Middle District of Louisiana

BATON ROUGE, LA - United States Attorney Walt Green announced yet another conviction arising from Operation Goldy Locks, an extensive investigation into a multi-state heroin enterprise. 

EFRAIN BARAJAS, age 27, of Hesperia, California, pled guilty yesterday to conspiracy to distribute and possess with intent to distribute heroin, in violation of Title 18, United States Code, Section 846, as contained in an Indictment filed in October 2015.  At the conclusion of the hearing, the Court accepted BARAJAS’ guilty plea, returned him to the custody of the United States Marshal, and scheduled the sentencing hearing for October 13, 2016.

During his guilty plea hearing before Chief U.S. District Judge Brian A. Jackson, BARAJAS admitted the following facts.  Between January 1, 2014, and February 18, 2015, BARAJAS conspired with individuals in California and Louisiana to distribute thousands of pills pressed to resemble oxycodone that, in fact, contained heroin. Upon delivery of the pills to Baton Rouge from California, they were then distributed to mid-level drug dealers and drug abusers in East Baton Rouge and Livingston Parishes. BARAJAS admitted that during the period of the conspiracy, he transported over 30,000 pills containing heroin from California to Baton Rouge and delivered the pills to a significant heroin trafficker in Baton Rouge for further distribution. Barajas then transported significant sums of cash as payment for the heroin to a major heroin trafficker in California. BARAJAS was identified as part of a substantial heroin-trafficking and money-laundering conspiracy investigation that resulted in the indictment of BARAJAS and 10 other defendants.

U.S. Attorney Green stated: “My office, together with the DEA and our other federal, state, and local partners, will continue to aggressively pursue those responsible for distributing heroin and other dangerous drugs on our streets and in our neighborhoods.   We should not be fooled about the impact of such crimes.  The consequences are not only devastating to our communities generally, they are increasingly deadly.”

Stephen G. Azzam, Special Agent-in-Charge of the New Orleans Field Division of the U.S. Drug Enforcement Administration stated: “Heroin has become an epidemic in the greater Baton Rouge area and DEA is attacking the criminals who prey on the weak and addicted through their drug trafficking. This investigation targeted a pill form of heroin disguised as oxycodone. This type of heroin, as well as heroin laced with fentanyl, is growing in popularity across the country. As a result, the number of overdoses from this deadly drug is growing nationally, too. Because of persistent and collaborative efforts of multiple law enforcement agencies in the area, a major supplier of heroin to this region of Louisiana is out of business.”

The investigation was conducted by the U.S. Drug Enforcement Administration’s Tactical Diversion Squad and the Internal Revenue Service’s Criminal Investigation Division, with assistance from the Louisiana State Police, East Baton Rouge Parish Sheriff’s Office, Iberville Parish Sheriff’s Office, and Baton Rouge Police Department.  The case is being prosecuted by Assistant United States Attorney Paul L. Pugliese.

BATON ROUGE, LA –United States Attorney Walt Green announced that QUENTRELL D. FOUNTAIN, age 28, of Baton Rouge, Louisiana, was sentenced to serve 13 years in federal prison for discharging a firearm during the commission of a crime of violence (obstruction of justice).  Specifically, the defendant was sentenced yesterday by U.S. District Court Judge John W. deGravelles to a 156-month term of imprisonment, which will be followed by a five (5) year term of supervised release.  FOUNTAIN was also ordered to make restitution to his victim, to pay a $100 special assessment, and to forfeit the firearm and any other property used in his crime.

The sentence is a result of FOUNTAIN’s efforts to prevent law enforcement from learning about his possession of a firearm as a convicted felon, a federal crime.  Specifically, on December 3, 2015, FOUNTAIN was convicted of discharging a firearm during the commission of a crime of violence (obstruction of justice), in violation of Title 18, United States Code, Section 924(c)(1)(A)(iii).  

FOUNTAIN’s conviction arose from a series of events in January 2014.   As FOUNTAIN admitted during his guilty plea, on January 8, 2014, he beat and threatened the victim, a former girlfriend, with a firearm, telling her that he was going to kill her.  At the time, FOUNTAIN was a convicted felon prohibited from possessing a firearm, by virtue of a 2006 conviction for simple robbery.  After law enforcement learned of the incident and began an investigation, the defendant threatened the victim again by phone, on several occasions.  Then, on January 11, 2014, at approximately 3:20 a.m., FOUNTAIN drove to the victim’s home and fired multiple gunshots in the vicinity of the victim’s home, while the victim and her child were inside.  

U.S. Attorney Green stated: “The protection of victims and witnesses is a top priority of this office.   As this case illustrates, we will aggressively pursue anyone who attempts to harm or intimidate a victim or witness as a result of conveying information about a possible federal crime to law enforcement.”

This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Baton Rouge City Police, and the Port Allen City Police.  It is being prosecuted by Assistant United States Attorneys Kevin Sanchez, M. Patricia Jones, and Fred Menner.

BATON ROUGE, LA – BARBARA A. SADLER, age 63, of Zachary, Louisiana, and SEDRIC C. BLAKES, age 42, of Zachary, Louisiana, have been sentenced to federal prison arising out of their convictions in a multi-million dollar scheme to defraud the Louisiana Medicaid program through Extraordinary Care Network, Inc. (“Extraordinary”), an attendant care services company that SADLER and BLAKES owned and operated.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Walt Green of the Middle District of Louisiana, Special Agent in Charge CJ Porter of the Dallas Region of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG), Special Agent in Charge Jeff Sallet of the FBI’s New Orleans Division and Louisiana State Attorney General Jeff Landry made the announcement.

SADLER and BLAKES were previously charged by a federal grand jury, in a Superseding Indictment returned on June 25, 2015, with conspiring with others to commit healthcare fraud and wire fraud, in violation of Title 18, United States Code, Section 1349.  The Superseding Indictment also included a forfeiture allegation requiring SADLER and BLAKES to forfeit the proceeds of their fraud if convicted.  In connection with their guilty pleas previously entered before Chief U.S. District Judge Brian A. Jackson, both defendants admitted that they engaged in a multi-year scheme to defraud Medicaid, through the health care company that they owned and operated.  SADLER admitted that she and others submitted fraudulent claims to Medicaid in which they falsely represented that Extraordinary Care had provided one-on-one attendant care services, when in fact such services had not been provided as represented.  In furtherance of the scheme, SADLER admitted that she and her co-conspirators would fabricate progress notes, forge the signatures of unwitting company employees, and then use such documents as support for fraudulent claims to Medicaid for reimbursement.  In her written plea agreement, SADLER admitted that the scheme caused a loss of more than $1 million.  BLAKES also admitted that he, too, participated in the scheme and that he would fabricate progress notes and forge signatures of other employees in support of his and SADLER’s false claims.

At today’s sentencing, SADLER was sentenced to serve 44 months in federal prison, and BLAKES was sentenced to serve 36 months in prison.  The defendants were ordered to make restitution in the amount of $1,200,000 to the Louisiana Department of Health and Hospitals.  SADLER and BLAKES were each ordered to forfeit an additional $1,200,000 as the proceeds of their criminal activity.  Finally, following their releases from prison, each defendant will be required to serve a 3-year term of supervised release.

U.S. Attorney Green stated: “Today’s sentences should serve as strong reminders of our strong commitment to combatting health care fraud in this district.  Our office’s partnerships with the U.S. Department of Justice’s Criminal Fraud Section and the Louisiana Medicaid Fraud Control Unit continue to root out fraud and wrongdoing, and we will continue to aggressively pursue those who steal from the Medicare and Medicaid programs.”

FBI Special Agent in Charge Jeff Sallet said, “In close coordination with our state and federal partners, the New Orleans Division of the FBI will continue to work tirelessly in an effort to identify and pursue any individual or entity who would use fraud and deceit to steal taxpayer funds from the Medicare and Medicaid programs.”

Louisiana Attorney General Jeff Landry added, “It is unfortunate that there are people who defraud a program that was created to help those in need. I am proud of my Medicaid Fraud Control Unit for their assist on this investigation. My office is committed to protecting taxpayer money by prosecuting those who take advantage of the Medicaid system.”

This ongoing matter is being investigated by the Federal Bureau of Investigation (FBI) and the Medicaid Fraud Control Unit of the Louisiana State Attorney General’s Office (MFCU), and is being brought as part of the Medicare Fraud Strike Force, under the supervision of the United States Attorney’s Office and the Fraud Section of the Criminal Division of the U.S. Department of Justice.  This case is being prosecuted by DOJ Trial Attorney Dustin M. Davis, current DOJ Trial Attorney and former Assistant U.S. Attorney Shubhra Shivpuri, and Assistant U.S. Attorney J. Brad Casey.

BATON ROUGE, LA – United States Attorney Walt Green of the Middle District of Louisiana announced today the unsealing of a federal grand jury indictment against five members of a heroin trafficking network operating in the St. Roch neighborhood of New Orleans.  As detailed below, the indictment charges the defendants with serious drug trafficking offenses. 

• Miguel L. Joseph, also known as “Pretty,” age 29, of New Orleans, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute heroin; distribution of heroin; unlawful use of a communications facility; and forfeiture. 

• Edward Lawrence, also known as “Burger,” age 32, of New Orleans, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute heroin; distribution of heroin; unlawful use of a communications facility; and forfeiture.

• Vantrell Toomer, age 44, of Houston, Texas, and New Orleans, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute heroin; possession with intent to distribute heroin; and forfeiture.

• Michelle Marie Jefferson, age 31, of New Orleans, Louisiana, is charged with charged with conspiracy to distribute and possess with the intent to distribute heroin; unlawful use of a communications facility; and forfeiture.

• Danielle Denise Taylor, age 42, of New Orleans, Louisiana, is charged with charged with conspiracy to distribute and possess with the intent to distribute heroin; and forfeiture.

United States Attorney Green stated:  “Our office, together with the FBI and our other federal, state, and local law enforcement partners, will aggressively pursue those who contribute to the heroin epidemic raging across our communities and country.  I greatly appreciate the dedication of the agents and prosecutors working on this important matter.”

FBI New Orleans Division Special Agent-in-Charge Jeff Sallet stated: “The FBI and the people of New Orleans will not tolerate the scourge of gang activity including narcotics distribution and violence which accompanies this behavior.  The New Orleans Gang Task Force is committed to bringing those involved in this illegal behavior to justice and dismantling criminal organizations we encounter during the course of our investigations.”

This matter is being investigated by the FBI New Orleans Division's Gang Task Force, with the assistance of the New Orleans Police Department, the St. Tammany Parish Sheriff's Office, the Jefferson Parish Sheriff's Office, and the Orleans Parish District Attorney's Office.  This matter is being prosecuted by Assistant United States Attorneys Cam T. Le and Ryan Rezaei of the Middle District of Louisiana, who are serving as Special Attorneys to the United States Attorney General. 

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

BATON ROUGE, LA - United States Attorney Walt Green announced today that two more defendants have been convicted in Operation Goldy Locks for their roles in a multi-state heroin ring which involved disguising heroin as oxycodone pills in order to maximize profits.  Both defendants remain in custody and are scheduled to be sentenced on September 1, 2016.  A total of eleven (11) defendants were indicted in this matter.  Five (5) defendants have been convicted thus far. 

On May 18, 2016, JUSTIN R. SCOTT, age 32, of Baton Rouge, Louisiana, pled guilty before Chief U.S. District Judge Brian A. Jackson to conspiring to distribute and possess with intent to distribute heroin, in violation of Title 21, United States Code, Section 846.  Scott admitted that, between January 1, 2014, and February 18, 2015, he conspired with individuals in California and Louisiana to distribute thousands of heroin pills that had been pressed to resemble oxycodone.  Once delivered to Baton Rouge from California, the pills were distributed to mid-level drug dealers and ultimately sold to drug abusers in East Baton Rouge and Livingston Parishes.  Scott admitted to knowing that the pills contained heroin and that he intended to sell and profit from the sale of significant amounts of heroin.

On May 18, 2016, KEENAN HARRIS, JR., age 36, of Denham Springs, Louisiana, pled guilty before Chief Judge Jackson to distributing heroin, in violation of Title 21, United States Code, Section 841.  Specifically, he admitted to re-distributing over 500 heroin pills on October 14, 2014, which he had received from Scott and which had been pressed to resemble oxycodone.

U.S. Attorney Green stated: “This case illustrates one of the many dangers associated with the use of any illegal drugs, namely, the inability of the user to know for sure what is contained in the drugs purchased.  This danger can indeed be fatal.  I am grateful for the hard work of the DEA, the prosecutor from my office, and the many federal, state, and local law enforcement agencies who collectively pursued this criminal organization.” 

Eric L. Watson, the Acting Assistant Special Agent-in-Charge of the New Orleans Field Division of the U.S. Drug Enforcement Administration stated:  “By removing these criminals from the streets of Louisiana, they can no longer distribute this toxic poison to our communities.  Through remarkable partnerships with state, federal and local law enforcement, we are making major progress in preventing heroin trafficking from taking hold in our communities.  This investigation is a compelling example of that success."

This matter was investigated by the U.S. Drug Enforcement Administration’s Tactical Diversion Squad in the Baton Rouge Office and the Internal Revenue Service - Criminal Investigation Division, with assistance from the Louisiana State Police, East Baton Rouge Parish Sheriff’s Office, Iberville Parish Sheriff’s Office, and Baton Rouge Police Department.  The case is being prosecuted by Assistant United States Attorney Paul L. Pugliese.

BATON ROUGE, LA - United States Attorney Walt Green announced today that JACOBO GARCIA, age 28, of Ft. Meyers, Florida, pled guilty before U.S. District Judge Shelly D. Dick to conspiring to possess with the intent to distribute over five kilograms of cocaine.  Following his conviction, GARCIA was remanded into the custody of the U.S. Marshal’s Service.  A sentencing hearing has not yet been scheduled.

