Middle District of Louisiana

United States Attorney Ronald C. Gathe, Jr. announced that U.S. District Judge Brian A. Jackson sentenced Reuben Maurice Crawford, age 36, of Baton Rouge, Louisiana, to 110 months in federal prison following his convictions for unlawful use of communications facilities in furtherance of drug trafficking activities and possession of contraband in prison.   The Court further sentenced Crawford to serve one year of supervised release following his term of imprisonment.

According to admissions made as part of his guilty plea, Crawford was involved with a drug trafficking organization that distributed large quantities of controlled substances in the Middle District of Louisiana.  On June 7, 2017, Crawford and another member of the organization discussed collection of drug trafficking proceeds from other members of the organization.  On June 19, 2017, Crawford called another member and warned him that he was being surveilled by federal agents.  Crawford then instructed the member to meet him at a bar so that he could take him to the federal law enforcement office and show him the vehicles used to conduct surveillance. 

In June 2021, on two separate occasions, while housed as an inmate at West Baton Rouge Parish Prison, Crawford possessed cellular telephones, which are prohibited objects in prison under federal law.

U.S. Attorney Ronald C. Gathe, Jr. stated, “This sentence demonstrates that we will use all tools at our disposal to bring to justice those who deal drugs in our community.  The combined federal, state, and local efforts that culminated in this conviction once again reflect our unified front against crime in this district. I appreciate the tremendous dedication and hard work by the agents and prosecutors who worked tirelessly on this important matter.”    

U.S. Marshal Bill Brown stated, “When prisoners in our custody violate the law, we will seek to hold them accountable.”

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

These matters were investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, & Explosives, the U.S. Marshals Service, and the West Baton Rouge Sheriff’s Office, and prosecuted by Assistant United States Attorneys Jennifer Kleinpeter and Harley Ferguson.

United States Attorney Ronald C. Gathe, Jr. announced that U.S. District Judge Brian A. Jackson sentenced Jaime Aaron Sousa, age 28, of Ponchatoula, Louisiana, to 120 months in federal prison following his conviction for attempted enticement of a minor.  The Court further sentenced Sousa to serve a period of five years supervised release, which includes sex offender registration requirements, following his term of imprisonment.  

According to admissions made during his plea, in January 2021, Sousa utilized a social media application to communicate with and sexually pursue an individual whom he believed to be a 13-year-old girl. Throughout his communications, Sousa sent sexually explicit messages and photographs to the purported minor, he pressured the purported minor to send him sexually explicit photographs, and he coerced the purported minor to meet him to engage in sexual activity.  Sousa then traveled to a location in Baton Rouge with the intent to engage in sexual activity with the purported minor, where he was ultimately arrested by federal and state law enforcement officials.

This matter was investigated by the Federal Bureau of Investigation, Homeland Security Investigations, the Louisiana Bureau of Investigations, Louisiana State Police, and the East Baton Rouge Parish Sheriff’s Office.  The case was prosecuted by Assistant United States Attorney Jamie A. Flowers Jr., who also serves as Chief of the Criminal Division.

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.justice.gov/psc.

United States Attorney Ronald C. Gathe, Jr. announced that U.S. Chief Judge Shelly D. Dick sentenced Robert Brown, age 28, of Prairieville, Louisiana, to 60 months in federal prison following his conviction of distribution of heroin.  The Court further sentenced Brown to three years of supervised release following his term of imprisonment.

According to admissions made as a part of his guilty plea, on December 1, 2017, Brown made arrangements with a confidential informant to sell the informant one-half of an ounce of heroin for $1,200 at a gas station in Livonia, Louisiana.  The informant subsequently met with Brown at the gas station where he sold the heroin to the informant for $1,200 as planned.   

This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney William K. Morris.

United States Attorney Ronald C. Gathe, Jr.  announced that U.S. District Judge Brian A. Jackson sentenced Neiyondra Rogers, age 38, of Greensburg, Louisiana, to 33 months in federal prison following her conviction for theft of government funds.  The Court further sentenced Rogers to serve three years of supervised release following her term of imprisonment and ordered her to pay restitution in the amount of $179,252.85 to the USDA’s Child and Adult Care Food Program; $20,832 to the Small Business Administration (SBA); and $16,961 to the Louisiana Workforce Commission.

