Middle District of Louisiana

U.S. Attorney Brandon J. Fremin, who also serves as the Executive Director of the National Center for Disaster Fraud, announced today that ERVIN PAYNE, JR., age 44, of Livingston, Louisiana, pled guilty to fraud in connection with a major disaster declaration and theft of $42,365.31 in Federal Emergency Management Agency (FEMA) funds in relation to the 2016 flooding that affected numerous local areas, to include Livingston Parish.  As a result of his conviction, PAYNE faces a significant term of imprisonment, fine, and period of supervised release.

Following the 2016 flooding that affected 12 parishes in south Louisiana, FEMA funds were available to people who had emergency needs for food, shelter, transportation expenses, and clothing because of the flood.  In order to qualify for assistance based on home ownership, an individual must have, among other things, resided in the home at the time of the storm.

According to admissions made as part of his guilty plea, PAYNE submitted false applications for FEMA assistance for a Livingston residence that he did not own at the time of the March 2016 and August 2016 floods.  In his applications, he also asserted that, because of the damage to the residence, he needed transportation and rental assistance.

U.S. Attorney Fremin stated, “Federal disaster assistance funds are available and owed to individuals affected by a disaster, and who meet the eligibility criteria to receive specific benefits available from the Government.  Assistance is designed to return eligible applicants to the lives they lived before being victimized by disaster.  Fraud in connection with disaster benefits not only results in wasting valuable government assets to process false claims and monetary loss to FEMA; it also delays the distribution of funds to authorized disaster victims.  My office, together with the National Center for Disaster Fraud and our federal, state, and local law enforcement partners, will continue to hold accountable those who seek to steal disaster assistance funds and impair the Federal Government’s ability to assist true victims of a disaster.”

Special Agent in Charge David Green, Houston Field Office, Department of Homeland Security, Office of Inspector General, stated, “The DHS OIG continues to successfully investigate disaster fraud and will continue to partner with U.S. Attorney Offices to seek justice. Funds stolen from United States’ taxpayers through fraudulent means deprive deserving recipients and will not be tolerated.”

Members of the public who suspect fraud involving disaster relief efforts, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721.  The telephone line is staffed by a live operator 24 hours a day, 7 days a week.  You can also fax information to the Center at (225) 334-4707, or email it to disaster@leo.gov.  Learn more about the Department of Justice’s National Center for Disaster Fraud at http://www.justice.gov/disaster-fraud.

This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Department of Homeland Security, Office of Inspector General.  The case is being prosecuted by Assistant U.S. Attorney Paul L. Pugliese.

BATON ROUGE, LA – United States Attorney Brandon J. Fremin announced that SHANARD ZELRON BANKS, a.k.a. “Nardie,” age 30, pled guilty before Judge Brian A. Jackson to one count of conspiracy to distribute and possess with the intent to distribute controlled substances, one count of possession with intent to distribute 500 grams or more of methamphetamine, one count of possession of firearms in furtherance of a drug-trafficking crime, thirteen counts of unlawful use of a communication facility, and one count of engaging in monetary transactions in property derived from specified unlawful activity.  As a result of his guilty plea, BANKS faces a maximum term of imprisonment of life, significant fines, and forfeiture of the property involved or used in, or derived from, his illegal activity.

BANKS was charged along with twenty other individuals in connection with an extensive federal, state, and local investigation by the Middle District Organized Crime and Drug Enforcement Task Force (OCDETF) aimed at a drug trafficking organization – FreeBandz – based and operating in Baton Rouge, Louisiana.

During the guilty plea hearing, BANKS admitted that he controlled the organization’s illegal pill-pressing operation whereby BANKS and his co-conspirators used pill press machines, punches, dies, and pill pressing chemicals to illegally manufacture tens of thousands of counterfeit controlled substance pills.  The counterfeit pills were tainted with undisclosed amounts of heroin, methamphetamine, fentanyl analogues, clonazolam, and other controlled substances that BANKS’ co-conspirator obtained from sources located in Houston, Texas, and Los Angeles, California.  These pills were then imprinted with various imprints, including several for controlled substance pharmaceuticals.  Thereafter, BANKS and his co-conspirators distributed the counterfeit pills to others for further distribution in Baton Rouge, Mississippi, the New Orleans metropolitan area, and elsewhere.  The drug trafficking operation formed in or before 2016 and continued until it was disrupted by law enforcement intervention in 2018.

During their investigation, law enforcement agents recovered a .380 caliber Taurus revolver, a .556 caliber Smith & Wesson semi-automatic rifle, and five semi-automatic pistols of varying calibers from a number of residences and commercial premises that were used to store drugs and drug proceeds, and to conduct drug transactions.  These firearms were possessed by BANKS and a co-conspirator with the purpose of advancing BANKS’ drug trafficking operation.  As a part of his plea agreement,  BANKS agreed to forfeit to the United States the firearms, $20,000, and a 2011 Porshe Panamera that he purchased using drug trafficking proceeds. 

U.S. Attorney Fremin stated, “This conviction holds accountable one of the key leaders of a drug trafficking organization responsible for trafficking large amounts of counterfeit pills laced with heroin and other illegal drugs throughout our district.  Our community deserves peace, security, and freedom from the tyranny of armed drug traffickers.  This conviction has significantly advanced that effort. The combined federal, state, and local efforts that culminated in this conviction once again reflect our unified front against crime in this district. I appreciate the tremendous dedication and hard work by the agents and prosecutors who worked tirelessly on this important matter.”  

Michael Sader, Assistant Special Agent in Charge of the Drug Enforcement Administration, Baton Rouge District Office stated, “This guilty plea is the result of a two year DEA Baton Rouge Task Force investigation of a violent drug trafficking organization responsible for supplying large amounts of narcotics throughout Baton Rouge.  The investigation was successful due to the combined efforts of federal, state, and local law enforcement agencies.  The DEA will continue to conduct these investigations in an effort to stem the flow of illegal narcotics onto the streets of our community.”

This investigation is another effort by the OCDETF Program, which was established in 1982 to mount a comprehensive attack against organized drug traffickers.  Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations, and related criminal enterprises.  The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.

This OCDETF operation is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana; the Baton Rouge District Office of the Drug Enforcement Administration; and the Baton Rouge Field Office of the Bureau of Alcohol, Tobacco, Firearms, & Explosives. This matter is being prosecuted by Assistant United States Attorneys Jennifer Kleinpeter, who also serves as a deputy criminal chief, and Demetrius D. Sumner.

BATON ROUGE, LA –United States Attorney Brandon J. Fremin announced that United States District Court Chief Judge Shelly D. Dick sentenced Colt Gibson, age 35, of Livingston Parish, Louisiana, to serve 73 months in federal prison following his conviction for receipt of child pornography.  Following his release from imprisonment, GIBSON will serve a 5-year term of supervised release.  

As set forth in GIBSON’s plea agreement, GIBSON used file-sharing software to download a video from the internet of a prepubescent female engaged in sexually explicit conduct with an adult male.  A subsequent forensic examination of the defendant’s computer and other electronic devices revealed at least 300 additional videos of child pornography, including depictions of toddlers and prepubescent females, which the defendant had downloaded from the internet.

U.S. Attorney Fremin stated, “Online child sexual exploitation investigations and prosecutions will continue to be priority for this office and those who engage in such vile behavior will be held accountable.  Those who receive or possess child pornography contribute to the continuing victimization of child victims and create demand for future exploitation which will not be tolerated.  I greatly appreciate the excellent and hard work of the prosecutors and agents who handle these challenging cases.” 

Eric J. Rommal, FBI New Orleans Special Agent in Charge stated, "Locating and apprehending child predators and pornographers has always remained a top priority in the FBI. Through the New Orleans Child Exploitation and Human Trafficking Task Force, we work closely with our federal, state, and local law enforcement partners to identify, investigate, and arrest individuals engaged in the exploitation of our children."

"As a father, I know I would do anything to protect my son," said Louisiana Attorney General Jeff Landry.  "Since taking office, I have teamed with law enforcement partners to protect Louisiana's children.  I thank the work of my team and the U.S. Attorney's Office in bringing this child predator to justice.”

This matter was investigated by the Federal Bureau of Investigation and the Louisiana Attorney General’s Office Cyber Crime Unit, with assistance from the Livingston Parish Sheriff’s Office and Louisiana State Police.  This case was prosecuted by Assistant United States Attorney Elizabeth E. White. 

These federal charges are part of Project Safe Childhood, a nationwide initiative by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse.  Led by the United States Attorney’s 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 those who sexually exploit children, and to identify and rescue victims.  For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.  Click on the “Resources” tab for information about Internet safety education.

United States Attorney Brandon J. Fremin announced today that DOUGLAS D. CHENEVERT III, a 40-year old resident of Baton Rouge, Louisiana, has been convicted of possession of firearms and ammunition by a convicted felon.  As a result of his conviction, CHENEVERT now faces a maximum sentence of ten years in federal prison, significant fines and a period of supervised release.

In a hearing before U.S. Chief Judge Shelly Dick on June 20, 2019, CHENEVERT pled guilty to possessing: a Smith and Wesson, model SD9VE, 9mm caliber semiautomatic pistol; thirteen (13) 9mm caliber Winchester cartridges; an Ithaca, 12 gauge shotgun; a Berretta ARX Model 160, .22 caliber rifle; a Ruger Model AR556 .223 caliber rifle; and a Taurus Judge .410 gauge/.45 Long Colt Caliber pistol.  CHENEVERT had previously been convicted of simple burglary in 1998 in East Baton Rouge Parish.

On July 14, 2018, Baton Rouge City Police responded to a burglary at a cell phone shop on North Foster Drive.  An officer observed two men enter the shop.  As the two men left the shop in a stolen pickup truck, the officer attempted a traffic stop.  The driver fled and, after a short chase, wrecked the truck.  Both men then fled on foot.  A canine officer and his dog quickly apprehended CHENEVERT, the driver of the pickup truck.  The officers found the Smith and Wesson 9mm pistol in CHENEVERT’s clothing, loaded with 13 rounds of Winchester ammunition.

A residence located on East Brookstown, which CHENEVERT used as a rental property, was searched.  Officers found and recovered the additional four firearms.  At the hearing, CHENEVERT admitted he knowingly had constructive possession of the firearms and had the power to exercise dominion and control over the firearms stored in the residence.  

U.S. Attorney Fremin stated, “Unfortunately, guns are possessed and used unlawfully during the commission of other crimes.  This case is yet another example of the dangers our local law enforcement officers face when they confront felons in possession of a firearm.  My office is strongly committed to enforcing our nation’s gun laws.  I commend our prosecutor and our federal and local partners for their outstanding work in obtaining this conviction.”

This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Baton Rouge City Police Department.  Assistant United States Attorney Lyman E. Thornton III is prosecuting the case.

United States Attorney Brandon J. Fremin announced today that JOHN PAUL FUNES, age 49, of Baton Rouge, Louisiana, pled guilty before U.S. District Judge John W. deGravelles to wire fraud and money laundering.  As a result of his conviction, FUNES faces a significant term of imprisonment, a fine, and a period of supervised release.

According to admissions made during his plea, FUNES executed a scheme to defraud Our Lady of the Lake Foundation (the “Foundation”), a non-profit organization that supports the Our Lady of the Lake Regional Medical Center, and caused a loss of more than $550,000.  FUNES prepared, signed, and submitted payment vouchers that caused the Foundation's accounting personnel to issue checks for the payees, amounts, and purposes reflected on the vouchers.  Because of his position at the Foundation, FUNES could approve his own vouchers, which enabled him to submit dozens of false and fraudulent vouchers that misrepresented the purpose of the checks.  In furtherance of the scheme, for example, FUNES submitted numerous fraudulent vouchers in which he represented that Foundation funds were necessary to pay a charter flight company to make time-sensitive “outbound patient transports” from Our Lady of the Lake Children’s Hospital, when in fact FUNES was repeatedly using the flight company's services for his own personal benefit, unbeknownst to the Foundation.  As another example, FUNES submitted numerous vouchers in which he fraudulently represented that funds were necessary to purchase gift cards that would be provided to cancer patients, when in fact FUNES often used the cards for his own personal benefit.  The Bill of Information also alleges that, on numerous occasions, after fraudulently causing the Foundation to issue payments to other individuals, FUNES would direct those individuals to funnel the majority of the funds back to him, by check or money order, thereby conducting financial transactions designed in part to conceal proceeds of the fraudulent scheme.  According to the Bill, in August of 2018, when the Foundation’s finance department began an internal audit of the expenses described above, FUNES created numerous false documents in an effort to conceal the scheme.

U.S. Attorney Brandon J. Fremin stated, “This conviction makes evident our willingness to prosecute anyone who violates the trust of their employers by unjustly enriching themselves through fraudulent schemes.  Not only did Mr. Funes betray his employer and the many benevolent donors whose generosity fueled the mission of the Foundation but he also betrayed the trust of the many great people served by the Foundation.  Great credit goes to our prosecutor, the Secret Service, the FBI, and the IRS-CI whose investigative efforts and close collaboration with the Foundation made this conviction possible.”

Tara McLeese, Resident Agent in Charge of the Secret Service in Baton Rouge said, “I would like to commend the hard work and dedication of the attorneys from the United States Attorney’s Office and the investigators involved in this case.”

FBI Special Agent in Charge Eric J. Rommal stated, “Today’s guilty plea illustrates that individuals who take advantage of positions of trust for personal financial gain will be held accountable by the FBI and our law enforcement partners.”

Thomas Holloman, Special Agent in Charge, IRS – Criminal Investigation, stated, “The Special Agents of IRS-CI play a vital role in the investigation of white collar crimes such as those committed by the defendant.  They ultimately unraveled Mr. Funes’ attempts to conceal his embezzlement of the Foundation proceeds despite his use of nominees and other unscrupulous means.  IRS-Criminal Investigation is committed to holding accountable those individuals who violate the public trust, and use public funds as their personal piggy bank.”

This investigation is being led by the United States Secret Service with valuable assistance from the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation Division.  This matter is being prosecuted by Assistant United States Attorney Alan Stevens, who also serves as Deputy Criminal Chief. 

As the 2019 hurricane season begins, the Department of Justice reminds the public to be on the lookout for fraud against natural disaster victims, and report it to the National Center for Disaster Fraud (NCDF). The Atlantic Hurricane Season opened June 1 and runs through November 30. 

“Committing fraud against natural disaster victims is an inexcusable crime,” said Deputy Attorney General Jeff Rosen.  “It is important for people to be on the lookout for fraudsters who seek to profit from natural disasters through identity theft schemes and solicitations for fake charities.  The Department of Justice is committed to detecting this type of fraud, and we will aggressively prosecute the offenders. Through our National Center for Disaster Fraud, and in conjunction with our law enforcement partners, we are working to keep Americans from becoming victims of these schemes.”

The Department of Justice established the NCDF in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region, which opened opportunities for criminals to exploit people during vulnerable times.  The NCDF, a national coordinating agency within the Department’s Criminal Division, operates a call center at Louisiana State University in Baton Rouge and serves as a centralized clearinghouse for disaster fraud complaints and information relating to both natural and man-made disasters. The NCDF seeks to improve and further the detection, prevention, investigation, and prosecution of fraud related to natural and man-made disasters, and to advocate for victims of such fraud.  More than 20 federal, state, and local agencies participate in the NCDF, which allows them to forward on complaints to the appropriate agency for investigation.

Numerous U.S. Attorneys’ offices in districts impacted by recent hurricanes have established task forces comprised of local, state and federal agencies in their respective areas to combat disaster fraud.

"The Department of Justice and the NCDF is committed to ensuring each report of disaster fraud reaches the appropriate investigative agency. Do not let disaster strike twice. Report suspected disaster fraud to the NCDF, which has an excellent staff of investigators, analysts, call center operators, and managers who are well prepared to handle the anticipated volume of complaints during hurricane season,” said U.S. Attorney Brandon J. Fremin for the Middle District of Louisiana, who is also the NCDF’s Executive Director.

Eighteen major disaster declarations have already been declared in 2019 for events including recent storms, tornadoes, and flooding across the Midwest; Typhoon Wutip in Guam; and severe winter storms and mudslides in Oregon, California. Unfortunately, and inevitably, natural and man-made disasters will continue to occur across our great nation. These terrible and often tragic events leave many people without food, water, or shelter, and often cause devastating damage to life and property. Nevertheless, there are criminals ready to take advantage of victims before, during, and especially after a natural disaster. They are looking to strike those at their most vulnerable time.

