retrieve the parts that he received from RH Custom.  GIVENS told ATF that he sold multiple “Glock full-auto conversion kits” and “Lightening Links” to an unknown individual, but that he did not know the location of the parts.  After further investigation, it was determined that GIVENS had sold the illegal parts to known individuals whom he knew were in possession of the parts at the time of the ATF interview.

U.S. Attorney Polite praised the work of the ATF New Orleans Division Office in investigating this matter.  Assistant United States Attorney Nolan D. Paige was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that JOSEPH POUNDS, age 47, of Bogalusa, was sentenced today for three counts of selling oxycodone tablets to an undercover Drug Enforcement Administration (DEA) agent.  Oxycodone is a prescription-only Schedule II controlled substance and a highly addictive and abused opioid drug.

U.S. District Judge Kurt D. Engelhardt sentenced the defendant to a term of imprisonment of twelve months and one day, three years of supervised release, and a $300 special assessment.

U.S. Attorney Polite praised the work of the DEA Tactical Diversion Squad in investigating this matter.  Assistant United States Attorney Michael B. Redmann was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced today that STERLING ROBINSON, age 26, of Gretna; DEANDRE ROSE, age 23, and EVERETT ROSS, age 28, both of New Orleans, were sentenced today after having pled guilty to federal firearm violations.  

U.S. District Judge Jane Triche Milazzo sentenced ROSS to 65 months of incarceration, to be followed by 3 years of supervised release.  ROBINSON and ROSE were each sentenced to 60 months of incarceration, to be followed by 3 years of supervised release.

According to court documents, on October 14, 2014, Gretna police officers were patrolling in the area of Milton & Pratt Streets, when they noticed an illegally parked vehicle.  As the officers approached the vehicle to issue a citation, they saw a bag of crack cocaine in the passenger door handle.  The officers also observed a semi-automatic handgun secured between the passenger seat and the middle console.  A short time later, the officers observed ROBINSON, ROSE, ROSS, and a female acquaintance approach and attempt to enter the vehicle.

As ROBINSON was removed from the area of the front passenger seat, he resisted arrest and attempted to reach for the bag of crack cocaine.  ROSS was removed from the driver’s seat of the vehicle, and ROSE was removed from the rear passenger seat.  The officers searched the vehicle, and two additional handguns were discovered.  A Ruger model P85 9mm semi-automatic handgun was found underneath the front of the driver’s seat and accessible to ROSS.  A Springfield model XDM, .45-caliber semi-automatic handgun was found underneath the rear of the front passenger’s seat and accessible to ROSE.  The initially-observed, Kahr model CW9, 9mm semi-automatic handgun was accessible to ROBINSON.  Further investigation revealed that each of the firearms had been reported stolen.

Court records revealed that ROSS and ROSE each had two prior felony convictions in Orleans Parish Criminal District Court.  As such, they both were prohibited from possessing firearms by both state and federal law.

U.S. Attorney Polite praised the work of the ATF New Orleans Division Office and the Gretna Police Department, in investigating this matter.  Assistant United States Attorney Nolan D. Paige and Special Assistant United States Attorney Brian Ebarb, who was assigned from the Orleans Parish District Attorney’s Office, were in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that EDUARDO URBINA-JUAREZ (URBINA), a citizen of Honduras, pled guilty today to a one-count Indictment charging him with illegal reentry of a removed alien, in violation of 8 U.S.C. ' 1326(a).

According to court documents, URBINA reentered the United States after having been previously deported on May 23, 2013. 

URBINA 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 Stanwood R. Duval, Jr. set sentencing for August 11, 2016.

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 ROYLEY A. FOLSE, JR., age 69, a resident of St. James Parish, pled guilty yesterday to a felony violation for selling migratory game birds.

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). 

FOLSE faces a maximum term of imprisonment of two years, a maximum fine of $2,000, and a maximum term of supervised release of one year.  U.S. District Judge Stanwood Duval set sentencing for October 5, 2016.  

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 is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that ZELLISHA DEJEAN, age 37, of New Orleans, pled guilty today to one count of health care fraud.

On April 21, 2016, DEJEAN was charged along with 13 other defendants in a 31-count Superseding Indictment charging approximately $30,252,906 in Medicare fraud. According to court documents, DEJEAN worked as an RN for ABIDE. Her duties included assessing the status of her patients, initiating a plan of care, evaluating patient needs, providing comprehensive nursing care, among other things.

DEJEAN faces a maximum term of imprisonment of ten years, a $250,000 fine, and three years of supervised release following imprisonment. U.S. District Judge Susie Morgan set sentencing for January 26, 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, Sharan Lieberman, Hayden Brockett and Andre Lagarde are in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that DONALD GEORGE BUTLER, JR., age 52, of New Orleans, was sentenced today after previously pleading guilty to failing to register as sex offender, in violation of federal law.