According to admissions made as part of her guilty plea, beginning in January 2016, Rogers participated in the Child and Adult Care Food Program as a provider. Under the program, she was required to provide children in her care with nutritious meals. To be reimbursed for her services, she would have to submit reimbursement claims to her sponsor, Feliciana Day Care Home Agency. 

Although Rogers routinely submitted claims for reimbursement, claiming that she had provided meals to children in her care, in fact, she never watched any children while participating in the program, nor did she provide the meals reflected in her claims. Based on the fraudulent claims she submitted, the defendant was reimbursed at least $31,224.27 in federal funds from the Child and Adult Care Food Program. 

In addition to submitting fraudulent reimbursement claims, Rogers discussed the program and work with Feliciana Day Care Home Agency with other providers. For these individuals, Rogers assisted the individuals in signing up for the program, and she submitted false reimbursement claims on their behalf or aided them in submitting false reimbursement claims, resulting in the sponsor, Feliciana Day Care Home Agency, issuing the individuals reimbursement checks. On numerous occasions, Rogers would collect the reimbursement checks issued to the individuals with whom she discussed the program and would endorse their checks to herself, sometimes without their knowledge or consent. In total, Rogers endorsed and cashed checks in the names of other providers for a total of $91,635.34. The money she stole belonged to the United States Department of Agriculture's Child and Adult Care Food Program.

Lastly, beginning in April 2020, Rogers submitted fraudulent claims for Pandemic Unemployment Assistance (“PUA”) and Disaster Unemployment Assistance (“DUA”) to the Louisiana Workforce Commission (“LWC”). As a result of these fraudulent claims, she received at least $16,951.00 in unemployment benefits to which she was not entitled. In March 2021, Rogers also applied for and received a loan under the Small Business Administration’s (“SBA’s”) Paycheck Protection Program (“PPP”).  In that application, Rogers falsely represented that she was the owner of a sole proprietorship engaged in the catering business when in fact, no such business existed.   As a result, the defendant received an additional $20,832.00 in government funds to which she was not entitled.  

U.S. Attorney Ronald C. Gathe, Jr. stated, “This defendant committed fraud in government programs intended for underprivileged children and those adversely affected by Covid-19. Prosecuting this type of fraud is a high priority of this office, and I want to thank our prosecutors and our law enforcement partners for their efforts in bringing this defendant to justice.”

"Neiyondra Rogers used funds designated for the USDA Summer Foods Service Program, which provides nutritional meals for children in low-income families, for her own personal expenses.  Defrauding taxpayers and taking food out of the mouths of children who can’t provide for themselves is reprehensible,” said Douglas A. Williams, Jr., FBI New Orleans Special Agent in Charge.  “I would like to thank our partners at the U.S. Attorney’s Office Middle District of Louisiana and Louisiana Office of Inspector General for their efforts in helping the FBI disrupt this type of fraud.”

Louisiana Inspector General Stephen Street commented, “This is just the latest in a series of successful criminal cases where summer nutrition funds were stolen with no regard for the children they were intended to benefit.  Neiyondra Rogers shamelessly broke the law out of pure personal greed, and today’s sentencing brings this sad episode to a just conclusion.  We remain committed to working with our law enforcement partners to root out this corruption wherever it may be found.”  Street added, “I want to thank United States Attorney Ron Gathe and his staff for their usual outstanding work, as well as our partners at the FBI.”

This matter was investigated by the Federal Bureau of Investigation and the Louisiana Office of Inspector General and was prosecuted by Assistant United States Attorney Kristen Craig. 

United States Attorney Ronald C. Gathe, Jr. announced that U.S. Chief Judge Shelly D. Dick sentenced Tylan Tilford, age 29, of Gonzales, Louisiana, to 100 months in federal prison following his conviction of possessing firearms by a convicted felon.  The Court further sentenced Tilford to three years of supervised release following his term of imprisonment and ordered that the firearms involved be forfeited.

According to admissions made as a part of his guilty plea, on March 16, 2020, Louisiana State Police narcotics detectives executed a search warrant at Tilford’s residence in Gonzales, Louisiana.  While searching the bedroom, detectives located a firearm under a pillow on Tilford’s bed, along with five firearms located in the bedroom and bathroom used by Tilford’s mother.  Tilford advised that all the firearms belonged to him and that he had placed them in his mother’s room.