During his guilty plea hearing, GARCIA admitted that, on February 29, 2016, Baton Rouge Police Officers found 5.7 kilograms of cocaine hidden in the gas tank of GARCIA’s vehicle.  The cocaine was packaged in fifteen (15) vaccum sealed bags.  GARCIA admitted that he and a passenger had picked up the aforementioned cocaine in Houston, Texas. 

U.S. Attorney Green stated: “This case is yet another example of the drug pipeline that runs through and into our district.  We will continue to work aggressively with the DEA, the Baton Rogue Police Department, and our many other federal, state, and local law enforcement partners to fight this menace.” 

This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the U.S. Drug Enforcement Administration, and the Baton Rouge Police Department.  The case is being prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.

BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned an indictment charging CHRISTOPHER G. YOUNG, age 53, of Baton Rouge, Louisiana, with distribution of child pornography and possession of child pornography. 

According to the Indictment, YOUNG was the part-owner of a hotel in the country of Costa Rica, where he traveled frequently for business and leisure.  YOUNG allegedly received two videos depicting prepubescent boys engaging in bestiality from an associate in Costa Rica.  From 2013 through 2015, YOUNG allegedly distributed the child pornography videos to approximately 38 different individuals, on 33 separate occasions, through his smart phones. 

The case is being investigated by the Federal Bureau of Investigation.  This matter is being prosecuted by Assistant United States Attorneys Cam T. Le and René I. Salomon.

NOTE: An indictment is an accusation by the 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 Walt Green announced today that LORRIE LYNN ROGERSON, age 57, of Baton Rouge, Louisiana, has pled guilty before U.S. District Judge John W. deGravelles to engaging in a wire fraud scheme to defraud the Pediatric Surgery of Louisiana (“PSL”), a group of Baton Rouge physicians who specialize in surgery on children.  As a result of the scheme, Rogerson embezzled approximately $430,490 from PSL.  The sentencing date has not yet been set.

PSL employed Rogerson to act as their office manager.  Rogerson was responsible for PSL’s payroll, accounts receivable, accounts payable, and human resources.  In her role, Rogerson enjoyed access to the bank accounts of PSL for the purpose of making deposits to, and paying bills from, the PSL bank account.  Rogerson was entrusted with the authority and responsibility to manage PSL’s banking affairs.  Rogerson had access to all accounts and was familiar with PSL’s account information.

In April 2015, a review of PSL financial records discovered that Rogerson had accessed PSL’s bank account to make unauthorized withdrawals and transfers for her personal benefit.  Between May 2008 and May 2015, Rogerson caused unauthorized electronic withdrawals to be made from the PSL bank account for the purpose of paying Rogerson’s credit cards.  Rogerson also issued numerous, unauthorized PSL checks for her benefit, and mischaracterized said checks in the accounting software as business expenses. 

Rogerson embezzled funds on approximately 256 occasions during the period of May 2008 and May 2015.  In order to execute the scheme to defraud on January 5, 2015, Rogerson used internet services to divert funds from a PSL bank account for the purpose of paying her personal credit card bills.

U.S. Attorney Green stated: “Insider fraud continues to be one of the biggest threats facing our business community.  Together with the FBI and our other federal, state, and local partners, we will continue to aggressively meet and pursue this threat through federal criminal investigations and prosecutions.  We commend the victim, PSL, for its cooperation and assistance in this matter.”   

FBI Special Agent-In-Charge Jeffrey S. Sallet stated: “This case is yet another example of the FBI’s commitment to work with our partners at the United States Attorney’s Office to investigate and prosecute individuals who willingly violate the law in order to personally enrich themselves at the expense of others.”

This matter is being prosecuted by the United States Attorney’s Office for the Middle District of Louisiana.  The investigation has been conducted by the Baton Rouge Resident Office of the Federal Bureau of Investigation, with substantial assistance provided by the victim, PSL and their accountants.  The matter is being prosecuted by Assistant United States Attorney René Salomon.

BATON ROUGE, LA - United States Attorney Walt Green announced today that U.S. District Judge John W. deGravelles sentenced JOHN WESLEY HOAG, age 52, of Ft. Lauderdale, Florida, to fifty (50) months in federal prison for his scheme to sell illegal and mislabelled diet pills to victims throughout the United States, including Louisiana.  HOAG was ordered to serve a two year term of supervised release following his release from imprisonment.  HOAG was also ordered to pay a fine of $7,500 and to forfeit all property traceable to the gross proceeds of the scheme, including but not limited to $679,116.33. 

At the conclusion of the sentencing, the Court ordered HOAG to begin serving his sentence immediately and remanded HOAG to the custody of the United States Marshal.

On July 29, 2015, HOAG pled guilty to engaging in a conspiracy to distribute and possess with the intent to distribute sibutramine, in violation of Title 21, United States Code, Sections 846 and 2, and introducing misbranded drugs into interstate commerce, in violation of Title 21, United States Code, Sections 331(a) and 2.  This conduct was part of a multi-state scheme to illegally distribute diet pills containing sibutramine, a Schedule IV controlled substance, which were falsely labeled and marketed as “all natural” dietary supplements. Sibutramine was the active pharmaceutical ingredient in Meridia, a prescription weight loss drug removed from the market in 2010 following studies that showed significantly increased risk of strokes and heart attacks.  Since the removal of Meridia, no drug containing sibutramine has been approved for use in humans in the United States. 

In a related case, on March 22, 2016, following a seven-day trial, a federal jury convicted DARLENE V. KRUEGER, age 54, of Destrehan, Louisiana, on three counts of distribution of sibutramine and three counts of introduction of misbranded drugs into interstate commerce.  The sentencing date has not yet been set.         

U.S. Attorney Green stated:  “Today’s sentence sends a strong message to the community that my office and our law enforcement partners take the distribution of illegal drugs, in all forms, extremely seriously.  Those who peddle illegal substances in this district for profit will face stiff penalties, regardless of whether they peddle those drugs on our street corners or over the internet.  I want to express my sincere gratitude to the dedicated law enforcement agents and the prosecution team who investigated and prosecuted this complex case and dismantled this defendant’s drug distribution ring.”

“Consumers are put at serious risk when they are unknowingly exposed to undeclared active pharmaceutical ingredients in products falsely labeled as natural dietary supplements,” said Robert J. West, Special Agent-in-Charge, Miami Field Office, FDA Office of Criminal Investigations. “Our office will continue to defend the public’s health by ensuring that dietary supplements are accurately labeled, and do not contain dangerous undeclared active pharmaceutical ingredients.”

This matter was handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the U.S. Food and Drug Administration’s Office of Criminal Investigations, with the assistance from other FDA components; the Louisiana State Police; the Drug Enforcement Administration; the Slidell, Louisiana, Police Department; and the Ft. Lauderdale, Florida, Police Department.  The matter was prosecuted by Assistant United States Attorneys Cam T. Le and Paul L. Pugliese.

Health care professionals and patients are encouraged to report adverse events or side effects related to the use of these products to the FDA.  For more information regarding dietary supplements and to report adverse events, please visit the FDA’s website at http://www.fda.gov/Food/DietarySupplements/.

BATON ROUGE, LA –United States Attorney Walt Green announced that Michel Keith Lands, age 42, of Baton Rouge, Louisiana, has been sentenced to a total of 125 months in federal prison as a result of possessing a firearm while a convicted felon and violating the terms of his supervised release.

In the early hours of November 14, 2014, Baton Rouge City Police (BRPD) was called to a home on Byron Street.  The caller told police that Lands had a gun, had fired a shot, and was attempting to kill the occupants of the home.  After a struggle, BRPD apprehended Lands and recovered two spent .40 caliber shell casings and recovered one expended bullet slug all from inside the house.   The BRPD also recovered a .40 caliber semi-automatic pistol with four live .40 caliber rounds in the magazine.  Lands had previously been convicted of federal and state felony offenses which prohibited him from ever possessing any type of firearm. 

Based on the November 2014 incident, Lands was indicted and convicted of being a felon in possession of a firearm.  Senior U.S. District Court Judge James J. Brady today sentenced Lands to 110 months imprisonment.  Also, because Lands was on federal supervised release at the time of the November 2014 incident, the Court found that Lands violated the terms of his supervised release and sentenced him to an additional 15 months in federal prison for the violation. 

U.S. Attorney Walt Green stated:  “This is another example of the danger posed by felons with guns.  Keeping our communities safe from such criminals will continue to be one of my office’s highest priorities.”

This matter was prosecuted by Assistant United States Attorney Lyman E. Thornton III and investigated by the Baton Rouge Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).

BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned an indictment against NATHIAN D. HOSSLEY, age 50, of Baton Rouge, Louisiana. The indictment charges the defendant with five counts of wire fraud, in violation of Title 18, United States Code, Section 1343, one count of mail fraud, in violation of Title 18, United States Code, Section 1341, and one count of engaging in monetary transactions in property derived from specified unlawful activity, in violation of Title 18, United States Code, Section 1957. The indictment also includes a forfeiture allegation which requires the defendant to forfeit the proceeds of his fraud if convicted.

The Indictment alleges that the defendant engaged in a scheme to defraud Bouma Construction ("Bouma"), a full-service construction company headquartered in Grand Rapids, Michigan, from March 2014 through December 2014. According to the Indictment, Bouma hired a company owned by the defendant, First Millennium Construction ("FMC"), to serve as a subcontractor in the construction of the Impact Charter School in Baker, Louisiana.

The Indictment further alleges that, unbeknownst to Bouma, the defendant provided false information in a "Qualification Statement" submitted to Bouma in connection with FMC’s bid for the Impact Charter School project. Additional allegations in the Indictment state that, without knowledge of the defendant’s history of federal convictions, Bouma hired FMC and agreed to pay over $1.2 million for its work on the project.

The Indictment further alleges that, after being hired, the defendant submitted, or caused to be submitted through FMC employees, multiple applications for disbursements of payments by Bouma to FMC in accordance with their contractual agreement. These applications for payments allegedly made false representations related to the amount of work that had been completed by FMC and the amount of money that FMC had paid and still owed to certain subcontractors. It also allegedly omitted the names of numerous subcontractors to which the defendant owed money for work on the project.

The defendant also allegedly forged and caused to be forged signatures of certain FMC subcontractors on joint check agreements and lien waivers for the purpose of obtaining $96,125 in joint checks from Bouma. According to the Indictment, the defendant then forged or caused to be forged the subcontractors’ endorsements on these checks, which were then deposited into the FMC’s bank account. This money was allegedly intended for the four subcontractors, not FMC. Finally, the Indictment alleges that the defendant arranged for another individual to submit a false affidavit claiming responsibility for the forged signatures, which was then sent to the District Attorney for the 19th Judicial District.

The Indictment alleges further that Bouma ultimately paid over $948,000 to FMC, less than half of which was paid to subcontractors to which the defendant owed money for work on the Impact Charter School project and that, during the relevant time period, the defendant diverted tens of thousands of dollars from FMC’s bank account to sources which benefitted him personally.

United States Attorney Green stated: "My office is committed to rooting out and aggressively pursuing dishonest businesspeople who seek to advance themselves through fraud. We look forward to continuing to work closely with the FBI and our other federal, state, and local partners to appropriately address any such criminality."

This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Ryan Crosswell and Rene Salomon.

NOTE: An indictment is an accusation by the 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 Walt Green announced today that MICHAEL DAVID PITTS, age 41, has pled guilty to a Bill of Information which charges him with wire fraud in connection with a scheme to defraud Amedisys, Incorporated, a home health and hospice care company with a substantial presence in Baton Rouge, Louisiana.  PITTS is accused of stealing $7,641,528 from Amedisys, which annually furnishes home health services to approximately 380,000 patients in 37 states, the District of Columbia, and Puerto Rico.

According to the Bill of Information, PITTS was the Vice President of Tax for Amedisys for the period January 2005 through July 2014.  In this role, PITTS was responsible for all corporate tax matters, including the preparation of state and federal tax returns and the payment of state income taxes in the various states where Amedisys operated its business.  The Bill of Information alleges that PITTS had the authority and ability to purchase tax credits for the purpose of executing his duty of reducing and paying state income taxes in the various states where Amedisys did business.

According to the Bill of Information, PITTS engaged in a scheme to defraud Amedisys from October 2006 through May 2014 through an elaborate scheme involving shell entities and fictitious film tax credits.  As part of the scheme, PITTS created a counterfeit company named “Stonehenge Entertainment” for the purpose of selling false and fictitious “Tax Credit Transfer Agreements” to Amedisys.  PITTS allegedly used this company name because it closely resembled the name of a legitimate company with which Amedisys did business.  PITTS also allegedly created an entity known as “Evergreen Incentives” for the purpose of selling false and fictitious “Tax Credit Transfer Agreements” to Amedisys. 

In order to carry out his scheme, PITTS opened and maintained a bank account at Capital One Bank, N.A. for Stonehenge Entertainment and a separate account at Regions Bank for Evergreen Incentives.  PITTS created false and fictitious “Tax Credit Transfer Agreements” and used his position as Vice President of Tax to present the false and fictitious Tax Credit Transfer Agreements to his corporate supervisors for approval, falsely representing them to be valid tax credits.  Once approved, PITTS then purchased the false and fictitious Tax Credit Transfer Agreements on behalf of Amedisys. 

According to the Bill of Information, in order to personally benefit from the sale of false and fictitious tax credits to Amedisys, PITTS caused electronic banking transfers to divert funds from an Amedisys account at JPMorgan Chase Bank to his accounts at Capital One Bank and Regions Bank for his personal enrichment.  During the period October 3, 2006 through May 16, 2014, PITTS allegedly caused Amedisys to make 21 wire transfers totaling $7,641,528 to accounts which he controlled, and for his personal enrichment. 

