Middle District of Louisiana

BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr., announced that MATTHEW KEITH, age 36, pled guilty yesterday before Chief United States District Court Judge Brian Jackson 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.”) KEITH faces a sentence of up to five (5) years imprisonment, three (3) years of supervised release following imprisonment, and a fine of $250,000. The sentencing date has yet to be scheduled.

At today’s hearing, KEITH 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. KEITH admitted, within a nine-day period beginning on June 10, 2009, he conspired with others, including an individual identified only as D.G., to transfer $1,000,000 D.G. received from an investor through four separate film production companies. These transfers created cancelled checks which D.G. later used as false documentation for $4,000,000 of motion picture productions.

The Louisiana Economic Development Office (“LED”) is a state entity which mission is to lead economic development for the State of Louisiana. LED operated the Motion Picture Industry Development Tax Credit Program (“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.

Between June 10, 2009 and March 31, 2010, D.G. applied for, and received, tax credits from the LED for various movies. In total, $4,000,000 of the purported expenditures related to films was based upon the false expenditures created in the scheme described above. The tax credits issued by LED, based upon the false expenditures, totaled $1,200,000. KEITH’s role in the conspiracy resulted in the receipt of improperly obtained tax credits totaling $300,000.

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.

BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr. announced today that a corporation and its two owners have been charged in connection with a wide ranging and ongoing federal and state investigation into corruption and fraud surrounding federal environmental laws.

RAM ENVIRONMENTAL SERVICES, INC., an entity incorporated in the State of Louisiana and doing business in Morgan City, Louisiana; RAYMOND MARCEL, JR., age 60, of Berwick, Louisiana; and CYRIL D. ROBICHEAUX, age 53, of Morgan City, Louisiana, have each been charged in Bills of Information with conspiracy to defraud the U.S. Environmental Protection Agency and to violate the Safe Drinking Water Act, in violation of Title 18, United States Code, Section 371. MARCEL and ROBICHEAUX are the owners and operators of RAM, a wastewater brokerage firm.

If convicted, MARCEL and ROBICHEAUX would face up to five years imprisonment, a $250,000 fine, a term of supervised release following imprisonment up to three years, and restitution to any victims. If convicted, RAM would face a fine up to $250,000, a term of probation up to five years, and an order of restitution to any victims.

Today’s charges allege that, in 2011 and 2012, the defendants conspired with themselves and others to illegally discharge industrial wastewater at locations in Belle River, Louisiana, and Baton Rouge, Louisiana, and to otherwise obstruct the enforcement of the federal environmental laws through kickbacks, the creation and use of false documents, and other fraudulent means.

With regard to the Baton Rouge conduct, the charges allege that, in September 2012, the defendants and others caused the illegal disposal of industrial wastewater at a site in Baton Rouge, Louisiana, and concealed such activity through the creation and use of false documents. According to the charges, the defendants undertook such fraudulent activity with the owner of the Baton Rouge site and further schemed with the site owner to lie to investigators regarding the disposals.

With regard to the Belle River conduct, the charges allege that, during 2011 and 2012, the defendants paid over $22,000 in kickbacks to Michael J. Vaughn (“Vaughn”), the Operations Manager of FAS Environmental Services, a transportation and disposal company, in exchange for illegally using FAS’s injection well in Belle River to dispose of over 380,000 gallons of industrial wastewater. As part of the scheme, the defendants and their fellow conspirators allegedly created and used over 100 false documents, including manifests and work orders, in addition to submitting false reports to regulators in Baton Rouge. Such allegedly false and fraudulent documents were designed to conceal the scheme from federal and state government officials, as well as the defendant corporation’s unsuspecting clients.

Today’s charges were preceded by Vaughn’s conviction on May 29, 2013. Vaughn, the former FAS Operations Manager, pled guilty before U.S. District Judge James Brady to a previously sealed Bill of Information charging him with conspiracy to defraud the U.S. Environmental Protection Agency and to violate the Safe Drinking Water Act, in violation of Title 18, United States Code, Section 371, making false statements within the jurisdiction of the federal government, in violation of Title 18, United States Code, Section 1001, and forfeiture. Vaughn is pending sentencing.

FAS ownership was unaware of the scheme involving the FAS injection well, which resulted in the misuse of FAS resources. FAS has cooperated fully throughout the investigation.

This ongoing investigation is being conducted by this office, the Criminal Investigation Division of the U.S. Environmental Protection Agency, and the Criminal Investigation Division of the Louisiana Department of Environmental Quality. The case is being prosecuted by Assistant United States Attorney Corey R. Amundson who serves as the Senior Deputy Chief of the Criminal Division.

BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced today that he will be relinquishing his post as United States Attorney for the Middle District of Louisiana effective July 1, 2013. After his resignation, he plans to join a private law practice in the Baton Rouge, Louisiana area.

“It has been an enormous privilege to serve the Middle District of Louisiana as its U.S. Attorney,” Cazayoux stated. “This office, with its wonderful women and men, represents the best of public service. Being part of our great justice system, with its many dedicated local, state and federal law enforcement personnel, has been an honor. While it is personally the right time to leave for my family and me, I do so with utmost humility and gratitude for this opportunity to serve, given to me by the President and the Attorney General, at the recommendation of Senator Landrieu.”

As U.S. Attorney, Cazayoux’s priorities have been protecting Americans from terrorism and threats to national security, combating violent crime, and fighting public corruption and fraud. Cazayoux has supervised the prosecution of financial, health care, and disaster fraud. Protecting the country’s vulnerable populations – children, the elderly, hate crime victims, and victims of human trafficking and exploitation – has also been a focus of Cazayoux.

Cazayoux joined District Attorney Hiller Moore and state and local law enforcement to curtail violent crime in the City of Baton Rouge through the Brave Initiative, a community-policing effort aimed to disrupt gang activity. The Organized Crime Drug Enforcement Task Force flourished during his tenure, with over ninety-eight defendants charged with drug trafficking offenses and over $1,455,000 in property and money seized in connection with these offenses.

The Health Care Strike Force, under Cazayoux’s leadership, indicted sixty-nine defendants for committing health care fraud offenses. Over $32,400,000 was ordered to be paid back to victims, including federal agencies.

Cazayoux oversaw the public corruption prosecution and conviction of several high-profile defendants. These include: Deputy Commissioner for the Louisiana Department of Insurance; Director of Governor’s Program on Abstinence; Program Manager for Governor’s Office of Safe and Drug Free Schools and Communities; Attorney for Municipal Police Employee’s Retirement System of Louisiana; Mayor of St. Gabriel and President of the National Conference of Black Mayors; Mayor of Port Allen; Mayor of White Castle; Mayor of New Roads; Port Allen Chief of Police; Port Allen City Council Member; and Baton Rouge City Court Clerk.

During his term, Cazayoux ensured that over $17,600,000 in criminal and civil collections were collected by the Civil Division and returned to victims of crimes, the United States Treasury and other federal agencies.

Cazayoux is also the Executive Director of the National Center for Disaster Fraud (“NCDF”), located in Baton Rouge, Louisiana. The National Center for Disaster Fraud currently coordinates disaster fraud prevention and investigations for all Presidential disaster declarations in the United States.

The Middle District of Louisiana is a nine-parish region that includes the following parishes: Ascension, East Baton Rouge, East Feliciana, Iberville, Livingston, Pointe Coupee, St. Helena, West Baton Rouge, and West Feliciana. The United States Attorney's Office is responsible for representing the federal government in virtually all of the litigation involving the United States in the Middle District of Louisiana, including all criminal prosecutions for violations of federal law, civil lawsuits against the government, and actions to collect judgments and restitution on behalf of victims and taxpayers.