Prior to possessing the firearms, Tilford was convicted in Ascension Parish in March 2012 of simple burglary and in November 2015 of aggravated assault with a firearm. 

This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, and the Louisiana State Police.   The case was prosecuted by Assistant United States Attorney Eli J. Abad.

Every April, the Department of Justice and the U.S. Attorney’s Office for the Middle District of join survivors, advocates, and communities nationwide in observing Sexual Assault Awareness and Prevention Month. Sexual violence is far too prevalent, and it is important to not only to raise awareness of the myriad forms of sexual violence, but to engage in meaningful prevention efforts, take action to hold offenders accountable, and care for survivors in a trauma-informed manner. U.S. Attorney Ronald C. Gathe, Jr. joins the Department of Justice and the Office on Violence Against Women (OVW) in applauding the recent passage of the Violence Against Women Reauthorization Act of 2022 (VAWA 2022), which treats sexual assault as the serious violation it is and creates new programs and initiatives that provide survivors of sexual violence with increased access to services and justice. One such program is the Violence Against Women Tribal Special Assistant U.S. Attorney (SAUSA) program, which cross-designates tribal prosecutors as SAUSAs to support tribes and U.S. Attorneys’ Offices in investigating and prosecuting cases involving sexual assault, domestic and dating violence, stalking, and certain sex trafficking offenses. VAWA 2022 also expands outreach to survivors in underserved communities, including by improving access to sexual assault medical forensic examinations for survivors in rural areas, providing community-specific services for LGBT survivors, and restoring tribes’ jurisdiction to prosecute non-Indian perpetrators of sexual violence and sex trafficking, among certain other offenses committed on tribal lands.

“During Sexual Assault Awareness and Prevention Month, and every month, OVW-funded programs across the nation provide essential services to survivors of sexual assault, responding to their needs, helping them heal, and supporting them as they pursue the justice they seek,” said OVW Principal Deputy Director Allison Randall. “The impact of sexual violence is felt by the entire community and can devastate survivors’ lives, which is why it is critical that VAWA 2022 strengthens not just services and justice interventions but also prevention.” 

OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.

If you or someone you know is experiencing or has experienced sexual violence, you are not alone and there are many services available to help, including the Sexual Assault Hotline, 1-800-656-HOPE (4673), and the StrongHearts Native Helpline, 1-844-7NATIVE (762-8483). In addition, you can find a local resources page on OVW’s website, which lists state sexual assault coalitions that can direct you to local resources and services, as well as opportunities to get involved.

United States Attorney Ronald C. Gathe, Jr. announced that a federal grand jury recently returned a fifteen-count indictment charging Monty Matthews, age 52, of Baton Rouge, Louisiana, with wire fraud, extortion in interstate communications, attempted escape, and assault on an officer. 

According to the indictment, between the summer of 2017 and March 2022, Matthews devised a fraud scheme targeting elderly victims through false representations about the existence of companies and investment opportunities, resulting in a loss of more than $1M.  During the period of the scheme, Matthews would send false and, at times, threatening messages via cellular phone to the victims to induce them to make and continue to make investments in the form of cash that could only be delivered to him.  Matthews, however, never invested any of the cash on behalf of the victims, nor returned any type of refund, profit, dividend, interest, or any other thing of value to them.  After his arrest on March 23, 2022, Matthews attempted to escape from the custody of FBI agents and, in the process of attempting to escape, assaulted two FBI special agents.

This matter is being investigated by the Federal Bureau of Investigation and East Baton Rouge Sheriff’s Office, with assistance by Acadian Ambulance personnel, and is being prosecuted by Assistant United States Attorney Paul L. Pugliese. 

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

United States Attorney Ronald C. Gathe, Jr. announced that a federal grand jury has returned a three-count indictment charging Lakeisha Grayer, age 40, of Denham Springs, Louisiana, with making and subscribing false tax returns. 

The indictment alleges that, on multiple occasions from 2016 to 2018, Grayer made and filed false tax returns for her business by knowingly underreporting the business’s gross receipts for tax years 2015, 2016, and 2017.