While compassion, assistance, and solidarity are generally prevalent in the aftermath of natural disasters, unscrupulous individuals and organizations also use these tragic events to take advantage of those in need. Examples of illegal activity being reported to the NCDF and law enforcement include:

• Impersonation of federal law enforcement officials;
• Identity theft;
• Fraudulent submission of claims to insurance companies and the federal government;
• Fraudulent activity related to solicitations for donations and charitable giving;
• Fraudulent activity related to individuals and organizations promising high investment returns via profits from recovery and cleanup efforts;
• Price gouging;
• Contractor Fraud;
• Debris removal fraud;
• Theft, looting, and other violent crime

Members of the public are reminded to be extremely cautious before providing personal identifying or financial information to anyone, especially those who may contact you after a natural disaster. They are also reminded to report suspected waste, fraud, abuse, or allegations of criminal conduct. If members of the public believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, they are strongly encouraged to contact the National Center for Disaster Fraud Hotline toll free by phone at (866) 720-5721, email at disaster@leo.gov, or fax at (225) 334-4707.   The telephone line is staffed by live operators 24 hours a day, seven days a week. 

To learn more about the NCDF please visit the website at www.justice.gov/disaster-fraud and watch a public service announcement. 

United States Attorney Brandon J. Fremin announced today that as the Department of Justice continues its efforts to fulfill President Donald J. Trump’s commitment to reducing violent crime in America, Attorney General William P. Barr announced Baton Rouge as one of 10 new National Public Safety Partnership (PSP) sites in areas with elevated crime rates.  The partnership provides a framework for enhancing federal support of state, local and tribal law enforcement officials and prosecutors as they aggressively investigate and pursue violent criminals, specifically those involved in gun crime, drug trafficking and gang violence.

“The Public Safety Partnership is a successful program that directs federal law enforcement resources to the cities where they can have the greatest impact," Attorney General Barr said. "These resources help police departments to diagnose where crime is highest—and why—and to find, arrest and prosecute criminals.  Several participating cities have already seen dramatic reductions in violent crime over the past two years. As we expand this program to 10 more cities across America, we are determined to replicate that success.”

The Justice Department created PSP and the Task Force on Crime Reduction and Public Safety in response to President Trump’s February 9, 2017, Executive Order charging the agency with leading a national effort to combat violent crime.  In June 2017, the Department of Justice announced the formation of the National Public Safety Partnership initiative.

To be considered for selection, a site must have sustained levels of violence that far exceed the national average and demonstrate a commitment to reducing crime.  Cities must also display compliance with federal immigration requirements.

The 10 sites announced are as follows:

Anniston, Alabama

Oxford, Alabama

Anchorage, Alaska

Davenport, Iowa

Wichita, Kansas

Baton Rouge, Louisiana

Baltimore, Maryland

Cleveland, Ohio

Amarillo, Texas

Harris County, Texas

“I know through experience as a former U.S. Attorney that the surest way to drive down crime is through a united effort that involves local government leaders and law enforcement agencies at all levels,” said Principal Deputy Assistant Attorney General Matt M. Dummermuth, who oversees DOJ’s Office of Justice Programs.  “The National Public Safety Partnership has been the force behind successful violence reduction efforts in a number of communities, and we intend to carry that success into other high crime neighborhoods

U.S. Attorney Brandon J. Fremin stated, “This is yet another demonstration of the commitment of this administration to bolster the efforts of local law enforcement to reduce violent crime in America.  The expertise, training, and resources offered by the federal government through the Public Safety Partnership will no doubt serve as a force multiplier for our efforts with Chief Paul, Sheriff Gautreaux, and D.A. Hillar Moore here in Baton Rouge.  I look forward to efficiently using those resources to amplify our already robust efforts in working to achieve our goal of reducing violent crime in Baton Rouge.  I am grateful for President Trump and Attorney General Barr’s inclusion of Baton Rouge on the latest list of PSP sites and for their recognition that we can benefit from the resources afforded by the partnership.  

More than 30 cities have participated in PSP.  The primary participating Justice Department components include the Office of Justice Programs, Office on Violence Against Women, Office of Community Oriented Policing Services, Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Bureau of Investigation, U.S. Drug Enforcement Administration and U.S. Marshals Service.
 
“We are proud to provide support to law enforcement in these new Sites, and we’re confident that this collaborative effort will help these jurisdictions reduce violent crime,” said Jon Adler, Director of the Bureau of Justice Assistance. 

United States Attorney Brandon J. Fremin announced today the filing of charges against JOHN PAUL FUNES, age 49, of Baton Rouge, Louisiana, for wire fraud and money laundering. 

As alleged in the Bill of Information, FUNES was employed as President of the Our Lady of the Lake Foundation (the “Foundation”), a non-profit organization that supports the Our Lady of the Lake Regional Medical Center.  Beginning in or about 2012, however, and continuing through September of 2018, FUNES executed a scheme to defraud the Foundation and caused a loss of more than $550,000.  The Bill charges FUNES with one count of wire fraud, in violation of Title 18, United States Code, Section 1343, and one count of money laundering, in violation of Title 18, United States Code, Section 1956(a)(1)(B).

According to the Bill, FUNES executed the scheme in a variety of ways, including by preparing, signing, and submitting payment vouchers that would cause the Foundation's accounting personnel to issue checks for the payees, amounts, and purposes reflected on the voucher.  Because of his position at the Foundation, FUNES could approve his own vouchers, which enabled him to submit dozens of false and fraudulent vouchers that misrepresented the purpose of the checks.  In furtherance of the scheme, for example, FUNES submitted numerous fraudulent vouchers in which he represented that Foundation funds were necessary to pay a charter flight company to make time-sensitive “outbound patient transports” from Our Lady of the Lake Children’s Hospital, when in fact FUNES was repeatedly using the flight company's services for his own personal benefit, unbeknownst to the Foundation.  As another example, FUNES submitted numerous vouchers in which he fraudulently represented that funds were necessary to purchase gift cards that would be provided to cancer patients, when in fact FUNES often used the cards for his own personal benefit.  The Bill also alleges that, on numerous occasions, after fraudulently causing the Foundation to issue payments to other individuals, FUNES would direct those individuals to funnel the majority of the funds back to him, by check or money order, thereby conducting financial transactions designed in part to conceal proceeds of the fraudulent scheme.  According to the Bill, in August of 2018, when the Foundation’s finance department began an internal audit of the expenses described above, FUNES created numerous false documents in an effort to conceal the scheme.

U.S. Attorney Brandon J. Fremin stated, “These charges demonstrate that those who are entrusted with an organization’s finances, like Mr. Funes, and who deceive and defraud their employers for their own personal benefit will be held accountable.  Not only did Mr. Funes violate the trust of the Foundation and Our Lady of the Lake, but he also betrayed the trust of the people served by the Lake and its many donors whose generosity was abused.  The filing of these charges today is an important step in our effort to hold the defendant accountable for the criminal conduct described in the Bill of Information and, working with the Foundation, to do everything within our ability to make the Foundation whole.  Special thanks to our prosecutor and the United States Secret Service who led this investigation with outstanding support from the FBI and IRS-CID.”

“The Secret Service is committed to aggressively investigating financial crimes cases,” said Resident Agent in Charge Tara McLeese of the Secret Service Baton Rouge Office.  “Today’s charges are a reminder that financial crimes are not victimless crimes, and the Secret Service will continue to work with our outstanding partners in the U.S. Attorney’s Office to bring offenders to justice.”

FBI Special Agent in Charge Eric J. Rommal stated, “The defendant betrayed both his employer and the Baton Rouge community as a whole by abusing the trust placed in him as President of the Foundation.  The FBI New Orleans Division and our federal partners are committed to holding individuals accountable for their actions when they illegally profit at the expense of our community's institutions.”

This investigation is being led by the United States Secret Service with valuable assistance from the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation Division.  This matter is being prosecuted by Assistant United States Attorney Alan Stevens, who also serves as Deputy Criminal Chief. 

NOTE:  The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea. 

United States Attorney Brandon J. Fremin announced today that ROSHEI EDWARDS, age 27, of Baton Rouge, Louisiana, has been convicted of possession of a firearm and ammunition by a convicted felon, possession with intent to distribute heroin and oxycodone, and possession of a firearm in furtherance of a drug-trafficking crime.  As a result of his convictions, EDWARDS faces a significant term of imprisonment, a fine, and a period of supervised release.

In a hearing before U.S. Chief Judge Shelly D. Dick, EDWARDS pled guilty to possession of a loaded Glock, model 21, .45 caliber pistol; a loaded, stolen Springfield, model XD40, .40 caliber pistol; a loaded, stolen Glock, model 26, 9mm pistol; a box of .40 caliber ammunition; numerous magazines loaded with ammunition; and a loaded Bushmaster, model Carbon 15, .223 caliber rifle.   In total, the defendant possessed twenty-nine (29) rounds of .223 caliber ammunition, forty (40) rounds of .45 caliber ammunition, twenty-five (25) rounds of .40 caliber ammunition, and six (6) rounds of 9mm ammunition.  EDWARDS also possessed 29.17 grams of heroin and forty-one (41) 30-mg individual dosage units of oxycodone with the intent to distribute the heroin and oxycodone.

On September 5, 2017, Louisiana State Probation and Parole agents, having reasonable suspicion that EDWARDS had been engaged in criminal activity, conducted a compliance check and search of his home where they located the firearms, ammunition, heroin, and oxycodone.  The loaded Bushmaster rifle was located just inside a closet in the bedroom where the oxycodone and heroin were located. 

EDWARDS was previously convicted of simple burglary of an inhabited dwelling and possession of MDMA, both felonies punishable by a term of imprisonment greater than one (1) year, in East Baton Rouge Parish. 

U.S. Attorney Fremin stated, “The fact that Mr. Edwards, a two-time convicted felon out on probation, possessed guns and possessed with the intent to distribute illegal drugs demonstrates a blatant disregard for the judicial system and for the court.  This conviction reaffirms our commitment to hold accountable those whose disregard for the law endangers hard-working, law-abiding citizens in our communities.  I am grateful for the efforts of our prosecutor and for the Louisiana State Office of Probation and Parole and the ATF whose collaboration contributed greatly to this conviction.”

This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with substantial assistance from Louisiana State Probation and Parole.  The case is being prosecuted by Assistant United States Attorney Will Morris.

United States Attorney Brandon J. Fremin announced today that DONOVAN J. BARKER, age 59, of Baton Rouge, Louisiana, pled guilty before U.S. District Judge John W. deGravelles to operating an unlicensed money transmitting business.  As a result of his conviction, BARKER faces a significant term of imprisonment, a fine, and a period of supervised release.

According to admissions made during his plea, between September of 2012 and May of 2016, individuals known to the defendant conspired to distribute carisoprodol, tramadol, and other substances, by shipping the pills in bulk into the United States, to be broken down into smaller quantities that would then be shipped to individual purchasers.  For a time, BARKER helped the individuals by accepting the bulk drug shipments at his home and mailing the drugs out to individual purchasers.  In January of 2013, law enforcement agents seized more than 50,000 dosage units of tramadol and carisoprodol from BARKER’s residence and advised him to stop assisting the effort to import the substances into the United States.

Following the January 2013 seizure, BARKER began operating as a money transmitter for the individuals involved in the scheme.  As drug sales were generated, BARKER would receive the proceeds of the sales (i.e., accept payments for the drugs from the individual buyers) and wire the proceeds to other individuals and businesses.  BARKER formed and operated several business entities, including Quantum Information Technologies, Caring Partners 1, LLC, Don Western Sky, LLC, Life Positive Services, LLC, and Healthy Life 1, LLC that he used to assist the scheme.

In total, from October 2012 through February 2016, BARKER through his businesses, received more than $4.6 million in payments from individuals all across the United States.  This included more than $1.3 million in credit card payments made to BARKER via electronic transfer, and more than $750,000 in checks and money orders, from individuals all across the United States who had purchased controlled substances and other substances over the internet.  As BARKER received the money, he wired the vast majority of the money out to other individuals and businesses, through hundreds of transactions.  For instance, BARKER paid the shipping charges incurred by members of the conspiracy, which exceeded $100,000.  Moreover, on more than two hundred (200) different occasions, BARKER transmitted proceeds from the operation to foreign bank accounts in the Philippines, India, China, and Canada.  Accordingly, BARKER was unlawfully and knowingly operating an unlicensed money transmitting business, in violation of federal criminal statutes enacted to combat the use of money transmitting businesses to transfer the proceeds of criminal activity.

U.S. Attorney Brandon J. Fremin stated, "Drug traffickers are very creative and use many resources to distribute their products to our citizens across the country.  We have resources too. This investigation and conviction yet again demonstrates our willingness to use those resources to dismantle their networks and keep dangerous substances off of our streets.  I want to congratulate our prosecutors and our federal, state, and local law enforcement partners on their outstanding efforts in obtaining this conviction."

Thomas J. Holloman, III, Special Agent in Charge of IRS – Criminal Investigations, stated “The Special Agents of IRS – Criminal Investigation are an integral part of drug investigations that involve the laundering of money through sophisticated means such as those implemented by Donovan Barker.  More and more often individuals are using the internet and access to international banks in an attempt to keep their misdeeds hidden from the view of law enforcement.  However, the dissection of complex money laundering schemes is an area of expertise in which IRS- CI ‎ excels.  It is our hope that Barker’s drug distribution and money laundering operation were fully dismantled as a result of this investigation, and he will face the consequences for his role in facilitating the trafficking of illegal substances into our communities.” 

This matter is being investigated by the Internal Revenue Service-Criminal Investigations, the Drug Enforcement Administration, and the U.S. Postal Inspection Service, with critical assistance from the Louisiana Office of Financial Institutions.  The matter is being prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Criminal Chief within the Criminal Division, and AUSAs Kashan Pathan and Robert Piedrahita.  The investigation received valuable assistance from the Baton Rouge Police Department, the East Baton Rouge Parish Sheriff’s Office, U.S. Immigration and Customs Enforcement—Homeland Security Investigations, and the Louisiana State Police, and other federal, state, and local agencies.

The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program that was established in 1982 to mount a comprehensive attack against organized drug traffickers.  Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises.  The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations. 

United States Attorney Brandon J. Fremin announced today the recent unsealing of a federal grand jury indictment charging five defendants with conspiracy to commit bank fraud, bank fraud, and conspiracy to commit access device fraud.  The indictment is the latest set of charges in a lengthy federal investigation that has spanned numerous jurisdictions across several states and has resulted in charges against ten (10) different individuals for participating in a fraudulent scheme targeting victims in the Middle District of Louisiana.

According to the indictment, which was filed under seal in December 2018 and recently unsealed by the court, the defendants allegedly engaged in an extensive criminal scheme to break into unattended vehicles, steal the victims’ licenses, checkbooks, and credit and debit cards, and then use the stolen items to conduct fraudulent financial transactions at the victims’ banks.  The defendants charged in this indictment began targeting victims in Louisiana in August of 2016 and continued to engage in criminal conduct in Louisiana (among other states) through February of 2017.  The latest indictment includes charges against the following individuals:

• Michael D. Gibbs, a/k/a “BG,” age 26, of Ft. Lauderdale, Florida, is charged with conspiracy to commit bank fraud, bank fraud, and conspiracy to commit access device fraud.

• Brandon J. Gassett, a/k/a “Boot Daddy” and “Twan,” age 28, of Ft. Lauderdale, Florida, is charged with conspiracy to commit bank fraud, bank fraud, and conspiracy to commit access device fraud.

• Raymond B. Mathews, a/k/a “Boot” and “Bo,” age 33, of Ft. Lauderdale, Florida, is charged with conspiracy to commit bank fraud and bank fraud.

• Geoffrey D. Green, a/k/a “Deep” and “D,” age 35, Lauderhill, Florida, is charged with conspiracy to commit bank fraud, bank fraud, and conspiracy to commit access device fraud.

• Frank Jackson, age 25, of Lauderdale Lakes, Florida, is charged with conspiracy to commit bank fraud and bank fraud.