U.S. District Judge Sarah S. Vance sentenced BUTLER to 37 months imprisonment.

According to court documents, BUTLER was convicted of sexual battery in New Orleans in 1997 and, as a result, was required to register as a sex offender for the rest of his life.  After being released from prison in 2009, BUTLER moved to Texas without notifying the appropriate authorities.  Consequently, in 2010, BUTLER was charged with, and pleaded guilty to, failing to register as a sex offender in the Western District of Texas.  Upon his release from federal custody in about November 2012, BUTLER moved back to Louisiana without notifying law enforcement authorities in either Texas or Louisiana.  BUTLER lived in Louisiana, without notifying any law enforcement authorities, until he was located by Inspectors with the United States Marshal’s Service in July 2014.    

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 United States Marshal’s Service in investigating this matter.  Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that NOE JUAREZ, a resident of Houston, was sentenced today by U.S. District Chief Judge Sarah S. Vance to serve 365 months in prison for his role in a large-scale drug conspiracy.

On January 15, 2015, JUAREZ was convicted by a federal jury for conspiracy to possess and distribute 5 kilograms or more of cocaine and a separate conspiracy to possess firearms in furtherance of a drug trafficking offense.  JUAREZ, as a co-conspirator, assisted an organization responsible for distributing hundreds of kilograms of cocaine throughout the United States, to include Jackson, Mississippi; Pensacola, Florida; New York City, New York; Detroit, Michigan; Baltimore, Maryland, Dover, Delaware; and Houma, Louisiana. 

According to evidence presented at trial, JUAREZ, a veteran Houston police officer, became involved with an international drug conspiracy that reached into the Eastern District of Louisiana.  The conspiracy, spearheaded by co-conspirators and brothers EFRAIN and SERGIO GRIMALDO, distributed thousands of kilograms of cocaine throughout the United States.  The drugs were supplied to the conspiracy by the Los Zetas drug cartel in Mexico.  JUAREZ played a pivotal role by providing law enforcement sensitive information, including running license plates and sharing police tactics and activities with conspirators.  JUAREZ further supplied vehicles, body armor, and semi-automatic handguns and assault rifles to the conspirators, some of which ended up among senior cartel leaders in Mexico.

“This prosecution is the result of significant collaboration by local, state, and federal agencies across Louisiana and Texas,” stated U.S. Attorney Polite.  “Their collective work ensures that a crooked cop will now spend over 30 years in prison for pouring more illegal guns and drugs onto our streets.”

“The cartel’s efforts to infiltrate law enforcement are not limited to Mexico. They want to do it here as well, and we can't let them,” said DEA Special Agent in Charge Stephen G. Azzam.  “We must and will remain diligent in finding and prosecuting anyone who supports, funds, or aids the cartels.  Noe Juarez’ conduct unfairly tarnishes the proud reputation of law enforcement officers in this country who put their lives on the line every day to protect our residents and their communities.  By doing so, he not only violated his duties as a police officer, but also endangered fellow law enforcement officers and the public trust/faith through his actions.”

U.S. Attorney Polite praised the work of the Drug Enforcement Administration (“DEA”) Offices in New Orleans and Houston, the Federal Bureau of Investigation (“FBI”) in Houston, and the Houston Police Department Internal Affairs Division in investigating this matter.  Additionally, U.S. Attorney Polite thanked the U.S. Attorney’s Office for the Southern District of Texas for their assistance. Agents who assisted in the prosecution team included case agents William Johnson, DEA, and Jose Garcia, FBI, with assistance from agents and officers from DEA, Homeland Security Investigations (“HSI”), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and the Houston Police Department Internal Affairs Proactive Unit.  Assistant United States Attorneys John F. Murphy, Theodore Carter, and James Baehr were in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that MARQUIS JOHNSON, age 25, of Chalmette, was sentenced today on charges related to four violations of the Federal Controlled Substances Act.  According to court records, JOHNSON conspired with others to possess with the intent to distribute and to distribute a quantity of a mixture or substance containing a detectable amount of heroin, a Schedule I drug controlled substance and a substance containing a detectable amount of cocaine base, a Scheduled II drug controlled substance.  In addition to the conspiracy, JOHNSON was sentenced on three substantive distributions of heroin or cocaine base.  

U.S. District Judge Susie Morgan sentenced JOHNSON to a 71-month term of imprisonment for the drug conspiracy and distribution charges.  JOHNSON was also ordered to serve a 3-year term of supervised release following imprisonment and to pay a $400 special assessment.