Donald J. Cazayoux, Jr. is a native of New Roads, Louisiana. He earned his B.S. and M.A. from Louisiana State University and his J.D. from Georgetown University Law School in 1991. He was elected to the Louisiana House of Representatives from the 18th district in 1999 where he served until 2008. Cazayoux was elected to the U.S. House of Representatives, Louisiana’s 6th District, and served in Congress until January 2009. He was sworn in as the United States Attorney for the Middle District of Louisiana in June 2010.

BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced today that the United States Attorney’s Office has partnered with the Baton Rouge City Constable’s Office, East Baton Rouge Sheriff’s Office, Baton Rouge Police Department, Louisiana State Police, East Baton Rouge District Attorney’s Office, Louisiana Association of Sheriffs, Louisiana Association of Chiefs of Police, Louisiana District Attorneys Association, and Louisiana’s City Marshals and City Constables Association to develop an initiative to educate youth on firearm safety and awareness.

United States Attorney Donald J. Cazayoux, Jr. states, “Our state and local partners are confident that this campaign will be successful in helping to reduce the number of tragic firearm accidents involving our youth that occur simply because of the lack of education and understanding of the dangers and the devastating effects of firearms when they are not handled properly.”

The presentations can be conducted at any community event, summer camp or school camp and will focus on safety and awareness issues as well as instructions on what to do if a firearm is found. The basic philosophy taught is that upon encountering a firearm children should Stop, Don’t Touch, Leave the Area, and Tell an Adult. Presentations are conducted by POST/FBI Firearms Instructors and will utilize props and a ballistic shoot tank for a live fire demonstration.

The current community event schedule includes:

• Saturday, June 1, 2013 (10:00 – 4:00) “Obesity for the Birds” BREC Trail Walk/Community Against Drugs and Violence, Inc. (CADAV) Pre-Juneteenth Community Outreach Festival Howell Place Gym, 7716 Howell Boulevard, Baton Rouge

• Saturday, June 8, 2013 (9:00 – 1:00) Shady Grove First Missionary Baptist Church’s Annual Health Fair 16443 Plank Road, Baker

• Saturday, June 15, 2013 (1:00 – 5:00) Juneteenth Celebration Gus Young Park, 4200 Gus Young Avenue, Baton Rouge  

• Saturday, June 29, 2013 (1:00 – 5:00) One Voice One Dream One Team 4th Annual Pack the Park SAIA BREC Park, 855 North Donmoor Avenue, Baton Rouge

• Saturday, July 27, 2013 (7:00 – 12:00) Project R.I.D.E., Inc. Back to School Seminar Louisiana State Fairgrounds, 17200 Airline Highway, Baton Rouge

• Saturday, December 7, 2013 (12:00) Community Against Drugs and Violence, Inc. (CADAV) Christmas Festival Scotlandville Elementary School, Pembroke at 75th Avenue, Baton Rouge

For more information or to schedule a presentation, contact Holly Sheets, Victim-Witness Coordinator for the United States Attorney’s Office, at 225-389-0443.

BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr. announced today the conviction of a former Operations Manager in connection with a wide ranging federal and state investigation into corruption and fraud surrounding federal environmental laws.

MICHAEL J. VAUGHN, age 33, of Addis, Louisiana, pled guilty this morning before U.S. District Judge James J. Brady to a previously sealed Bill of Information charging him with conspiracy to defraud the U.S. Environmental Protection Agency and to violate the Safe Drinking Water Act, in violation of Title 18, United States Code, Section 371, making false statements within the jurisdiction of the federal government, in violation of Title 18, United States Code, Section 1001, and forfeiture. As a result of his convictions, the defendant faces up to ten (10) years imprisonment, a $500,000 fine, forfeiture of the proceeds of the offenses, restitution to victims, and a three year term of supervised release following imprisonment. The sentencing date has not yet been set.

The defendant’s convictions stem from actions he took while serving as the Operations Manager of FAS Environmental Services, a transportation and disposal company based in Belle River, Louisiana. In that role, the defendant oversaw all operations and employees at the company.

During today’s hearing, the defendant admitted that, while working as the FAS Operations Manager, he took over $22,000 in kickbacks during 2011 and 2012 from a wastewater brokerage firm in exchange for illegally using an FAS injection well in Belle River to dispose of over 380,000 gallons of industrial wastewater in violation of the Federal Safe Water Drinking Act. As part of the scheme, the defendant further admitted that he and his fellow conspirators created and used over 100 false documents, including manifests and work orders, in addition to submitting false reports to regulators in Baton Rouge. Such false and fraudulent documents were designed to conceal the scheme from federal and state government officials and the brokerage firm’s unsuspecting clients.

FAS ownership was unaware of the defendant’s scheme, which resulted in the misuse of FAS resources to the sole benefit of the defendant personally and his fellow conspirators. FAS has cooperated fully throughout the investigation and terminated the defendant’s employment with the company upon learning of the scheme.

U.S. Attorney Cazayoux stated: “My office, together with our federal, state, and local partners, will always be vigilant and aggressive in enforcing federal criminal environmental laws, particularly where violations are accompanied by corporate fraud and corruption. The corruption of our environmental regulatory system presents serious and unacceptable economic and physical risks to everyone living and working in Louisiana, and it will not be tolerated.”

“One of EPA’s primary missions is to ensure that federal laws protecting human health and the environment are enforced fairly and effectively. To do that, we must receive accurate and honest tests and measurements,” said Ivan Vikin, Special Agent-in-Charge of EPA’s criminal enforcement program in Louisiana. “Violators who submit false information undermine the government’s efforts to protect the public and the environment. These illegal actions cannot and will not be tolerated. EPA and its partner agencies will vigorously pursue those who knowingly falsify official information and place the public at potential risk.”

Secretary Peggy Hatch of the Louisiana Department of Environmental Quality stated: “This is an example of local, state and federal agencies working together to keep Louisiana’s environment clean. We are working together so people will think twice and make better decisions when it comes to skirting the environmental laws in order to make money or save money.”

This ongoing investigation is being conducted by this office, the Criminal Investigation Division of the U.S. Environmental Protection Agency, and the Criminal Investigation Division of the Louisiana Department of Environmental Quality. The case is being prosecuted by Assistant United States Attorney Corey R. Amundson who serves as the Senior Deputy Chief of the Criminal Division.

BATON ROUGE, LA- United States Attorney Donald J. Cazayoux, Jr. announced today that NAEEMAH EMILE, age 47, of Baton Rouge, Louisiana was sentenced by United States District Court Chief Judge Brian A. Jackson to twenty-eight (28) months of imprisonment.

EMILE previously pled guilty to money laundering and possession with the intent to distribute and distribution of “crack” cocaine and hydrocodone. In connection with her guilty plea, EMILE admitted that on May 2, 2012, EMILE and Beverly A. Smith traveled together to a local bank, where EMILE provided one of the tellers with a large bag containing $28,000 and seventy-nine (79) grams of “crack” cocaine. EMILE, who had an account at this bank, requested the teller to convert the $28,000 into a cashier’s check. That day, instead of using cash to pay for a new car they intended to purchase, they planned to pay for it with a cashier’s check so that this transaction would not be reported to the Internal Revenue Service. When the teller found the “crack” cocaine in the large bag given to her by EMILE, the police were called and the two women were taken into custody. During the investigation, law enforcement agents learned that EMILE had allowed Smith to use her residence to store “crack” cocaine and cash Smith made selling “crack” to various customers.