Five additional individuals have already been convicted and sentenced to federal prison for their roles in this criminal scheme.  Erin Brown, age 23, of Newport, Tennessee, Natasha Hammett, age 29, of Opa-Locka, Florida, and Tina Eggleston, age 48, originally from San Fernando, California, have each been convicted of conspiracy to commit bank fraud.  Johnny Jones, age 32, of Fort Lauderhill, Florida, and Allen Clark, age 30, of Margate, Florida, have each been convicted of conspiracy to commit bank fraud and possession of unauthorized access devices. 

U.S. Attorney Brandon J. Fremin stated, “Unfortunately, criminals these days know no borders.  This indictment illustrates that criminals are willing to travel far and wide to defraud innocent victims.  This indictment and prior related bills of information against a total of ten members of a group who were working together to victimize citizens here in our community sends a very clear message – we are not open for your type of business.  We will continue to work with federal, state, and local law enforcement, throughout the country, to find organized criminals like these and bring them to justice in order to protect our citizens.  I want to thank our prosecutors, and all of the numerous law enforcement agencies and officers around the country, who have worked tirelessly to bring these fraudsters to justice.”

Eric J. Rommal, FBI New Orleans Field Office Special Agent in Charge, stated, “The FBI New Orleans Field Office will vigorously investigate all forms of financial crimes regardless of the subjects' background, financial status or relation to the victims.”

This matter is being investigated by the Federal Bureau of Investigation, the Jefferson Parish Sheriff’s Office, the Baton Rouge Police Department, the East Baton Rouge Parish Sheriff’s Office, Ascension Parish Sheriff’s Office, Walker Police Department, Lafayette Police Department, Covington Police Department, Oxford (Mississippi) Police Department, Florida Highway Patrol and Asheville (North Carolina) Police Department.  The investigation has received substantial assistance from the 19th JDC District Attorney’s Office in East Baton Rouge, Louisiana, the Johnson County, Wyoming Prosecuting Attorney’s Office, and the Third Judicial Circuit of Florida State Attorney’s Office.  This matter is being prosecuted by Assistant United States Attorneys Alan Stevens and Chris Dippel, who both serve as Deputy Criminal Chiefs, and former AUSA Cal Leipold. 

NOTE: An indictment is an accusation by a grand jury.  The defendants are presumed innocent until and unless adjudicated guilty at trial or through a guilty plea. 

United States Attorney Brandon J. Fremin announced today that RAUL BURDEN, a 27-year old resident of Baton Rouge, Louisiana, has been convicted of possession of a firearm by a convicted felon.  As a result of his conviction, BURDEN now faces a maximum sentence of ten years in federal prison, significant fines and a period of supervised release.

In a hearing before U.S. District Court Judge Brian Jackson on May 28, 2019, BURDEN pled guilty to possessing a Charter Arms “Off Duty” .38 special caliber revolver.  BURDEN had previously been convicted of three felony offenses, including intimidating, impeding or injuring witnesses in 2009 and simple robbery in 2011 in East Baton Rouge Parish.

On December 24, 2018, EMS dispatchers received three 911 calls reporting shots being fired outside of an apartment complex located on Manson Drive in Baton Rouge.  East Baton Rouge Parish Sheriff’s deputies responded to the scene.  Upon arrival, deputies identified BURDEN from the emergency calls and ordered him to remove his hands from his pockets and place them on his head.  BURDEN did not comply.  When deputies again ordered BURDEN to remove his hands, he threw the firearm away from himself.  The firearm was recovered at the scene.  

U.S. Attorney Fremin stated, “I want to commend those law enforcement officers who responded to a 911 call involving shots being fired.  This case highlights yet another example of the danger faced by law enforcement and the uncertainty that comes with every dispatch.  Their brave and rapid intervention prevented a potentially dangerous outcome and led to the conviction of a violent felon who was illegally possessing a firearm.  I want to thank our prosecutors and our federal and local partners for their outstanding work in obtaining this conviction.”

“ATF, along with our local law enforcement partners, will continue to focus our efforts on removing armed violent criminals from our streets,” said ATF New Orleans Field Division Acting Special Agent in Charge Kristen deTineo.  “ATF and our partners remain committed to ensuring that our communities are safer and more secure as a direct result of our investigations."

This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the East Baton Rouge Parish Sheriff’s Office.    The case is being prosecuted by Assistant United States Attorney Kristen Craig.

A Baton Rouge, Louisiana-based doctor was sentenced to 37 months in prison followed by two years of supervised release today for his role in a scheme to defraud Medicare and other health care insurers.  

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Brandon J. Fremin of the Middle District of Louisiana, 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 Field Office and Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office made the announcement. 

John Eastham Clark, M.D., 66, of Baton Rouge, was sentenced by Chief U.S. District Judge Shelly D. Dick of the Middle District of Louisiana, who also ordered Clark to pay $254,962.80 in restitution.  In February 2019, Clark pleaded guilty to one count of conspiracy to commit health care fraud. 

Clark was a co-owner and the medical director of Louisiana Spine & Sports LLC, a pain management clinic located in Baton Rouge.  The charge stems from Clark’s role in a scheme to submit fraudulent claims to Medicare and other health care insurers.  As part of his guilty plea, Clark admitted that from approximately June 2005 through March 2015, he, along with his billing supervisor Charlene Anita Severio and others, conspired to submit fraudulent claims indicating that minor surgical procedures occurred on days subsequent to office visits, when in fact the office visits and procedures took place on the same day.  Clark admitted that this practice, commonly referred to as “unbundling,” was done to defraud health care insurers for non-reimbursable office visits.  Clark further admitted to falsifying, and directing Severio and others to falsify, records substantiating the fraudulent claims.

In February 2019, Severio pleaded guilty to one count of conspiracy to commit health care fraud and wire fraud and two counts of health care fraud.  She is scheduled to be sentenced on May 22 by Chief Judge Dick.

In another case involving Louisiana Spine & Sports, on Nov. 20, 2018, Gray Wesley Barrow, M.D., a co-owner of the company, pleaded guilty for his role in a scheme to receive approximately $336,000 in illegal health care kickback payments.  Barrow is scheduled to be sentenced on June 7, 2019, by U.S. District Judge Brian A. Jackson of the Middle District of Louisiana.  In addition, Christopher William Armstrong, a former physician’s assistant at Louisiana Spine & Sports, pleaded guilty on Nov. 27, 2018 for his role in a scheme to unlawfully distribute thousands of oxycodone pills.  Armstrong is scheduled to be sentenced on June 24, 2019, by U.S. District Judge John W. deGravelles of the Middle District of Louisiana.  

The case was investigated by HHS-OIG and the FBI, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Louisiana.  Assistant Chief Dustin M. Davis and Trial Attorney Justin M. Woodard of the Fraud Section and Assistant U.S. Attorney Elizabeth E. White of the Middle District of Louisiana are prosecuting the case.  

The Medicare Fraud Strike Force is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

United States Attorney Brandon J. Fremin announced today that U.S. Chief Judge Shelley D. Dick sentenced LESTER DESMOULIN, a 32-year-old resident of Baton Rouge, to 96 months in federal prison following his conviction for possessing a firearm by a convicted felon.  The Court further sentenced DESMOULIN to 3 years of supervised release following his term of imprisonment, and ordered that the firearm possessed by DESMOULIN be forfeited.

On July 31, 2017, DESMOULIN, who was previously convicted of a felony, took a phone call from his friend, Terrance Thornton, after Thornton had been arrested on several fugitive warrants.  During the call, Thornton advised DESMOULIN that during an earlier chase by police, he had successfully hidden his Glock pistol in the backyard of a residence in Baton Rouge, Louisiana, before his arrest.  At Thornton’s request, DESMOULIN went to the residence and took possession of the firearm.  On August 1, 2017, law enforcement officers executed a search warrant at an apartment that DESMOULIN shared with Thornton in Baton Rouge, Louisiana, and, among other things, the Glock pistol was recovered.  In October 2018, Thornton was sentenced to a term of 120 months in federal prison for being a convicted felon in possession of the Glock and a 7.62mm semi-automatic rifle.

U.S. Attorney Fremin stated, “DESMOULIN’s sentence to 8 years in prison is another stern sentence imposed in our efforts to combat violent crime.  It highlights the continuing success of our joint Federal, State, and local law enforcement effort to ensure the safety of our community.   It also highlights our effort to convince repeat offenders, such as DESMOULIN, to return to life as a contributing member of society or face the consequence of a significant term of imprisonment.”

“ATF, along with our federal, state, and local law enforcement partners will continue to focus our efforts on removing armed violent criminals from our streets,” said ATF New Orleans Field Division Acting Special Agent in Charge Kristen deTineo." ATF and our partners remain committed to pursuing and bringing to justice those who seek to disrupt communities and harm law abiding citizens.”

This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Baton Rouge Police Department, with substantial assistance from the Louisiana State Police Crime Laboratory and Fugitive Task Force.  The case was prosecuted by Assistant United States Attorney Paul L. Pugliese.

BATON ROUGE, LA – United States Attorney Brandon J. Fremin announced today that District Judge Lance Africk sentenced TIMMY SCOTT a/k/a “TIMOTHY SCOTT,” a 24-year-old resident of Baton Rouge, Louisiana, and KADEEM BURDEN, a 23-year-old resident of Baton Rouge, Louisiana, to 120 months each in federal prison following their conviction of possessing a firearm by a convicted felon.  The Court further sentenced SCOTT and BURDEN to 3 years of supervised release following their term of imprisonment and ordered that the firearms be forfeited.

On February 26, 2019, after a two day trial before visiting U.S. District Judge Lance M. Africk, a jury unanimously convicted SCOTT and BURDEN.  As the evidence at trial demonstrated, on October 2, 2017, SCOTT and BURDEN initiated a shooting on Iroquois Street that was witnessed by a Baton Rouge City Police officer, who pursued SCOTT and BURDEN into a residential area.  A K-9 team assisted and found two firearms discarded under a house, a 7.62 caliber Century Arms semi-automatic AK rifle style pistol, and a 9mm Smith and Wesson pistol.  Also recovered were two Halloween style masks and two cellular phones.  Forensic testing by Louisiana State Police Crime Lab and a Pittsburgh, PA., private laboratory positively matched SCOTT to DNA recovered from one of the masks and matched BURDEN’s DNA to the trigger and grip of the AK rifle style pistol.  The Louisiana State Police Crime Lab was also able to match the fired 9mm cartridges recovered from the shooting location to the recovered pistol.  The BATF and FBI executed search warrants on the phones and linked them to SCOTT.  

U.S. Attorney Fremin stated, “The defendants’ actions of possessing illegal firearms and shooting in a residential area earned each defendant a maximum 10 year sentence.  My office and our prosecutors stand ready to enforce our nation’s gun laws and continue to pursue the most violent and dangerous offenders in our community.”

This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Baton Rouge City Police, the Federal Bureau of Investigation and the Louisiana State Police Crime Lab.  The case is being prosecuted by Assistant United States Attorneys Lyman Thornton III and Fred Menner.  

BATON ROUGE, LA – United States Attorney Brandon J. Fremin announced today that U.S. District Judge Lance M. Africk sentenced ALVIN WATTS, III, a 37-year-old resident of Addis, Louisiana, to 108 months in federal prison for his conviction after a 2-day jury trial on a multiple count indictment.  All counts involved stolen HIV medication, and included WATTS’ conspiracy to possess, transport, and traffic in the medication; trafficking and transporting the stolen medication; and receiving and possessing stolen medication.

As the evidence at trial demonstrated, WATTS was a co-owner and pharmacist of Doc-Your-Dose Pharmacy in Grosse Tete, Louisiana.  In 2013, WATTS organized a scheme to purchase black market HIV pharmaceutical drugs that had been stolen from the Washington, D.C. Department of Health Pharmacy Warehouse intended for indigent HIV patients in Washington, D.C.  WATTS sent two of his employees to D.C. on multiple occasions between June and September of 2013 to purchase the stolen medication and transport it back to his Louisiana pharmacy.  As a result, WATTS profited approximately $640,000.00 by dispensing the stolen medication, as opposed to selling legally-obtained medication.

WATTS’ criminal conduct became known as the result of a traffic stop near Chattanooga, Tennessee, in which his couriers were stopped for speeding.  During the stop, officers discovered a significant quantity of stolen HIV medication in the trunk of their vehicle. The investigation identified WATTS’ criminal conduct along with the conduct of four co-conspirators who were indicted and subsequently pled guilty for their involvement in this scheme and have been sentenced.

During today’s hearing, Judge Africk highlighted WATTS’ greed, extreme depravity in selling stolen HIV medications that were intended for indigent HIV patients in the D.C. area, and the fact that he obstructed justice in attempting to prevent a government witness from testifying.

U.S. Attorney Fremin stated, “Medical professionals like the defendant cannot be allowed to profit by dispensing stolen medication intended for indigent patients. The actions of this defendant are a great disservice to the pharmacists and medical professionals in our community who ensure that patients’ well-being is their highest priority.  I commend the superb efforts of prosecutors and federal and state local law enforcement partners who played a critical role in investigating and prosecuting this complex and important matter.”

“The health of patients is jeopardized when prescription drugs are diverted from the legal supply chain. When this happens, there is no longer any assurance that the products are safe and effective for their intended uses,” said Acting Special Agent in Charge H. Peter Kuehl, FDA Office of Criminal Investigations Miami Field Office. “We will continue to investigate these types of criminal acts and bring to justice those who put the public health at risk.

“I applaud my Medicaid Fraud Control Unit and our federal law enforcement partners for their efforts to end this criminal conspiracy,” said Attorney General Landry. “We will remain steadfast in our commitment to find, arrest, and prosecute Medicaid fraudsters.”           

This matter was investigated by the United States Food And Drug Administration’s Office of Criminal Investigations and Louisiana State Attorney General’s Office’s Medicaid Fraud Control Unit, with assistance from the State of Tennessee 10th Judicial District Drug & Violent Crime Task Force.  The case was prosecuted by Assistant United States Attorneys Peter Smyczek and Paul Pugliese.   

A federal grand jury recently returned a four-count indictment charging Wallace Byers, age 59, of Miami, Florida, with wire fraud and international money laundering.  Byers appeared for his arraignment in court today and pled not guilty to the pending charges. 

According to the indictment, Byers identified potential victims through social networking websites, commercial services that provided investor leads, and documents that identified the victims of other schemes.  The indictment alleges that Byers solicited victims to invest with his company, WBI Associates, LLC, through phone calls, text messages, and email, and promised victims that the money would be invested, variously, in gold production, a lottery company, foreign currency, or “dark pools” or “blind pools.”  The indictment further alleges that instead of investing the money sent to him by victims as promised, Byers spent the money on personal expenditures, including among others, approximately $10,000 per month in rent for his residence in a Miami hotel, the lease of luxury cars, including a Ferrari, and gambling in casinos.  The indictment alleges that Byers received at least $6,888,000 as a result of his scheme.  According to the indictment, two of Byers’ victims lived in the Middle District of Louisiana, one in Baton Rouge and one in Baker.

In addition to charging Byers with wire fraud, the indictment charges Byers with engaging in international money laundering, by sending $3,000,000 to a Swiss bank account, in order to conceal and disguise the nature, location, source, ownership and control of the proceeds of the wire fraud scheme. 

U.S. Attorney Brandon J. Fremin stated, “This indictment demonstrates how con artists can prey on our citizens with persuasive lies and false documents. We remain focused on prosecuting the criminals who target our community with financial scams and abuse.  Citizens always should be wary of callers who promise large financial returns, and should contact law enforcement if they believe that they have fallen victim to one of these scams.  I appreciate the hard work by all those involved in this important matter.”

Eric Rommal, FBI New Orleans Special Agent in Charge, stated "The FBI will continue to aggressively pursue those who prey on our elderly citizens through investment scams and other complex financial crimes."

This matter is being investigated by the Baton Rouge Resident Agency of the Federal Bureau of Investigations, and is being prosecuted by Assistant United States Attorney Elizabeth E. White, who also serves as the Elder Justice Coordinator for the Middle District of Louisiana.  The Department of Justice’s Elder Justice Initiative aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid becoming victims of financial fraud; and promote greater coordination with law enforcement partners. For more information please visit: https://www.justice.gov/elderjustice.

NOTE: An indictment is an accusation by a grand jury.  The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea. 