U.S. Attorney Polite praised the work of the Special Agents of the Drug Enforcement Administration in investigating this matter.  Assistant United States Attorneys David Haller and Shirin Hakimzadeh were in charge of the prosecution.

United States Attorney Kenneth A. Polite announced that KATE LOHAN, age 33, a resident of Boca Raton, Florida, pled guilty today to a one-count Bill of Information for committing assault while aboard an aircraft.  

U.S. Magistrate Judge Joseph C. Wilkinson, Jr. sentenced LOHAN to one year of probation with continued substance abuse treatment and ordered her to pay restitution in the amount of $7,212.25 for costs incurred such as a landing fee, fuel charges, flight delays, etc.

According to court documents, on November 25, 2015, LOHAN was a ticketed passenger on JetBlue flight number 101 traveling from Fort Lauderdale-Hollywood International Airport to Los Angeles International Airport.  She became disruptive prior to takeoff after she was told by a flight attendant to put her seat in the upright position. During the course of the flight, witnesses stated that LOHAN was continuing to be disruptive, and later threw a cell phone at one of the flight attendants. Her actions caused the flight to be diverted to New Orleans.

U.S. Attorney Polite praised the work of the Special Agents of the Federal Bureau of Investigation and the Jefferson Parish Sheriff’s Office in investigating this matter.  Assistant United States Attorney Jon Maestri was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that former Terrebonne Parish Sheriff’s Office Detective DAWN C. FORET, age 38, of Houma, was charged today in a one count Bill of Information for theft of government funds. 

According to the Bill of Information, from November of 2010 through July of 2012, FORET willfully and knowingly stole at least $1,000 of federal funds from the United States Department of Transportation.

If convicted, theft of government funds carries a maximum term of imprisonment of ten years imprisonment, a fine of up to $250,000, up to three years of supervised release following any term of imprisonment, and $100 special assessment.   

U.S. Attorney Polite reiterated that today’s Bill of Information describes allegations and that the guilt of the defendant must be proven beyond a reasonable doubt. 

U.S. Attorney Polite praised the investigative work of the Federal Bureau of Investigation for its handling of the matter.  Assistant U.S. Attorneys Edward J. Rivera and Harry “Bill” McSherry are in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that BRIAN GRACO, age 35, of Slidell, pled guilty today to receiving images and videos depicting the sexual exploitation of children.

According to court documents, on May 27, 2014, law enforcement officials executed a search warrant at GRACO’S residence, during which time they seized several electronic items, including three computers, one external digital storage device, and three removable digital storage devices.  A preliminary review of the electronic devices determined that a desktop computer contained images and videos depicting the sexual victimization of children.  A more intensive forensic examination of the device revealed that GRACO had used the desktop computer to access Internet websites and networks devoted to the advertisement and distribution of child pornography.  Between June 4, 2013 and May 27, 2014, GRACO discussed matters pertinent to the sexual abuse of children to search for, download, and save images and videos of children as young as five (5)-years-old engaging in sexually explicit conduct.  The forensic examination determined that GRACO possessed at least10,264 images and 130 videos of children engaging in sexually explicit conduct. After downloading the images and videos, GRACO stored them on special folders he created on his computer.

GRACO faces a mandatory minimum term of imprisonment of five (5) years and a maximum penalty of twenty (20) years, followed by up to a life term of supervised release, and a $250,000 fine.  He can also be required to register as a sex offender.  U.S. District Judge Eldon E. Fallon set sentencing for September 29, 2016.

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 Federal Bureau of Investigation in investigating this matter.  Assistant United States Attorneys Jordan Ginsberg and J. Ryan McLaren are in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that SHANQUITTA JONES-DILLON, age 40, of Buras, pled guilty today to a one-count Bill of Information charging her with wire fraud.

According to court documents, in 2010, JONES-DILLON filed a false claim for damages arising out of the Deepwater Horizon Oil Spill. As part of the scheme to defraud, JONES-DILLON submitted false documents to the Gulf Coast Claims Facility (GCCF) during the claims process. The fraudulent claim submitted by JONES-DILLON caused the GCCF to release over $63,000 in damage payments to which she was not entitled. 

The maximum penalty for wire fraud is twenty years imprisonment and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim.  U.S. District Judge Lance M. Africk set sentencing for September 15, 2016.

This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill.  If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at disaster@leo.gov or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.

U.S. Attorney Polite praised the work of the United States Secret Service in investigating this matter. Assistant United States Attorney Richard R. Pickens, II is in charge of the prosecution

U.S. Attorney Kenneth A. Polite announced that LARRY HARDY, age 50, of New Orleans, was sentenced today after having previously pled guilty to one count of conspiring to distribute and to possess with intent to distribute one kilogram or more of heroin.