On July 6, 2012, during the execution of a search warrant at EMILE’s residence, in Baton Rouge, Louisiana, law-enforcement agents found Smith trying to flush approximately 18 grams of “crack” cocaine down the toilet. EMILE was in the kitchen at the time.

On July 16, 2012, during an undercover transaction, law enforcement agents purchased a small quantity of hydrocodone from EMILE and Smith, at the latter’s residence, in Baton Rouge, Louisiana.

U.S. Attorney Donald J. Cazayoux, Jr. stated, “This case demonstrates our continued efforts to stymie the drug trade and preventing drug traffickers from using and hiding their drug profits.”

“Federal laws that regulate the reporting of financial transactions are in place to detect and stop illegal activities. IRS Criminal Investigation is committed to enforcing these laws and eliminating the laundering of illegal profits,” stated Special Agent in Charge, Gabriel Grchan, IRS Criminal Investigation.

Tony James, Acting Assistant Special Agent in Charge, Drug Enforcement Administration likewise, stated, “The DEA, in conjunction with other federal, state, and local law enforcement agencies will continue to pursue those violating federal drug trafficking and money laundering laws.”

The investigation of this matter was conducted by the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, and the Baton Rouge City Police Department. The case was prosecuted by Assistant United States Attorneys Robert Piedrahita and Lane Ewing.

BATON ROUGE, LA—The United States Attorney’s Office announced that today JAMES M. BERNHARD, III, age 37, of Baton Rouge, Louisiana, was sentenced by United States District Court Chief Judge Brian A. Jackson to twenty-seven (27) months of imprisonment. BERNHARD was also ordered to pay a fine of $10,000. BERNARD will also be required to serve a two-year term of supervised release following his release from prison.

BERNHARD had previously pled guilty to wire fraud involving a scheme to defraud his employer, a Baton Rouge law firm, from December of 2010 to December of 2011. In connection with his guilty plea, BERNHARD admitted that, while employed as an attorney at the firm, he used his authority over the firm’s trust account to fraudulently transfer money to third parties under his control and to others to whom the defendant owed money. For instance, on or about January 7, 2011, BERNHARD caused $93,750 to be wired from the law firm’s trust account at Fidelity Bank to an account that the defendant controlled at Iberia Bank. In total, the defendant obtained approximately $453,123 from his fraudulent scheme.

This investigation was conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Alan A. Stevens.

BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr., announced that CYNTHIA D. WINDHAM, age 49, currently of Henderson, Texas, was sentenced today by U.S. District Chief Judge Brian A. Jackson to a term of imprisonment of thirty (30) months. WINDHAM was also ordered to pay restitution in the amount of $217,347.91 and serve a two-year term of supervised release following her release from federal prison.

WINDHAM previously pled guilty to bank fraud in connection with a multi-year scheme to defraud Strategic Case Management, LLC (“Strategic”), located in Baton Rouge, as well as two local banks. While working as the company’s office manager from 2007 through 2009, WINDHAM stole more than 120 checks made payable to her employer, fraudulently endorsed the checks, and gained control over the funds. WINDHAM also stole more than 60 checks that her employer had issued to various third parties, fraudulently altered the checks so that they would appear to be payable to herself, and deposited the checks into her own accounts. WINDHAM admitted that she obtained more than $200,000 through her fraudulent scheme.

U.S. Attorney Donald J. Cazayoux, Jr. stated, “We hope this sentence sends a clear signal to those who would defraud small businesses in our community that they will be prosecuted and face substantial punishment for their crimes.”

This investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Cam T. Le.

BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced today that TIMOTHY R. SCHLATRE, 35, of Denham Springs has been sentenced for his creation and execution of a scheme to defraud life insurance companies, including New York Life and Lincoln Financial. District Court Judge James J. Brady sentenced SCHLATRE for his convictions of mail fraud and money laundering. SCHLATRE was sentenced to the Bureau of Prisons to serve a term of 57 months imprisonment and pay restitution of $1,424,931.12 to the victims of his offenses. SCHLATRE was ordered to repay fraudulently obtained commissions of $908,098.17 to New York Life and $516,832.95 to Lincoln Financial. He also was sentenced to a term of 2 years supervised release and ordered to pay a special assessment of $200. Additionally, Judge Brady ordered SCHLATRE to forfeit the gross proceeds of his crimes, including a Cadillac Escalade and $1,424,931.12.

Along with SCHLATRE, the United States Attorney has also charged and convicted JASON PAUL AUSTIN, 32, of Walker, JODI MARIE AUSTIN, 34, of Walker, RICKY J. AUSTIN, 49, of Denham Springs, JIMMY O. CASSELS, 33, of Denham Springs, TODD D. CUMMINGS, 34, of Walker, and DENA A. GAUDET, 33, of Denham Springs; each has been convicted of Conspiracy to Commit Mail Fraud. Each of Schlatre’s co-conspirators, except for Ricky J. Austin, has already been sentenced to a term of probation.

The Bill of Information to which SCHLATRE pled guilty and was sentenced alleges that SCHLATRE used his position as a life insurance agent for New York Life and Lincoln Financial to devise a scheme to defraud the insurers for the purpose of fraudulently obtaining commission payments. SCHLATRE executed the fraud by selling life insurance policies based on false statements and representations. Specifically, SCHLATRE recruited individuals and persuaded them to submit false information to the companies regarding the applicant’s net worth and annual income, thereby defrauding New York Life and Lincoln Financial into approving the policies and issuing the commission payments to SCHLATRE to which he was not entitled. Because the policy values were so large, the applicants could not afford to make the premium payments. In order to accomplish his scheme, SCHLATRE further agreed to provide the premium payments on behalf of the applicants. This process, known as “rebating,” was prohibited by both company’s policies as well as state law. In order to conceal the fact that he was the source of the premiums, SCHLATRE deposited money directly into the individual applicant’s bank account. SCHLATRE further misrepresented the source of the premium payments by falsely declaring that he was not paying or allowing the rebating of any premiums.

SCHLATRE was sentenced for defrauding New York Life and Lincoln Financial into issuing life insurance policies in excess of $100 million dollars. This resulted in the receipt of commissions to which he was not entitled of approximately $1,424,931.12.

United States Attorney Donald J. Cazayoux, Jr. stated, “Today, the ringleader of this insurance scheme which caused a loss of almost of one and a half million dollars has received a fair and just sentence. Further, I applaud the outstanding investigative efforts of the state and federal agents which have resulted in seven federal convictions in this case.”

“This investigation should be a clear reminder that federal law enforcement's reach into white collar crime extends beyond traditional health care, investment and corporate fraud to bring those responsible to justice,” stated FBI Special Agent-in-Charge Michael J. Anderson.

“People who conspire to create elaborate insurance fraud schemes run a very high risk of prosecution,” stated Damon Rowe, Acting Special Agent-in-Charge, IRS Criminal Investigation. “IRS is committed to working diligently with the Department of Justice to dismantle these organizations.”

Louisiana State Inspector General Stephen Street stated, “Hopefully this sends a message that there is a price to be paid for engaging in fraud schemes. Mr. Schlatre did so, and will now be held accountable.”