PITTS’ guilty plea to one count of wire fraud carries a maximum statutory penalty of 20 years imprisonment, a fine of $250,000, or twice the gross gain derived from the offense.  He is also subject to forfeiture of the proceeds of the offense, that is, $7,641,528.  A date for sentencing has not yet been set by Judge deGravelles.

This matter is being prosecuted by the United States Attorney’s Office for the Middle District of Louisiana.  The investigation has been conducted by the Baton Rouge Resident Office of the Federal Bureau of Investigation, with substantial assistance provided by the victim, Amedisys, Inc.  The matter is being prosecuted by Assistant United States Attorney René Salomon.

BATON ROUGE, LA - United States Attorney Walt Green announced today that BRIAN CAVALIER, age 33, of Baton Rouge, Louisiana, has been convicted of making threats by mail, in violation of Title 18, United States Code, Section 844(e).  As a result of his conviction, the defendant faces a term of imprisonment, fines, restitution, and a term of supervised release following his release from imprisonment.  The defendant is scheduled to appear before Chief U.S. District Judge Brian A. Jackson for sentencing on August 18, 2016, at 9:30 a.m.

During his guilty plea hearing in court today, CAVALIER admitted that on November 1, 2013, he mailed a threatening letter to the United States District Court for the Middle District of Louisiana in which he falsely and maliciously conveyed that a bomb had been planted in the federal courthouse and that the bomb was set to detonate within twenty-four (24) hours.  CAVALIER had also placed a small amount of a white powdery substance inside the letter’s envelope, and the letter falsely stated that anyone who inhaled the powder would die a “painful death” within 24 hours.  CAVALIER’S letter also falsely stated that there were “shooters” outside the federal courthouse and that anyone who attempted to exit the courthouse would be “shot to death.” 

In connection with his plea, CAVALIER also admitted that approximately one month later, on or about December 2, 2013, he mailed a second threatening letter, this time to the 19th Judicial District Court in Baton Rouge, which also falsely and maliciously conveyed that a bomb had been planted in the state courthouse and that the bomb would soon detonate.  The defendant also falsely represented that there were armed men with “high power guns” watching the building and that they would kill people inside the building, too.  This second letter also contained a small amount of suspicious white powder, wrapped in plastic.  At the time CAVALIER sent both letters, he was in state custody in the Avoyelles Detention Center, in Cottonport, Louisiana, on unrelated charges.

This matter is being investigated by the Federal Bureau of Investigation, working in close coordination with the Louisiana Department of Corrections, the Baton Rouge Fire Department, the East Baton Rouge Parish Sheriff’s Office, and other law enforcement agencies.  The matter is being prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Chief of the Criminal Division.

BATON ROUGE, LA –United States Attorney Walt Green announced that a former public health employee with the Ascension Parish Health Unit was recently sentenced to federal prison for her involvement in an extensive identity theft and tax fraud scheme. 

U.S. District Court Judge James J. Brady sentenced TA’SHA THOMAS, age 26, of Donaldsonville, Louisiana, last week to thirty-six (36) months in federal prison for stealing and selling the social security numbers of over 425 people.  The social security numbers were used to obtain over $464,000 in fraudulent tax returns from the United States Treasury.  The defendant was also sentenced to a 3-year term of supervised release and ordered to pay $464,764 in restitution.

On June 22, 2015, the defendant pled guilty to access device fraud and aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A.  Her convictions resulted from her theft of the personal identifying information of over 425 individuals from a database used by her employer, the Ascension Parish Health Unit, over a six month period in 2012.  The defendant sold this information to Mona Hill, who in turn used the information to file fraudulent federal tax returns.  

Thomas is one of four defendants to be charged in connection with this scheme.  The following is the status of the other three defendants:

• Mona Hill, age 34, of Plaquemine, Louisiana, has been sentenced to sixty-five (65) months in federal prison and to pay $491,268.18 in restitution to the IRS.

• Cameron Butler, age 33, of Baton Rouge, Louisiana, has pled guilty to receiving stolen government funds.He is awaiting sentencing.

• Shonda V. Johnson, age 42, of Baton Rouge, Louisiana, has pled guilty to receiving stolen government funds.She is awaiting sentencing.

U.S. Attorney Green stated: “It seems like this defendant, together with the others involved in the scheme, sought to cover the world of white collar crime: public corruption, identity theft, stealing government money, and false tax documents.  Today’s prison sentence reflects the results of those efforts.  I greatly appreciate the excellent work of IRS Criminal Investigations and the prosecutor in this important matter.  We will continue to work with our partners to root out fraud and corruption wherever found.”

“We are pleased with today's sentence of Ms. Thomas.  The protection of taxpayers’ identities and personal information is an integral part of our agency's mission.” said Jerome R. McDuffie, Special Agent-in-Charge, IRS Criminal Investigation.  “Special Agents of IRS Criminal Investigation will continue to aggressively work with the United States Attorney's Office to protect taxpayers’ interests and thoroughly investigate fraudulent tax refund schemes. The message this case sends is clear: participation in those schemes, and the theft of personal identifying information, does not and will not pay; and those who do so will be investigated and prosecuted."

This matter was prosecuted by Assistant United States Attorney Jessica M.P. Thornhill and investigated by the Internal Revenue Service’s Criminal Investigation Division.

BATON ROUGE, LA - United States Attorney Walt Green announced today that DARYL D. WALKER, age 42, of Baton Rouge, Louisiana, has pled guilty to possession with intent to distribute heroin in violation of Title 18, United States Code, Section 841, and possession of a sawed-off shotgun in violation of Title 26, United States Code, Section 5861(d), as contained in a Superseding Bill of Information filed in early March.

During a March 29, 2016, hearing, WALKER entered his pleas in Court before Chief U.S. District Judge Brian A. Jackson.  According to the stipulated factual basis that was presented to the Court in connection with WALKER’S guilty pleas on March 22, 2015, WALKER obtained 6,000 heroin pills in Baton Rouge, Louisiana. WALKER admitted that he took possession of the heroin pills with the intent to distribute them. WALKER was identified as a potential heroin dealer as part of a substantial heroin-trafficking and money laundering conspiracy investigation conducted by the U.S. Drug Enforcement Tactical Diversion Squad, Internal Revenue Service Criminal Investigation Division, and Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the Louisiana State Police, East Baton Rouge Parish Sheriff’s Office, Iberville Parish Sheriff’s Office, Baton Rouge Police Department, and the Plaquemine Police Department.  DEA aerial surveillance confirmed the delivery of the heroin to WALKER by Aaron Lambert, a co-defendant in the case.  In addition to the heroin plea, WALKER also admitted that, at the time of his arrest on November 24, 2015, he possessed a sawed-off shotgun in his Baton Rouge residence.

As a result of his pleas, WALKER is facing a sentence that includes, among other things, a term of up to 50 years imprisonment.  At the conclusion of the plea hearing, the Court accepted WALKER’s guilty pleas and remanded him to the custody of the United States Marshal.  His sentencing hearing is scheduled for August 4, 2016.

U.S. Attorney Green stated: “My office, together with our federal, state, and local partners, will continue efforts to eliminate drug trafficking and the significant harmful effects on our community resulting from heroin distribution and use.  I greatly appreciate the hardworking team of federal, state, parish, and city law enforcement agencies that allowed for the successful identification, arrest, and conviction of a heroin dealer.”

Eric L. Watson, the Assistant Special Agent-in-Charge of the New Orleans Field Division of the U.S. Drug Enforcement Administration stated: “The collaborative efforts of several law enforcement agencies have been successful in dismantling this drug trafficking organization.” These drug trafficking organizations continue to spread poison in our communities making our schools, churches and neighborhoods unsafe.  The DEA will continue to attack these organizations using all conventional and unconventional methods to improve our quality of life.

This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the U.S. Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Paul L. Pugliese.

BATON ROUGE, LA - United States Attorney Walt Green announced that last night a federal jury convicted Darlene V. Krueger, age 54, of Destrehan, Louisiana, of six federal felony offenses in connection with a scheme to sell illegal and mislabelled diet pills to victims throughout Louisiana.  She was acquitted on one count.  The jury’s verdicts followed a seven-day trial before U.S. District Judge John W. deGravelles.  The sentencing date has not yet been set.

Specifically, Krueger was convicted of three counts of distributing a controlled substance and three counts of introducing misbranded drugs into interstate commerce.   This conduct was part of a multi-state scheme to illegally distribute diet pills containing sibutramine, a Schedule IV controlled substance, which were falsely labeled and marketed as “all natural” dietary supplements. Sibutramine was the active pharmaceutical ingredient in Meridia, a prescription weight loss drug removed from the market in 2010 following studies that showed significantly increased risk of strokes and heart attacks.  Since the removal of Meridia, no drug containing sibutramine has been approved for use in humans in the United States. 

The evidence at trial demonstrated that, between 2009 and 2014, Krueger engaged in a scheme to sell purportedly “all natural” dietary supplements under various names, such as “Slim Forte Slimming Capsules,” “Slim Forte Double Power Slimming Capsules,” “Slim-Vie Slimming Capsules,” and “Slim-Vie Double Power Slimming Capsules,” which she knew contained sibutramine, to customers throughout Louisiana.  Even after she learned that the diet pills contained sibutramine and had potentially serious side effects, Krueger continued to distribute the diet pills and disseminate false and misleading information about the safety and efficacy of her products.  Krueger made approximately $100,000 as a result of the scheme.

In a related case, on July 29, 2015, John Wesley Hoag, age 52, of Ft. Lauderdale, Florida, pled guilty before U.S. District Judge John W. deGravelles to a Bill of Information charging him with conspiring with Krueger to distribute and possess with the intent to distribute sibutramine and introducing misbranded drugs into interstate commerce.  During the guilty plea hearing, Hoag admitted to unlawfully importing the diet pills from manufacturers based in China and then distributing the diet pills to his distributors, including Krueger, and consumers. 

As a result of their respective roles, Krueger and Hoag face significant incarceration, fines, restitution, forfeiture of proceeds, and supervised release following imprisonment. 

U.S. Attorney Green stated:  “To sell diet pills containing illegal substances is bad enough. Selling diet pills containing illegal substances and concealing that fact from unsuspecting customers by mislabelling the pill containers is intolerable.  The actions taken by the defendant in this matter – which appear driven purely by greed – will consistently result in our office’s full attention and action.  I commend the excellent work by the FDA Office of Criminal Investigations and our prosecutors who worked hand-in-hand to bring this case to its rightful conclusion.”

“Consumers are put at serious risk when they are unknowingly exposed to undeclared active pharmaceutical ingredients in products falsely labeled as natural dietary supplements,” said Robert J. West, Special Agent-in-Charge, Miami Field Office, FDA Office of Criminal Investigations. “Our office will continue to defend the public’s health by ensuring that dietary supplements are accurately labeled, and do not contain dangerous undeclared active pharmaceutical ingredients.”

This matter was handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the U.S. Food and Drug Administration’s Office of Criminal Investigations, with the assistance from other FDA components, the Louisiana State Police, the Slidell, Louisiana, Police Department, and the Drug Enforcement Administration.  The matter was prosecuted by Assistant United States Attorneys Cam T. Le and Paul L. Pugliese.

Health care professionals and patients are encouraged to report adverse events or side effects related to the use of these products to the FDA.  For more information regarding dietary supplements and to report adverse events, please visit the FDA’s website at http://www.fda.gov/Food/DietarySupplements/.

BATON ROUGE, LA - United States Attorney Walt Green announced that last night a federal jury convicted Larry W. Kelly, Jr., age 36, of Baker, Louisiana, of possessing a firearm and ammunition while a convicted felon.  The verdict followed a multi-day jury trial before Chief U.S. District Judge Brian A. Jackson.  The defendant is scheduled to be sentenced on July 14, 2016. 

The evidence at trial established that, on April 14, 2015, the Baton Rouge Police Department received a 911 call that reported that the defendant, who had previously been convicted of multiple felonies, was threatening to shoot the defendant’s father.  When BRPD officers responded to the scene, the defendant fled and attempted to hide a firearm in the backyard of a house.  Officers eventually secured the defendant and located the firearm.  Because his criminal history makes him an armed career criminal under federal law, the defendant faces a mandatory minimum of 15 years in prison.  

U.S. Attorney Green stated:  “Through this jury verdict, our community has once again demonstrated its intolerance toward convicted felons with guns.  Armed felons pose a threat to our safety and security and will continue to receive our well-deserved attention, particularly armed career criminals, like the defendant in this matter.  I appreciate the hard work of the ATF, BRPD, and our prosecutors who collectively helped to ensure justice and a safer community for all.”

ASAC Kurt Thielhorn stated:  “ATF remains focused on reducing firearm violence.  This is an example of ATF working with our law enforcement partners to protect our communities from the most violent criminals.”

This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Baton Rouge City Police Department.  It was prosecuted by Assistant United States Attorneys Adam Ptashkin and Rene Salomon.

BATON ROUGE, LA - United States Attorney Walt Green announced today that CHARLES RICHARD BARBER, age 65, of Jackson, Louisiana, pled guilty before U.S. District Judge John W. deGravelles to making false statements to a financial institution in order to secure over $750,000 in funding, in violation of Title 18, United States Code, Section 1014.  As a result of his conviction, BARBER faces a term of imprisonment, a term of supervised release following imprisonment, a fine, a restitution order, and forfeiture of the proceeds of the fraud.  The sentencing date has not yet been set.