BATON ROUGE, LA – United States Attorney Brandon J. Fremin announced JOHNNY J. MASON, age 36, of Baton Rouge, Louisiana, was sentenced to federal prison following his convictions in Operation Hidden Fee,  an extensive federal, state, and local investigation by the Middle District Organized Crime and Drug Enforcement Task Force (OCDETF) aimed at a drug trafficking network based and operating in Baton Rouge.  The Indictment filed in this matter charged significant drug trafficking offenses involving heroin, methamphetamine, and crack cocaine, as well as several firearm offenses. 

U.S. District Judge Brian A. Jackson sentenced MASON  to a 180 month term of imprisonment following his convictions for conspiracy to distribute and to possess with the intent to distribute heroin, methamphetamine, and crack cocaine, possession with the intent to distribute methamphetamine, and possession of a firearm by a convicted felon.  The Court also sentenced MASON to 5 years of supervised release following his term of imprisonment and ordered that the firearm be forfeited. 

According to admissions made as part of his guilty plea, MASON was on parole for simple burglary of an inhabited dwelling and possession of cocaine when law enforcement authorities arrested him in January 2017 during an undercover investigation of a purchase MASON had arranged involving methamphetamine. Authorities searched the vehicle MASON was traveling in and seized, among other items, digital scales and four bags containing approximately 58.41 grams of methamphetamine and a Beretta .380 caliber pistol.  While in parish prison, MASON recruited his co-defendant, Stacy Taylor, into the drug trafficking conspiracy and introduced her to James C. Hull, the head of a narcotics distribution ring involving 21 subordinate drug dealers who operated throughout the Baton Rouge area.

Taylor pled guilty to the conspiracy and was subsequesntly sentenced to 48 months imprisonment.  Hull pled guilty to conspiracy to distribute and possession with the intent to distribute heroin, methamphetamine, and cocaine base, distribution of methamphetamine and heroin, and four counts of unlawful use of communication facilities.  As a result of his conviction, Hull faces a significant term of imprisonment, a fine, and a period of supervised release.

U.S. Attorney Fremin stated, ”I want to congratulate our prosecutors and our federal, state, and local partners, whose work will ensure that this serious drug trafficker will remain behind bars for a significant period of time, and that a large drug trafficking organization is being dismantled. Keeping drugs and violence out of our communities remains a top priority of our office.”

“This is an outstanding example of law enforcement teamwork,” said DEA’s Acting Assistant Special Agent in Charge Michael Arnett.  “It also shows the tenacity of our law enforcement agents who, for years, continued to pursue MASON and bring him to justice and be punished for the serious crimes he committed.”

The investigation is yet another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program, which was established in 1982 to mount a comprehensive attack against organized drug traffickers.  Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises.  The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations. 

These ongoing investigations were led by the Drug Enforcement Administration with invaluable assistance from the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the East Baton Rouge Parish Sheriff’s Office, the Baton Rouge City Police Department, and the Louisiana State Police.  Other agencies also assisted in apprehending the defendants, including the U.S. Marshal’s Service, and the Sheriffs’ Offices in Ascension, Iberville, and West Baton Rouge Parishes.  These cases are being prosecuted by Assistant U.S. Attorneys Robert Piedrahita and Lyman E. Thornton III.

United States Attorney Brandon J. Fremin will join the DEA on April 27th for its 17th National Prescription Drug Take Back Day.  The biannual event is an effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs and will be held from 10 a.m. to 2 p.m., at thousands of collection sites around the country, including law enforcements agencies within the Middle District of Louisiana:

ASCENSION PARISH SHERIFF'S OFFICE, 828 South Irma Boulevard, Gonzales, LA 70737

BAKER POLICE DEPARTMENT, 1320 Alabama St, Baker, LA 70714

BATON ROUGE POLICE DEPARTMENT, 9000 Airline Hwy, Baton Rouge, LA 70815

EAST BATON ROUGE PARISH SHERIFF'S OFFICE, EBRSO Traffic Office, 9313 Burbank Dr, Baton Rouge, LA 70820

PLAQUEMINE POLICE DEPARTMENT, 23540 Railroad Ave, Plaquemine, LA 70764

ST. HELENA PARISH SHERIFF'S OFFICE, 53 N. 2nd Street, Greensburg, LA 70441

WALKER POLICE DEPARTMENT, 828 South Irma Boulevard, Gonzales, LA 70737

WEST FELICIANA PARISH SHERIFF'S OFFICE, FRED'S PHARMACY, 7130 US-61, St Francisville, LA 70775

U.S. Attorney Fremin stated, “Despite our best intentions, our medicine cabinets can quickly become overstocked and, in some situations, can provide a pathway to addiction.  This program provides ordinary citizens an excellent opportunity to anonymously and properly dispose of unwanted prescription drugs with no questions asked.  Every effort to prevent drugs from being used illegally is another step toward winning the battle against addiction and abuse.”

DEA Special Agent in Charge Brad Byerley said, “Prescription drug abuse has become the nation’s fastest growing drug epidemic.  Last year, more Americans died from opioid overdoses than from all other drugs combined, including meth, cocaine and hallucinogens.  Unfortunately, these prescription drugs are most often obtained from friends and family, who leave them in home medicine cabinets.  DEA’s Take-Back initiative provides citizens an easy and safe way to dispose of unwanted prescription drugs.  Please do your part to keep prescription drugs off the streets and help spread awareness in your community.”

Last October Americans turned in 457 tons (900,000 pounds) of prescription drugs at almost 6,000 sites operated by the DEA and more than 4,800 of its state and local law enforcement partners. Overall, in its 16 previous Take Back events, DEA and its partners have taken in over 11 million pounds—more than 5,400 tons—of pills. The disposal service is free and anonymous, no questions asked. (The DEA cannot accept liquids, needles, or sharps, only pills or patches.)

Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose. Some painkiller abusers move on to heroin: Four out of five new heroin users started with painkillers.

Flushing medications down the toilet or throwing them in the trash pose potential safety and health hazards. This initiative addresses the public safety and public health issues that surround medications languishing in home cabinets, becoming highly susceptible to diversion, misuse, and abuse.

For more information or to locate a collection site near you, go the DEA Prescription Drug Take Back Day web site at https://takebackday.dea.gov/#collection-locator where you can search by zip code, city, or state.

United States Attorney Brandon J. Fremin announced that U.S. District Judge John W. deGravelles sentenced Oscar Arturo Machado-Galeana, age 36, of Baton Rouge, Louisiana, to 300 months in federal prison following his convictions after a nine-day jury trial in October 2018 for conspiracy to distribute  methamphetamine, heroin, and marijuana; conspiracy to launder monetary instruments; distribution of methamphetamine; possession with intent to distribute methamphetamine and marijuana; and possession of a firearm in furtherance of a drug trafficking crime.  The Court also sentenced MACHADO-GALEANA to 5 years of supervised release following his term of imprisonment and ordered that the firearm be forfeited.  Co-defendant Roy Martin Herrara-Romero, who was convicted of possession with intent to distribute marijuana, was sentenced to 60 months on March 14, 2019.

As the evidence at trial demonstrated, MACHADO-GALEANA obtained pounds of methamphetamine as well as a quantity of heroin from a source operating in Lafayette, Louisiana, as well as pounds of marijuana from a source in northern California.  MACHADO-GALEANA, with the assistance of Alexander P. Nava, distributed methamphetamine, heroin, and marijuana to various dealers in the Baton Rouge and Laplace, Louisiana areas.  MACHADO-GALEANA used a nominee to purchase cashier’s checks and forward those to his marijuana supplier in California.   In some instances, Nava and MACHADO-GALEANA carried firearms with them when delivering methamphetamine to dealers and picking up the payments for those controlled substances.  On March 18, 2015, during the execution of a search warrant at a storage unit at 13822 Florida Blvd., Baton Rouge, LA, law enforcement officers seized approximately 18 pounds of high-grade methamphetamine.   Law enforcement agents also executed a search warrant that day at Herrara-Romero’s nearby residence at 13822 Florida Blvd., Baton Rouge, Louisiana, where they found triple beam and digital scales, a. 45 caliber semi-automatic pistol, and an amount of marijuana.  That same morning, officers executed a search warrant at MACHADO-GALEANA’s residence in Baton Rouge, Louisiana, where they seized a number of firearms, methamphetamine, and marijuana.

U.S. Attorney Fremin stated, “Evidence at trial demonstrated Mr. Machado had connections to a drug cartel in Sinaloa, Mexico.  This conviction and sentence is yet another demonstration of our commitment to making our communities safer by combatting violent drug trafficking organizations.  I am grateful to our prosecutors and to our federal, state, and local partners for their outstanding efforts and for removing this dangerous dealer, and his poisonous drugs from our streets.  We will continue to work tirelessly to seek justice on behalf of the American people.”

“DEA will continue to attack the scourge of illegal drug distribution in Baton Rouge and beyond,” said DEA Acting Assistant Special Agent in Charge Michael Arnett.  “The lengthy sentencing of this defendant should be taken as a message to those who want to sell drugs.  We are going to catch you and put you in prison for a long time if you distribute this poison in our communities. ”

This operation is being handled by the U.S. Attorney’s Office, the U.S. Drug Enforcement Administration (DEA), the East Baton Rouge Parish Sheriff’s Office, the Internal Revenue Service-Criminal Investigations (IRS-CI), the U.S. Department of Homeland Security, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Baton Rouge Police Department, the West Baton Rouge Parish Sheriff’s Office, and the Ascension Parish Sheriff’s Office.  This matter is being prosecuted by Assistant United States Attorneys Robert W. Piedrahita, Peter Smyczek and Elizabeth White.

The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program which was established in 1982 to mount a comprehensive attack against organized drug traffickers.  Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises.  The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.

United States Attorney Brandon J. Fremin announced today that U.S. Chief Judge Shelly D. Dick sentenced HENRY K. RAYBORN, age 63, of Baton Rouge, Louisiana, to 46 months in federal prison following his conviction for threats against President Donald J. Trump.  The Court also sentenced RAYBORN to 3 years of supervised release following his term of imprisonment.

 In March of 2018, RAYBORN made several statements indicating he had access to guns and that he was planning to kill the President of the United States.  The investigation revealed RAYBORN knowingly and willfully made the above statements regarding his intent to kill the President and intended them to be taken seriously.

U.S. Attorney Fremin stated, “The safety and well-being of our elected officials is an  extraordinarily important component of a properly functioning democracy. This conviction and sentence should send a clear message to those who may make threats against the President that federal law enforcement takes such matters seriously and will investigate and prosecute those responsible for such behavior.  I am very proud of the work of our dedicated staff and of the United States Secret Service who worked quickly and diligently on this important case.”

Tara McLeese, Resident Agent in Charge of the United States Secret Service in Baton Rouge stated, “The highest priority is placed on ensuring that any individual who may pose a potential threat to persons, facilities, and events protected by the U.S. Secret Service is fully investigated.  Any threat, inappropriate interest, or unusual behavior directed toward Secret Service protectees is taken seriously and today’s sentencing is a testament to that fact.”

This matter is being handled by the U.S. Attorney’s Office and the U.S. Secret Service and is being prosecuted by Assistant United States Attorney M. Patricia Jones, who also serves as Appellate Chief and Senior Litigation Counsel.

United States Attorney Brandon J. Fremin announced today that U.S. Chief Judge Shelly D. Dick sentenced KELLY D. WILLIAMS, age 43, of Zachary, Louisiana, to 262 months in federal prison following his convictions for conspiracy to distribute and to possess with the intent to distribute cocaine, distribution of crack cocaine and oxycodone, conspiracy to acquire controlled substances by fraud, and unlawful use of a communication facility.  The Court also sentenced WILLIAMS to 5 years of supervised release following his term of imprisonment.  The court also ordered a judgement of forfeiture in the amount of $1,020,340.00.

According to admissions made as part of his guilty plea, WILLIAMS conspired with numerous individuals to obtain, distribute, and possess with the intent to distribute, large quantities of cocaine in excess of five kilograms and did conspire knowingly and intentionally to acquire and obtain possession of controlled substances by misrepresentation, fraud and deception. 

As part of the conspiracy, WILLIAMS purchased multi- kilogram quantities of cocaine and distributed various amounts of cocaine and crack cocaine to his co-conspirators for further distribution in the Baton Rouge area.  WILLIAMS also used violence and the threat of violence in order to advance the conspiracy.

U.S. Attorney Fremin stated, “Violent drug dealers have no place in our communities. Our office will use every resource at our disposal to ensure that those who peddle drugs and violence will be kept off of our streets. I want to thank our prosecutors, and our federal, state, and local partners for their efforts.”

DEA Acting Assistant Special Agent in Charge Michael Arnett said, “Cocaine and crack cocaine destroy lives and have far-reaching negative effects in the communities where they take hold.  Side by side with our local law enforcement partners, DEA is holding drug dealers accountable.  Together, we are putting dealers where they belong – behind bars.  Let this conviction be a clear message to all that if you distribute drugs in this region, you will be identified, investigated and prosecuted to the fullest extent of the law.”

The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program which was established in 1982 to mount a comprehensive attack against organized drug traffickers.  Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises.  The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations. 

Operation Third World was handled by the U.S. Attorney’s Office, the Drug Enforcement Administration (DEA), the Internal Revenue Service-Criminal Investigations (IRS-CI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Baton Rouge City Police Department, the West Baton Rouge Parish Sheriff’s Office, the East Baton Rouge Parish Sheriff’s Office, the Ascension Parish Sheriff’s Office, the Louisiana State Police, the Iberville Parish Sheriff’s Office, the Livingston Parish Sheriff’s Office, the Gonzales Police Department, and the Baker Police Department.  This matter was prosecuted by Assistant United States Attorney Jennifer Kleinpeter,  who also serves as a deputy criminal chief.

United States Attorney Brandon J. Fremin announced today that U.S. Chief Judge Shelly D. Dick sentenced JOSHUAL HILTON, age 33, of Baton Rouge, Louisiana, to 384 months in federal prison following his convictions after a three-day jury trial in June 2018 for possession with the intent to distribute methamphetamine, marijuana, and promethazine, possession of a firearm by a convicted felon, and possession of a firearm in furtherance of a drug trafficking offense.  The Court also sentenced HILTON to 10 years of supervised release following his term of imprisonment and ordered that the firearms be forfeited.

Evidence at trial showed that HILTON sold marijuana to an individual at his residence in September 2016, and thereafter the East Baton Rouge Parish Sheriff’s Office obtained a search warrant to search the defendant’s residence.  Prior to the search, law enforcement officers placed HILTON’s residence under surveillance.  Officers observed HILTON leave his residence in his automobile and proceed to meet with several individuals in the Sherwood Forest area and engage in what appeared to be drug transactions from his vehicle.  HILTON was observed returning to his residence and entering his house, only to leave again a short time later.  A marked unit attempted to stop HILTON; however, HILTON led officers on a high speed chase, exceeding 100 miles per hour in some places, running stop signs and passing vehicles on the shoulder in an attempt to elude arrest.  HILTON was observed throwing items out of his vehicle window, which were later recovered and determined to be three bottles of liquid promethazine.  HILTON abandoned his vehicle at a dead end street, but was later apprehended as he fled on foot.

Officers returned to HILTON’s residence and executed the search warrant.  During the search, officers located 1,948 grams of methamphetamine, over five pounds of marijuana, 22 bottles of liquid promethazine, a digital scale, $42,877 in drug proceeds, and a loaded Glock 23 .40 caliber pistol and magazine.  

U.S. Attorney Fremin stated, “This conviction and sentence should send a loud and clear message that our office will not tolerate unrepentant drug dealers who continue to sell dangerous drugs in our communities.  Enforcing our drug laws prevents addiction and violence from spreading and will continue to be a priority in this district. This operation could not have been a success without the efforts of our outstanding prosecution team, the ATF, the East Baton Rouge Sheriff’s Office and the Livingston Parish Sheriff’s Office.”

“The East Baton Rouge Sheriff’s Office is proud of the partnership we have with the U.S. Attorney’s Office and appreciate their commitment to prosecute these cases on the federal level,” Sheriff Sid Gautreaux said. “We look forward to continuing working together to combat the drugs that plague our community.”