The investigation of this matter was conducted by the Federal Bureau of Investigation, the Internal Revenue Service - Criminal Investigation, and the Louisiana Office of Inspector General. The Louisiana Department of Insurance assisted in the investigation. The case was prosecuted by Assistant United States Attorneys Rene I. Salomon and Jay Thompson.

BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr., announced that DANIEL GARCIA, age 36, pled guilty today before United States District Court Judge James Brady 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.”) GARCIA faces a sentence of up to five (5) years imprisonment, three (3) years of supervised release following imprisonment, and a fine of $250,000. The sentencing date has yet to be scheduled.

At today’s hearing, 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. GARCIA admitted, within a nine-day period beginning on June 10, 2009, he conspired with at least one other individual to transfer $1,000,000 he received from an investor through four separate film production companies. These transfers created cancelled checks which he later used as false documentation for $3,000,000 of motion picture productions.

The Louisiana Economic Development Office (“LED”) is a state entity which mission is to lead economic development for the state of Louisiana. LED operated the Motion Picture Industry Development Tax Credit Program (“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.

Between February 10, 2009 and March 31, 2010, GARCIA applied for, and received, tax credits from the LED for various movies. In total, $3,000,000 of the purported expenditures related to films were based upon the false expenditures created in the scheme described above. GARCIA admitted that he was not entitled to $900,000 of the tax credits he received for these films.

U.S. Attorney Donald J. Cazayoux, Jr., stated, “We will continue our commitment to prosecuting anyone abusing the Tax Credit Program. Those who misuse this program, through fraud and deceit, undermine the purpose of the Tax Credit Program and will be investigated and prosecuted to the fullest extent of the law. We appreciate the work of the FBI and the Louisiana State Inspector General’s Office in this case and the cooperation of the LED.”

Louisiana State Inspector General Stephen Street commented, “This sort of blatant thievery unfairly mars the whole Tax Credit Program, and cannot be tolerated. We are committed to working with the FBI and United States Attorney to root this sort of corruption out wherever it may exist.”

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.

BATON ROUGE, LA – United States Attorney Donald J. Cazayoux announced that the KIAMANI A. BEASLEY, 27, of Jeanerette, Louisiana, pled guilty today before United States District Court Judge James J. Brady to defrauding the Louisiana Association of Community Action Partners, a non-profit organization which receives funding from the federal government’s American Recovery and Reinvestment Act Program. BEASLEY faces a sentence of up to ten (10) years imprisonment and a fine of up to $250,000.

Louisiana Association of Community Action Partners was established to organize and strengthen the forty-two (42) private and public Community Action Agencies (CAAs) in Louisiana. CAAs were established to address the effects and causes of poverty and to increase self-sufficiency among the poor. CAAs implemented many education and health programs funded by the federal government. As Finance Director of Louisiana Association of Community Actions Partners, BEASLEY was responsible for overseeing the financial integrity of the organization, including the accounting and distribution of federal funds.

At today’s hearing, BEASLEY admitted that on multiple occasions from September 5, 2011 until on or about November 2, 2011, she used her position of trust to embezzle $50,858 which were to be used for computer software training and weatherization services.

The investigation of this matter was conducted by the U.S. Department of Energy Office of Inspector General and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Reginald E. Jones.

BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr. announced today that JEANNE L. GAVIN, age 61, of Baton Rouge, pled guilty before Chief U.S. District Judge Brian A. Jackson to exceeding authorized access to a government computer, in violation of Title 18, United States Code, Section 1030, and engaging in a criminal conflict of interest, in violation of Title 18, United States Code, Section 205. As a result, the defendant faces up to two years in prison, a $200,000 fine, and one year of supervised release following imprisonment. Sentencing is scheduled for September 12, 2013.

The defendant’s convictions stem from actions she took while serving as a Supervisory Internal Revenue Agent and Group Manager in the Baton Rouge office of the Internal Revenue Service. In that role, the defendant supervised approximately ten revenue agents responsible for determining federal tax liability and collecting owing taxes for individual, partnership, and corporate taxpayers.

During today’s hearing, the defendant admitted that, while working for the IRS, she engaged in a criminal conflict of interest with her IRS employment by owning and operating a private tax and accounting business which generated over $70,000. The defendant further admitted to using her position as an IRS Manager to improperly cause subordinates to access IRS databases on over 2000 occasions for the benefit of her private tax and accounting business.

U.S. Attorney Cazayoux stated: “My office, together with our federal, state, and local partners, will continue to aggressively pursue instances of public corruption wherever found. Public confidence in our governmental institutions, particularly those agencies entrusted to tax collection, is vitally important. The criminal acts of a few undermine such confidence, while overshadowing the honest efforts of the vast majority of public servants. My great appreciation to the Office of Treasury Inspector General for Tax Administration (TIGTA) who worked tirelessly with our office and the Federal Bureau of Investigation (FBI) in this important matter.”

Inspector General J. Russell George of TIGTA stated: “As our voluntary system of tax administration relies heavily upon the public’s confidence in a fair tax system, IRS employees must conduct themselves with the highest level of integrity and their conduct must be above reproach. Our message is loud and clear: TIGTA will vigorously investigate and recommend criminal prosecution for any IRS employee who violates the law.”

This matter was investigated by this office, TIGTA, and the FBI. The case is being prosecuted by Assistant United States Attorney Corey R. Amundson who serves as the Senior Deputy Chief of the Criminal Division.

BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced that BRENDA MATTHEWS, age 59, was sentenced to 12 months and 1 day imprisonment for making false claims to an agency of the United States and two counts of identity theft. The Court also ordered restitution in the amount of $117,656.

MATTHEWS’ sentence this morning follows her guilty plea to the charges at her rearraignment on October 25, 2012. She admitted that, in July and August 2009, she filed 20 tax returns for tax year 2008 fraudulently claiming refunds based on First Time Homebuyer Credits. The returns prepared by MATTHEWS listed the names and Social Security numbers of others who had allegedly purchased homes, when in fact, the homes had not been purchased. In some instances, MATTHEWS used the Social Security numbers of people who did not know their identities were being used to file fraudulent tax returns. In all, the fraudulent returns, which reported the taxpayers as having no income, generated refunds in excess of $117,656.

“IRS Criminal Investigation continues to aggressively pursue the perpetrators of identity theft schemes,” stated Damon Rowe, Acting Special Agent-in-Charge, IRS-Criminal Investigations. “Identity theft continues to be a top priority for IRS.”

The investigation of this matter was conducted by the IRS-Criminal Investigations. The case was prosecuted by Assistant United States Attorney Susan C. Amundson.

BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced yesterday that U.S. District Court Chief Judge Brian A. Jackson sentenced Tara S. Babin, age 38, of Denham Springs, Louisiana, to a term of imprisonment of 17 months and 2 years supervised release after imprisonment. Babin had previously pled guilty to one count of wire fraud.

Between March 2009 and April 2011, Babin systematically embezzled funds belonging to her employer, a local doctor. As the office manager, Babin had access to her employer’s merchant account and electronic payment machine. To execute her wire fraud scheme, Babin used the office electronic payment machine to transmit credit/refund requests to her employer’s electronic payment contractor. Once the electronic payment contractor received the fraudulent credit/refund requests, it would wire funds from her employer’s merchant account into bank and credit card accounts belonging to Babin. Through this scheme, Babin unlawfully obtained $113,718.92 in funds belonging to her employer.

This matter was investigated by the United States Attorney’s Office for the Middle District of Louisiana and the Federal Bureau of Investigation. The matter was prosecuted by Assistant United States Attorney Chris Dippel.

BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced today that U.S. District Court Chief Judge Brian A. Jackson sentenced Brad J. Case, age 30, of Baton Rouge, Louisiana, to a term of imprisonment of 96 months and 20 years supervised release after imprisonment. Case had previously pled guilty to one count of distribution of child pornography.

On May 8, 2011, Case distributed 25 images of child pornography to an undercover Special Agent with the Federal Bureau of Investigation (FBI) through the internet using a peer-to-peer file sharing program. The FBI was able to trace the source of the child pornography to an apartment located in Baton Rouge and rented by Case. On October 12, 2011, the FBI executed a search warrant at Case’s apartment and seized, among other things, a computer belonging to Case. A forensic examination of Case’s computer revealed several hundred images and numerous videos depicting child pornography.

This matter was investigated by the United States Attorney’s Office for the Middle District of Louisiana and the Federal Bureau of Investigation. The matter was prosecuted by Assistant United States Attorney Chris Dippel.

BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced today that SANDRA PARKMAN THOMPSON, 58, of New Orleans, Louisiana, was sentenced to 18 months in prison and ordered to pay $129,330 in restitution for her convictions on health care fraud and conspiracy to pay and receive illegal remunerations.

On August 21, 2012, THOMPSON was convicted after a jury trial on 13 counts of health care fraud and one count of conspiracy to pay and receive illegal remunerations. The convictions arose as a result of THOMPSON’s participation in a scheme to defraud involving the Baton Rouge-based company known as Lobdale Medical Services which was owned by Beatrice and Young Anyanwu. As part of the scheme to defraud, THOMPSON and others procured the names and personal information of Medicare beneficiaries in and around the New Orleans area and delivered these names to Dr. Anthony Jase, a co-defendant in the prosecution who currently is awaiting sentencing, who then signed false and fraudulent prescriptions for power wheelchairs and other durable medical equipment for which the Medicare beneficiaries had no medical need. THOMPSON subsequently delivered the fraudulent prescriptions to the Anyanwus, who submitted claims to Medicare through Lobdale Medical Services for the medically unnecessary equipment. The total billings to Medicare by Lobdale Medicare Services exceeded $1,000,000.

THOMPSON, along with the Anyanwus, also participated in a conspiracy to pay and receive illegal remuneration for the durable medical equipment billed by Lobdale. The Anyanwus paid THOMPSON and others a kickback for every claim for power wheelchairs and other durable medical equipment items that were submitted to, and paid by, Medicare. The kickback was based on a percentage of the reimbursement value of the equipment to the price of the particular item, thereby providing an incentive to recruit beneficiary claims for the most expensive models of durable medical equipment.

Dr. Anthony Stephen Jase pled guilty to the health care fraud scheme to defraud on October 31, 2012, and is awaiting sentencing. Beatrice and Young Anyanwu pled guilty to the health care fraud scheme to defraud as well as the illegal remuneration conspiracy on August 14, 2012, and were sentenced on February 1, 2013.

U.S. Attorney Donald J. Cazayoux, Jr., stated, “This is another victory for the good guys and the American taxpayers, as we attempt to stymie the attempts at pilfering our Medicare system.” “

Judge Brady called Parkman's actions ‘pure greed’ and this greed is what propels Medicare fraud in our community,” said Assistant Special Agent in Charge William Root. “Hopefully her sentence today sends an important message to others contemplating this type of fraud.”

The investigation of THOMPSON and AUGUSTUS was conducted by the Department of Health and Human Service, Office of Inspector General, the Federal Bureau of Investigation, and the Louisiana Department of Justice. The case was prosecuted by Assistant United States Attorneys Catherine M. Maraist, J. Christopher Dippel, Jr., and Reginald E. Jones.

BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr. announced today that a Federal Grand Jury returned an indictment charging GLENN KELLY JOHNSON, age 71, of Brookhaven, Mississippi, with conspiracy to use interstate facilities to carry on a bribery scheme, four counts of actually using telephones to promote his bribery scheme, and one count of making false statements to an agent of the Federal Bureau of Investigation who was investigating the scheme to bribe an employee of the Louisiana Department of Health and Hospitals, in violation of Title 18, United States Code, Sections 371, 1952(a)(3), and 1001(a)(2).

Also indicted was ALAN FORREST POGUE, a former employee of the Louisiana Department of Health and Hospitals, Office of Public Health, Center for Environmental Services, Onsite Wastewater Program (“OWP”). POGUE, a resident of Covington, Louisiana, age 52, was charged with one count of conspiracy to use interstate facilities to carry on a bribery scheme with JOHNSON. During the period 2008 through 2011, POGUE was employed as a Sanitation Program Coordinator (“Sanitarian”) for the OWP and his duties included inspection of residential and commercial septic tank systems. JOHNSON was a Denham Springs, Louisiana, licensed installer of individual sewage treatment systems (also known as “septic tanks”) during the period 2008 through 2011. JOHNSON operated a Denham Springs business known as Stafford Concrete.

According to the indictment, POGUE supplied JOHNSON with OWP lists of names of Louisiana citizens who were applying for permits to install individual sewage treatment systems. In return, JOHNSON made cash payments to POGUE. POGUE and JOHNSON used their office and personal cellular telephones to contact each other in order to arrange meetings where they could exchange septic tank applicant information for cash. Beginning sometime in or about May 2009, and continuing through June 2011, POGUE and JOHNSON met on a bi-weekly basis, approximately 100 times, for the purpose of exchanging septic tank applicant information for cash. According to the Indictment, JOHNSON paid POGUE approximately $50,000 during the period May 2009 through June 2011.

If convicted, JOHNSON and POGUE face up to five years imprisonment for Count One- conspiracy to use interstate facilities to promote a bribery scheme. JOHNSON also faces five years imprisonment for the conduct alleged in Counts Two through Five-unlawful use of telephones, and another five years for Count Six- making false statements to an FBI agent. POGUE faces a total of five years imprisonment and JOHNSON faces a total of 30 years imprisonment. Each defendant faces a fine up to $250,000 for each count on which they may be convicted, and forfeiture of all property, real or personal, which constitutes or is derived from proceeds traceable to the offenses charged as Counts One through Five of the Indictment, including but not limited to, at least $50,000, said amount being the proceeds obtained through bribery.

United States Attorney Cazayoux stated, “We will continue to be vigilant, along with our law enforcement partners, such as the FBI and Louisiana Inspector General in this case, for public corruption at any level of government. We cannot, and will not, tolerate situations, such as here, where a businessman seeks to gain an unfair advantage in the marketplace by bribing low-level public employees.”

Louisiana State Inspector General Stephen Street commented, “Rooting out corruption of this sort is the very reason OIG was created. Public officials taking bribes is absolutely intolerable. We will continue to relentlessly pursue those who abuse the public trust and hold them criminally accountable wherever possible. As always, we appreciate and value our partnership with Mr. Cazayoux and his staff.”

“Although public corruption in any context has no acceptable threshold, these acts affecting the environment and public health are particularly repugnant to the citizenry,” said Michael Anderson, FBI Special Agent-in-Charge.

The investigation of this matter was conducted by the Baton Rouge Resident Agency of the Federal Bureau of Investigation and the Louisiana Office of the Inspector General. The case is being prosecuted by Assistant United States Attorney Rene I. Salomon.