During the guilty plea hearing, BARBER admitted to the following facts.  In October 2014, BARBER worked for an entity that had an ownership interest in Hometown Credit of Jackson, a finance company that provided short-term loans to individuals.  Hometown Credit was funded, in part, through a $750,235 line of credit with Highlands Bank.  The collateral for the line of credit consisted of Hometown Credit’s loan portfolio.  As a result, Highlands Bank had a vested interest in the value of that loan portfolio and required Hometown Credit to provide it with monthly reports about its loan portfolio as a condition for the line of credit. 

To ensure continued access to the line of credit, BARBER admitted that he submitted false reports to Highlands Bank in order to hide the sharply declining value of Hometown Credit’s loan portfolio and thus ensure continued access to the line of credit.  BARBER admitted further that his actions resulted in Highlands Bank losing approximately $590,000. 

United States Attorney Green said:  “Fraud against our banks, credit unions, and the financial industry threatens not just the financial institutions themselves, but also their customers, borrowers, employees, and the taxpayers.  I commend our excellent partners with the FBI, the Louisiana Inspector General’s Office, and the Louisiana Office of Financial Institutions for their work on this important matter, along with the dedicated efforts of our prosecutors.  Our office will continue to aggressively pursue such fraud regardless of its sophistication or complexity.”

This ongoing matter is being investigated by the Baton Rouge Resident Office of the Federal Bureau of Investigation and the Louisiana Inspector General’s Office, with the assistance of the Louisiana Office of Financial Institutions.  It is being prosecuted by Assistant United States Attorneys René Salomon and Adam Ptashkin.

BATON ROUGE, LA - United States Attorney Walt Green announced today that DAVID MICHAEL PITTS, age 41, has been charged in a Bill of Information with wire fraud in connection with an alleged scheme to defraud Amedisys, Incorporated, a home health and hospice care company with a substantial presence in Baton Rouge, Louisiana.  PITTS is accused of stealing $7,641,528 from Amedisys, which annually furnishes home health services to approximately 380,000 patients in 37 states, the District of Columbia, and Puerto Rico.

According to the Bill of Information, PITTS was the Vice President of Tax for Amedisys for the period January 2005 through July 2014.  In this role, PITTS was responsible for all corporate tax matters, including the preparation of state and federal tax returns and the payment of state income taxes in the various states where Amedisys operated its business.  The Bill of Information alleges that PITTS had the authority and ability to purchase tax credits for the purpose of executing his duty of reducing and paying state income taxes in the various states where Amedisys did business.

The Bill of Information alleges that PITTS engaged in a scheme to defraud Amedisys from October 2006 through May 2014 through an elaborate scheme involving shell entities and fictitious film tax credits.  According to the Bill of Information, as part of the scheme, PITTS created a counterfeit company named “Stonehenge Entertainment” for the purpose of selling false and fictitious “Tax Credit Transfer Agreements” to Amedisys.  PITTS allegedly used this company name because it closely resembled the name of a legitimate company with which Amedisys did business.  PITTS also allegedly created an entity known as “Evergreen Incentives” for the purpose of selling false and fictitious “Tax Credit Transfer Agreements” to Amedisys. 

In order to carry out his scheme, PITTS allegedly opened and maintained a bank account at Capital One Bank, N.A. for Stonehenge Entertainment and a separate account at Regions Bank for Evergreen Incentives.  PITTS allegedly created false and fictitious “Tax Credit Transfer Agreements” and used his position as Vice President of Tax to present the false and fictitious Tax Credit Transfer Agreements to his corporate supervisors for approval, falsely representing them to be valid tax credits.  Once approved, PITTS then allegedly purchased the false and fictitious Tax Credit Transfer Agreements on behalf of Amedisys. 

According to the Bill of Information, in order to personally benefit from the sale of false and fictitious tax credits to Amedisys, PITTS caused electronic banking transfers to divert funds from an Amedisys account at JPMorgan Chase Bank to his accounts at Capital One Bank and Regions Bank for his personal enrichment.  During the period October 3, 2006 through May 16, 2014, PITTS allegedly caused Amedisys to make 21 wire transfers totaling $7,641,528 to accounts which he controlled, and for his personal enrichment. 

This matter is being handled by the United States Attorney’s Office for the Middle District of Louisiana.  The investigation has been conducted by the Baton Rouge Resident Office of the Federal Bureau of Investigation, with substantial assistance provided by the victim, Amedisys, Inc.  The matter is being prosecuted by Assistant United States Attorney René Salomon.

NOTE:  A Bill of Information is an accusation made by the United States Attorney.  The defendant is presumed innocent until and unless adjudicated guilty through a guilty plea or trial. 

BATON ROUGE, LA – United States Attorney Walt Green announced the conviction of a former systems administrator who hacked into the computer system of an industrial facility to disrupt and damage its operations. 

On February 4, 2016, BRIAN A. JOHNSON, age 44, of Baton Rouge, Louisiana, pled guilty before Chief U.S. District Judge Brian A. Jackson to intentionally damaging a protected computer.  JOHNSON faces possible imprisonment, fines, restitution orders, and a term of supervised release following imprisonment.  Sentencing is scheduled for 9:30 a.m. on May 19, 2016, before Chief Judge Jackson.

JOHNSON worked as an information technology specialist and systems administrator for a large manufacturing facility in Port Hudson, Louisiana.  During the guilty plea hearing, JOHNSON admitted that, on February 27, 2014, several days after his employment was terminated, JOHNSON remotely accessed the plant’s computer system and intentionally transmitted code and commands which resulted in significant damage to the plant’s operations. 

The crime for which JOHNSON has been convicted only requires that the value of the damage exceed $5,000.  Oftentimes, however, the actual value of such activity far exceeds this minimum amount.  In determining the appropriate sentence and amount of restitution, the Court will determine the actual value of the damage caused by JOHHSON during the sentencing hearing. 

U.S. Attorney Green stated: “Cybercrime poses a very real threat and danger to businesses and individuals alike.  External threats loom large, but insiders and former insiders can also be the source of such criminal activity.  We commend the victim on its quick response and cooperation with our office and the FBI.   The harsh reality is that no business or individual is immune from such an attack.  We must therefore unite as a community to confront these threats.”

FBI New Orleans Special Agent in Charge (SAC) Jeff Sallet stated:  “The FBI New Orleans Division’s Cyber Squad should be commended for their outstanding efforts throughout this investigation.  Cyber cases are extremely challenging cases to investigate, mainly due to the complex nature of the internet and logistics in identifying the location of the person attempting to sabotage corporate networks.”

The U.S. Attorney’s Office leads the Middle District of Louisiana Cyber Initiative which includes the U.S. Department of Justice’s Computer Crimes and Intellectual Property Section, the Federal Bureau of Investigation, the U.S. Secret Service, the U.S. Department of Homeland Security, the U.S. Department of Treasury, the U.S. Department of Education, the Louisiana State Police, the East Baton Rouge Parish Sheriff’s Office, and the East Baton Rouge Parish District Attorney’s Office.

This matter was investigated by the Federal Bureau of Investigation’s Cybercrimes Squad.  It is being prosecuted by Assistant U.S. Attorney M. Patricia Jones, who serves as the office’s Appellate Chief, and Assistant U.S. Attorney Ryan Crosswell.

BATON ROUGE, LA – Chief Judge Brian A. Jackson, Judge Shelly D. Dick, Judge John W. deGravelles, and Judge James J. Brady of the United States District Court for the Middle District of Louisiana and the agencies of the federal courthouse will host the Twenty-First Annual Federal Courthouse African-American History Month Program at 1:00 p.m. on Thursday, February 25, 2016, in Courtroom 1, located on the third floor of the federal courthouse.

The featured guest speaker will be Clarence A. Becknell, member and Historian of the Zulu Social Aid and Pleasure Club, Inc., of New Orleans, Louisiana.  Mr. Becknell will share the interesting story of the Zulu’s origin and its rise to prominence as a highly recognizable part of Louisiana’s cultural landscape.

Musical entertainment will be provided by Mr. John Gray, local trumpeter, and Mr. Michael Foster, of the “Michael Foster Project.” 

Members of the public and the press are invited to attend.  For further information, please contact Michael J. Jefferson, Assistant United States Attorney, at (225) 389-0443.

BATON ROUGE, LA - United States Attorney Walt Green announced the convictions of RHODA RENAE ROBERTSON, age 47, and LOUELLA ROBERTSON, age 68, both of Baton Rouge, Louisiana, who pled guilty before U.S. District Judges Shelley Dick and John deGravelles, respectively, to theft of government funds, in violation of Title 18, United States Code, Section 641.  RHODA ROBERTSON was convicted on February 16, 2016.  LOUELLA ROBERTSON was convicted on February 18, 2016.

According to the factual basis presented to the Courts in connection with their guilty pleas, LOUELLA ROBERTSON and her daughter RHODA ROBERTSON stole over $38,000 in United States Department of Housing and Urban Development (HUD) Section 8 Housing Choice Voucher funds.  The ROBERTSONS submitted documents to the East Baton Rouge Parish Housing Authority which contained false representations for the purpose of obtaining HUD Section 8 Housing Choice Voucher funds to which they were not entitled.  During their respective re-arraignment hearings, the ROBERTSONS admitted that they fraudulently obtained more than $38,000 in HUD voucher funds between July of 2011 and December of 2014.

Prior to July of 2011, RHODA ROBERTSON engaged in similar conduct and obtained an additional $12,445.25 in HUD Section 8 Housing Choice Voucher funds to which she was not entitled.  In all, these defendants fraudulently obtained approximately $50,996 in HUD Section 8 Housing Choice Voucher funds.

U.S. Attorney Green stated: “I am proud to work with the U.S. Department of Housing and Urban Development, Office of Inspector General, and the East Baton Rouge Parish Housing Authority, to aggressively identify and prosecute individuals who steal money from programs designed to help those truly in need of housing assistance.  I look forward to continuing our work with HUD-OIG and other investigative agencies to help fight Section 8 fraud.”

This investigation is being conducted by the U.S. Department of Housing and Urban Development, Office of Inspector General.  The matter is being prosecuted by Assistant United States Attorney Peter J. Smyczek.

BATON ROUGE, LA - United States Attorney Walt Green announced the conviction of CAMERON BUTLER, age 33, of Baton Rouge, Louisiana, who pled guilty on Tuesday before U.S. District Judge James J. Brady to three counts of receiving stolen government funds, in violation of Title 18, United States Code, Section 641. 

According to the factual basis presented in connection with his pleas, $107,000 in fraudulent tax refunds were deposited into two of BUTLER’s bank accounts during the course of the underlying scheme.  BUTLER obtained these tax refunds knowing that the refunds belonged to other taxpayers and that he was not entitled to them.

BUTLER’s conviction is the latest in a series of convictions related to the theft and use of over 400 social security numbers to file fraudulent tax returns which resulted in over $400,000 in tax refunds.  BUTLER’s wife, MONA HILL, was previously convicted in connection with this tax fraud scheme in 2013.  She was sentenced to serve sixty-five months in federal prison and to pay $491,268.18 in restitution to the Internal Revenue Service.  TA’SHA THOMAS, age 26, of Donaldsonville, Louisiana, and SHONDA V. JOHNSON, age 42, of Baton Rouge, Louisiana, were also previously convicted for their roles in an extensive stolen identity refund fraud scheme in 2015. THOMAS and JOHNSON are awaiting sentencing. 

U.S. Attorney Green stated: “These cases are another example of a collaborative effort with the IRS to aggressively identify and prosecute criminals who traffic in stolen identities and unlawfully obtain U.S. Treasury funds.  We look forward to continuing our work with IRS and other investigative agencies in the fight to eradicate such conduct.”    

Special Agent in Charge of Internal Revenue Service Criminal Investigation, Jerome R. McDuffie, stated:  “We are pleased with Mr. Butler’s conviction.  Our agency will continue to work with the United States Attorney's Office to aggressively protect innocent taxpayers and preserve the integrity of our tax system.  Participation in refund fraud schemes does not pay and those who do so will be prosecuted and held accountable for their illegal activities.”

This ongoing investigation is being conducted by the Internal Revenue Service’s Criminal Investigation Division.  This matter is being prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.

BATON ROUGE, LA –United States Attorney Walt Green announced that NAIRIE CHANEY, age 58, of Baton Rouge, Louisiana, has been sentenced to a total of 91 months in federal prison as a result of possessing a firearm while a convicted felon. 

The term of imprisonment stems from a traffic stop on June 30, 2014.  That day, Baton Rouge Police stopped a vehicle in which CHANEY was a passenger and observed CHANEY throw a loaded .38 caliber pistol from the front passenger window of the vehicle.  CHANEY had previously been convicted of multiple federal and state convictions which prohibited him from ever possessing any type of firearm. 

At the time of his illegal possession of the firearm, CHANEY was on federal supervised release as a result of 2009 federal conviction.  In December 2014, after having been found to have violated his terms of supervised release, CHANEY was sentenced to 18 months in federal prison for the violation.

Based on the same incident, CHANEY was also indicted and convicted of being a felon in possession of a firearm.  As a result of that conviction, CHANEY was sentenced yesterday by U.S. District Court Judge Shelly D. Dick to serve another 73 months in federal prison.  Following his release from prison, CHANEY will be required to serve a 3-year term of supervised release.  

U.S. Attorney Walt Green stated:  “Keeping violent felons from possessing firearms is one of my office’s highest priorities.  These valuable prosecutions are a key component of a broader effort by federal, state, and local law enforcement to reduce deadly gun violence from our streets.  This lengthy prison sentence will keep another violent offender out of our neighborhoods for many years, and hopefully reinforce the message that convicted felons who illegally acquire and possess guns will face stiff penalties.”