This matter is being investigated by the Internal Revenue Service and is being prosecuted by Assistant United States Attorney Harley Ferguson. 

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

United States Attorney Ronald C. Gathe, Jr. announced today that Mohammad Alam, age 50, of New York, pled guilty to a Bill of Information charging him with misprision of a felony before U.S. District Court Judge John W. deGravelles. 

According to admissions made as part of his guilty plea, in December of 2016, Alam became involved in a computer technical support fraud scheme that targeted elderly victims throughout the United States including the Middle District of Louisiana.  The scheme involved international participants, targeted over 30 victims, and took in approximately $340,000 in fraudulent proceeds.

Members of the scheme tricked victims into thinking their computers needed technical support, then offered to fix their computers for a fee.  After the victims paid, a member of scheme would contact the victims seeking access to their bank accounts, claiming that the victims were entitled to a discount.  With that information, a member of the scheme would manipulate the victims’ account balances to where the victims thought that they owed money to the computer company.  The victims would then send money to accounts controlled by Alam and others.

Between December of 2016 and March of 2018, Alam utilized multiple bank accounts to receive the victims’ funds.  He operated these accounts at the direction of an overseas associate, who instructed him how to distribute the funds, which he then sent to foreign and domestic accounts as directed.

Individuals like Alam assist fraudsters by receiving money from victims of fraud and forwarding it to the fraud organizers, many of whom are located abroad.  Some of these so-called money mules know they are assisting fraudsters, but others are unaware of the illegal scheme. Without money mules, many foreign fraudsters find it difficult to profit off U.S. victims.  To find public education materials, as well as information about how fraudsters use and recruit money mules, please visit www.justice.gov/civil/consumer-protection-branch/money-mule-initiative.

This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Jessica M.P. Thornhill, who also serves as the Elder Justice Coordinator for the Middle District of Louisiana. 

The Department of Justice’s Elder Justice Initiative aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid becoming victims of financial fraud; and promote greater coordination with law enforcement partners. For more information, please visit: https://www.justice.gov/elderjustice.  If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).

United States Attorney Ronald C. Gathe, Jr. announced that Jason L. Istre, age 45, of Baton Rouge, Louisiana, pled guilty before U.S. Chief Judge Shelly D. Dick to receipt of child pornography.  As a result of his conviction, Istre faces a significant term of imprisonment, a fine, and a period of supervised release, which includes sex offender registration requirements.

According to admissions made during his plea, on or about October 1, 2021, Istre knowingly received files of child pornography via the internet.  Additionally, he used sophisticated computer programs to download and store images and videos of child pornography.  Istre sought videos and images of minors, knowing they were under 18 years of age, and sought them with the intent to receive child pornography.  Istre also possessed 1,700 total videos and approximately 45 images of child pornography, which were accessible through his laptop.

This matter was investigated by the Federal Bureau of Investigation and the East Baton Rouge Sheriff’s Office and is being prosecuted by Assistant United States Attorney Edward H. Warner.

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.justice.gov/psc.

 

United States Attorney Ronald C. Gathe, Jr. announced that Forrest J. Hardy, age 33, of Baton Rouge, Louisiana, pled guilty before U.S. Chief Judge Shelly D. Dick to interference with commerce by robbery, brandishing a firearm during a crime of violence, and possession of firearms by a convicted felon.  As a result of his plea, Hardy faces up to 20 years imprisonment for the robbery conviction, 10 years imprisonment for the possession of a firearm by a convicted felon conviction, and a mandatory minimum consecutive term of imprisonment of not less than seven years and up to life for the brandishing a firearm during a crime of violence conviction.

According to admissions made during his plea, on or about January 7, 2020, at approximately 6:41 p.m., Hardy, while wearing a mask, entered the Boost Mobile Store, located at 8180 Scenic Hwy, Baton Rouge, which is across the street from Baton Rouge Police Department’s Fourth Precinct police station, and pointed a firearm at an employee.  After Hardy demanded money kept in the cash registers, the employee complied with Hardy’s demands, who removed and pocketed the cash.  Hardy then fled from the store and ran to a 1999 Lexus SUV.