NOTE: An indictment is a determination by a grand jury that probable cause exists to believe that offenses have been committed by a defendant. The defendant is presumed innocent until and unless proven guilty at trial.

BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr. announced today that KATELYN & CLAIRE, INC. and ALEX T, INC., both doing business as Quality Express, pled guilty before United States District Court Chief Judge Brian A. Jackson to conspiracy to launder monetary instruments and multiple counts of failure to file Currency Transaction Reports. The corporations also agreed to forfeit to the United States $992,462.40, which were funds involved in the charged offenses.

Quality Express, which is located on Foster Drive in Baton Rouge, Louisiana, offered check cashing, currency exchanges and money transfers. Between March 2010 and April 2011, an undercover agent, working at the direction of the DEA and IRS, provided more than $275,000 in United States currency to agents of Quality Express to be exchanged or transferred so that it could be more easily concealed and avoid detection by law enforcement. The money was represented to be drug proceeds.

To further conceal the currency exchanges and transfers, Quality Express and its agents failed to file Currency Transaction Reports that would have reflected the receipt of United States Currency, on six separate occasions, in amounts ranging from $12,000 to $90,000. The defendants believed that the money was proceeds from drug trafficking.

United States Attorney Donald J. Cazayoux, Jr. stated, “This plea along with the nearly one million dollar money forfeiture here should send a clear message to any businesses, which attempt to help drug dealers and any other criminals launder the proceeds of their illegal actions, that we will not tolerate these acts in the Middle District of Louisiana.”

Damon Rowe, Acting IRS Special Agent-in-Charge, stated that “avoiding currency reporting requirements is a criminal violation of federal law under the Bank Secrecy Act. Deliberately avoiding these requirements is a form of money laundering; and IRS Criminal Investigation will work closely with the U.S. Attorney’s Office, and our law enforcement counterparts, to forcefully investigate these conspiracies.”

DEA Acting Assistant Special Agent-in-Charge Tony James stated, “The DEA, in conjunction with the IRS and local law enforcement agencies, will continue to pursue entities that lauder drug trafficking funds in order to fully dismantle drug trafficking organizations’ ability to pollute the city of BR with drugs.”

THANG MINH TRAN, also known as Tommy, had previously pled guilty to conspiracy to launder monetary instruments and money laundering. TRAN was one of the operators of Quality Express, and he used the business to facilitate the money laundering. Former Quality Express employees THAHN NGUYEN, also known as Money, and SON NGUYEN, also known as Tattoo, previously pled guilty to distribution of MDMA, more commonly known as Ecstasy.

This investigation was conducted by the United States Drug Enforcement Agency and the Internal Revenue Service. The Baton Rouge Police Department, West Baton Rouge Sheriff’s Office, East Baton Rouge Sheriff’s Office, Ascension Parish Sheriff’s Office and Gonzales Police Department assisted in the investigation. The case was prosecuted by Assistant United States Attorneys Jennifer M. Kleinpeter and J. Lane Ewing, Jr.

BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced that RAMON ANDERSON, age 54, was sentenced to 84 months imprisonment on charges of possession of a gun by a convicted felon and failure to register as a sex offender under the Sex Offender Notification and Registry Act (known as SORNA). ANDERSON was also sentenced to 5 years supervised release after imprisonment.

ANDERSON’S sentence this morning follows a jury trial on the gun charge in June 2012 and a guilty plea in July 2012 on the failure to register charge. At trial, officers of the Baton Rouge Police Department described how a routine traffic stop in September 2008 for a driving infraction led to ANDERSON’S arrest for felon in possession of a firearm. After a three-day trial in which ANDERSON denied possessing the firearm, the jury convicted ANDERSON of the gun charge.

Following the gun trial, ANDERSON later pled guilty to the charge of failure to register as a sex offender. He admitted that he had been previously convicted of rape in Mississippi in 1985 and had been living unregistered in a Baton Rouge apartment complex since early January 2011. ANDERSON came to the attention of authorities in March 2011 based upon a tip to Louisiana State Probation and Parole. The state probation officer provided the information to East Baton Rouge Sheriff’s Office deputies who were also members of the Marshals-led Sex Offender Locate and Arrest Team (SOLAT) in Baton Rouge. Authorities investigating ANDERSON’S failure to register learned that the defendant had also falsely registered a relative’s address in Franklin County, Mississippi, during the same time period.

ANDERSON was required to register as a sex offender in Louisiana within 3 days of moving to Louisiana pursuant to SORNA, also known as the AdamWalsh Act. The registration process would have notified ANDERSON’S neighbors of his address and status as a sex offender.

United States Attorney Cazayoux remarked, “ANDERSON’S upward departure in this case sends a message to unregistered sex offenders and felons who unlawfully possess firearms that their crimes will not be perceived as mere paperwork violations. The 84-month sentence should be a wake-up call to sex offenders who live unregistered in our district, as well as to felons who unlawfully possess firearms.”

The investigation of this matter was conducted by the U.S. Marshals Service, the East Baton Rouge Parish Sheriff’s Office, the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Baton Rouge Police Department. The case was prosecuted by Assistant United States Attorneys Susan Amundson, Chris Dippel, and Cam Le.

BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced today that a Federal Grand Jury returned an indictment on February 27, 2013 charging JAMES R. HOLDMAN with 18 (eighteen) counts of mail fraud for his role in executing a fraudulent investment scheme.

According to the indictment, HOLDMAN operated a hedge fund called Greenwing Capital Management, LLC. As the owner and operator of the fund, HOLDMAN solicited and received millions of dollars in investment funds from the victim investors. The indictment alleges that from approximately February 2008 to October 2008, HOLDMAN concealed a failed investment plan by falsely representing to the victim investors that their investments were earning positive rates of return when, in fact, HOLDMAN had lost over 98% of their funds.

The indictment alleges by making these false representations, HOLDMAN was able to conceal his failed investment plan and defraud the victim investors into keeping their remaining money with Greenwing Capital or investing more money in it, thereby allowing HOLDMAN to continue receiving money in the form of fees for his own personal use and benefit. In order to continue to conceal his fraud, HOLDMAN continued to put the victim investors’ money at risk in an attempt to recoup his losses.

FBI Special Agent-in-Charge Michael J. Anderson stated, “Those individuals who prey on a vulnerable investing public, especially during such challenging economic times, will continue to be held fully accountable.”

U.S. Attorney Donald J. Cazayoux, Jr. stated, “Prosecuting those who commit investment fraud in the district will continue to be a priority as we strive to protect the public and to deter wrongdoers.”

The case is being prosecuted by Assistant U.S. Attorney Shubhra Shivpuri. The joint investigation is being conducted by the Federal Bureau of Investigation, the Louisiana Office of Financial Institutions, the Texas State Securities Board, and the Securities and Charities Division of the Mississippi Office of the Secretary of State.

NOTE: An indictment is a determination by a grand jury that probable cause exists to believe that offenses have been committed by a defendant. The defendant is presumed innocent until and unless proven guilty at trial.

BATON ROUGE, LA – United States Attorney Donald J. Cazayoux announced that INGRID J. SIMON, age 49, of Baton Rouge, pled guilty today before U.S. District Judge James J. Brady to using interstate facilities in aid of racketeering (bribery), in violation of Title 18, United States Code, Section 1952. SIMON faces up to five years in prison and a $250,000 fine. The sentencing date has not been set.