This conviction is part of Operation All in the Famm, an extensive federal, state, and local investigation aimed at dismantling a large scale drug trafficking network based in East Baton Rouge Parish, Louisiana. As a result of this operation, three individuals with significant drug trafficking, firearm, and conspiracy charges have been convicted.  Terrance Hilton pled guilty on April 2, 2019 to possession with the intent to distribute heroin and possession of a firearm by a convicted felon.  Damiene Lewis pled guilty on  April 19, 2018 to conspiracy to distribute cocaine, distribution of cocaine, and possession of a firearm in furtherance of a drug trafficking offense.  Hilton faces a significant term of imprisonment, a fine, and a period of supervised release.

This operation is being handled by the U.S. Attorney’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the East Baton Rouge Parish Sheriff’s Office, and the Livingston Parish Sheriff’s Office.  This matter is being prosecuted by Assistant United States Attorney Jennifer Kleinpeter, who also serves as a deputy criminal chief.

The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program that was established in 1982 to mount a comprehensive attack against organized drug traffickers.  Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises.  The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations. 

WASHINGTON – A Louisiana-based licensed clinical social worker pleaded guilty today for his role in a scheme to defraud Medicaid.  

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Brandon J. Fremin of the Middle District of Louisiana, 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 Field Office, Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office and Director Jeff W. Traylor of the Louisiana Attorney General’s Office’s Medicaid Fraud Control Unit (MFCU) made the announcement. 

Michael Dan Gaines, 66, of Baker, Louisiana, pleaded guilty to one count of health care fraud.  His sentencing has not yet been scheduled by U.S. District Judge John W. deGravelles of the Middle District of Louisiana, who accepted his plea.  

Gaines was a supervisory-level licensed clinical social worker at St. Gabriel Health Clinic Inc. (St. Gabriel), which  was a federally qualified health center (FQHC) headquartered in St. Gabriel, Louisiana that contracted with the Iberville Parish School Board to provide medical services within the school district.  As a FQHC, St. Gabriel could provide primary care services to students as well as services related to the diagnosis and treatment of mental illnesses, provided that such services were medically necessary, among other requirements.  As part of his guilty plea, Gaines admitted that he and other St. Gabriel practitioners provided character development seminars and other educational programs to entire classrooms of students during regular class periods.  Gaines further admitted that St. Gabriel then submitted numerous fraudulent claims to Medicaid, falsely representing that the practitioners had performed group psychotherapy.  In addition, Gaines admitted that to facilitate the fraudulent scheme, he and others falsely diagnosed students with mental health disorders. 

According to the indictment, during the relevant time period, St. Gabriel’s claims for group psychotherapy services totaled more than $1.8 million. 

The case was investigated by HHS-OIG, the FBI and the MFCU, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Louisiana.  Trial Attorneys Justin M. Woodard and Jared Hasten of the Fraud Section and Assistant U.S. Attorney Jessica M.P. Thornhill of the Middle District of Louisiana are prosecuting the case.  

The Medicare Fraud Strike Force is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. 

A Louisiana-based licensed clinical social worker pleaded guilty today for his role in a scheme to defraud Medicaid.  

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Brandon J. Fremin of the Middle District of Louisiana, 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 Field Office, Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office and Director Jeff W. Traylor of the Louisiana Attorney General’s Office’s Medicaid Fraud Control Unit (MFCU) made the announcement. 

Michael Dan Gaines, 66, of Baker, Louisiana, pleaded guilty to one count of health care fraud.  His sentencing has not yet been scheduled by U.S. District Judge John W. deGravelles of the Middle District of Louisiana, who accepted his plea.  

Gaines was a supervisory-level licensed clinical social worker at St. Gabriel Health Clinic Inc. (St. Gabriel), which  was a federally qualified health center (FQHC) headquartered in St. Gabriel, Louisiana that contracted with the Iberville Parish School Board to provide medical services within the school district.  As a FQHC, St. Gabriel could provide primary care services to students as well as services related to the diagnosis and treatment of mental illnesses, provided that such services were medically necessary, among other requirements.  As part of his guilty plea, Gaines admitted that he and other St. Gabriel practitioners provided character development seminars and other educational programs to entire classrooms of students during regular class periods.  Gaines further admitted that St. Gabriel then submitted numerous fraudulent claims to Medicaid, falsely representing that the practitioners had performed group psychotherapy.  In addition, Gaines admitted that to facilitate the fraudulent scheme, he and others falsely diagnosed students with mental health disorders. 

According to the indictment, during the relevant time period, St. Gabriel’s claims for group psychotherapy services totaled more than $1.8 million. 

The case was investigated by HHS-OIG, the FBI and the MFCU, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Louisiana.  Trial Attorneys Justin M. Woodard and Jared Hasten of the Fraud Section and Assistant U.S. Attorney Jessica M.P. Thornhill of the Middle District of Louisiana are prosecuting the case.  

The Medicare Fraud Strike Force is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. 

BATON ROUGE, LA – United States Attorney Brandon J. Fremin announced today that District Judge John W. deGravelles sentenced TERRION JACKSON, a 24 year-old resident of Baton Rouge, Louisiana, to 87 months in federal prison following his conviction of possessing a firearm by a convicted felon.  The Court further sentenced JACKSON to 3 years of supervised release following his term of imprisonment and ordered that the firearm be forfeited.

On February 5, 2018, a Baton Rouge Police Officer stopped JACKSON, who was driving a vehicle with an expired registration tag.  The officer smelled marijuana coming from the vehicle and asked JACKSON and his passenger to step out at which time JACKSON told the officer he had a gun under the driver’s seat.  The officer returned to the vehicle and recovered a loaded Canik55, 9mm pistol from underneath the driver’s seat, along with marijuana packaged for sale which JACKSON admitted belonged to him.

JACKSON has three prior felony convictions which prohibit him from possessing a firearm.  On May 31, 2016, in the Nineteenth Judicial District Court, JACKSON pled guilty to simple robbery, simple burglary of an inhabited dwelling, and aggravated burglary.

U.S. Attorney Fremin stated, “This is yet another step towards our goal of making our communities safer. Keeping guns out of the hands of violent felons is one of my office’s top priorities.  We will continue to aggressively pursue those who illegally possess firearms and use them to endanger the lives of other citizens. I appreciate the great work performed in this case by our prosecutors, the ATF, and the Baton Rouge Police Department.”

 “ATF New Orleans Field Division works every day with our partners to take the most violent offenders off our streets and put them behind bars where they belong,” said Special Agent in Charge Dana Nichols. “ATF will continue working to keep our communities and our citizens safe from those who commit acts of violence.”

This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Baton Rouge Police Department.  The case is being prosecuted by Assistant United States Attorney Jessica Thornhill. 

United States Attorney Brandon J.  Fremin announced that U.S. District Court Judge Brian A. Jackson sentenced STEVEN J. EVERHARDT, age 52, of Baton Rouge, Louisiana, to serve 97 months in federal prison following his conviction for possession of child pornography.  EVERHARDT will also be required to serve five years of supervised release, register as a convicted sex offender upon his release from prison, pay a special assessment of $5,100, and pay a total of $66,000 in restitution to the victims who were identified as children photographed in the images.

This criminal case began when the FBI conducted an undercover operation and obtained numerous images of child pornography from an IP address at EVERHARDT’s home.  During a subsequent search of EVERHARDT’s home, over 50,000 images were discovered on EVERHARDT’s computers.  These images were of minors engaged in sexually explicit conduct, some of which depicted the sexual abuse of toddlers, sadistic or masochistic conduct involving minor victims, and violence against minor victims.  On December 10, 2018, EVERHARDT pled guilty to one count of knowingly possessing material which contained images of child pornography.

U.S. Attorney Fremin stated, “The sexual exploitation of children is one of the most despicable acts of human behavior and will always be a priority for this office.  This conviction and sentence should serve as a reminder that this office will not tolerate those who prey upon innocent and vulnerable children.  We will use every resource at our disposal to reach our goal of keeping children safe from the predators who exploit them.  I want to thank the prosecutors in our office as well as the FBI for their important work in this case.”

FBI New Orleans SAC Eric Rommal stated, “Steven Everhardt preyed upon vulnerable and innocent children, many of whom were too young to communicate they were being abused. There is no place in society for sexual deviants like Steven Everhardt or anyone of his kind. The FBI remains committed to working with our ICAC partners, the LA Attorney General's Office, Louisiana State Police, Homeland Security Investigations, and East Baton Rouge Sheriff's Office to eradicate all forms of child sexual abuse."

This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Fred Menner. 

U.S. Attorney Brandon J. Fremin, who also serves as the Executive Director of the National Center for Disaster Fraud, announced today that U.S. Chief Judge Shelly D. Dick sentenced RENATA FOREMAN, age 39, of Independence, Louisiana, to serve 111 months in federal prison following her convictions on multiple wire fraud and aggravated identity theft counts related to the 2016 flooding in Baton Rouge.  The Court further sentenced FOREMAN to 5 years of supervised release following her term of imprisonment.

Following the 2016 flooding, which affected 20 parishes in south Louisiana, FEMA funds were available to people who became unemployed because of the flood.  The funds were administered by the Louisiana Workforce Commission in the form of Disaster Unemployment Assistance (“DUA”).  In total, FOREMAN submitted approximately 55 fraudulent applications using stolen identities.

At trial, the jury heard testimony and saw evidence that FOREMAN kept logs and notebooks containing personally identifiable information of numerous people which she used in her scheme.  The evidence also showed that FOREMAN submitted fraudulent claims from multiple locations in New Orleans and the surrounding area.  During the commission of the crime, FOREMAN was residing in a federal halfway house stemming from her 2013 convictions for mail fraud, theft of government funds, and identity theft. 

U.S. Attorney Fremin said, “This conviction and sentence serve notice that our office and the National Center for Disaster Fraud take seriously crimes involving disaster relief fraud. Those, like this defendant, whose criminal behavior interferes with tax dollars of hard-working citizens will always be a top priority of this office. I want to thank our prosecutors, the U.S. Department of Labor, Office of Inspector General, the FBI, and the Louisiana Workforce Commission, whose joint efforts brought this defendant to justice.”

Special Agent in Charge Eric J. Rommal, FBI New Orleans stated, "The Federal Bureau of Investigation, with our partners at the Department of Labor Office of Inspector General, remains dedicated to combating fraud in Louisiana. Foreman attempted to exploit the 2016 flood for personal gain utilizing stolen identities. It is our hope that this case serves as a warning that the FBI will vigorously investigate those attempting to defraud others in the wake of disaster."

Members of the public are reminded to apply a critical eye and do their due diligence before trusting anyone purporting to be working on behalf of disaster victims.  Members of the public who suspect fraud involving disaster relief efforts, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by live operators 24 hours a day, 7 days a week. You can also fax information to the Center at (225) 334-4707, or email it to disaster@leo.gov.  Learn more about the National Center for Disaster Fraud at www.justice.gov/disaster-fraud and watch a public service announcement here.  Tips for the public on how to avoid being victimized of fraud are at https://www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.

This matter is being investigated by the U.S. Department of Labor Office of Inspector General and the FBI with substantial assistance provided by the Louisiana Workforce Commission.  The case is being prosecuted by Assistant U.S. Attorneys Peter Smyczek and Fred Menner of the Middle District of Louisiana. 

United States Attorney Brandon J. Fremin announced today the conviction of an additional individual charged in Operation Hidden Fee in connection with an extensive federal, state, and local investigation by the Middle District Organized Crime and Drug Enforcement Task Force (OCDETF) aimed at a drug trafficking network based and operating in Baton Rouge.  The Indictment filed in this matter charged significant drug trafficking offenses involving heroin, methamphetamine, and crack cocaine, as well as several firearm offenses. 

On March 13, 2019, HENRY J. HAYES, age 42, of Baton Rouge, Louisiana, appeared before U.S. Chief Judge Shelly D. Dick and pled guilty to conspiracy to distribute and to possess with the intent to distribute heroin and crack cocaine, distribution of heroin and crack cocaine, possession with the intent to distribute heroin and crack cocaine, and possession of a firearm by a convicted felon.

Beginning in January 2017 and continuing through July 2017, law enforcement agents with the Drug Enforcement Administration were investigating the drug trafficking activities of James Christian Hull.  During the course of this investigation, federal agents identified HAYES as one of Hull's suppliers who furnished Hull with multi-ounce quantities of heroin and crack cocaine on a weekly basis.  They sometimes met at locations near Drusilla Dr. in Baton Rouge, where HAYES supplied Hull with ounce amounts of heroin and crack cocaine, which Hull distributed to associates and customers.

On June 13, 2017, during the execution of a search warrant, agents found a number of firearms, large amounts of heroin, cocaine, and crack cocaine, and approximately $138,293 in cash at HAYES’ residence in Baton Rouge, Louisiana.   

HAYES was previously convicted in East Baton Rouge Parish, Louisiana, for possession of ecstasy and sentenced to serve 2.5 years prison. 

On July 10, 2018, James C. Hull pled guilty to conspiracy to distribute and to possess with the intent to distribute heroin, methamphetamine, distribution of methamphetamine and heroin, and four counts of unlawful use of communications facility.   As part of the plea, Hull admitted to being the head of a narcotics distribution ring involving 21 subordinate drug dealers who operated throughout the Baton Rouge area.

U.S. Attorney Fremin stated, “The conviction of another member of this drug gang demonstrates the success that can be realized by cooperation of federal, state, and local law enforcement. I want to thank our prosecutors and all of the law enforcement agencies involved in this prosecution.”

“This investigation highlights the impact multiple agencies can have when they join forces.  We will continue to work together with our local law enforcement partners and pursue those who threaten our communities through their criminal activities.  The successful prosecution of this individual should put others who engage in this type of activity on notice,” said Brad L. Byerley, Special Agent in Charge of the DEA’s New Orleans Field Division. 

The investigation is yet another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program, which was established in 1982 to mount a comprehensive attack against organized drug traffickers.  Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises.  The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations. 

This ongoing investigation was led by the Drug Enforcement Administration with invaluable assistance from the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the East Baton Rouge Parish Sheriff’s Office, the Baton Rouge City Police Department, and the Louisiana State Police.  Other agencies also assisted in apprehending the defendant, including the U.S. Marshal’s Service, and the Sheriffs’ Offices in Ascension, Iberville, and West Baton Rouge Parishes. 

This case is being prosecuted by Assistant U.S. Attorneys Robert Piedrahita and Lyman Thornton, III.

BATON ROUGE, LA – United States Attorney Brandon J. Fremin announced today that District Judge John W. DeGravelles sentenced CORY CONRAD, a 30 year-old resident of Magnolia, Mississippi to 46 months in federal prison following his conviction of possessing a firearm by a convicted felon.  The Court further sentenced CONRAD to 3 years of supervised release following his term of imprisonment and ordered that the firearm be forfeited.

On March 16, 2018, Baton Rouge Police Officers stopped CONRAD, who was driving a vehicle that had been reported stolen.  CONRAD was the only occupant of the vehicle.   Upon stopping the vehicle, officers asked CONRAD to step out of the vehicle at which time CONRAD told the officers that he had a firearm in his lap.  The firearm, a loaded Smith and Wesson M&P 9 Shield, 9mm semi-automatic pistol, serial number HKY3107, fell as CONRAD exited the vehicle, and the officers recovered it from the driver’s area of the vehicle.  

CONRAD has five prior felony convictions which prohibit him from possessing a firearm. 

On March 12, 2012, in the Nineteenth Judicial District Court of Louisiana, CONRAD pled guilty to simple burglary and attempted simple robbery.  On March 25, 2008, in the Nineteenth Judicial District Court of Louisiana, CONRAD pled guilty to simple burglary.  On March 20, 2007, in the Nineteenth Judicial District Court of Louisiana, CONRAD pled guilty to possession of Alprazolam.  On July 18, 2011, in the Twenty-third Judicial District Court of Louisiana, CONRAD plead guilty to theft of a motor vehicle.

U.S. Attorney Fremin stated, “Our office takes seriously the issue of guns in the hands of career criminals. We will continue to work tirelessly with our federal, state and local partners to protect our district from chronic offenders.  I want to thank our prosecutors, the ATF, and the Baton Rouge Police Department for their work on this case.”

This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Baton Rouge Police Department.  The case is being prosecuted by Assistant United States Attorney Jessica Thornhill. 

BATON ROUGE, LA – United States Attorney Brandon J. Fremin announced today the convictions of TIMMY SCOTT a/k/a “TIMOTHY SCOTT,” a 24-year-old resident of Baton Rouge, Louisiana, and KADEEM BURDEN, a 23-year-old resident of Baton Rouge, Louisiana.  SCOTT and BURDEN were indicted by a federal grand jury on November 29, 2017 and charged with felon in possession of firearms.