Following investigative leads, the following day, detectives identified the vehicle driven by Hardy and developed him as a suspect of this robbery.  Video cameras captured images of Hardy’s car enabling detectives to identify Hardy’s vehicle as a gold-colored Lexus, bearing distinct coloring on the right front quarter panel.

On January 8, 2020, at approximately 7:20 p.m., Hardy, while wearing a green jacket and a black mask over his face, entered a Metro PCS cellular phone store, located at 1966 North Foster Dr., Baton Rouge.  Hardy then pointed a loaded Glock, model 22, .40 caliber pistol, with an extended magazine and a weapon-mounted flashlight at an employee and demanded cash from the register.  He removed the cash from the register and pocked it.  While aiming his firearm at the employee, Hardy demanded the cash that the business kept in its safe in the storage room. Concerned for his safety, the victim led the robber to the storage room.  From his vantage point, the victim observed Hardy rummaging through the safe.  Following the robbery, Hardy fled the premises in same vehicle, the 1999 Lexus SUV, he used the night before.  Notably, the day before the robbery the safe contained an Apple iPhone 11 Pro Max and after the robbery the Apple iPhone Pro Max was no longer in the safe.

Later, on the evening of January 8, 2020, at approximately 8:25 p.m., law enforcement officers with the Baton Rouge Police Department stopped Hardy in the 1999 Lexus SUV, which bore the distinct coloring on one of its sides.  Law enforcement officers observed, in plain view, a black handgun with an extended magazine, and a black mask on the front passenger seat.  Police thereafter arrested Hardy.  

A day or so later, during the execution of a search warrant on the 1999 Lexus SUV, law enforcement personnel found an assault style firearm, a .40 caliber Glock semiautomatic pistol with an extended magazine, stolen cash, a ski mask, the gloves used by Hardy during the robberies, and ammunition. 

Previously, Hardy had been convicted of armed robbery in East Baton Rouge Parish in 2007 and convicted of second-degree battery and false imprisonment with a dangerous weapon in Lafayette Parish in 2019.

This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Baton Rouge Police Department.   It was prosecuted by Assistant United States Attorneys Robert W. Piedrahita and Jeremy S. Johnson. 

U.S. Attorney Gathe stated, “I would like to publicly thank our Assistant United States Attorneys and our partners, the Baton Rouge Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives for the time and effort to prepare this matter for trial.  Their efforts led to the government removing a violent offender and several guns off the street.”

United States Attorney Ronald C. Gathe, Jr., announced the conviction of Elliot Sterling, age 33, of Baton Rouge, Louisiana.  Sterling was indicted by a federal grand jury on August 3, 2020, and charged with wire fraud, financial aid fraud, and engaging in monetary transactions involving property derived from specified unlawful activity.

After an eight-day trial before District Judge Brian A. Jackson, the jury unanimously convicted Sterling of five counts of wire fraud involving a scheme to defraud the Department of Education federal student aid program, two counts of financial aid fraud, and two counts of wire fraud involving the Small Business Administration Economic Injury Disaster Loan program, which was designed to aid businesses during the Covid-19 pandemic.  Mr. Sterling was also convicted of six counts of money laundering involving the proceeds of his two wire fraud schemes.  The jury further ordered the forfeiture of $422,632.38 in fraud proceeds that the FBI had seized in the case.

As the evidence at trial demonstrated, with respect to the Department of Education wire fraud and financial aid fraud counts, Mr. Sterling received $1,468,239 in federal student aid loans and grants that were associated with 180 Baton Rouge Community College (BRCC) students into his personal bank account and the business bank account of his company, Sterling Educational Consulting, LLC.  The evidence presented at trial showed that Mr. Sterling used the personal identifying information of his purported students to electronically fill out and submit their Free Applications for Federal Student Aid (FAFSAs), sign master promissory notes on their behalf, enroll them into classes at BRCC, and create and manage the student BankMobile accounts that received federal student loans.  Through Mr. Sterling’s control of the students’ accounts, he directed Department of Education monies to be paid directly into his own bank accounts.