SIMON’s conviction is based on her taking and soliciting cash bribes on approximately thirty (30) occasions while working as a clerk at the Baton Rouge City Court from 2007 through 2010. During today’s hearing, SIMON admitted that she would take and solicit cash in exchange for causing traffic matters to be dismissed. As part of the scheme, SIMON would cause the City Court computer records to falsely reflect that the matters had been dismissed at the request of the prosecutor.

U.S. Attorney Cazayoux stated, “Our office, together with our federal, state, and local partners, will continue to aggressively and tenaciously root out public corruption wherever found. Our citizens deserve a criminal justice system based on the merits alone, free from the inequality and injustice that comes from corruption. Our local and state courts are full of many honest employees whose good work should not be overshadowed by such corruption.”

This investigation of SIMON was conducted by the Federal Bureau of Investigation. The matter is being prosecuted by Assistant United States Attorney Corey R. Amundson, who serves as the Senior Deputy Chief of the Criminal Division.

BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr., announced that ANGELIA NAUMAN, age 52, of Zachary, Louisiana, was sentenced today by U.S. District Chief Judge Brian J. Jackson to a term of imprisonment of twenty-seven (27) months.

NAUMAN had previously pled guilty to bank fraud in connection with a multi-year scheme to defraud Industrial Cooling Tower Services, Inc. (“Industrial Cooling”) located in Greenwell Springs, Louisiana. While working as the company’s office manager from 2007 through late 2010, NAUMAN admitted to embezzling $437,941.73. To execute the scheme, the defendant drafted checks payable to herself and forged the signature of company owners. NAUMAN then made false entries into Industrial Cooling’s ledgers that intentionally created the false impression that the checks were for legitimate expenses and payable to legitimate vendors.

At today’s sentencing, the Court found that NAUMAN’s fraudulent scheme caused a loss to Industrial Cooling of $437,941.73 and ordered that she pay this amount in restitution. Following her release from imprisonment, NAUMAN will also be required to serve a two-year term of supervised release.

This investigation was conducted by United States Secret Service Special Agent Kevin Bodden. The case is being prosecuted by Assistant United States Attorneys Frederick A. Menner, JR.

BATON ROUGE, LA - Chief Judge Brian A. Jackson 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 Eighteenth Annual Federal Courthouse African American History Month Program at 11:00 a.m. on February 22, 2013, in Courtroom 1, on the third floor of the federal courthouse.

The featured guest speaker will be civil rights pioneer Ruby Bridges. Musical entertainment will be provided by soloist Daisha Badon.

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

BATON ROUGE, LA— United States Attorney Donald J. Cazayoux, Jr., announced that WAYNE A. LEEPER, III, age 44, of Metairie, Louisiana, was sentenced on Thursday, January 31, 2013 by United States District Court Judge James J. Brady to forty-eight (48) months of imprisonment. LEEPER was also ordered to repay the Louisiana Workforce Commission (LWC) $96,966 in restitution.

LEEPER had previously pled guilty to wire fraud and aggravated identity theft. While employed as an operations manager with a dental supply company from approximately November 2009 until May 2010, LEEPER fraudulently obtained the personal identifying information of numerous co-workers and applied for Louisiana Unemployment Insurance (UI) benefits in their names. As office manager, he enjoyed access to employee’s personnel files, which included information such as their date of birth and social security numbers. LEEPER also obtained the personal identifying information of unwitting friends and family members and applied for UI benefits in their names.

LEEPER executed his scheme to defraud by supplementing their unlawfully obtained identifiers with fictitious information regarding their place of employment and address. The addresses listed for these individuals, and for the most part, their employers, were addresses controlled by LEEPER or vacant addresses. UI funds would be wired to a debit card account created by Chase. Leeper would have the debit card sent to an address controlled by him. LEEPER would then use the funds obtained, including making numerous cash withdrawals at automatic teller machines, and using the cards at retail establishments for his own personal benefit. In total, LEEPER submitted approximately $102,219 in unemployment insurance claims to the LWC.

This investigation was conducted by United States Department of Labor, Office of Inspector General. The case was prosecuted by Assistant United States Attorney Shubhra Shivpuri.

BATON ROUGE, LA— United States Attorney Donald J. Cazayoux, Jr., announced that TERENCE NDANGOH, age 25, of Baton Rouge, Louisiana, was sentenced by United States District Court Chief Judge Brian A. Jackson to twenty-one (21) months of imprisonment. NDANGOH was also ordered to repay victims $138,239 in restitution

NDANGOH had previously pled guilty to wire fraud involving a fake internet business purporting to sell frozen chicken feet and other food items to prospective wholesale buyers. NDANGOH collected more than $138,000 from victims who placed orders for the frozen products which were never fulfilled.

According to the Indictment, NDANGOH created Frozen Foods to advertise the sale of food items on the internet. Frozen Foods was not licensed or registered to do business in Louisiana, and neither NDANGOH nor Frozen Foods possessed or had access to the items purportedly for sale.

In addition to creating a fictitious internet company, NDANGOH also transmitted phony licenses, permits and other business certificates to potential buyers to make Frozen Foods look like a legitimate Louisiana-based business. Once purchase details were finalized, NDANGOH emailed the buyer purchasing documents with wiring instructions. The buyer then wired a deposit for the purchase to NDANGOH. NDANGOH never fulfilled the orders or made arrangements to fulfill the orders, despite having received payment for the goods.

This investigation was conducted by United States Customs Enforcement’s Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney J. Lane Ewing, Jr.

BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced that United States District Judge Lance Africk today denied a new trial request of KEVIN PAUL CALMES, 40, of Denham Springs, Louisiana. CALMES had filed a request for new trial claiming the discovery of new evidence. Judge Africk, in a 6 page opinion, rejected CALMES’ request for a new trial. Judge Africk also ordered KEVIN CALMES to report to jail on Tuesday, February 6, 2013 to begin service of his 30 month term of imprisonment in the custody of the United States Bureau of Prisons.

KEVIN CALMES and CALMES MOTORSPORTS were sentenced for their convictions on August 1, 2012 by a Baton Rouge jury. KEVIN PAUL CALMES was convicted of money laundering, one count of failure to file required reports of cash transactions, and three counts of structuring transactions in order to evade cash reporting requirements. CALMES MOTORSPORTS was convicted of one count of failure to file required reports of cash transactions and three counts of structuring transactions in order to evade cash reporting requirements.

KEVIN PAUL CALMES was sentenced to a 30 month term of imprisonment, two years of supervised release, and forfeiture of all property involved in, or used to facilitate, the money laundering and structuring transactions, including forfeiture of $24,927.99 associated with the sale of two particular motorcycles.

CALMES MOTORSPORTS was a Denham Springs dealership which marketed and sold motorcycles and all-terrain vehicles to the public. KEVIN PAUL CALMES was the sales manager of CALMES MOTORSPORTS, L.L.C. In his role at the dealership, KEVIN PAUL CALMES negotiated and knowingly approved of sales with known drug traffickers, and took various actions to conceal their spending of large amounts of cash generated from narcotics trafficking.

At trial, the United States presented evidence that CALMES MOTORSPORTS, L.L.C. and KEVIN PAUL CALMES conspired with at least seven drug traffickers to launder proceeds of narcotics trafficking and to avoid filing reports of their use of cash greater than $10,000. The laundering of drug traffickers’ cash proceeds occurred between January 2000 and April 2009.

CALMES MOTORSPORTS, L.L.C. was sentenced to pay a fine of $500,000, placed on probation for three years, and ordered to forfeit property involved in, or used to facilitate, the money laundering and structuring transactions. As a condition of probation, the company was also sentenced to certain conditions which will monitor their finances and business operation.