After a two day trial before visiting U.S. District Judge Lance M. Africk, the jury unanimously convicted SCOTT and BURDEN.  As the evidence at trial demonstrated, on October 2, 2017, SCOTT and BURDEN initiated a shooting on Iroquois Street that was witnessed by a Baton Rouge City Police officer, who pursued SCOTT and BURDEN into a residential area.  A K-9 team assisted and found two firearms discarded under a house, a 7.62 caliber Century Arms semi-automatic AK rifle style pistol, and a 9mm Smith and Wesson pistol.  Also recovered were two Halloween style masks and two cellular phones.  Forensic testing by Louisiana State Police Crime lab and a Pittsburg, PA., private laboratory positively matched SCOTT to DNA recovered from one of the masks and matched BURDEN’s DNA to the trigger and grip of the AK rifle style pistol.  The Louisiana State Police Crime lab was also able to match the fired 9mm cartridges recovered from the shooting location to the recovered pistol.  The BATF and FBI executed search warrants on the phones and linked them to SCOTT. 

As a result of their convictions, SCOTT and BURDEN now face a maximum sentence of ten years in federal prison, significant fines, restitution, and supervised release.

U.S. Attorney Fremin stated, “I want to commend the brave and swift action of the Officers of the Baton Rouge City Police Department who were faced with two active shooters - one armed with a high-powered military style firearm.  To pursue two armed gunmen into a residential area and  apprehend them quickly, without any injuries, is a testament to their courage and dedication to protecting innocent civilians who were in harm’s way. I want to express my gratitude to all of the dedicated law enforcement personnel, including our prosecution team, who worked long hours to prepare and present this case to the jury.  The streets of Baton Rouge are much safer with these two defendants behind bars.  Our office will not rest as we continue to bring cases against the most violent offenders in our community.”

This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Baton Rouge City Police, the Federal Bureau of Investigation and the Louisiana State Police Crime Lab.  The case is being prosecuted by Assistant United States Attorneys Lyman Thornton III and Fred Menner.   

WASHINGTON – A Baton Rouge, Louisiana-based doctor pleaded guilty yesterday and his medical billing supervisor pleaded guilty today for their roles in a scheme to defraud Medicare and other health care insurers.  

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Brandon J. Fremin of the Middle District of Louisiana, 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 Field Office, and Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office made the announcement. 

John Eastham Clark M.D., 66, of Baton Rouge, pleaded guilty on Feb. 13 to count one of an indictment charging him with conspiracy to commit health care fraud.  His sentencing has not been scheduled yet by U.S. District Judge Shelly D. Dick of the Middle District of Louisiana, who accepted his plea.  Charlene Anita Severio 56, of Walker, Louisiana, pleaded guilty today to one count of an indictment charging her with conspiracy to commit health care fraud and wire fraud and two counts of the indictment charging health care fraud.  Her sentencing has not been scheduled yet by Judge Dick, who accepted her plea.

“For nearly a decade, John Eastham Clark and Charlene Anita Severio submitted fraudulent claims to Medicare and other health insurers for payments they were not entitled to receive,” said Assistant Attorney General Benczkowski.  “These guilty pleas should serve as a warning to unscrupulous doctors and other medical professionals: the Criminal Division’s Medicare Fraud Strike Force and our law enforcement partners will aggressively investigate and prosecute illegal billing practices and other fraudulent schemes that steal taxpayer dollars and increase healthcare program costs for all Americans.”

“In defrauding the Medicare system, Dr. Clark violated a sacred oath taken by physicians but above all he violated the law,” said U.S. Attorney Fremin.  “Ms. Severio, an employee of Dr. Clark, submitted fraudulent claims to both Medicare and other health care insurers as part of the scheme.  We will continue to hold medical professionals accountable for abusing positions of trust in the community and for harming the financial integrity of our health care system.  I want to thank the Department of Justice’s Criminal Division, Fraud Section, the FBI, Health and Human Services - Office of Inspector General and the dedicated attorneys and staff from our office for their outstanding efforts in this case.”

“Today’s guilty pleas clearly illustrate that, along with our law enforcement partners, we will aggressively pursue criminal charges against bad actors in the Medicare program,” said HHS-OIG Special Agent in Charge Porter.  “Those intent on robbing patients with legitimate medical needs of access to taxpayer funds earmarked for their health care, will ultimately pay a heavy price.”    

“Agents of the Federal Bureau of Investigation remain dedicated to combating health care fraud and to doing our part in reducing the impact that opioids have on our nation,” said FBI Special Agent in Charge Rommal.  “This was a case that spanned multiple years and has resulted in numerous convictions.  It highlights the cooperation between the FBI and the Health and Human Services - Office of the Inspector General.”

Clark was a co-owner and the medical director of Louisiana Spine & Sports LLC, a pain management clinic located in Baton Rouge.  According to plea documents, the charge stems from Clark’s role in a scheme to submit fraudulent claims to Medicare and other health care insurers.  Specifically, as part of his guilty plea, Clark admitted that from approximately June 2005 through March 2015, he, along with his billing supervisor Severio, and others, conspired to submit fraudulent claims indicating that minor surgical procedures occurred on days subsequent to office visits, when in fact the office visits and procedures took place on the same day.  Clark admitted that this practice, commonly referred to as “unbundling,” was done to defraud health care insurers for non-reimbursable office visits.  Clark further admitted to falsifying, and directing Severio and others to falsify, records substantiating the fraudulent claims.  

Severio was a billing supervisor at Louisiana Spine & Sports, and worked for Clark.  According to admissions made as part of her guilty plea, from approximately June 2005 through March 2015, Severio conspired with Clark to submit fraudulent claims to Medicare and other health care insurers.  Specifically, Severio admitted that she knowingly and willfully submitted fraudulent claims indicating that minor surgical procedures performed by Clark occurred on days subsequent to office visits, when in fact the office visits and procedures took place on the same day.  Severio admitted that this practice was done to defraud health care insurers.

 In another case involving Louisiana Spine & Sports, on Nov. 20, 2018, Gray Wesley Barrow M.D., a co-owner of Louisiana Spine & Sports, pleaded guilty to a scheme to receive approximately $336,000 in illegal health care kickback payments.  Barrow is scheduled to be sentenced on March 1.  In addition, Christopher William Armstrong, a former physician’s assistant at Louisiana Spine & Sports, pleaded guilty on Nov. 27, 2018 for his role in a scheme to unlawfully distribute thousands of oxycodone pills.  Armstrong is scheduled to be sentenced on April 16.   

The case was investigated by HHS-OIG and the FBI.  Assistant Chief Dustin M. Davis and Trial Attorney Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Elizabeth E. White of the Middle District of Louisiana are prosecuting the case.  

The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force.  Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. 

WASHINGTON – Adrian Almodovar III, a former correctional officer at Elayn Hunt Correctional Center in St. Gabriel, Louisiana, pleaded guilty in federal court today to unlawfully assaulting two handcuffed inmates and to failing to stop other correctional officers from assaulting one of the inmates.

“The Justice Department will hold correctional officers accountable to the public by investigating and prosecuting officers who inflict cruel and unusual punishment on inmates,” said Assistant Attorney General Eric Dreiband. “The Civil Rights Division is committed to protecting victims of these abuses and upholding the Constitution and laws that protect us all.”

 “This officer chose to engage in criminal activity and by doing so dishonored himself and the countless honorable corrections officers who undertake difficult and dangerous work in our penal institutions every day - for that, he was held accountable,” said U.S. Attorney Fremin. “We will remain steadfast in upholding our obligation to protect the civil rights of others and will hold accountable those, like Mr. Almodovar, who abuse their authority. I want to thank the Civil Rights Division of the Department of Justice, the FBI, and the Office of the Louisiana Inspector General for their efforts in bringing this offender to justice.”

“The integrity of the entire system is threatened when those entrusted with power and authority choose to violate that trust. It is especially egregious when it happens in the corrections system,” said Louisiana Inspector General Stephen Street. “All who engage in this criminal behavior should know that significant criminal consequences will result. The Louisiana OIG remains committed to working with our law enforcement partners to ensure this.”

"Placed in a position of public trust at the Elayn Hunt Correctional Facility, Adrian Almodovar III abused defenseless inmates, discredited our justice system, and tarnished the image of countless good officers. The FBI remains committed to upholding the Constitution and protecting the civil rights of all persons," said Eric J. Rommal, FBI New Orleans Special Agent in Charge.

Almodovar, 39, pleaded guilty to one count of willfully depriving the inmates of their right to be free from cruel and unusual punishment. Information presented during the plea hearing established that Almodovar assaulted inmate J.H. multiple times on Jan. 9, 2017, by punching him in the face. During all of these assaults, inmate J.H. was restrained in handcuffs and was not offering any resistance. Later that day, Almodovar also punched inmate L.B. in the head. During this assault, inmate L.B. was also restrained in handcuffs and was not offering any resistance.

During the plea hearing, Almodovar admitted he was aware at the time of these assaults that he did not have any legal justification for using force on the inmates but did so anyway. Almodovar also admitted that he witnessed other correctional officers assaulting inmate J.H. on two separate occasions and failed to intervene to stop them, despite knowing he had a duty to protect inmates from unlawful assaults.  Two other correctional officers have previously pleaded guilty for their roles in the assaults on inmate J.H.

Almodovar faces a maximum statutory penalty of ten years in prison and a $250,000 fine.

This case is being investigated by the FBI’s Baton Rouge Resident Agency Office and the Louisiana Office of the State Inspector General. The case is being prosecuted by Trial Attorney Zachary Dembo of the Civil Rights Division’s Criminal Section.

United States Attorney Brandon J. Fremin announced today that two additional individuals have been sentenced to federal prison following their convictions in Operation Dirty Bird, an extensive federal, state, and local investigation aimed at dismantling a large scale heroin trafficking network based in Ascension Parish, Louisiana, and Houston, Texas. The indictment charged individuals with significant drug trafficking, racketeering, firearm, and conspiracy charges.  To date, investigative efforts have resulted in the seizure of over one and a half kilograms of heroin, substantial amounts of methamphetamine, crack cocaine, and oxycodone. As a result of this operation, authorities have also seized seven firearms, over $314,000 in drug proceeds, and three vehicles allegedly used in the drug trafficking venture: a 2013 Porsche 911, a Mercedes CLS550, and a GMC Hummer. To date, 11 defendants have been sentenced, two defendants are pending sentencing, and two defendants are awaiting trial.

U.S. District Judge John W. deGravelles sentenced JABLONSKI HANKTON a/k/a “Blossy,” “Blasky,” and “Blosky,” age 37, of Gonzales, Louisiana, to 95 months in federal prison following his convictions for conspiracy to distribute and possess with the intent to distribute heroin and unlawful use of a communications facility.  The Court also sentenced HANKTON to 4 years of supervised release following his term of imprisonment.

According to admissions made as part of his guilty plea, HANKTON bought heroin from Jason Muse to sell to others in and around Ascension Parish.  Furthermore, HANKTON used a telephone on numerous occasions to discuss the distribution of heroin with Jason Muse. 

DENMOND SMITH, age 39, of St. James, Louisiana was charged by indictment in the Middle District of Louisiana for conspiracy to distribute heroin, and unlawful use of communication facilities.  SMITH was also charged by indictment in the Southern District of Mississippi, Northern Division for conspiracy to distribute five grams or more of methamphetamine and distribution of five grams or more of methamphetamine.  SMITH was sentenced in both matters by U.S. District Judge John W. deGravelles to 120 months in federal prison in each case, to run concurrently.  The Court also sentenced SMITH to 5 years of supervised release following his term of imprisonment.   

According to admissions made as part of his guilty pleas, SMITH admitted to buying heroin from Jason Muse to sell to others in and around Ascension Parish and traveling to McComb, Mississippi, from Louisiana with an accomplice for the purpose of purchasing methamphetamine. 

U.S. Attorney Fremin stated, “The success of this operation demonstrates what federal authorities, working across state boundaries and alongside our state and local partners can accomplish.  We will continue to use all available resources to stop the flow of these deadly drugs to our streets.  The people of this District, and in this case the people of Ascension Parish, deserve nothing less. I want to thank our prosecutors and our federal, state, and local partners for their efforts.”

“Federal and local law enforcement has successfully collaborated in order to put these drug dealers in jail as a result of their desire to supply the citizens in the greater Baton Rouge area with heroin and methamphetamine, said DEA Acting Assistant Special Agent in Charge Michael Arnett.  “DEA will remain relentless in our efforts to cripple these dealers and remove them from our neighborhoods, keeping our communities safe.”

This operation is being handled by the U.S. Attorney’s Office, the U.S. Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Baton Rouge City Police Department, the Ascension Parish Sheriff’s Office, the Iberville Parish Sheriff’s Office, the West Baton Rouge Parish Sheriff’s Office, the East Baton Rouge Parish Sheriff’s Office, the Louisiana State Police, and the Gonzales Police Department.  This matter is being prosecuted by Assistant United States Attorney Jennifer Kleinpeter, who also serves as a deputy criminal chief.

The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program that was established in 1982 to mount a comprehensive attack against organized drug traffickers.  Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises.  The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations. 

United States Attorney Brandon J. Fremin announced today that U.S. District Judge John W. deGravelles sentenced KELLY LIU,  age 33, of Baton Rouge, Louisiana, to 16 months in federal prison following her convictions for securities fraud (insider trading) and conspiracy to commit securities fraud.  The Court also sentenced LIU to pay a fine of $7,500 and to serve 1 year of supervised release following her term of imprisonment.

In May of this year, a jury found LIU and her two co-defendants guilty as charged in connection with an insider trading scheme related to the 2012 acquisition of the Shaw Group (“Shaw”) by Chicago Bridge and Iron Company (“CB&I”).  According to evidence presented at trial, in mid-2012, Shaw was considering a potential merger opportunity.  At the time, LIU was working in Shaw’s Financial Planning and Analysis Department on Essen Lane.  In July 2012, Shaw and CB&I came to an agreement on an offer for CB&I to buy Shaw.  This merger between the two companies was publicly announced on July 30, 2012 (“the public announcement”).  As a result of the public announcement, Shaw’s stock price rose by around 55 percent.

The evidence at trial established that, prior to the public announcement and through her job at Shaw, LIU obtained inside information that Shaw was going to be acquired by another company.  She subsequently passed the inside information to Victory Ho (“Ho”), through another individual, and to her former boyfriend, Salvador J. Russo, III (“Russo”), for their use in trading Shaw stock and options.  Documents and testimony presented at trial also showed that, in the months leading up to the public announcement, LIU was assisting a Ho family business with obtaining financing and insurance on a real estate project in Morgan City, Louisiana.

Based on the information provided by LIU, Ho and Russo purchased Shaw stock and options before the public announcement.  Through these purchases, Ho reaped almost $300,000, and Russo secured a profit of approximately $4,000 on a $5,000 investment.

On October 24, 2018, co-defendant Victory Ho, age 39, of Morgan City, was sentenced to 32 months in federal prison, ordered to forfeit over $300,000 and to pay a $15,000 fine, following his convictions in the same insider trading scheme.

On October 30, 2018, co-defendant Russo, age 35, of Baton Rouge, was sentenced to 16 months in federal prison following his convictions in the same scheme.

United States Attorney Fremin stated, “This investigation and prosecution of another company insider should serve as a strong deterrent to others in the future.  It is crucial that investors in the Middle District of Louisiana and across the country know that federal law enforcement will devote substantial resources to safeguard and protect a level playing field in the financial markets.  Once again, I appreciate the team of agents from FBI, Secret Service, and IRS-Criminal Investigation, along with the staff and prosecutors from my office, who devoted countless hours to this investigation and prosecution.”

Passing private information regarding stock transactions in the hopes that it will yield big returns for certain insiders is not savvy investing; it's criminal activity,” stated Thomas J. Holloman, III, IRS - Criminal Investigation Special Agent in Charge. "Today's sentence reinforces our commitment to every American that IRS – Criminal Investigation will work diligently to protect the assurances of market integrity that should be afforded to all investors.

Tara McLeese, Resident Agent in Charge of the Secret Service Baton Rouge office stated “The justice delivered in this case highlights a successful joint investigative effort undertaken by several agencies in the Baton Rouge area. The United States Secret Service will continue our relentless pursuit of those who seek to endanger the financial integrity of the United States for their own benefit and will continue to work in unison with our federal, state and local partners.”