U.S. District Judge Carl J. Barbier sentenced HARDY to 90 months of incarceration, to be followed by 5 years of supervised release. 

HARDY was one of twelve defendants charged in a 23-count Indictment on July 25, 2014.  According to court documents, this Indictment sprung from an investigation into a heroin-trafficking organization operating in New Orleans East.  This organization was responsible for distributing at least 15 kilograms of heroin in the New Orleans area.  As part of the arrests in this case, federal agents have seized from the twelve defendants approximately $1,200,000 in assets (a combination of vehicles, currency, jewelry, and real property) as proceeds made from the sale of heroin.

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

U.S. Attorney Kenneth A. Polite announced that REGINALD WASHINGTON, age 32, of New Orleans, pled guilty today to conspiracy to distribute and to possess with intent to distribute over 100 grams of heroin.  

WASHINGTON 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. 

As a result of a prior felony drug offense, WASHINGTON is facing not less than 10 years and a maximum of life imprisonment, as well as a possible fine of up to $8,000,000.  U.S. District Judge Carl J. Barbier will sentence WASHINGTON on October 13, 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 United States Attorney Brandon S. Long is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that LESTER MORNAY, 68,  of New Orleans, was charged in a one-count Bill of Information charging him with conspiracy to commit bribery and honest services wire fraud.

According to the Bill of Information, beginning in September 2013 and continuing until January 2015, MORNAY and several others participated in a conspiracy to commit bribery and honest services wire fraud.

The Bill of Information alleges that IRA THOMAS, in his role as an Orleans Parish School Board Member, engaged in a scheme to defraud Orleans Parish and its citizens of his honest services through bribery and a kickback scheme, whereby THOMAS used his public office and official capacity to provide favorable treatment, including attempting to facilitate the awarding of a contract, that was designed to benefit the business and financial interest of an individual who provided him with a bribe and kickback in the form of cash payment disguised as a campaign contribution.

According to the Bill of Information, in September 2013,  a cooperating witness (“CW”) was approached by ARMER BRIGHT, an OPSB employee, who offered the CW a janitorial services contract that would soon be up for bid by the OPSB in exchange for a monetary payoff.  During the fall of 2013, the CW, THOMAS, BRIGHT, and at times MORNAY, met to discuss this contract.  These conversations were recorded by the CW with the assistance of the FBI.  Ultimately, it was decided that the CW would pay $5,000 to THOMAS in the form of a “campaign contribution” in exchange for THOMAS’ and the OPSB employee’s assistance regarding the janitorial services contract.  In December 2013, the CW delivered $5,000 in cash to MORNAY acting as a conduit for THOMAS, which was video recorded.  This money was then delivered to THOMAS.  During the fall of 2014, THOMAS and BRIGHT discussed over recorded telephone conversations how to alter the bid process so that the CW would be given an improper advantage in bidding for the janitorial services contract, which was valued over $5,000.

If convicted of conspiring with others to commit bribery and honest services wire fraud, MORNAY faces statutory penalties of up to five years in prison, a $250,000 fine and three years of supervised release.

The Bill of Information also contains Notice of Forfeiture which puts the defendant on notice that the Government intends on forfeiting any and all property and profits concerned with and/or derived from any illegal activity referenced in the Bill of Information.

U.S. Attorney Polite reiterated that today’s Bill of Information describes allegations and that the guilt of the defendant must be proven beyond a reasonable doubt.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter.  Assistant U.S. Attorney Sean Toomey is in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that NAVOR SOLIS-GARCIA, a citizen of Mexico, was sentenced today after previously pleading guilty to a one-count indictment that charged him with illegal reentry of a removed alien, in violation of Title 8 U.S.C. Section 1326(a).

U.S. District Judge Carl J. Barbier sentenced SOLIS-GARCIA to time served and ordered him to pay a special assessment of $100.  SOLIS-GARCIA will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.

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 was in charge of the prosecution.

U.S. Attorney, Kenneth A. Polite announced that ERIN PITRE, age 37, of Cut Off, Louisiana, was sentenced today after previously pleading guilty to possessing images and videos depicting the sexual exploitation of children under the age of twelve-years old. 

U.S. District Judge Mary Ann Vial Lemmon sentenced PITRE to 72 months in prison, to be followed by ten years of supervised release. PITRE was also ordered to pay both victims $1,500 each in restitution.  Additionally, the Court ordered PITRE to register as a sex offender.