The convictions and sentences are the result of a lengthy investigation by agents of the Internal Revenue Service-Criminal Investigations. The case was prosecuted by Assistant United States Attorneys Rene Salomon and Shubhra Shivpuri.

BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr., announced that ERICK BANKS, age 31, of Baton Rouge, Louisiana, pled guilty today before Chief United States District Court Judge Brian J. Jackson to one count of conspiracy to traffic a child in the commercial sex trade. BANKS faces a sentence of up to life imprisonment, five (5) years of supervised release following imprisonment, and a fine of $250,000. The sentencing date has yet to be scheduled.

At today’s hearing, BANKS admitted that on or about January 27, 2011, he enticed the victim, a 15 year old girl, to engage in acts of prostitution. Several days earlier, on or about January 20, 2011, the victim ran away from a Baton Rouge home for teenage girls. BANKS placed several ads on an online service often utilized by those in the commercial sex trade. BANKS used the moniker “Sinsational” or “Blonde Bunny” to describe the victim in the ads. BANKS instructed the victim how to engage in telephone conversations with potential customers and how to determine if a customer was a law enforcement officer.

On or about January 27, 2011, in five separate transactions, the victim engaged in sexual activity in exchange for money. Each of these transactions were coordinated by BANKS and occurred in a hotel in Baton Rouge. The victim was paid approximately $1,200 to $1,800, all of which she gave to BANKS.

U.S. Attorney Donald J. Cazayoux, Jr., stated, “We will continue to be committed to uncovering and prosecuting anyone despicable enough to traffic young teenage victims in the commercial sex trade. We appreciate the strong work of the FBI in this case, and we also commend the Middle District Human Trafficking Task Force for its efforts in educating law enforcement and the public in general about combatting this heinous crime.”

This investigation was conducted by FBI Special Agent Teneka Harris and is being prosecuted by Assistant United States Attorneys Frederick A. Menner, Jr. and Susan Amundson.

BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr. announced that an Indictment was returned today against GERALD ESTRADE for threatening to murder a former federal law enforcement officer in violation of federal law. A complaint was filed and arrest warrant issued on January 8, 2013 and Estrade was taken into federal custody at that time.

Gerald Estrade, 56, Baton Rouge, LA is charged with threatening to kill the former United States Attorney for the Eastern District of Louisiana, James “Jim” Letten, and his family.

If convicted, Estrade faces a maximum penalty of a term of imprisonment of ten (10) years, a $250,000 fine, or both, and a mandatory special assessment of $100. Additionally, he may be required to serve a term of supervised release of three (3) years.

This investigation is being handled by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Jennifer M. Kleinpeter, who serves as a Deputy Criminal Chief.

BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr., announced that RICHARD GLENN BOYETTE, age 48, of Zachary, Louisiana, was sentenced today by U.S. District Judge James J. Brady to a term of imprisonment of fifty-one (51) months.

BOYETTE had previously pled guilty to mail fraud in connection with a multi-year scheme to defraud Commercial Tire of Louisiana, Inc. (“Commercial Tire”), located in Baker, Louisiana, with offices in Scott and Hammond. While working as the company’s Controller, from 2001 through late 2010, BOYETTE admitted defrauding the company and its employees. To execute the scheme, the defendant (a) created and approved fraudulent payroll checks to himself, which he was not authorized to receive; (b) obtained fraudulent payroll checks and gained control over the funds; (c) created false entries in the company’s accounting records that falsely reflected that the fraudulent payroll checks had actually been issued to other employees; and (d) prepared and distributed fraudulent W-2s that concealed the stolen funds.

At today’s sentencing, the Court found that BOYETTE’s fraudulent scheme caused a loss to Commercial Tire of more than $1.2 million. Accordingly, BOYETTE was ordered to pay restitution in the amount of $1,283,151. BOYETTE was also ordered to forfeit an additional $1,283,151 to the United States as proceeds of his crime. Following his release from imprisonment, BOYETTE will also be required to serve a two-year term of supervised release.

This investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Alan A. Stevens and James P. Thompson.

BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr., announced that RAYMOND L. BEAVERS, age 48, of Denham Springs, Louisiana, was sentenced today by U.S. District Judge James J. Brady to serve twelve months and one day in federal prison. BEAVERS was also ordered to pay $127,600 in restitution to the United States Coast Guard, and ordered to forfeit an additional $69,637.15 as proceeds of his offenses.

BEAVERS previously pled guilty to two counts of mail fraud arising out of a lengthy scheme to defraud the Coast Guard, from February 2007 through March 2008, while serving as the Supervisor of the United States Coast Guard’s Electronic Support Detachment (“ESD”) at the Eighth District in New Orleans, Louisiana. In connection with his guilty plea, BEAVERS admitted that he stole electronics equipment from the Coast Guard and sold the equipment, often using eBay and PayPal, for his own personal profit. The equipment had a value of more than $120,000.

“Today's sentencing demonstrates our commitment to fully prosecuting those who try to defraud the federal government and the American taxpayer,” said Capt. Jon Gage, commanding officer of Coast Guard Base New Orleans. “The illegal activity was uncovered and successfully prosecuted because of the staunch partnership between the Coast Guard Investigative Service, the U.S. Attorney's Office, and other federal agencies.”

U.S. Attorney Donald J. Cazayoux, Jr., stated, “We appreciate the work of the Coast Guard Investigative Service to uncover the defendant’s scheme. We will continue to work with our law enforcement partners to investigate and prosecute this type of criminal activity, especially when committed by those who occupy positions of public trust.”

This investigation was conducted by the United States Coast Guard Investigative Service and the U.S. Department of Homeland Security, Office of Inspector General, with assistance from the Louisiana State Police and the Walker Police Department.

The case is being prosecuted by Assistant United States Attorneys Alan A. Stevens and James P. Thompson.

WASHINGTON – Jack Ray Carr of Baton Rouge, La., was sentenced yesterday to 78 months in federal prison for one count of corruptly interfering with the due administration of the Internal Revenue laws, four counts of filing false income tax returns, and one count of aiding and assisting in the preparation of a false income tax return, the Justice Department, Internal Revenue Service (IRS) and Treasury Inspector General for Tax Administration (TIGTA) announced. Additionally, Carr was sentenced to one year of supervised release.

On June 20, 2012, following a three-day jury trial in the Middle District of Louisiana, Carr was convicted on all six counts. The evidence at trial established that Carr, a home inspector, threatened violence against a federal agent, filed false documents and tax returns with the IRS, and attempted to pay his tax debt with fraudulent bonds, fictitious money orders, and a fake check. On three successive personal income tax returns, Carr falsely reported that his and his wife’s income was “$0.00,” despite earning hundreds of thousands of dollars in total during the 2001, 2002, and 2003 tax years. In 2009, on two tax returns, Carr falsely reported more than $100,000 of federal income tax withholdings based on fictitious IRS Forms 1099-OID attached to the tax returns that Carr filed in his own name and in the name of his wife. In doing so, Carr claimed more than $150,000 of fraudulent tax refunds from the U.S. government.

Kathryn Keneally, Assistant Attorney General of the Justice Department’s Tax Division, thanked the special agents of IRS - Criminal Investigation and TIGTA, who investigated this case. Assistant Attorney General Keneally also thanked Tax Division Trial Attorneys Justin Gelfand and Jason Poole who prosecuted this case.