This matter was handled by the United States Attorney’s Office for the Middle District of Louisiana in conjunction with the Baton Rouge Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).   It was prosecuted by Assistant United States Attorney Jamie A. Flowers, Jr.

BATON ROUGE, LA - United States Attorney Walt Green announced today that WILLIAM “WIL” ROS, age 45, of Cortez, Florida, pled guilty to wire fraud and embezzlement from a bankruptcy estate.  The guilty pleas arise from his management and operation of Fundamental Provisions, LLC, a local company which operated 30 Popeyes’ Fried Chicken restaurants in Louisiana, Alabama, and Florida.

According to the factual summary presented at his guilty plea hearing, Fundamental Provisions, LLC was a business based in Gonzales, Louisiana.  Fundamental owned and operated 30 Popeyes’ Fried Chicken and Biscuits franchise restaurants in Alabama, Florida, and Louisiana.  Fundamental had gross annual revenues in excess of $20,000,000.

ROS was the Chief Financial Officer of Fundamental.  As CFO, ROS was responsible for the daily management and operations of multiple Popeyes restaurants located in Alabama and Florida, including supervision of, and frequent communication with various store managers.  ROS was also responsible for assuring that funds generated by each restaurant were used for the benefit of Fundamental. 

In December 2009, in the United States Bankruptcy Court for the Middle District of Louisiana, Fundamental sought, and received, bankruptcy protection which authorized the company to reorganize its management and restructure its debt so that it could continue operating its business and thereafter pay debts it owed to numerous creditors.

A Chief Restructuring Officer was employed in January 2010 and authorized by the Bankruptcy Court to control all business operations, including disbursements of company funds, employment of key personnel, and incurrence of debt.  The CRO employed and paid ROS to act as Fundamental’s CFO. 

According to the facts presented at his re-arraignment hearing, because the reorganized company was unable to make payments to its creditors as promised in December 2011, Fundamental was placed in involuntary bankruptcy in March 2012.  A Trustee was appointed by a Bankruptcy Judge for the purpose of liquidating the company’s assets in order to pay substantial debts owed by Fundamental to its creditors.  With approval of the Bankruptcy Judge, the Trustee appointed a Chief Operating Officer to assist with the liquidation process.  The COO continued ROS’s employment as Fundamental CFO until in or about May 2012.

From August 2009 through May 2012, ROS engaged in a scheme to defraud Fundamental and obtain company money by means of materially false and fraudulent pretenses, promises, and representations.  According to the factual recitation at the re-arraignment hearing, the purpose of the scheme was to enrich himself using funds he diverted from Fundamental, and to conceal his diversions of company funds from officials administering Fundamental’s Bankruptcy Court proceedings.

ROS executed his scheme by using his position as Fundamental’s CFO to cause restaurant managers to divert restaurant revenues to his personal benefit.  He also allegedly caused store managers to mischaracterize and cause the recording of fictitious purchases to disguise the fact that he had caused managers to remove funds from the restaurants’ cash registers for his personal benefit. 

Beginning in August 2009, ROS directed an Alabama store manager to remove monies from restaurant cash registers and either deliver it to him (ROS) or mail FedEx packages of cash to persons identified by ROS. 

Beginning in March 2010, ROS directed a second Alabama store manager to remove monies from restaurant cash registers and deposit the monies into bank accounts controlled by ROS, including ROS’s girlfriend, his golf club supplier, and family friend.

ROS also used the store managers to divert restaurant funds and directed them to send packages of cash to various persons, including his girlfriend, his golf club supplier, and the seller of a Ford GT race car. 

In total, ROS embezzled approximately $966,257 from the Alabama restaurants during the course of the pending bankruptcy proceedings. According to the indictment, ROS allegedly enjoyed the stolen funds by purchasing a $225,000 race car and upgrading, renovating, and furnishing his Florida home.

U.S. Attorney Green stated:  “Corporate executives who fleece their employers in order to finance their self-indulgence and greed will be aggressively pursued by this office.  Such fraud threatens to jeopardize the fiscal integrity of our businesses and the livelihoods of those who work for them.  I commend the dedicated efforts of the FBI agents and prosecutors who worked to ensure that justice was done in this case.” 

FBI Special Agent-in-Charge Jeffrey S. Sallet stated: “The FBI’s Baton Rouge Resident Agency aggressively pursues those individuals who seek to unjustly enrich themselves at the expense of others.  The FBI, with the exemplary support of our partners in the United States Attorney’s Office, will continue our work ensuring the integrity of the bankruptcy system and delivering those individuals responsible for corporate fraud to justice.”

The matter is being handled by the United States Attorney’s Office for the Middle District of Louisiana and the Baton Rouge office of the Federal Bureau of Investigation, along with assistance from the Region 5 Office of the United States Trustee.  It is being prosecuted by Assistant United States Attorneys Rene Salomon and Ryan Crosswell.

BATON ROUGE, LA –United States Attorney Walt Green announced that a third defendant has been convicted in connection with Operation Checkmate, a federal criminal investigation into various check cashing businesses in Baton Rouge that cashed nearly $4 million in fraudulently-obtained U.S. Treasury checks.

This morning a federal jury convicted CARLOS L. LINARES, age 56, of Baton Rouge, Louisiana, for his role in defrauding the government out of more than $1.6 million following a week-long trial before Chief U.S. District Judge Brian A. Jackson.  Specifically, LINARES was convicted on all counts of a superseding indictment which charged him with theft of government funds, in violation of Title 18, United States Code, Section 641, failure to maintain an effective anti-money laundering program, in violation of Title 31, United States Code, Sections 5318 and 5322, and two counts of obstruction of a federal proceeding, in violation of Title 18, United States Code, Section 1505.  LINARIES was remanded into custody following his conviction.  His sentencing is scheduled for 9:30 a.m. on May 19, 2016.

During the relevant period, LINARES operated a store on Florida Boulevard in Baton Rouge called “Latinos Supermarket, LLC” where he cashed checks for a fee.  In just a fifteen-month time period spanning March of 2012 through May of 2013, LINARES cashed more than 250 U.S. Treasury checks with out-of-state addresses worth over $1.6 million.  The checks had been obtained through fraud and misused other people’s identities, which LINARES knew.  LINARES also knowingly failed to follow the requirements placed on him as a registered money service business and failed to prevent his store from being used to facilitate criminal activity and launder money.  Finally, LINARES attempted to obstruct efforts by the Internal Service Revenue to determine whether LINARES was following the law.

U.S. Attorney Green stated: “Extensive fraud schemes often require a network of people willing to facilitate the fraud for their personal gain.  My office will continue to aggressively pursue all those who facilitate such fraud schemes, including check cashers who knowingly cash fraudulent checks, ignore anti-money laundering requirements, and obstruct law enforcement efforts.  I am proud of the dedicated efforts of the prosecutors and IRS-CI in connection with this important matter.”

Special Agent in Charge Jerome R. McDuffie of IRS Criminal Investigation stated:  “We are pleased with the verdict returned today against Mr. Linares.  We will continue to work closely with the U.S. Attorney’s Office to prosecute those involved in these types of fraudulent schemes.   Mr. Linares intentionally participated in a scheme that involved the negotiation of fraudulently obtained tax refund checks and failed to comply with federal reporting requirements.  Today’s verdict is a reminder that fraud involving identity theft, and the prosecution of all involved parties, remains one of our agencies’ top priorities."

Other defendants who have been convicted in Operation Checkmate include: 

ALBELK REYES SERRATA, age 26, of Allentown, Pennsylvania, was convicted of conspiring to steal government funds, in violation of Title 18, United States Code, Section 371.  He was sentenced to 37 months in federal prison, followed by three years of supervised release.  He was also ordered to pay $2.2 million in restitution and to forfeit another $220,000.

ANYELINA REYES, age 36, of Baton Rouge, Louisiana, was convicted of conspiring to steal government funds, in violation of Title 18, United States Code, Section 371.  She operated a store on Florida Boulevard called “A&R Elite Team, LLC” and facilitated the cashing of approximately 370 fraudulently-obtained U.S. Treasury checks worth $2.2 million.  She was recently ordered to serve 6 months in federal prison, followed by a two year-term of supervised release.  She has been ordered to pay $2.2 million in restitution and to forfeit the proceeds of her scheme.

This ongoing investigation is being handled by the Internal Revenue Service—Criminal Investigation Division, with 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 Chief of the Criminal Division, and Assistant U.S. Attorney Ryan Crosswell.

BATON ROUGE, LA - United States Attorney Walt Green announced today that U.S. District Court Judge John W. deGravelles sentenced TRAVIS TEMPLET, age 36, of Gonzales, Louisiana, to twelve (12) months in federal prison as a result of his scheme to defraud his non-profit health care employer, Elder Outreach.  TEMPLET was ordered to pay restitution of $208,307.59 to the victim and to serve a three (3) year term of supervised release after his release from imprisonment.  TEMPLET was also ordered to forfeit all property traceable to the gross proceeds of the scheme.

On July 1, 2015, TEMPLET pled guilty to wire fraud, in violation of Title 18, United States Code, Section 1343.  TEMPLET was the Controller at Elder Outreach, a non-profit health care organization, which manages nursing homes and rehabilitation centers in Louisiana and Arkansas.  Between December of 2011 and October of 2014, TEMPLET engaged in a scheme to defraud his employer using material false pretenses and wire communications to execute his scheme.  The scheme involved TEMPLET modifying the coding on fraudulently issued checks in Elder Outreach’s software program, writing checks to himself, and altering the company’s accounting records and software applications to conceal his actions.  As TEMPLET obtained the checks, he would deposit the funds into one of his personal accounts.  Throughout the scheme, TEMPLET created and generated more than sixty-seven (67) checks and fraudulently obtained approximately $208,307.59.

U.S. Attorney Walt Green stated, “My office will continue to make fraud and embezzlement prosecutions a high priority, as we work to hold corrupt insiders such as this defendant accountable.  The defendant’s actions in this case were particularly egregious in that he not only betrayed the trust placed in him by his employer, but also took advantage of a non-profit health care organization, which managed elder care facilities.”

This matter was prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.  The matter was investigated by the United States Secret Service and the East Baton Rouge Parish Sheriff’s Office.

BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned two indictments in connection with an ongoing investigation into schemes to burglarize three gun stores in Baton Rouge and Prairieville, Louisiana. 

CHARLES K. EVANS, age 20, and GENO EUGENE LYONS, age 24, were both indicted for conspiring to steal firearms, to possess and sell stolen firearms, and to receive and possess unregistered machine guns and silencers.  EVANS and LYONS are also charged with stealing firearms from federally licensed firearms dealers and with receipt and possession of unregistered firearms.

According to the Indictments, EVANS and LYONS conspired together to steal firearms from Bowie Outfitters in Baton Rouge, Hebert Guns in Prairieville, and Meaux Guns in Baton Rouge.  The Indictments allege that on June 9, 2015, EVANS and LYONS, along with a third individual, forced entry into Bowie Outfitters and stole approximately thirty-two (32) firearms.  The Indictments further allege that on July 5, 2015, EVANS and LYONS, along with a third individual, unsuccessfully attempted to steal firearms from Hebert Guns, then drove to Meaux Guns, where they forced entry and stole approximately forty-three (43) firearms, including two silencers.  The Indictments allege that EVANS and LYONS subsequently sold firearms that they had stolen from Bowie Outfitters and Meaux Guns. 

U.S. Attorney Walt Green stated:  “When guns are stolen and sold on the street, it opens an illicit avenue of commerce that allows gangs, drug traffickers, and felons to arm themselves.  Such conduct drastically heightens the risk of gun violence in our neighborhoods, threatening our citizens and the law enforcement officers charged with protecting them.   Our office treats the conduct alleged here with the utmost seriousness, particularly because it undermines the commendable efforts of federal, state, and local law enforcement to rid the scourge of deadly gun violence from our streets.  Our office will continue to vigorously prosecute any individuals who illegally traffic in firearms.” 

This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana.  The investigation is being led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with substantial assistance from the Baton Rouge Police Department, the East Baton Rouge Sheriff’s Office, and the Ascension Parish Sheriff’s Office.

This matter is being prosecuted by Assistant United States Attorneys Ryan Crosswell and Peter Smyczek.

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

BATON ROUGE, LA - United States Attorney Walt Green announced today that U.S. District Court Chief Judge Brian A. Jackson sentenced MELISSA ST. PIERRE, age 49, of Maurepas, Louisiana, to twenty (20) months in federal prison as a result of her scheme to defraud her employer Aerial Access Equipment, LLC (“AAE”).  ST. PIERRE was ordered to pay restitution of $442,064 to the victim AAE, and to serve a two year term of supervised release after her release from imprisonment.  ST. PIERRE was also ordered to pay a fine of $7,500 and to forfeit all property traceable to the gross proceeds of the scheme, including but not limited to $459.222. 

On September 30, 2015, ST. PIERRE pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343.

ST. PIERRE was the Controller at AAE from August 2012 through March 2, 2015.  During this period, she used material false pretenses to divert AAE funds to her personal benefit, and utilized wire communications to execute her scheme.  In her role as Controller, she accessed AAE bank accounts and company credit cards to divert company funds to her personal enrichment.  ST. PIERRE used AAE funds to pay her personal financial obligations, including travel, loans related to luxury vehicles, payday loans, credit card accounts, utility and telephone bills, clothes and accessories, and other family expenses. 

In order to conceal her misuse of AAE checks and ACH transfers, ST. PIERRE altered monthly bank statements issued by various banks and diverted company documents to her home so that she could conceal her diversions and alter them so that she could avoid detection.  During the period August 2012 through March 2015, ST. PIERRE embezzled approximately $459,222. 