According to court documents, law enforcement officials executed a search warrant at PITRE’S residence on January 22, 2015, during which time they seized an external digital storage device that contained images and videos of child pornography.  A forensic examination of the device revealed that PITRE used peer-to-peer file sharing programs on his computer to search for, download, and store images and videos of children as young as two-years-old engaging in sexually explicit conduct.  The forensic examination determined that PITRE possessed approximately 185 images and 7 videos of children engaging in sexually explicit conduct. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

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

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U.S. Attorney Kenneth A. Polite announced that MICHAEL RAY TAYLOR, age 47, of Houston, Texas, pled guilty today to one count of conspiring to distribute and to possess with intent to distribute 500 grams or more of a mixture or substance containing methamphetamine. 

TAYLOR faces a minimum term of imprisonment of ten years, a maximum life sentence, a fine of up to $10,000,000, and up to five years of supervised release.  U.S. District Judge Carl J. Barbier set sentencing for October 13, 2016. 

U.S. Attorney Polite praised the work of the Drug Enforcement Administration, with assistance from the Terrebonne Parish Sheriff’s Office and Louisiana State Police 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 GERALD URSIN, JR., age 62, of  New Orleans and a retired Chief Deputy of the Orleans Parish Sheriff’s Office (“OPSO”), was charged in a one-count Bill of Information  with conspiracy to commit wire fraud.

According to today’s Bill of Information, beginning in 2009 and continuing until January 2014, URSIN and others participated in a conspiracy to commit wire fraud.

The Bill of Information alleges that URSIN, in his role as a Chief Deputy in the Orleans Parish Sheriff’s Office, engaged in a scheme to defraud local entities and events, including Mardi Gras Krewes, music and food festivals, and sporting events, by padding the billing documents with names of individuals who did not in fact provide any security services (“Ghost Employees”). 

According to the Bill of Information, after the fraudulently inflated invoices were submitted via interstate wires, a portion of the overbilled amount was given to URSIN in the form of checks made payable to URSIN’s family members under the fraudulent guise of payments for detail work that in fact did not take place.

If convicted of conspiring with others to commit wire fraud, URSIN faces statutory penalties of up to five years in prison, a $250,000 fine and three years of supervised release.

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

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter and acknowledged the assistance provided by the Louisiana Legislative Auditors.   Assistant U.S. Attorney Sean Toomey is in charge of the prosecution.

WASHINGTON – Today, the Justice Department, prisoner class and city of New Orleans reached a settlement with Orleans Parish Sheriff Marlin Gusman to resolve the department’s motion for contempt alleging the sheriff’s non-compliance with a consent judgment governing conditions of confinement at the Orleans Parish Jail in New Orleans.  In lieu of a receiver, the U.S. District Court for the Eastern District of Louisiana issued an order approving the parties’ agreement to have the court appoint an independent jail compliance director with the final authority to operate the jail so that it achieves timely and substantial compliance with the consent judgment. 

“The appointment of an independent and experienced corrections professional as compliance director will enable the jail to implement long overdue reforms to protect the rights and safety of prisoners,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “We will continue our steadfast efforts to ensure that all of the men and women serving prison sentences in Orleans Parish Jail receive the full protections that our Constitution guarantees.”

“The agreement to appoint a compliance director for the Orleans Parish Jail will facilitate the structural and systemic changes needed to achieve compliance with the consent judgment, while the sheriff’s continued participation in jail administration will ensure that improvements are sustainable at the end of the compliance director’s tenure,” said U.S. Attorney Kenneth Polite of the Eastern District of Louisiana.

In a motion filed on April 25, 2016, the department requested that the court appoint a receiver with full authority to administer operations of the jail.  In today’s order, the court found the sheriff in non-compliance with the consent judgment’s provisions on prisoner supervision, suicide prevention, use of force, incident reporting and tracking, prisoner grievances, investigations, classification, youthful prisoners and sanitation and environmental health.  The court will appoint an independent compliance director, who will be charged with administering the day-to-day operations of the jail and will work closely with Sheriff Gusman regarding decisions and operations that materially impact compliance with the consent judgment.  The sheriff will select a candidate for independent compliance director from nominees proposed by the department, prisoner class and the city.  The court has the ultimate authority for appointment of the director.

The compliance director’s responsibilities will include formulating a remedial action plan to produce sustainable compliance with the consent judgment within his or her first year at the jail.  The compliance director will be tasked with developing strategies to decrease jail violence; implementing sustainable hiring measures; ensuring adequate staff training, supervision and discipline; reducing incidents of prisoner self-harm and suicide and decreasing reliance on prisoner lockdown or cell confinement.  In order to address staffing problems and foster a professional culture, the compliance director will have the authority to hire, fire and reassign jail staff.  In addition, the compliance director will be responsible for formulating and presenting the jail budget to the city council and for administering payments, authorizing procurement and entering into contracts for jail operations, with oversight by the city.