FBI Special Agent-in-Charge Eric J. Rommal stated, “The FBI New Orleans Field Office will continue to work with our federal, state, and local partners to uphold the integrity of the nation’s securities and commodities markets.  The selfish, illegal, and unethical behavior of Kelly Liu will not be tolerated.  Corporate insiders like Kelly Liu, and her co-conspirators, Ho and Russo, who unjustly enrich themselves using material non-public information, will be held accountable for their actions.”

This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Baton Rouge offices of the FBI, Secret Service, and IRS-Criminal Investigation.  It is being prosecuted by Assistant United States Attorneys Chris Dippel and Patricia Jones.

United States Attorney Brandon J. Fremin announced today that U.S. District Judge Brian A. Jackson sentenced KENNETH TERRELL ROBERTSON, a/k/a “Terrell” and “K-Lo,” age 40, of Hattiesburg, Mississippi, to 108 months in federal prison following his conviction for conspiracy to distribute and possess with intent to distribute cocaine and cocaine base.  The Court further sentenced ROBERTSON to three years of supervised release following his term of imprisonment. Also, as a result of his conviction, ROBERTSON must forfeit to the United States all proceeds obtained as a result of his criminal conduct.

ROBERTSON was charged as a result of an extensive federal, state, and local investigation aimed at a drug trafficking network based in Ascension Parish and covering Louisiana, Texas, and Mississippi.  The drug trafficking organization, led by Arthur Johnson (“Johnson”), distributed multi-kilogram quantities of cocaine, crack cocaine, and heroin in and around Hattiesburg, Mississippi and Ascension Parish Louisiana.  Under the direction of Johnson, members of his criminal organization used public and private places as well as cellular telephones listed in the names of others to arrange and carry out the purchase and sale of cocaine, crack cocaine, and heroin.  ROBERTSON served as Johnson’s point of sales in Hattiesburg, Mississippi.  Johnson arranged for cocaine to be shipped from Ascension Parish to ROBERTSON in Hattiesburg.  After receiving the cocaine, ROBERTSON would store the cocaine and distribute it to other members of the organization for resale in and around Hattiesburg. 

U.S. Attorney Fremin stated, “This conviction is another step in dismantling a multi-state criminal organization that brings dangerous drugs to our neighborhoods.  This sentence should send a message to those who choose to profit from the dangerous drugs they peddle.  Our office will use all federal, state, and local resources available to remove such criminals from our streets.”

FBI Special Agent in Charge Eric Rommal stated, "Our main focus throughout this joint investigation was to identify, disrupt, and dismantle all echelons within Arthur Johnson’s drug enterprise.  This was a shining example of great teamwork and precision between our federal, state, and local partners, as well as our federal prosecutors in the U.S. Attorney’s Office.  The residents of Ascension Parish can rest assured their community is safer today now that Arthur Johnson and his lieutenant Kenneth Robertson are in prison."

The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program which was established in 1982 to mount a comprehensive attack against organized drug traffickers.  Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises.  The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations. 

This OCDETF operation was investigated by the FBI Baton Rouge Capitol Area Gang Task Force, which is an FBI Safe Street Task Force that includes the East Baton Rouge Sheriff’s Office and Baton Rouge Police Department, with assistance from the Ascension Parish Sheriff’s Office, the FBI Hattiesburg, Mississippi, Resident Agency, and Hattiesburg, Mississippi Police Department. This matter is being prosecuted by Assistant United States Attorneys Jamie A. Flowers, Jr., J. Brad Casey, and Demetrius Sumner.

United States Attorney Brandon J. Fremin announced that U.S. District Judge Brian A. Jackson sentenced DIANNA CARRINGTON, a.k.a. Deanna Collier, Dianna Collier, and Dee Blackburn, age 41, of Baton Rouge, Louisiana, to 22 months in federal prison following her conviction for wire fraud.  The Court further sentenced CARRINGTON to two years of supervised release following her term of imprisonment and ordered $235,869.52 in restitution to J.W. Grand Construction, Inc. (“J.W. Grand”).

In connection with her guilty plea, CARRINGTON, a former bookkeeper and office manager for J.W. Grand admitted to fraudulently diverting at least $235,869.52 from J.W. Grand’s business accounts to her personal checking and credit card account for her own personal use.  For example, CARRINGTON admitted to issuing a payment to a hardware and cabinets distributor located in Prairieville, Louisiana, which she falsely represented to be a payment for finish hardware that she, in fact, had not provided and for which said distributor had not submitted an invoice.  In fact, CARRINGTON diverted the fraudulent $13,187.48 payment to her personal credit card account.

U.S. Attorney Fremin stated, “Internal theft at any business is a serious problem that threatens the economic security of honest employees and business owners. We take seriously the threat this poses to our business community and the economic impact it has on hardworking families. It took hard work on the part of our prosecutors and the Secret Service to bring this fraudster to justice and I am very proud of their efforts.” 

Tara McLeese, Resident Agent in Charge of the Secret Service Office in Baton Rouge stated, “The U.S. Secret Service plays a pivotal role in securing the nation’s critical financial infrastructure. Today’s sentencing is one of many examples of the high priority our office places on protecting the financial security of businesses in our community.”

This matter is being investigated by the Baton Rouge Office of the U.S. Secret Service, and is being prosecuted by Assistant United States Attorney Demetrius Sumner. 

United States Attorney Brandon J. Fremin announced that U.S. District Judge John W. deGravelles sentenced ALEXANDRU-NICUSOR NITA, age 38, a Romanian national residing in New Orleans, Louisiana, to 24 months in federal prison following his conviction of conspiracy to commit bank fraud.  The Court also ordered restitution of $149,802.

According to admissions made as part of his guilty plea, NITA and a co-conspirator conspired with others to commit bank fraud.  NITA installed ATM skimming devices on ATM machines at several financial institutions around the Baton Rouge area, among other locations in Louisiana.  These ATM skimming devices captured the financial information of hundreds of customers using the ATM machines.  The stolen bank account information was subsequently encoded onto blank debit cards and gift cards.

NITA also installed overhead cameras on these ATM machines to capture the personal identification numbers (“PIN”) of the customers.  The debit cards and gift cards were used by others, in combination with the corresponding PIN access codes, to make unauthorized withdrawals from the victims’ bank accounts, including at financial institutions in the Baton Rouge area. 

U.S. Attorney Fremin stated, “The theft of personal financial information is a serious problem which threatens our citizens’ security.  Our office will prosecute these matters vigorously to protect innocent victims from this terrible crime. The efforts of our prosecutors, along with federal and local law enforcement, were invaluable in bringing these foreign nationals to justice.”

Tara McLeese, Resident Agent in Charge of the Secret Service Office in Baton Rouge stated, “This case was investigated by members of the United States Secret Service Financial Crimes Task Force.”

This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the U.S. Secret Service, East Baton Rouge Parish Sheriff’s Office, Financial Crimes Unit, Gonzales Police Department, and St. John the Baptist Sheriff’s Office.  The case is being prosecuted by Assistant United States Attorney Brad Casey.                      

United States Attorney Brandon J. Fremin announced today that U.S. Chief Judge Shelly D. Dick sentenced ADAM C. METEVIA, a 22 year-old resident of Baton Rouge, to 27 months in federal prison following his conviction of possessing a firearm and ammunition by a convicted felon.  The Court further sentenced METEVIA to 3 years of supervised release following his term of imprisonment and also ordered that the firearm and ammunition possessed by METEVIA be forfeited.

On November 14, 2017, Baton Rouge Police Department responded to a McDonalds near the corner of Scenic Hwy. and Harding Blvd. in Baton Rouge, Louisiana.  A complainant advised that METEVIA entered the McDonalds, walked behind the counter to the kitchen area, and raised up his shirt, exposing a handgun tucked into his waistband.  When the BRPD officers arrived at the McDonalds, they observed a male, later identified as METEVIA, matching the description of the suspect in possession of a large revolver.  Upon apprehension, officers retrieved the firearm and also discovered twenty-one rounds of .ammunition in his pockets.  METEVIA was previously convicted in East Baton Rouge Parish of possession of a Schedule II controlled substance, a felony.

U.S. Attorney Fremin stated, “Firearms in the hands of convicted felons will not be tolerated in this jurisdiction.  I want to thank my prosecutors, the ATF, and the Baton Rouge Police Department for bringing this defendant to justice.”

ATF Resident Agent-in-Charge Antonio L. Pittman stated, “The Bureau of Alcohol, Tobacco, Firearms and Explosives, along with our Federal, State, and Local Law enforcement partners continue to serve our communities by focusing our efforts on removing armed, violent offenders from our streets. We work diligently to protect our citizens by presenting relevant investigative work to our Middle District of Louisiana U.S. Attorney’s Office for federal prosecution.”

This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Baton Rouge Police Department.  The case is being prosecuted by Assistant United States Attorney Brad Casey.

United States Attorney Brandon J. Fremin announced today that U.S. Chief Judge Shelly D. Dick sentenced DEMARCUS FLEMING, a 38 year-old resident of Baton Rouge, to 115 months in federal prison following his conviction of possessing a firearm by a convicted felon.  The Court further sentenced FLEMING to 3 years of supervised release following his term of imprisonment and ordered that the firearm be forfeited.

On July 5, 2017, East Baton Rouge Parish Sheriff’s Deputies responded to a “disturbance with shots fired,” at a residence in Baton Rouge, Louisiana.  As they did so, the deputies, via their investigation, determined that FLEMING possessed the firearm which they located on the ground in front of the residence.   FLEMING was previously convicted in East Baton Rouge Parish of possession of cocaine and attempted possession of a firearm, felony offenses.  The Court stated in part for the reasoning, “The Court has an absolute obligation to protect the community and, based on your drug use and behavior in the past, it is not a stretch for the Court to find that you pose a serious risk to the public.”

U.S. Attorney Fremin stated, “Our office works hard to keep firearms out of the hands of convicted felons, and this is an example of what can be achieved when federal, state, and local agencies work together. I want to thank our prosecutors, the ATF, and the East Baton Rouge Sheriff’s Office for their efforts.”

ATF Resident Agent-in-Charge Antonio L. Pittman stated, “The Bureau of Alcohol, Tobacco, Firearms and Explosives, along with our Federal, State, and Local Law enforcement partners continue to serve our communities by focusing our efforts on removing armed violent offenders from our streets. We work diligently to protect our citizens by presenting relevant investigative work to our Middle District of Louisiana U.S. Attorney’s Office for federal prosecution. The arrest and prosecution of Mr. Fleming is one example of the great work we are doing in our district.”

“This indictment is one example of the collaboration of local, state and federal agencies to get dangerous criminals and weapons off our streets. The EBR Sheriff's Office is committed to continuing to work with all our law enforcement counterparts to ensure the safety of our residents.  I'm grateful to the U.S. Attorney's Office for their hard work and dedication in prosecuting these cases that our agents have worked so hard to develop,” stated EBR Sheriff Sid Gautreaux.

This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the East Baton Rouge Parish Sheriff’s Office.  The case is being prosecuted by Assistant United States Attorney Michael Jefferson.

United States Attorney Brandon J. Fremin announced that, U.S. District Judge Brian A. Jackson sentenced VICTOR ZELAYA-FUNEZ, age 38, a Honduran national residing in Zachary, Louisiana, to 185 months in federal prison following his convictions for sexual exploitation of a minor and possession of child pornography.  The Court further sentenced ZELAYA-FUNEZ to 5 years of supervised release following his term of imprisonment.  The Court also ordered that the electronic devices used to facilitate his crimes be forfeited.

Following a three-day trial in June of this year, a jury unanimously found ZELAYA-FUNEZ guilty of sexual exploitation of a minor and possession of child pornography.  The evidence at trial demonstrated that ZELAYA-FUNEZ possessed sexually explicit photos of the victim, and attempted to coerce the victim into creating additional sexually explicit videos and sending them to him.  In private messages he sent to the victim, ZELAYA-FUNEZ threatened to tell the victim’s parents about sexually explicit images of her which he possessed if she did not comply with his demands for additional sexually explicit material.  In other private messages, the defendant told the victim he cared for her and promised to provide her with various things of value in exchange for additional sexually explicit material.

United States Attorney Fremin stated, “This prosecution and sentence should send a strong message that we will go to great lengths to protect our communities from child predators and those who attempt to exploit children.  I am very proud of the hard work and collaboration by our partners at the Department of Homeland Security, the East Baton Rouge Sheriff’s Office and the East Baton Rouge District Attorney’s Office.”

This case is part of Project Safe Childhood, a nationwide initiative by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse.  Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines 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.

This investigation was conducted by the United States Department of Homeland Security, Homeland Security Investigations and Enforcement Removal Operations, and the East Baton Rouge Parish Sheriff’s Office, with assistance from the East Baton Rouge Parish District Attorney’s Office.  The matter was prosecuted by Assistant United States Attorney Rene I. Salomon, who serves as the office’s Chief of the Criminal Division and former Assistant United States Attorney Ryan Rezaei.

United States Attorney Brandon J. Fremin announced today that U.S. District Judge Brian A. Jackson sentenced ARTHUR JOHNSON, JR. a/k/a “Nelson Howard,” “Wood,” and “Dread,” age 42, of Gonzales, to 116 months in federal prison following his convictions of conspiracy to distribute and possession with intent to distribute cocaine, cocaine base, and heroin and unlawful use of a communications facility.  The Court further sentenced JOHNSON to5 years of supervised release following his term of imprisonment.  JOHNSON was also ordered to forfeit $109,000.

JOHNSON was charged as a result of an extensive federal, state, and local investigation aimed at a drug trafficking network based in Ascension Parish and covering Louisiana, Texas, and Mississippi.  The drug trafficking organization, led by JOHNSON, distributed multi-kilogram quantities of cocaine, crack cocaine, and heroin in and around Hattiesburg, Mississippi and Ascension Parish Louisiana. 

Throughout the period of the conspiracy, JOHNSON was the organizer and leader of a drug trafficking organization consisting of more than five participants.  Under JOHNSON’s leadership, JOHNSON’s drug trafficking organization was responsible for the distribution of multi-kilogram quantities of cocaine, crack cocaine, and heroin in and around Hattiesburg, Mississippi, and Ascension Parish, Louisiana.   JOHNSON used public and private places and cell telephones to arrange and carry out the exchange of cocaine, crack cocaine, heroin, and the proceeds from the sales thereof. 

U.S. Attorney Fremin stated, “This conviction and sentence highlights our commitment to working with state and local law enforcement to remove dangerous criminals from our streets. It will continue to be a top priority for our office to prosecute organized drug dealers and disrupt and dismantle their organizations.  I want to thank our prosecutors, the FBI Baton Rouge Area Gang Task Force, the East Baton Rouge Sheriff’s Office, the Ascension Parish Sheriff’s Department, and the Baton Rouge Police Department.”

FBI Special Agent in Charge Eric Rommal stated, “The reign and terror of Arthur Johnson and his fellow co-conspirators ended today due to the hard work and dedication of all federal, state, and local law enforcement agencies involved in this multi-state narcotics investigation.  Their tireless efforts led to the removal of large amounts of crack cocaine, cocaine, and heroin, from Ascension Parish and surrounding areas which prevented countless overdose deaths.”

The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program which was established in 1982 to mount a comprehensive attack against organized drug traffickers.  Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises.  The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations. 

This OCDETF operation was investigated by the FBI Baton Rouge Capitol Area Gang Task Force, which is an FBI Safe Street Task Force that includes the East Baton Rouge Sheriff’s Office and Baton Rouge Police Department, with assistance from the Ascension Parish Sheriff’s Office, the FBI Hattiesburg, Mississippi, Resident Agency, and Hattiesburg, Mississippi Police Department. This matter is being prosecuted by Assistant United States Attorney Jamie A. Flowers, Jr.

BATON ROUGE, LA – United States Attorney Brandon J. Fremin announced today that U.S. District Judge John W. deGravelles sentenced HENRY ALLEN FOWLER, age 52, of Florida, to 24 months in federal prison following his conviction for failing to register in Louisiana as a sex offender.  The Court also sentenced FOWLER to five years of supervised release following imprisonment. 