United States Attorney Walt Green stated: “This case illustrates, once again, the dangers that businesses face from trusted insiders who seek to defraud them.  While external fraud threats are usually the focus, the greatest fraud threats to businesses are typically from within and by those holding significant trust and responsibility.   My office, along with the FBI and our other federal, state, and local partners, will continue to aggressively pursue such important matters.”    

This matter was prosecuted by Assistant United States Attorney René Salomon.  The matter was investigated by the Federal Bureau of Investigation, Baton Rouge Resident Office.

BATON ROUGE, LA - United States Attorney Walt Green announced today that District Judge James J. Brady sentenced PIERRE A. MOOSEBROKER, JR., age 47, of Baton Rouge, Louisiana, to 25 years imprisonment, to be followed by a lifetime term of supervised release, for child pornography and false statement offenses related, in part, to his plan to obtain and sexually abuse a child. 

On June 18, 2015, MOOSEBROKER was convicted of possessing child pornography, in violation of Title 18, United States Code, Section 2252A(a)(5)(B), and making false statements to Special Agents with the Federal Bureau of Investigation, in violation of Title 18, United States Code, Section 1001(a)(2). 

MOOSEBROKER’s sentence arose primarily from events in early March 2015.  After the FBI received information that MOOSEBROKER had discussed a plan to abduct and sexually abuse a child, the FBI quickly eliminated the threat by arresting MOOSEBROKER and seizing his various electronic devices pursuant to a search warrant.  Subsequent FBI investigation revealed that the defendant had downloaded numerous images of child pornography to his computer and confirmed his plans to obtain a young female child to sexually abuse.  During the course of his interviews with the FBI, MOOSEBROKER made several false statements related to his possession of child pornography and his plan to obtain and sexually abuse a child.

U.S. Attorney Walt Green stated, “Today’s severe sentence is a just and appropriate outcome for this child predator.  There is no doubt that both our district and our children have been made safer as a result.  I greatly appreciate the FBI for their dedicated and quick response to a situation that could easily have resulted in tragedy.” 

This matter was investigated by the Federal Bureau of Investigation, with assistance from the East Baton Rouge Parish Sheriff’s Office and cooperation from the District Attorney’s Office for the Nineteenth Judicial District.  The matter was prosecuted by Assistant United States Attorney Chris Dippel, who serves as a Deputy Chief in the Criminal Division.

BATON ROUGE, LA – United States Attorney Walt Green announced the conviction of Matthew Chaney Walker, 25, of Baton Rouge, Louisiana, for extorting numerous children over the internet for the purpose of producing and receiving child pornography. 

This morning, before Chief U.S. District Court Judge Brian A. Jackson, Walker pleaded guilty to four counts of extortion, in violation of Title 18, United States Code, Section 875(d); three counts of production of child pornography, in violation of Title 18, United States Code, Sections 2251(a) and 2; and three counts of receipt of child pornography, in violation of Title 18, United States Code, Section 2252A(a)(2); and he also agreed to forfeiture.  Walker is scheduled to be sentenced on May 5, 2016. 

In connection with his guilty plea, Walker admitted that, in 2014, he met young girls online for the purpose of sexually exploiting them.  In order to lure his victims, Walker pretended to be a teenage girl and used different online screen names.  During chats with his victims, Walker broached the topic of trading nude and sexually explicit images.  To lower his victims’ inhibitions, Walker initiated sexually explicit conversations and sent sexually suggestive photographs of other young girls that he represented to be of himself.  Once he obtained compromising pictures of his victims, Walker then demanded that the victims send him images even more graphic than those they had already sent to him.  Walker threatened to send compromising pictures of the victims to their families, schools, friends, and the public should they refuse to comply with his demands.  As a result of his conduct, Walkers’ victims created and sent child pornography to him. 

U.S. Attorney Green stated:  “The defendant used social media to target and sexually exploit young girls.  This type of criminal conduct is an evolving and pernicious threat to our children.  The devastating impact of this type of criminal conduct on our children, their families, and the community cannot be ignored.  With an internet connection or smart phone, children of all ages are vulnerable to online predators, such as this defendant.”

This case is being handled jointly by the U.S. Department of Homeland Security, Homeland Security Investigations, and the United States Secret Service, with assistance from the Cyber Crime Unit and the Criminal Division of the Louisiana Attorney General’s Office; the Peterborough Police Service, a member of the Ontario Provincial Strategy ‎to Protect Children from Sexual Abuse and Exploitation on the Internet; the Cheatham County, Tennessee Sheriff’s Office; the Naperville, Illinois Police Department; and the Ottawa County, Michigan Sheriff’s Office, among others. 

This matter is being prosecuted by Assistant U.S. Attorney Cam T. Le, who serves as the Project Safe Childhood Coordinator for the Middle District of Louisiana. 

The investigation of this matter is ongoing.  Law enforcement is attempting to confirm the identity of additional victims.  Anyone who believes that they might have been a victim of Walker’s offenses is encouraged to contact the Baton Rouge Office of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), at 225-757-7770, extension 106, or the local HSI field office.

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 Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.  Click on the “Resources” tab for information about Internet safety education.

A Louisiana woman pleaded guilty today to conspiring to commit sex trafficking of a minor, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney J. Walter Green of the Middle District of Louisiana and Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Division.

Kellie M. Dominique, 37, of Baton Rouge, Louisiana, pleaded guilty before U.S. District Judge Shelly D. Dick of the Middle District of Louisiana.  The sentencing hearing will be set at a later date. 

In connection with her plea, Dominique admitted that from June 2013 until September 2013, she conspired with others to promote the prostitution of a minor female out of Dominique’s home and other venues.  Dominique also admitted that under her direction, the minor female posted on Backpage.com classified advertisements for commercial sex acts in Louisiana and elsewhere.  Dominique further admitted that she introduced the minor female to illegal drugs and used such drugs with the minor female.  Dominique also admitted that she made false statements to government officials and corruptly influenced potential witnesses.   

The U.S. Attorney’s Office of the Middle District of Louisiana, the FBI’s New Orleans Division – Baton Rouge Resident Agency – Child Exploitation Task Force, the Louisiana Attorney General’s Office and the East Baton Rouge Sheriff’s Office are investigating the case with assistance from the Baton Rouge Police Department – Narcotics, the U.S. Marshals Fugitive Task Force and other law enforcement agencies.  Trial Attorney Reginald E. Jones of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jamie A. Flowers Jr. of the Middle District of Louisiana are prosecuting the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.justice.gov/psc.

BATON ROUGE, LA – U.S. Attorney J. Walter Green of the Middle District of Louisiana, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, and Special Agent-in-Charge Jeffrey S. Sallet of the Federal Bureau of Investigation’s New Orleans Division announced that a Baton Rouge woman pleaded guilty today to conspiring to commit sex trafficking of a minor.

Kellie M. Dominique, 37, of Baton Rouge, Louisiana, pleaded guilty before U.S. District Judge Shelly D. Dick of the Middle District of Louisiana.  The sentencing hearing will be set at a later date. 

In connection with her plea, Dominique admitted that from June 2013 until September 2013, she conspired with others to promote the prostitution of a minor female out of Dominique’s home and other venues.  Dominique also admitted that she facilitated the minor female’s use of Backpage.com to post classified advertisements for commercial sex acts in Louisiana and elsewhere.  Dominique further admitted that she provided the minor female with illegal drugs and used such drugs with the minor female.  Finally, when authorities began to investigate her illegal conduct, Dominique made false statements to government officials and corruptly influenced potential witnesses.

Four others have been convicted in related federal cases in the Middle District of Louisiana, including Jeremie Tate, age 34, of Zachary, Louisiana, who was sentenced to serve one hundred fifteen (115) months in prison for operating an interstate prostitution enterprise.

U.S. Attorney Green stated: “Unfortunately this case illustrates, once again, how human trafficking is a very real problem facing us right here in the Middle District of Louisiana.  Our office is strongly committed to continuing our work with our federal, state, and local partners to aggressively pursue this very real and very serious issue, both through federal prosecutions and our leadership on the Middle District of Louisiana Human Trafficking Task Force.”  

The U.S. Attorney’s Office of the Middle District of Louisiana, the FBI’s New Orleans Division, the Louisiana Attorney General’s Office and the East Baton Rouge Sheriff’s Office are investigating the case, with assistance from the Baton Rouge Police Department – Narcotics, the U.S. Marshals Fugitive Task Force, and other law enforcement agencies.  Trial Attorney Reginald E. Jones of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jamie A. Flowers Jr. of the Middle District of Louisiana are prosecuting the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.justice.gov/psc.

BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned four indictments arising from an investigation into the transportation of illegal aliens through the Middle District of Louisiana. 

On December 16, 2015, a federal grand jury returned an indictment charging Pedro Torrell-Matos, age 69, with transporting illegal aliens within the United States.  In a related matter, three individuals – David Gazpar-Godinez, Estuquio Orozco-Valazquez, and Simon Cruz-Pena – were also indicted by the grand jury, and each stands charged with illegal re-entry into the U.S. by a previously-deported alien.

This matter is being investigated by the Baton Rouge offices of the U.S. Border Patrol and the U.S. Department of Homeland Security, Homeland Security Investigations.  This ongoing investigation is being prosecuted by Assistant U.S. Attorney Frederick A. Menner, Jr.

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

BATON ROUGE, LA – United States Attorney Walt Green announced the unsealing of an indictment returned by a federal grand jury against eleven (11) defendants in a year-long operation and investigation into a drug-trafficking conspiracy involving the shipment of heroin from California to Baton Rouge and the distribution of heroin and other controlled substances in the Greater Baton Rouge area.

Among other things, the indictment alleges a conspiracy to distribute significant amounts of heroin in Baton Rouge that had been pressed to resemble oxycodone pills in California and then shipped to Baton Rouge using various means of transportation. Upon arrival in Baton Rouge, the pills were then distributed to mid-level drug dealers and ultimately sold to drug abusers in East Baton Rouge and Livingston Parishes.

The indictment charges the following eleven defendants who, if convicted, face significant terms of imprisonment, fines, and forfeiture of proceeds from the illegal drug offenses:

• Michael Almanza, age 44, of Costa Mesa, California, is charged with conspiracy to distribute and possess with the intent to distribute more than 1 kilogram of heroin, distribution of heroin on three separate occasions, and forfeiture.

   

• Logan Brannon, age 30, of Newport Beach, California, is charged with conspiracy to distribute and possess with intent to distribute more than 1 kilogram of heroin, distribution of heroin on three separate occasions, conspiracy to launder drug proceeds, and forfeiture.

   

• Aaron Lambert, age 32, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with intent to distribute more than 1 kilogram of heroin, distribution of heroin on three separate occasions, laundering drug proceeds, and forfeiture.

   

• Efrain Barajas, age 26, of Hesperia, California, is charged with conspiracy to distribute and possess with intent to distribute more than 1 kilogram of heroin, distribution of heroin on three separate occasions, and forfeiture.

   

• Brian Keith Hano, Jr., age 32, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with intent to distribute more than 1 kilogram of heroin and forfeiture.

   

• Justin Scott, age 32, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with intent to distribute more than 100 grams of heroin, distribution of heroin on three separate occasions, possession with intent to distribute heroin, distribution of tramadol, and forfeiture.

   

• Daryl Walker, age 42, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with intent to distribute more than 100 grams of heroin, possession with intent to distribute heroin, and forfeiture.

   

• Keenan Harris, Jr., age 35, of Denham Springs, Louisiana, is charged with conspiracy to distribute and possess with intent to distribute heroin, distribution of heroin on two separate occasions, and forfeiture.

   

• Christopher Dean, age 35, of Denham Springs, Louisiana, is charged with conspiracy to distribute and possess with intent to distribute heroin and forfeiture.

   

• Christian Becnel, age 32, of Denham Springs, Louisiana, is charged with conspiracy to distribute and possess with intent to distribute heroin, distribution of heroin, and forfeiture.

• Randall Pendarvis, age 33, of Denham Springs, Louisiana, is charged with distribution of tramadol and forfeiture.

U.S. Attorney Green stated: “My office continues to work alongside dedicated law enforcement agents to combat drug-trafficking organizations and the horrific impact they have on our community.  As recently announced, East Baton Rouge Parish has had more heroin overdose deaths this year than ever before.  These deaths impact families and communities and are the direct result of heroin being introduced and trafficked in the Greater Baton Rouge area. We will continue our tireless efforts at identifying heroin traffickers at all levels and ensure they face the justice that they deserve.  I appreciate the dedication and hard work by all of our law enforcement partners in this ongoing fight against heroin traffickers.”

Eric Watson, Acting Assistant Special Agent-in-Charge of the New Orleans Division of the U.S. Drug Enforcement Administration, stated: “Heroin has become an epidemic in our communities and identifies with no specific demographic or socio-economic class.  It is poisoning our neighborhoods and contaminating our schools, which causes terrible harm to the quality of life in any community.  DEA is committed to aggressively attacking criminals who target the weak and addicted with their parasitic drug-trafficking methods. As the public should expect, we will continue to work side by side with our local law enforcement partners in order to enhance the quality of life for the citizens of Baton Rouge and across the country.”

This ongoing investigation is being conducted by the U.S. Attorney’s Office and the U.S. Drug Enforcement Administration, with assistance from Louisiana State Police, East Baton Rouge Parish Sheriff’s Office, and the Baton Rouge Police Department. The matter is being prosecuted by Assistant United States Attorney Paul L. Pugliese.

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

BATON ROUGE, LA – United States Attorney Walt Green announced that SHEDRICK MAYWEATHER, age 68, of Baton Rouge, Louisiana, pled guilty before U.S. District Judge John W. deGravelles to conspiracy to commit bank fraud.  While employed as a tax preparer, MAYWEATHER admitted to accepting money in exchange for preparing numerous fraudulent documents using figures provided to him by another person.