The compliance director’s authority will continue until the court determines that sustained and sustainable material progress with consent judgment compliance is achieved, including development and implementation of required policies, adequate staff training and development of a quality assurance system to effectively evaluate whether staff are implementing the policies in practice and correct their conduct when they do not.  More information on the compliance director position can be found in the job posting attached and applications for the job can be sent to opso.compliancedirector@usdoj.gov.

This settlement follows a six-day evidentiary hearing, which had not concluded, and avoids further delay from extended litigation and appeals. 

This case was initiated as a private prisoner class action filed in 2012.  The department intervened pursuant to the Civil Rights of Institutionalized Persons Act, which authorizes the department to seek a remedy for a pattern or practice of conduct that violates the constitutional rights of persons confined in a jail, prison or other correctional facility.  The department’s motion was filed jointly with the plaintiff class, represented by the MacArthur Justice Center.

For more information on the Civil Rights Division, please visit www.justice.gov/crt.

Today, the Justice Department, prisoner class and city of New Orleans reached a settlement with Orleans Parish Sheriff Marlin Gusman to resolve the department’s motion for contempt alleging the sheriff’s non-compliance with a consent judgment governing conditions of confinement at the Orleans Parish Jail in New Orleans.  In lieu of a receiver, the U.S. District Court for the Eastern District of Louisiana issued an order approving the parties’ agreement to have the court appoint an independent jail compliance director with the final authority to operate the jail so that it achieves timely and substantial compliance with the consent judgment.

“The appointment of an independent and experienced corrections professional as compliance director will enable the jail to implement long overdue reforms to protect the rights and safety of prisoners,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “We will continue our steadfast efforts to ensure that all of the men and women serving prison sentences in Orleans Parish Jail receive the full protections that our Constitution guarantees.”

“The agreement to appoint a compliance director for the Orleans Parish Jail will facilitate the structural and systemic changes needed to achieve compliance with the consent judgment, while the sheriff’s continued participation in jail administration will ensure that improvements are sustainable at the end of the compliance director’s tenure,” said U.S. Attorney Kenneth Polite of the Eastern District of Louisiana.

In a motion filed on April 25, 2016, the department requested that the court appoint a receiver with full authority to administer operations of the jail.  In today’s order, the court found the sheriff in non-compliance with the consent judgment’s provisions on prisoner supervision, suicide prevention, use of force, incident reporting and tracking, prisoner grievances, investigations, classification, youthful prisoners and sanitation and environmental health.  The court will appoint an independent compliance director, who will be charged with administering the day-to-day operations of the jail and will work closely with Sheriff Gusman regarding decisions and operations that materially impact compliance with the consent judgment.  The sheriff will select a candidate for independent compliance director from nominees proposed by the department, prisoner class and the city.  The court has the ultimate authority for appointment of the director.

The compliance director’s responsibilities will include formulating a remedial action plan to produce sustainable compliance with the consent judgment within his or her first year at the jail.  The compliance director will be tasked with developing strategies to decrease jail violence; implementing sustainable hiring measures; ensuring adequate staff training, supervision and discipline; reducing incidents of prisoner self-harm and suicide and decreasing reliance on prisoner lockdown or cell confinement.  In order to address staffing problems and foster a professional culture, the compliance director will have the authority to hire, fire and reassign jail staff.  In addition, the compliance director will be responsible for formulating and presenting the jail budget to the city council and for administering payments, authorizing procurement and entering into contracts for jail operations, with oversight by the city.

The compliance director’s authority will continue until the court determines that sustained and sustainable material progress with consent judgment compliance is achieved, including development and implementation of required policies, adequate staff training and development of a quality assurance system to effectively evaluate whether staff are implementing the policies in practice and correct their conduct when they do not.  More information on the compliance director position can be found in the job posting attached and applications for the job can be sent to opso.compliancedirector@usdoj.gov.

This settlement follows a six-day evidentiary hearing, which had not concluded, and avoids further delay from extended litigation and appeals. 

This case was initiated as a private prisoner class action filed in 2012.  The department intervened pursuant to the Civil Rights of Institutionalized Persons Act, which authorizes the department to seek a remedy for a pattern or practice of conduct that violates the constitutional rights of persons confined in a jail, prison or other correctional facility.  The department’s motion was filed jointly with the plaintiff class, represented by the MacArthur Justice Center.

For more information on the Civil Rights Division, please visit www.justice.gov/crt. 