In 2004, FOWLER was convicted of a sexual offense in the State of Florida.  As a result of this conviction, FOWLER was classified as a Tier III sex offender, and was required to register as a convicted sex offender for life, which registration must be updated quarterly.  FOWLER last registered with the State of Ohio and indicated that he resided in Akron, Ohio.  FOWLER was due to update his registration in Ohio in March 2018, but failed to do so.  As a result of this failure, a State warrant was issued for FOWLER’s arrest in Ohio.

The defendant left Ohio and eventually moved to Baton Rouge, Louisiana.   Shortly thereafter, law enforcement officers conducted a routine traffic stop of a vehicle in which FOWLER was a passenger.  During this traffic stop, law enforcement officers learned that FOWLER had a warrant for his arrest from the State of Ohio.  At the time of this encounter, the defendant had been residing in Baton Rouge, Louisiana, but he had not updated his registration in Ohio or registered in Louisiana. 

U.S. Attorney Fremin stated, “We take seriously our obligation to make our communities safer and will not tolerate unregistered sex offenders crossing state lines and concealing prior criminal behavior in order to avoid their notification responsibilities. I want to thank our prosecutors and the United States Marshal Service for bringing this offender to justice.”

“The U.S. Marshals Service is committed to ensuring convicted sex offenders comply with their registration requirements and keeping our community safe.  As in this case, working together with all levels of law enforcement is a key component in that effort.  When offenders like Fowler travel across state lines and try to avoid registering, we will not stop searching for them until they are in handcuffs,” Acting United States Marshal Randy L. Breckwoldt stated.

 This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the United States Marshals Service with substantial assistance from the Baton Rouge Police Department.  It is being prosecuted by Assistant United States Attorney Jamie Flowers. 

BATON ROUGE, LA – United States Attorney Brandon J. Fremin announced that U.S. District Judge John W. deGravelles sentenced KATHERINE T. CANCIENNE, age 41, of Baton Rouge, Louisiana, to 28 months in federal prison following her conviction for wire fraud.    CANCIENNE was also ordered to pay $387,025.75 in restitution to Engineers & Constructors International, Inc. (“ECI”).

CANCIENNE, who formerly handled accounting matters at ECI, admitted in connection with her guilty plea, to executing a fraud scheme by, among other things, establishing a shell corporation and bank account under the name Cappo, LLC, which had a similar name to an actual ECI vendor.  The defendant admitted further to causing ECI to issue checks and make electronic wire payments to her shell corporation by creating and submitting false and fraudulent documents to ECI.  As a result of this scheme, the defendant obtained nearly $400,000.

U.S. Attorney Fremin stated, “My office will continue to aggressively pursue those who use their positions of trust and skill to steal from their employers.  Such betrayal often risks the financial livelihoods of their co-workers and may threaten the financial integrity of their employers.  I am proud of our prosecutors and the special agents from the United States Secret Service who worked on this very important matter.” 

Tara McLeese, Resident Agent in Charge of the Secret Service Office in Baton Rouge stated, “Since 1865, the United States Secret Service (USSS) has been tasked with protection of the nation's financial service infrastructure. Through aggressive investigation and collaboration with our partners in the United States Attorney’s Office, Agents in the Baton Rouge Resident Office were able to bring this case to a successful ending.  The Secret Service remains committed to addressing the financial crimes that victimize our country’s citizens and financial institutions.”

This matter is being investigated by the Baton Rouge Office of the U.S. Secret Service, and is being prosecuted by Assistant United States Attorney Pete Smyczek. 

BATON ROUGE, LA – United States Attorney Brandon J. Fremin announced that U.S. District Judge John W. deGravelles sentenced THANH TRAN, age 41, of Baton Rouge, Louisiana, to 40 months in federal prison for possession with intent to distribute marijuana, and an additional 24 months for a 2008 conviction for conspiracy to distribute MDMA from which he was on supervised release.

In September 2017, Baton Rouge Police Department (“BRPD”) narcotics detectives received information that TRAN was involved in the distribution of controlled substances.  On September 14, 2017, BRPD narcotics detectives conducted surveillance of TRAN at an apartment complex in Baton Rouge.  They observed TRAN place two large black trash bags in the back of his BMW SUV and then drive away.  When TRAN began driving erratically, the BRPD officers conducted a traffic stop in the 11300 block of Archery Drive in Baton Rouge. 

TRAN told the BRPD officers that he had 15 lbs. of marijuana in his vehicle.  When the officers searched the BMW SUV, they found approximately 30 lbs. of suspected marijuana and about $10,000 cash in the vehicle.  The officers also found approximately $5,000 cash in TRAN’s pockets.

At the time of his arrest, TRAN was on supervised release from a previous federal conviction of conspiracy to distribute MDMA.

U. S. Attorney Fremin stated, “This prosecution is part of this office’s fight against habitual drug dealers and our efforts to keep our community free from illegal drugs. I congratulate our prosecutors, the Drug Enforcement Administration, and the Baton Rouge Police Department for their successful investigation and prosecution.”

This matter was investigated by the Drug Enforcement Administration and the Baton Rouge Police Department.  The case is being prosecuted by Assistant United States Attorney Brad Casey.

WASHINGTON – A Baton Rouge, Louisiana-based physician’s assistant pleaded guilty today for his role in a scheme to unlawfully distribute thousands of oxycodone pills.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Brandon J. Fremin of the Middle District of Louisiana, Special Agent in Charge Stephen G. Azzam of the U.S. Drug Enforcement Administration (DEA)’s New Orleans Field Division, 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 Field Office and Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office made the announcement. 

Christopher William Armstrong, 44, of Prairieville, Louisiana, was charged in a June indictment with conspiracy to distribute oxycodone, a Schedule II controlled substance.  Armstrong pleaded guilty before U.S. District Judge John W. deGravelles of the Middle District of Louisiana, who accepted his plea today. 

“Christopher Armstrong abused his position as a licensed physician’s assistant to create fraudulent prescriptions for over 40,000 medically unnecessary oxycodone pills,” said Assistant Attorney General Benczkowski.  “The Department of Justice will continue to combat the opioid crisis by holding to account corrupt medical professionals who distribute illegal prescription opioids for profit.”

 “This conviction is a signal to medical professionals not to abuse your position and put our community at risk,” said U.S. Attorney Fremin.  “We will not tolerate unscrupulous health care workers increasing the supply of unauthorized prescription drugs on our streets.  I want to thank our prosecutors, the Department of Justice’s Medicare Fraud Strike Force, DEA, HHS-OIG, and FBI for their important work on this case.”

According to admissions made as part of his plea agreement, Armstrong was a licensed physician’s assistant employed by Louisiana Spine & Sports LLC, a pain management clinic located in Baton Rouge, from approximately August 2004 through January 2014.  Armstrong admitted that he logged into the clinic’s computer system and, without authorization, created fraudulent prescriptions for controlled substances such as oxycodone.  He then printed the fraudulent prescriptions and either forged the signatures of the clinic’s physicians on the prescriptions or caused those physicians to unknowingly sign the prescriptions.  Armstrong further admitted that he distributed the fraudulent prescriptions to co-conspirators, who he instructed to fill the prescriptions at pharmacies and return the controlled substances to him in return for cash payments.  Armstrong admitted that in an effort to conceal the scheme, he deleted records of the fraudulent prescriptions from the clinic’s computer system.  As part of his plea, Armstrong admitted that from approximately May 2009 through March 2014, he fraudulently generated prescriptions for at least 40,470 oxycodone pills. 

DEA, HHS-OIG, and FBI investigated the case.  The investigation was further developed by the East Baton Rouge District Attorney’s Office.  Trial Attorneys Katherine Payerle and Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Demetrius D. Sumner of the Middle District of Louisiana are prosecuting the case.   

The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.

BATON ROUGE - U.S. Attorney Brandon J. Fremin announced today that GERSON GARCIA-VILLANEUVA, age 19, of Honduras, pled guilty for his role in transporting illegal aliens. 

On August 21, 2018, U.S. Border Patrol Agents conducted a traffic stop in Baton Rouge, Louisiana, of a van driven by GARCIA-VILLANEUVA.  GARCIA-VILLANEUVA admitted that he, as is a citizen of Honduras, was knowingly present in the United States illegally.  He further explained that he was paid to transport eight illegal aliens from various Latin American countries from Houston, Texas to New Orleans, Louisiana.

U.S. Attorney Brandon J. Fremin stated, “The enforcement of our border and immigration laws is a top priority for our office. This plea is yet another step in the fight against illegal immigration and those who enable it. I want to thank our prosecutors and the United States Border Patrol for their efforts in this important matter.”

“This case highlights the superlative work done by Border Patrol Agents, Homeland Security Investigations, and the US Attorney’s Office as we work together to enhance border security in the Gulf Coast Region by disrupting and destroying smuggling operations which cause irreparable harm to our nation,” stated Chief Patrol Agent Gregory K. Bovino, New Orleans Border Patrol Sector.

This matter is being investigated by the U.S. Immigration and Customs Enforcement, and is being prosecuted by Assistant United States Attorney Fred Menner.

BATON ROUGE, LA – United States Attorney Brandon J. Fremin announced today that U.S. District Judge John W. deGravelles sentenced KRISTIAN H. JAMES, age 31, of Gonzales, Louisiana, to 24 months in federal prison following her conviction for theft of government funds.  The Court also sentenced JAMES to 2 years of supervised release following imprisonment and ordered restitution of $141,458.

Between October 2010 and December 2014, JAMES knowingly allowed her social security number to be used in a large scheme to fraudulently obtain financial aid from the United States Department of Education.  During this period, JAMES also stole personal information of unknowing victims whose information was then used by co-conspirators as part of the aforementioned fraud scheme.  In announcing the sentence, Judge deGravelles highlighted the impact that JAMES’ conduct had on the identity theft victims, and, in particular, one who detailed for the Court the numerous problems she has encountered and continues to encounter as a result of JAMES stealing her identity.

U.S. Attorney Fremin stated, “This conviction and sentence highlight that prosecuting fraudsters and identity thieves will remain a priority of this office. The cowardly act of using personal identifying information of unassuming victims will not go unchecked on our watch. I'm grateful for the hard work of our prosecutors and the investigative work and support provided by the US Department of Education - OIG whose efforts were essential in obtaining justice in this case."

This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the U.S. Department of Education – OIG.   It is being prosecuted by Assistant United States Attorney Paul Pugliese. 

BATON ROUGE, LA – United States Attorney Brandon J. Fremin announced today that GRAY WESLEY BARROW, age 58, of Baton Rouge, Louisiana, pled guilty for his role in a scheme to receive approximately $336,000 in illegal health care kickback payments.  As a result of his conviction, BARROW faces a significant term of imprisonment, restitution and fines, and a period of supervised release.

BARROW was a co-owner of Louisiana Spine & Sports LLC, a pain management clinic located in Baton Rouge.  According to plea documents, the charge stems from BARROW’s role in agreeing to send urine specimens collected from his patients to a drug testing laboratory in return for a percentage of the reimbursements paid to the laboratory by health care benefit programs, including Medicare.  In a hearing before U.S. District Judge Brian A. Jackson, BARROW admitted that from approximately April 2014 through July 2016, he sent specimens collected from his patients to the drug testing laboratory and received approximately $336,000 in disbursements from the laboratory associated with testing for Medicare beneficiaries. 

U.S. Attorney Fremin stated, “This plea is a product of the hard work our office, in coordination with the Department of Justice Fraud Division, Health and Human Services-Office of Inspector General, and the Federal Bureau of Investigation have put in to bring Medicare Fraud participants to Justice.  It is especially egregious when medical doctors violate their position of trust in the community and the Medicare system to enrich themselves.  I want to thank the Department of Justice Fraud Division, the FBI, and Health and Human Services - Office of Inspector General for their efforts in this case.”

“Any time greed replaces medical judgment as the motivating factor behind medical procedures, our country’s citizens and health insurance programs suffer,” said Special Agent in Charge C.J. Porter of the United States Department of Health and Human Services - Office of Inspector General’s Dallas Regional Office.  “This office will continue the important mission of protecting the financial integrity of our nation’s health care systems and ensuring that medical providers are rendering legitimate medical services, and will identify and bring to justice those who deliberately manipulate federally funded health insurance programs to obtain Medicare or Medicaid dollars to which they are not entitled.”

Eric J. Rommal, Special Agent in Charge of the New Orleans Division of the Federal Bureau of Investigation, stated, “The Federal Bureau of Investigation continues to be dedicated to eliminating health care fraud in Louisiana and nationwide.  This case serves as a testament to the tenacity and perseverance of Agents of not only the FBI, but also our partners in the Department of Health and Human Services - Office of the Inspector General, when investigating a complex and long-term fraud scheme.  It is our hope that this case will serve as a lesson to medical professionals everywhere that those committing health care fraud in any capacity will be thoroughly investigated and recommended for prosecution.”

The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in 14 cities across the country, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.

This matter is being handled by the Justice Department’s Criminal Division, U.S. Attorney’s Office for the Middle District of Louisiana, the U.S. Department of Health and Human Services - Office of Inspector General’s (HHS-OIG) Dallas Field Office, and the Federal Bureau of Investigation.  The case is being prosecuted by Assistant Chief Dustin M. Davis and Trial Attorney Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Elizabeth E. White.

United States Attorney Brandon J. Fremin announced yesterday the sentencing of a Mandeville investment adviser who stole more than $1.1 million from elderly investors in a widespread investment fraud scheme.

On November 13, 2018, RALPH WILLARD SAVOIE, age 71, of Mandeville, Louisiana, was sentenced by U.S. District Judge Shelly D. Dick.  SAVOIE had previously been convicted of wire fraud.  As a result of his conviction, SAVOIE was sentenced to a term of 168 months imprisonment, restitution to victims in the amount of $1,143,965, forfeiture of $1,134,070, and a 3 year term of supervised release following imprisonment.  Savoie was immediately remanded to the custody of the Bureau of Prisons to begin his 168 month sentence of imprisonment.

As SAVOIE acknowledged in court during his guilty plea and at his sentencing hearing, from in or about January 2013 through at least March 2016, he executed a scheme to defraud victim investors by means of materially false and fraudulent pretenses, promises, and representations.  SAVOIE told his victim investors that he would invest their funds in securities and insurance, and described the investment opportunities as a “sure thing.”  SAVOIE also guaranteed the victim investors high rates of return.  However, instead of investing the funds as promised, SAVOIE spent the victim investor funds on jewelry, hotels, and restaurants, and withdrew the funds in cash.  SAVOIE also used victim investor funds to pay his credit card bills and rent and to pay off other victim investors who had previously invested their money with him.

Towards the end of SAVOIE’s fraudulent scheme, a victim investor confronted SAVOIE about his investment.  SAVOIE admitted to the victim investor that what he did with the victim investor’s money was illegal.  Despite admitting his criminal conduct, SAVOIE later told the victim investor that he would never see his money returned if he reported the matter to law enforcement.  SAVOIE also concealed from victim investors that the Financial Industry Regulatory Authority, an organization dedicated to market integrity and investor protection, had barred him from acting as a broker or otherwise associating with firms that sell securities to the public.  During his guilty plea, SAVOIE admitted that he stole up to $1.5 million from investors.

U.S. Attorney Fremin stated, “This conviction and sentence sends a loud and clear message – those who abuse their fiduciary responsibilities and take advantage of the elderly in this district will face the full might of the federal government. We will not tolerate corrupt professionals who abuse positions of trust and exploit vulnerable individuals simply to enrich themselves.  I greatly appreciate the efforts of our prosecutors and the agents with IRS-CI, the Louisiana Office of Financial Institutions, and the Louisiana Bureau of Investigation who collaborated on this very important matter.”

IRS-CI Acting Assistant Special Agent In Charge Demetrius Hardeman stated, “Trust in the fair and equitable operation of our financial markets is the foundation of a free economy.  Ralph Savoie received the court’s punishment for his abuse of honest investors seeking to leverage the market, and must now spend the next 14 years in prison paying for his wrongdoings.  The Special Agents of IRS-CI are proud of the work we have done in this investigation, and will continue our efforts toward maintain the integrity of the country’s financial markets.”   

This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Internal Revenue Service Criminal Investigation Division, with the assistance of the Louisiana Office of Financial Institutions and the Louisiana Bureau of Investigation, a section of the Louisiana Department of Justice.  It is being prosecuted by Assistant United States Attorney Rene Salomon, who also serves as the Chief of the Criminal Division.