In order to circumvent Department of Education controls designed to inform students about the financial obligations of student loans, Mr. Sterling concealed his role as the preparer of the FAFSAs and pretended to be the students when he logged on with their credentials, clicked through the loan counseling in less than three minutes, and signed promissory notes in their names.  Typically, the students did not have access to the email addresses or login information that Mr. Sterling created on their behalf and did not have access to their own FAFSA, BRCC, or BankMobile accounts.

In addition, Mr. Sterling falsified the academic qualifications for 168 students to the Department of Education, and 145 of these students lacked even a high school diploma or equivalent (e.g. a GED).  A witness at trial also testified that Mr. Sterling had paid him $5,000 to produce 42 diplomas with fictional grades.  These diplomas were then provided to BRCC after BRCC requested verification of the students’ academic credentials.   None of the 180 students for whom Mr. Sterling received money progressed academically at BRCC, and 172 failed or withdrew from every class they were enrolled in.  Some students were incarcerated when their FAFSAs were submitted, promissory notes signed, or federal student aid disbursed into Mr. Sterling’s bank accounts.

Instead of directing the funds he received to the students, Mr. Sterling kept over 60% for himself, and for 25 students, Mr. Sterling kept 100% of the loan proceeds.  Among the students who received money from Mr. Sterling’s scheme, most were unaware they had signed up for student loans and that Mr. Sterling had signed master promissory notes in their names obligating them to repay the full amount.  The students were also unaware of the true amount of refunds awarded in their names, and the true amount Mr. Sterling retained as his portion.  

With respect to the SBA wire fraud, Mr. Sterling submitted a loan application on behalf of his business, Sterling Educational Consulting, LLC, that falsified the business’s revenues and costs and concealed his prior guilty plea to felony theft.  As a result of these false statements, the SBA loaned Mr. Sterling $90,000 in order for him to pay the operating costs of his business during the Covid-19 pandemic.  Mr. Sterling promptly withdrew $75,000 in cash.  During the course of his schemes, Mr. Sterling also spent more than $253,000 at casinos in Louisiana, Nevada, and Pennsylvania.

As a result of his convictions, Mr. Sterling now faces a maximum sentence in federal prison of twenty years per wire fraud count, ten years per money laundering count, and five years per financial aid fraud count, as well as significant fines, restitution, and supervised release.

This case was investigated by the FBI, the Louisiana Office of Inspector General, and the U.S. Department of Education – Office of Inspector General. This case was prosecuted by Deputy Criminal Chief Elizabeth E. White, Assistant U.S. Attorney René I. Salomon, and Asset Forfeiture Chief Brad Casey.

United States Attorney Ronald C. Gathe, Jr. announced that U.S. District Judge Brian A. Jackson sentenced Jon Paul Cook, Jr., age 42, of Gonzales, Louisiana, to 100 months in federal prison following his convictions for possession with the intent to distribute heroin and methamphetamine, and possession of a firearm by a convicted felon.  The Court further sentenced Cook to serve three years of supervised release following his term of imprisonment and ordered that the firearm involved be forfeited.

According to admissions made as part of his guilty plea, on April 12, 2021, Cook possessed with the intent to distribute heroin and methamphetamine.  He also possessed a loaded Bryco Arms, Model J-22, .22 caliber pistol.  Specifically, that evening at Cook’s residence on Palmer Road in Gonzales, Louisiana, Cook sold the .22 caliber pistol and the narcotics.

Prior to possessing the firearm, Cook was convicted of two drug-related felonies including possession of heroin and cocaine in the 19th Judicial District Court of Louisiana in 2019, and possession of hydrocodone and amphetamine in the 18th Judicial District Court of Louisiana in 2018.

This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Ascension Parish Sheriff’s Office.   It was prosecuted by Assistant United States Attorney Jessica M.P. Thornhill. 

February is Teen Dating Violence Awareness and Prevention Month (TDVAPM), a time to raise awareness about this all-too-common issue, focus efforts on ending the violence, and share resources for teens experiencing violence, survivors, and their communities. The U.S. Attorney’s Office for the Middle District of Louisiana is proud to stand with survivors and share a new resource funded by the Department of Justice Office on Violence Against Women (OVW), the Teens and Technology Resource Series. There is a significant intersection of technology and teen dating violence, and misuse of technology is an increasingly common tactic on the part of harmful partners. The Teens and Technology resources aim to help adults who teach, work with, and care for teenagers understand technology from their perspective to empower teenagers to safely navigate relationships and technology use. These resources include examples of technology abuse, uses and misuses of social media applications, and five ways to engage with young people.