Order for Appointment of Compliance Director

Compliance Director Job Announcement

U.S. Attorney Kenneth A. Polite announced that MELVIN LEWIS II, age 53, of Gretna, was convicted of thirty (30) counts of mail fraud (18 U.S.C. § 1341) today after a one-day bench trial before United States District Judge Carl J. Barbier. 

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 a 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. 

LEWIS faces a maximum penalty, as to each count, of twenty (20) years imprisonment, followed by a three (3) year term of supervised release, and a $250,000 fine.  Judge Barbier set sentencing for October 13, 2016.

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 JOHN SPOSATO, age 64, of Slidell, pled guilty today to wire fraud for his role in promoting and operating a national Ponzi scheme.

According to court documents, since approximately 2010, SPOSATO was affiliated with, owned, or operated numerous different companies, including Pegasus Investment & Development Corporation, LLC; Pegasus Investments; Oil Eaters, LLC; Organic Miracle Incorporation; S&J Corporate Properties, LLC; Pegasus Demolition & Debris Removal Service, LLC; and Pegasus Truck Lines, Inc.  SPOSATO represented to potential investors that the companies were all investment entities that offered participants the chance to invest in various low-risk, high-reward investment vehicles, including international bank instruments, cutting edge oil remediation and recovery products, and real estate transactions.  SPOSATO primarily relied upon word-of-mouth and e-mail correspondence, in which he fraudulently represented that he had knowledge and expertise in financial investing, to attract new investors.  SPOSATO told investors that the alleged investments were safe, secure, and never at risk.

In fact, SPOSATO did not actually invest the money in any legitimate investment vehicle, instead using it to make retail purchases for himself and his friends for various goods and services, including luxury items such as a new Chevrolet Camaro for one girlfriend and breast augmentation surgery for another girlfriend.  In total, between about January 2010, and April 2014, approximately forty-eight (48) individuals invested approximately $811,305 with SPOSATO and his companies.

To perpetuate his scheme, SPOSATO guaranteed extraordinarily high rates of return – rates much higher than market rates – for so called “guaranteed” investments to potential investors, such as a $25,000 investment in “oil-clean remediation work” in the Gulf of Mexico and another $25,000 investment in the purchase of “1,000,000 gallons of EP 55 Bio Fertile” fertilizer.  SPOSATO promised that the first investment would result in a profit of $25,000 within approximately two weeks and the second investment would result in a profit of up to $3,000,000 within one year.  SPOSATO provided prospective investors false or fraudulent documents to make the investments appear legitimate and to conceal the true nature of the Ponzi scheme. When investors became impatient, SPOSATO used new investor money to pay lulling payments to other investors, which he characterized as partial payments for investments with an overdue return, in an effort to give investors a false sense of security, to deceive investors into believing their money was invested legitimately, and to conceal the true nature of the Ponzi scheme.

SPOSATO faces a maximum term of imprisonment of not more than twenty (20) years, followed by up to three (3) years of supervised release, and a $250,000 fine per count.  U.S. District Judge Susie Morgan set sentencing for October 5, 2016.

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

U.S. Attorney Kenneth A. Polite announced that RICKEY ROBERSON, age 48, his wife ADA CRAIGE-ROBERSON, age 42, and her mother MELANIE DUPLECHAIN, age 69, of New Orleans, were charged today in a three-count Indictment for conspiracy and theft of federal funds. 

According to the Indictment, from at least 2009 to the present, ROBERSON, CRAIGE-ROBERSON, and DUPLECHAIN, operated Alternatives Living, Inc., a non-profit that received federal funds from the United States Department of Housing and Urban Development (HUD) in the form of Community Development Block Grants (CDBG). Alternatives Living provided affordable housing to the elderly, families who were homeless, and individuals suffering from mental disabilities.  As a condition to receiving federal funds, Alternatives Living agreed to comply with applicable rules and regulations governing the manner and use of the CDBG funds. Applicable program rules, including OMB Circular No. A-122, prohibited the use of CDBG funds for entertainment purposes (i.e., social activities and tickets to shows and sporting events), fundraising, personal tuition costs, and costs of goods or services for personal use. Rules allowed reimbursement for travel costs and conferences only if those costs were related to the mission of the organization and consistent with those costs normally allowed.

Count 1 of the Indictment alleges that prior to in or around January 2009 and continuing through July 2015, ROBERSON, DUPLECHAIN, and CRAIGE-ROBERSON, and others, did knowingly and willfully combine, conspire, confederate, and agree to embezzle, steal or knowingly convert to their own use or the use of another, any money or thing of value of the United States or of any department or agency thereof, in excess of $1,000.