From approximately 2004 until 2011, Mayweather created fraudulent W-2 wage and tax statements, balance sheets, profit and loss statements, and personal and business tax returns.  These documents reflected inflated income and net worth figures.  These fraudulent documents were submitted to several financial institutions in the Baton Rouge area to obtain loans and lines of credit worth a cumulative amount of approximately $3,000,000.  Some of these loans were defaulted on and, consequently, some of these financial institutions charged off these loans and experienced losses.

This ongoing investigation is being conducted by the Federal Bureau of Investigation.  This matter is being prosecuted by Assistant United States Attorney John B. Casey.

BATON ROUGE, LA - United States Attorney Walt Green announced the conviction of MICHELLE AKRIDGE, age 45, of Prairieville, Louisiana, who pled guilty today before U.S. District Judge James J. Brady to theft of government funds, in violation of Title 18, United States Code, Section 641.

According to the factual basis presented to the Court in connection with her plea, AKRIDGE stole over $77,000 in United States Department of Veterans’ Affairs (VA) Dependency and Indemnity Compensation (DIC) benefits that were intended for her mother.  Following her mother’s death, AKRIDGE failed to report the death of her mother and withdrew the funds for her own personal use.  At her re-arraignment hearing, AKRIDGE admitted that she had fraudulently obtained more than $77,000 in VA DIC benefits over a four-year period.

U.S. Attorney Green stated: “This kind of criminal conduct is an affront to all those who have served honorably in this country’s armed services. We appreciate the VA-OIG’s efforts to identify this type of fraudulent conduct and bring it to this Office’s attention so that we may take action.”

This investigation is being conducted by the Department of Veterans’ Affairs Office of Inspector General.  The matter is being prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.

BATON ROUGE, LA –United States Attorney Walt Green announced the unsealing of an indictment returned by a federal grand jury charging THOMAS J. TANNER, JR., age 49, of engaging in a scheme to defraud his former employer, ISC Constructors, LLC, along with Chevron U.S.A., Inc., of $1,300,000.

Specifically, the indictment charges that throughout 2013 and 2014, while working as the project manager of a job site in Pascagoula, Mississippi, TANNER caused false payroll information and false documentation to be submitted to ISC and Chevron.  According to the indictment, TANNER caused the false documents to be submitted via email from the job site in Mississippi to ISC Headquarters in Baton Rouge, LA.  Based on the false representations, TANNER unlawfully benefitted both financially and professionally over the course of approximately 14 months.  The indictment charges TANNER with four counts of wire fraud, in violation of Title 18, United States Code, Section 1343.  The indictment also includes forfeiture allegations.

U.S. Attorney Green stated: “Corporate fraud has increased in scope both in the United States and worldwide.  Moreover, the high-speed nature of communications today has allowed corporate executives to, at times, transmit fraudulent documents via e-mail, with the belief that the documents will be quickly reviewed and approved and the underlying fraudulent scheme will not be discovered.  My office will continue to devote the resources necessary to aggressively identify these schemes and prosecute those involved, as corporate fraud almost always results in the loss of significant corporate funds and, more importantly, corporate integrity.”

Assistant Special Agent-in-Charge Dan Evans stated: “The FBI New Orleans Division will continue to investigate allegations of wire fraud and similar while collar crimes that defraud Louisiana employers and residents.”

This ongoing investigation is being conducted by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Paul L. Pugliese.

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

BATON ROUGE, LA – United States Attorney Walt Green announced that LAGUARDIA COSTON, age 28, of Baton Rouge, Louisiana, pled guilty before Senior U.S. District Judge James J. Brady to theft and conversion of government funds, in violation of Title 18, United States Code, Section 641.  During the guilty plea hearing, COSTON admitted to preparing and filing numerous fraudulent tax returns using stolen personal identifiers, such as names and social security numbers, of 73 separate victims. In addition, COSTON admitted to unlawfully obtaining $102,000 in tax refunds from the U.S. Treasury.

As a result of IRS data analysis, COSTON was identified as a suspect in the preparation of fraudulent tax returns. In many instances, COSTON used names and social security numbers of unknowing victims to prepare fraudulent W-2 Forms that were then used to electronically file the fraudulent tax returns. COSTON also admitted to unlawfully obtaining tax refunds in the form of U.S. Treasury checks and electronic bank deposits.

U.S. Attorney Green stated: “This case is another example of my office working in conjunction with the IRS to aggressively identify and prosecute criminals who use stolen identities to defraud the United States and unlawfully obtain money to satisfy their own greed.  We look forward to continuing our work with IRS-CI and other investigative agencies in the fight against such conduct.”

Special Agent in Charge of Internal Revenue Service Criminal Investigation, Jerome R. McDuffie, stated:  “We are pleased with Ms. Coston’s conviction.  Identity theft is an on-going problem and IRS-CI will continue to vigorously investigate and prosecute those engaged in these illegal activities.  Our agency will continue to work with the United States Attorney's Office to aggressively protect innocent taxpayers and preserve the integrity of our tax system.  Participation in refund fraud schemes does not pay and those who do so will be prosecuted and held accountable for their illegal activities.”

This ongoing investigation is being conducted by the Internal Revenue Service’s Criminal Investigation Division.  This matter is being prosecuted by Assistant United States Attorney Paul L. Pugliese.

BATON ROUGE, LA - United States Attorney Walt Green announced today that Chief U.S. District Court Judge Brian A. Jackson sentenced WHITTNEY M. LATHAN of Baton Rouge, Louisiana, to ten (10) months in federal prison; a five-year term of supervised release following her release from prison; restitution in the amount of $508,182; and forfeiture of assets in the amount of $309,350.

On September 3, 2015, LATHAN was convicted of bank fraud, in violation of Title 18, United States Code, Section 1344.   Her conviction stemmed from her scheme to defraud the Dow Federal Credit Union out of over $500,000 from January 2, 2009 through June 29, 2013, while employed as a teller. 

This matter was prosecuted by Assistant United States Attorney Rene Salomon.    This matter was investigated by the Federal Bureau of Investigation.

BATON ROUGE, LA – BARBARA A. SADLER, age 63, of Zachary, Louisiana, and SEDRIC C. BLAKES, age 42, of Zachary, Louisiana, have been convicted in federal court of conspiracy to commit health care fraud and wire fraud in connection with a multi-million dollar scheme to defraud the Louisiana Medicaid program through Extraordinary Care Network, Inc. (“Extraordinary”), an attendant care services company that SADLER and BLAKES owned and operated.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Walt Green of the Middle District of Louisiana, Special Agent in Charge CJ Porter of the Dallas Region of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG), Special Agent in Charge Jeff Sallet of the FBI’s New Orleans Division and Louisiana State Attorney General James Buddy Caldwell made the announcement.

SADLER and BLAKES were previously charged by a federal grand jury, in a Superseding Indictment returned on June 25, 2015, with conspiring with others to commit healthcare fraud and wire fraud, in violation of Title 18, United States Code, Section 1349.  BLAKES was also charged with multiple counts of healthcare fraud and wire fraud, in violation of Title 18, United States Code, Sections 1347 and 1343. The Superseding Indictment also included a forfeiture allegation requiring SADLER and BLAKES to forfeit the proceeds of their fraud if convicted.

In connection with her guilty plea yesterday before Chief U.S. District Judge Brian A. Jackson, SADLER admitted that, beginning in or around 2006 and continuing through in or around March of 2013, she engaged in a scheme to defraud Medicaid through Extraordinary Care, which she owned, operated, and managed.  During this time period, in total, Extraordinary Care submitted claims to Medicare and was paid more than $23 million.  SADLER admitted, however, that she and others submitted fraudulent claims to Medicaid in which they falsely represented that Extraordinary Care had provided one-on-one attendant care services, when in fact such services had not been provided as represented.  In furtherance of the scheme, SADLER admitted that she and her co-conspirators would fabricate progress notes, forge the signatures of unwitting company employees, and then use such documents as support for fraudulent claims to Medicaid for reimbursement.  In her written plea agreement, SADLER admitted that the scheme caused a loss of more than $1 million.

Previously, on Thursday, November 12, 2015, BLAKES appeared before Chief Judge Jackson and entered his own guilty plea to the conspiracy charge.  BLAKES admitted that he, too, engaged in a scheme to defraud Medicaid while employed as the company’s Chief Operating Officer.  BLAKES admitted that he participated in submitting fraudulent claims to Medicaid and that he would also fabricate progress notes and forge signatures of other employees.

Both SADLER and BLAKES are now awaiting sentencing.

U.S. Attorney Green stated: “Our office, together with our federal, state and local partners, will continue to aggressively pursue individuals, including corporate executives, who defraud our healthcare programs.  Holding individuals accountable is imperative to stemming the tide of fraud and serving as a significant deterrent to anyone inclined to engage in similar wrongdoing.”

This ongoing matter is being investigated by the Federal Bureau of Investigation (FBI) and the Medicaid Fraud Control Unit of the Louisiana State Attorney General’s Office (MFCU), and is being brought as part of the Medicare Fraud Strike Force, under the supervision of the United States Attorney’s Office and the Fraud Section of the Criminal Division of the U.S. Department of Justice.  This case is being prosecuted by DOJ Trial Attorneys Dustin M. Davis and Shubhra Shivpuri and Assistant U.S. Attorney J. Brad Casey.

BATON ROUGE, LA - United States Attorney Walt Green announced that GEORGE M. KOSTUCH, age 46, was sentenced today by U.S. District Judge Shelly D. Dick to serve a 3-year term of probation and ordered to pay $161,850 in restitution to the State of Louisiana. 

KOSTUCH previously pled guilty to one count of wire fraud in connection with a scheme to defraud the State of Louisiana’s Motion Picture Industry Development Tax Credit Program (“Tax Credit Program”).  KOSTUCH owned and was associated with two film production companies and obtained tax credits for an episodic game show series focused on sports trivia.  At his guilty plea, KOSTUCH admitted that, from June 2010 through March 2011, KOSTUCH used his control over companies in the industry to cause fraudulent checks to be issued and delivered, totaling $539,000, for production expenses that had not actually been incurred.  These fraudulent checks made it appear as though KOSTUCH and others with whom he was involved incurred $539,000 in eligible production expenses, which ultimately caused the Louisiana Economic Development Office (“LED”) to issue a certified tax credit in the amount of $161,850.  KOSTUCH and others received the benefit of the tax credit knowing that it had been obtained through false representations.

This investigation was conducted by the Federal Bureau of Investigation and the Louisiana Inspector General’s Office.  The matter is being prosecuted by Assistant United States Attorney Frederick A. Menner, Jr.

BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned a superseding indictment in an ongoing investigation into a nationwide scheme involving millions in counterfeit checks and hundreds of stolen identities.

Specifically, the indictment charges WALTER GLENN, age 38, of Hartford, Connecticut, LARRY WALKER, age 39, of Orlando, Florida and THOMAS JAMES, age 55, of Union, South Carolina, with conspiracy to make and pass counterfeit checks, production of false identification documents use unauthorized access devices access device fraud, and aggravated identity theft.  If convicted, the defendants face significant prison terms, fines, restitution orders, and forfeiture orders.

According to the Indictment, GLENN, WALKER and JAMES used fake IDs and social security numbers belonging to others in over 800 transactions in several states as part of their scheme to cash almost $2,000,000 in counterfeit checks.  The alleged fraudulent scheme resulted in approximately $1,218,000 in losses to a large national retailer.  According to the indictment, the scheme was facilitated through the use of computers.

The Indictment alleges that, in order to execute their fraudulent scheme, GLENN, WALKER, and JAMES manufactured counterfeit checks from stolen account numbers, and then used the personal identifiable information of over 400 victims to make fake IDs which enabled them to cash the counterfeit checks that they had produced.

U.S. Attorney Green stated: “The theft and use of stolen identities and monetary devices is becoming a worldwide epidemic, particularly in the United States.  Cyber technology is allowing fraud schemes to blossom by providing criminals, both domestically and overseas, with the tools and information to make each scheme bigger and better than the last.  The role of federal prosecutors and investigators to address this threat is critical.  Cyber criminals are not untouchable and we will devote the resources necessary to aggressively pursue these criminals and take the fight to them and any others seeking to defraud our communities.”

This matter is being handled by the United States Attorney’s Office for the Middle District of Louisiana, the United States Secret Service, and the West Baton Rouge Parish Sheriff’s Office. This matter is being prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.

NOTE:  An indictment is an accusation by the Grand Jury.  A defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.

BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned an indictment charging ANTHONY T. KURTZ, age 40, of Livingston, Louisiana, with distribution of child pornography, possession of child pornography, and forfeiture.

According to the Indictment, KURTZ possessed child pornography which contained images of pre-pubescent minors and minors who were under 12 years of age.  Both the child pornography that KURTZ distributed and possessed had been transported using means and facility of interstate and foreign commerce.  The indictment further alleges that offenses were committed after KURTZ had previously been convicted of sexual assault and indecent assault in the State of Pennsylvania.

U.S. Attorney Walt Green stated:  “Children victimized during the production of child pornography are re-victimized every time these images are distributed and viewed on the internet.  This office will continue to protect society’s most vulnerable citizens by vigorously prosecuting any individuals who distribute and possess images of children being sexually abused.”

“Individuals who distribute child pornography further injure innocent victims each time these illegal images are distributed more widely online,” said Raymond R. Parmer Jr., Special Agent-in-Charge of the U.S. Department of Homeland Security, Homeland Security Investigations (HIS) New Orleans.  “Child sex abuse is one of the most serious crimes HSI investigates due to the lasting psychological and physical damage it can inflict on victims, and as such it will continue to be one of the agency’s highest priorities.”