United States Attorney Gathe stated, “With domestic abuse on the rise, it often starts with teens.  Because young adolescents are some of our most vulnerable population, our office encourages adults and teens to take advantage of our Teens and Technology Resource Series.  Hopefully, the more educated we are about teen dating violence, we can break the cycle that has plagued our community.”

“The pandemic has made everything more challenging – for children and youth, advocates across the country have reported an uptick in online abuse as younger folks spend more time spent online,” said OVW Principal Deputy Director Allison Randall. “The Teens and Tech Resource Series can help adults meaningfully engage with young people, empowering them to recognize abuse and unhealthy relationships, prevent future violence, and use technology safely. Teen Dating Violence Awareness and Prevention Month gives us the opportunity to put a spotlight on these projects, as well as OVW’s year-round commitment to ending dating violence.”

The National Network to End Domestic Violence (NNEDV) Safety Net Project developed the Teens and Tech Resource Series in partnership with eleven24, a teen violence prevention program dedicated to reducing the prevalence of relationship abuse and sexual violence through media literacy and identity affirmation.

The Office on Violence Against Women provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.

If you or someone you know is experiencing domestic violence, intimate partner violence, sexual violence, or stalking, there are many services available to help, including:

• Teen Dating Abuse Hotline, 1-866-331-9474, text ‘LOVEIS’ to 22522, or visit loveisrespect.org; 
• State, territory and tribal sexual assault and domestic violence coalitions, which can direct you to local resources and services, as well as opportunities to get involved; and
• The StrongHearts Native Helpline, which offers online chat on their website and a hotline – at 1-844-7NATIVE (or 1-844-762-8483) and provides culturally-appropriate services and advocacy to American Indian and Alaska Native survivors of domestic violence, intimate partner violence, and sexual violence.

United States Attorney Ronald C. Gathe, Jr.  announced that U.S. Chief Judge Shelly D. Dick sentenced Brittany Monroe Knapp, age 35, of Denham Springs, Louisiana, to 46 months in federal prison following her conviction for wire fraud.  The Court further sentenced Knapp to serve three years of supervised release following her term of imprisonment and ordered her to pay restitution in the amount of $869,940.

According to admissions made as part of her guilty plea, on or about November 14, 2019, Knapp submitted an expense report from a computer located in Baton Rouge to the Oceans Healthcare corporate office in Plano, Texas, in which she falsely represented that Employee A had authorized the purchase of certain equipment from a vendor, at a cost of approximately $1,338.00, to conceal the fact that she had actually charged $1,338.00 in Oceans Healthcare funds to an online PayPal account that she controlled.

Also according to Knapp’s admissions, on or about December 15, 2019, from a computer located in Baton Rouge, Knapp submitted an expense report to the Oceans Healthcare corporate office in Plano, Texas, in which she falsely represented that Employee A had authorized the purchase of certain products from the vendor for approximately $1,919.62, to conceal the fact that she had actually charged $1,919.62 in Oceans Healthcare funds to an online PayPal account that she controlled.

Throughout the course of the fraudulent scheme, Knapp, without authority, embezzled over $750,000 of Oceans Healthcare funds to which she was not entitled.

This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Edward H. Warner. 

U.S. Attorney Ronald C. Gathe, Jr. announced that the Department of Justice’s Bureau of Justice Assistance has awarded $5,186,242 collectively to the Louisiana Commission on Law Enforcement, the Louisiana District Attorney’s Association, the Judiciary Courts of the State of Louisiana, the Louisiana Department of Justice, and the Louisiana Department Public Safety and Corrections. 

Grantees will use funds to:

• provide digital evidence training supplemented with equipment to substantially upgrade the skills of Louisiana prosecutors, whose limited resources compound challenges with digital evidence;
• support adult reentry education, employment, treatment and recovery programs;
• improve the quality and timeliness of forensic science and medical examiner services, eliminating or reducing the backlog of analysis of forensic science evidence, and training;
• provide training and technical assistance to affiliate agencies and supporting Louisiana Department of Justice investigator positions to conduct proactive and reactive investigations of technology-facilitated crimes against children; and
• invest in a local technical and training assistance pilot to promote sustainable evidence-based practices and a broad strategy to align probation and parole specialized caseloads with treatment courts, beginning with mental health and veteran treatment courts.