Count 2 alleges that on or about June 20, 2011, ROBERSON willfully and knowingly did steal, purloin, and convert to his own use Community Development Block Grant funds, which were designated for use by Alternatives Living for program related expenses, and which were property of the United States Department of Housing and Urban Development, when he purchased football tickets to see the New Orleans Saints, totaling more than $1,000.

Count 3 of the Indictment alleges that on or about December 29, 2012, CRAIGE-ROBERSON willfully and knowingly did steal, purloin, and convert to her own use Community Development Block Grant funds, which were designated for use by Alternatives Living for program related expenses, and which were property of the United States Department of Housing and Urban Development, when she purchased personal travel expenses on the Royal Caribbean Cruise line, totaling more than $1,000.

If convicted of the conspiracy in Count 1, ROBERSON, CRAIGE-ROBERSON, and DUPLECHAIN face a maximum penalty of five years imprisonment, a maximum fine of $250,000 and a special assessment of $100.  If convicted of theft of federal funds in Counts 2 and 3, ROBERSON and CRAIG-ROBERSON respectively face a maximum penalty of ten years imprisonment, a maximum fine of $250,000 and a special assessment of $100.

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 praised the work of the Federal Bureau of Investigation, the United States Department of Housing and Urban Development, Office of Inspector General, the Office of State Inspector General, and with the assistance of the Louisiana Legislative Auditor’s Office in investigating this matter.  Assistant U.S. Attorney Sharan E. Lieberman is in charge of the prosecution.

U.S. Attorney Kenneth A. Politce announced that BOUBACAR DIALLO, age 36, of Metairie, was sentenced today after previously pleading guilty to trafficking in counterfeit goods.

U.S. District Judge Lance M. Africk sentenced DIALLO to five years probation and to pay restitution as follows:  $760.65 to Polo by Ralph Lauren; $980 to Louis Vuitton; $400 to Hermes; and $170 to Nike.

According to court documents, on March 12, 2015, investigators with the Office of the Attorney General Investigation Division and agents with the United States Department of Homeland Security – Homeland Security Investigations, acting on information that DIALLO was involved in the purchase and subsequent sale of large quantities of counterfeit merchandise, met DIALLO at his residence in Metairie.  Law enforcement officials observed numerous cardboard boxes full of counterfeit merchandise.  They subsequently verified as counterfeit 111 pairs of “True Religion” blue jeans; 166 “Michael Kors” purses; 67 “Michael Kors” pocketbooks; 87 “Michael Kors” watches; 6 pair of “Nike” tennis shoes; 9 pair of “Polo” pants; 8 pair of “Polo” shirts; and 693 counterfeit Michael Kors labels.   The collective fair market value of all the counterfeit items and was approximately $158,049.  DIALLO admitted that he knew the items he was selling were counterfeit and that he had purchased them from individuals in Atlanta and New York City.  DIALLO also admitted to renting storage units to hide and store the counterfeit merchandise. 

U.S. Attorney Polite praised the work of the Louisiana Department of Justice / Office of the Attorney General Investigation Division and Immigration and Customs Enforcement, Homeland Security Investigations in investigating this matter.  Assistant United States Attorney Jordan Ginsberg was in charge of the prosecution.

U.S. Attorney Kenneth A. Polite announced that JERRY COX, age 72, of Franklinton, was sentenced today after previously pleading guilty to structuring financial transactions to avoid federal reporting requirements.

U.S. District Judge Nannette Jolivette Brown sentenced COX to five years probation and a $100 special assessment.  In October 2015, COX pled guilty and cooperated with the United States, including testifying in the trial of United States v. Walter and Steven Reed.

According to court documents, in September 2011, COX made, and caused to be made, a series of cash withdrawals from Citizens Savings Bank and Resource Bank that were designed to evade certain reporting requirements under federal law, namely the obligation of financial institutions to report currency transactions over $10,000.  COX did so as part of a pattern of activity totaling $102,050 in a twelve-month period.  Specifically, COX caused a series of seven withdrawals on September 20, 2011, September 24, 2011, two on September 27, 2011, September 30, 2011, October 4, 2011, and October 11, 2011, in amounts between $7,650 and $9,500.  COX used the Resource account to conduct seven additional withdrawals in the manner, and for the same purpose of avoiding reporting requirements, between July 24, 2012, and August 4, 2012, totaling approximately $39,900.  COX was aware of the reporting requirements, and he engaged in the withdrawals to avoid causing the banks to generate reports.

U.S. Attorney Polite praised the work of the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation in investigating this matter.  Assistant United States Attorney Jordan Ginsberg was in charge of the prosecution.