This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the U.S. Department of Homeland Security, Homeland Security Investigations, and the Louisiana Attorney General’s Office – Cyber Crime Unit.

This matter is being prosecuted by Assistant U.S. Attorney Ryan R. Crosswell.

NOTE: An indictment is an accusation by the 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 Walt Green of the Middle District of Louisiana announced that a federal grand jury has indicted RAPHEW T. REED, JR., age 30, of Ruston, Louisiana, with making false statements to a credit union, in violation of Title 18, United States Code, Section 1014, false representation of a Social Security number, in violation of Title 42, United States Code, Section 408(a)(7)(B), three counts of wire fraud, in violation of Title 18, United States Code, Section 1343, engaging in an unlawful money transaction, in violation of Title 18, United States Code, Section 1957, and making false statement, in violation of Title 18, United States Code, Section 1001.  If convicted, REED faces significant incarceration, fines, restitution, and supervised release following imprisonment.  The Indictment also includes forfeiture allegations.

The Indictment alleges that REED engaged in fraudulent conduct for more than a year in 2012 and 2013.  First, in or about May of 2012, REED knowingly made false statements to a federally-insured credit union in an attempt to obtain a loan.  REED provided the credit union with a false Social Security number and documents that misrepresented his identity and income.  Then, in another attempt to obtain money under false pretenses and representations, from late 2012 through April 2013, REED executed a scheme to defraud another company, which, on or about November 27, 2012, wired $125,000 to REED.  REED fraudulently diverted the funds to his friends, family members, others to whom he owed money, and to another one of his own bank accounts.  When the victim repeatedly asked REED to return the funds, as he had promised he would do, REED falsely represented to the victim that he was in the process of returning the company’s funds.  In connection with this scheme, REED is alleged to have engaged in an unlawful monetary transaction, causing $18,950 of the proceeds from the fraudulent scheme to be wired from a bank account that he controlled in Texas to a second account located in the Middle District of Louisiana.  Finally, according to the Indictment, in December of 2013, when REED was interviewed about the above-described conduct by the Federal Bureau of Investigation, he knowingly made a number of false statements.

U.S. Attorney Green stated: “Dishonest businesspeople undermine the integrity of our financial communities and erode the principles critical to a hospitable and fair business environment.  Combatting financial crimes is thus a priority to my office, and we will continue to work diligently and aggressively with the FBI, SSA-OIG, and our other partners to combat such wrongdoing.”

This matter is being investigated by the Baton Rouge office of the FBI, which has received valuable assistance from the Social Security Administration’s Office of Inspector General.  The matter is being prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a deputy chief within the office’s Criminal Division.

NOTE:  An indictment is an accusation by the Grand Jury.  A defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.

BATON ROUGE, LA - United States Attorney Walt Green announced that MATTHEW KEITH, age 38, was sentenced today by Chief U.S. District Judge Brian A. Jackson to 6 months in federal prison and ordered to pay $1,200,000 in restitution to the State of Louisiana.

KEITH previously pled guilty to one count of conspiracy to commit wire fraud in connection with a scheme to defraud the State of Louisiana’s Motion Picture Industry Development Tax Credit Program ("Tax Credit Program"). At his guilty plea, KEITH admitted that he owned and operated Dirty District Entertainment, LLC, which provided technical services for the productions of motion pictures. KEITH admitted that he conspired with at least one other person to present falsely inflated expenditures to the State of Louisiana in the application for film tax credits.

Between June 10, 2009 and March 31, 2010, a co-conspirator applied for, and received, tax credits from the Louisiana Economic Development Office ("LED") for various movies. The LED is a state entity with the mission to lead economic development for the State of Louisiana. LED operated the Tax Credit Program, which was designed to entice production companies to shoot films and video productions in Louisiana. The Tax Credit Program provided a 30% tax credit on qualified expenditures for the production of films in Louisiana. Once issued by LED, the tax credits were fully transferable. In this case, however, KEITH admitted that he conspired with at least one other individual to make a series of financial transfers, which were later used to falsely reflect $4,000,000 of expenditures that had purportedly been incurred in motion picture productions. These false expenditures allowed a co-conspirator to be awarded tax credits, and KEITH admitted that the co-conspirator was not entitled to $1,200,000 of the tax credits he received.

This investigation was conducted by the Federal Bureau of Investigation and the Louisiana Inspector General’s Office. The matter is being prosecuted by Assistant United States Attorney Frederick A. Menner, Jr.

BATON ROUGE, LA - United States Attorney Walt Green announced that DANIEL GARCIA, age 38, was sentenced today by Senior United States District Court Judge James J. Brady to 6 months in federal prison and 6 months in a halfway house.  GARCIA was also ordered to pay $900,000 in restitution to the State of Louisiana.

GARCIA previously pled guilty to one count of conspiracy to commit wire fraud in connection with a scheme to defraud the State of Louisiana’s Motion Picture Industry Development Tax Credit Program (“Tax Credit Program”).  At his guilty plea, GARCIA admitted that he owned and operated DMG Holdings, LLC, and Louisiana Film Finishers, LLC, companies that provided technical services for the production of motion pictures.

Between February 10, 2009 and March 31, 2010, GARCIA applied for, and received, tax credits from the Louisiana Economic Development Office (“LED”) for various movies.  The LED is a state entity with the mission to lead economic development for the State of Louisiana.  LED operated the Tax Credit Program, which was designed to entice production companies to shoot films and video productions in Louisiana.  The Tax Credit Program provided a 30% tax credit on qualified expenditures for the production of films in Louisiana.  Once issued by LED, the tax credits were fully transferable.  In this case, however, GARCIA admitted that he conspired with at least one other individual to make a series of financial transfers, which created cancelled checks, which were later used to falsely reflect $3,000,000 of expenditures that had purportedly been incurred in motion picture productions.  These false expenditures allowed GARCIA to be awarded tax credits, and GARCIA admitted that he was not entitled to $900,000 of the tax credits he received.

This investigation was conducted by the FBI and the Louisiana State Inspector General’s Office and is being prosecuted by Assistant United States Attorney Frederick A. Menner, Jr.

The leader of a sex trafficking ring was sentenced today to 115 months in prison for operating an interstate prostitution enterprise.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney J. Walter Green of the Middle District of Louisiana and Special Agent in Charge Michael J. Anderson of the FBI’s New Orleans Division made the announcement.

Jeremie J. Tate, 34, of Zachary, Louisiana, pleaded guilty on April 8, 2015, to conspiracy to unlawfully use interstate facilities in aid of racketeering, two counts of use of interstate facilities in aid of racketeering and enticing another to travel interstate for prostitution.  Tate was sentenced by U.S. District Judge Shelly D. Dick of the Middle District of Louisiana. 

In connection with his plea, Tate admitted that, from November 2012 through November 2013, he operated a prostitution business based in Baton Rouge involving at least one minor.  Tate admitted that he personally recruited prostitutes and advertised for and scheduled prostitution sessions.  Tate further admitted that he used proceeds from the enterprise to purchase controlled substances, which he distributed to the prostitutes and others to manipulate and intimidate them. 

To date, three others already have pleaded guilty and have been sentenced for their roles in this sex trafficking ring.

The case is being investigated by the was investigated by the FBI’s Baton Rouge Crimes Against Children Task Force, Louisiana Attorney General’s Office, Louisiana State Police and East Baton Rouge, Louisiana, Sheriff’s Office, with assistance from the Baton Rouge, Louisiana, Police Department’s Narcotics Division, U.S. Marshals Service Fugitive Task Force and other law enforcement agencies. 

The case is being prosecuted by Trial Attorney Reginald E. Jones of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jamie A. Flowers Jr. of the Middle District of Louisiana.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.justice.gov/psc.

BATON ROUGE – The leader of a sex trafficking ring was sentenced today to serve one hundred fifteen (115) months in prison for operating an interstate prostitution enterprise.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney J. Walter Green of the Middle District of Louisiana and Special Agent-in-Charge Michael J. Anderson of the FBI’s New Orleans Division made the announcement.

Jeremie J. Tate, 34, of Zachary, Louisiana, pleaded guilty on April 8, 2015, to conspiracy to unlawfully use interstate facilities in aid of racketeering, two counts of use of interstate facilities in aid of racketeering, and enticing another to travel interstate for prostitution.  Tate was sentenced this afternoon by U.S. District Judge Shelly D. Dick of the Middle District of Louisiana.

In connection with his plea, Tate admitted that, from November 2012 through November 2013, he operated a prostitution business based in Baton Rouge involving at least one minor.  Tate admitted that he personally recruited prostitutes and advertised for and scheduled prostitution sessions.  Tate further admitted that he used proceeds from the enterprise to purchase controlled substances, which he distributed to the prostitutes and others to manipulate and intimidate them.

Three others already have pleaded guilty and have been sentenced for their roles in this sex trafficking ring.

The case is being investigated by the FBI’s Baton Rouge Crimes Against Children Task Force, the Louisiana Attorney General’s Office, the Louisiana State Police, and the East Baton Rouge, Louisiana, Sheriff’s Office, with assistance from the Baton Rouge Police Department’s Narcotics Division, the U.S. Marshals Service Fugitive Task Force, and other law enforcement agencies.

The case is being prosecuted by Trial Attorney Reginald E. Jones of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jamie A. Flowers Jr. of the Middle District of Louisiana.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit http://www.projectsafechildhood.gov/.

BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has indicted WILLIAM “WIL” ROS, age 45, of Cortez, Florida, with wire fraud, embezzlement from a bankruptcy estate, and money laundering in connection with his management and operation of Fundamental Provisions, LLC, a local company which operated 30 Popeyes’ Fried Chicken restaurants in Louisiana, Alabama and Florida.  If convicted, the defendant faces incarceration, a fine, restitution, forfeiture of a 2005 Ford GT valued at $225,000, and supervised release following imprisonment.

According to the indictment, Fundamental Provisions, LLC was a business based in Gonzales, Louisiana.  Fundamental owned and operated 30 Popeyes’ Fried Chicken and Biscuits franchise restaurants in Alabama, Florida, and Louisiana.  Fundamental had gross annual revenues in excess of $20,000,000.

According to the indictment, ROS was the Chief Financial Officer of Fundamental.  As CFO, ROS was responsible for the daily management and operations of multiple Popeyes restaurants located in Alabama and Florida, including supervision of, and frequent communication with various store managers.  ROS was also responsible for assuring that funds generated by each restaurant were used for the benefit of Fundamental.

According to the indictment, in December 2009, in the United States Bankruptcy Court for the Middle District of Louisiana, Fundamental sought, and received, bankruptcy protection which authorized the company to reorganize its management and restructure its debt so that it could continue operating its business and thereafter pay debts it owed to numerous creditors.

According to the indictment, a Chief Restructuring Officer was employed in January 2010 and authorized by the Bankruptcy Court to control all business operations, including disbursements of company funds, employment of key personnel, and incurrence of debt.  The CRO employed and paid ROS to act as Fundamental’s CFO.

According to the indictment, because the reorganized company was unable to make payments to its creditors as promised in December 2011, Fundamental was placed in involuntary bankruptcy in March 2012.  A Trustee was appointed by a Bankruptcy Judge for the purpose of liquidating the company’s assets in order to pay substantial debts owed by Fundamental to its creditors.  With approval of the Bankruptcy Judge, the Trustee appointed a Chief Operating Officer to assist with the liquidation process.  The COO continued ROS’s employment as Fundamental CFO until in or about May 2012.

The Indictment alleges that, from August 2009 through May 2012, ROS engaged in a scheme to defraud Fundamental and obtain company money by means of materially false and fraudulent pretenses, promises, and representations.  According to the indictment, the purpose of the scheme was to enrich himself using funds he diverted from Fundamental, and to conceal his diversions of company funds from officials administering Fundamental’s Bankruptcy Court proceedings.

According to the indictment, ROS executed his scheme by using his position as Fundamental’s CFO to cause restaurant managers to divert restaurant revenues to his personal benefit.  He also allegedly caused store managers to mischaracterize and cause the recording of fictitious purchases to disguise the fact that he had caused managers to remove funds from the restaurants’ cash registers for his personal benefit.

According to the indictment, beginning in August 2009, ROS allegedly directed an Alabama store manager to remove monies from restaurant cash registers and either deliver it to him (ROS) or mail FedEx packages of cash to persons identified by ROS. 

According to the indictment, beginning in March 2010, ROS allegedly directed a second Alabama store manager to remove monies from restaurant cash registers and deposit the monies into bank accounts controlled by ROS, including ROS’s girlfriend, his golf club supplier, and family friend.

According to the indictment, ROS also allegedly used the store managers to divert restaurant funds and directed them to send packages of cash to various persons, including his girlfriend, his golf club supplier, and the seller of a Ford GT race car.

In total, ROS allegedly embezzled approximately $966,257 from the Alabama restaurants during the course of the pending bankruptcy proceedings. According to the indictment, ROS allegedly enjoyed the stolen funds by purchasing a $225,000 race car and upgrading, renovating, and furnishing his Florida home.

U.S. Attorney Green stated:  “Corporate executives who engage in wrongdoing will find no safe haven in federal court.  My office, together with our partners, will continue to aggressively pursue corporate fraud matters and work to ensure that all criminals are held accountable regardless of their status.”

The matter is being handled by the United States Attorney’s Office for the Middle District of Louisiana and the Baton Rouge office of the Federal Bureau of Investigation, along with assistance from the Region 5 Office of the United States Trustee.  It is being prosecuted by Assistant United States Attorneys Rene Salomon and Ryan Crosswell.

NOTE:  An indictment is an accusation by the Grand Jury.  A defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.