United States Attorney Ronald C. Gathe, Jr. announced that Chief U.S. Judge Shelly D. Dick sentenced April R. Falgoust, age 46, of Prairieville, Louisiana, to 18 months in federal prison following her conviction for wire fraud.  The Court also sentenced Falgoust to serve three years of supervised release following her term of imprisonment, ordered her to pay $147,925.69 in restitution to the United States Small Business Administration, and further ordered her to forfeit an additional $143,800 in proceeds from her crime.

Today’s sentence stems from a series of ongoing investigations into fraud schemes targeting COVID-19 relief funds made available under the CARES Act, including fraud schemes targeting Economic Injury Disaster Loan (EIDL) funds, Paycheck Protection Program (PPP) funds, and other benefits intended to help people and businesses suffering from the economic effects of the pandemic.

In this case, as Falgoust admitted in connection with her guilty plea, she devised a scheme to defraud the U.S. Small Business Administration by filing numerous false and fraudulent applications for EIDL funds.  Specifically, between March 31, 2020 and May 8, 2020, Falgoust filed five fraudulent applications, in the names of the following companies:  “LA Fitness & Tan, LLC,” “FalgouStrong Fitness, LLC,” “Boss Lady Suits,” “Forever the Baddest Makeup,” and “Hemphire Seed & Nutrients.”  In the applications, she misrepresented the companies’ gross revenues, their costs, their number of employees, and the extent to which the companies had been affected by the pandemic, among other misrepresentations.  Based on the defendant’s fraudulent representations, the SBA disbursed approximately $143,800 to the defendant, and the intended loss, including potential loss from fraudulent applications that the defendant submitted but that the SBA did not fund, was approximately $473,000.

U.S. Attorney Ronald C. Gathe, Jr., who is also the National Center for Disaster Fraud’s Executive Director, stated, “Preventing and prosecuting fraud is a priority of the Department of Justice, and this sentence should serve as a warning to those who would commit such crimes that we will bring offenders to justice and punish those who break the law.  I applaud the efforts of our prosecutors and law enforcement partners the in the prosecution and conviction of this defendant.”

“Today’s sentencing should serve as a reminder to those who deceive and steal from hardworking Americans that they will be held to account for their actions. The FBI and its partners will continue to hold accountable those like Ms. April Falgoust who perpetrate fraud schemes at the expense of the American people,” said FBI New Orleans Special Agent in Charge Douglas A. Williams, Jr. “We thank our partners at United States Attorney's Office for the Middle District of Louisiana, Internal Revenue Service and the Small Business Administration Office of Inspector General for their strong partnership and unrelenting pursuit of justice.”

“The Treasury Inspector General for Tax Administration (TIGTA) will aggressively pursue those who use Internal Revenue Service (IRS) systems to facilitate their schemes to defraud pandemic relief programs,” said J. Russell George, the Treasury Inspector General for Tax Administration.  “Fraudulent schemes such as this undermine the integrity of IRS programs and operations.  We would like to thank the FBI, the SBA Office of the Inspector General and the US Attorney’s Office for their continued partnership in combating pandemic fraud.”

This matter was investigated by the Federal Bureau of Investigation, the United States Treasury Inspector General for Tax Administration (TIGTA), and the United States Small Business Administration—Office of Inspector General (SBA-OIG), and prosecuted by Assistant United States Attorney Alan Stevens, who serves as Senior Litigation Counsel for the United States Attorney’s Office.   

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

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

United States Attorney Ronald C. Gathe, Jr. announced that U.S. District Judge Brian A. Jackson sentenced Dillon M. Guidry, age 29, of Thibodaux, Louisiana, to 160 months in federal prison following his conviction for attempted coercion and enticement of a minor.  The Court further sentenced Guidry to serve five years of supervised release following his term of imprisonment, and he must register as a convicted sex offender for life. 

According to admissions made during his plea, on or about March 17, 2021, an FBI online covert employee (“OCE”), herein referred to as “OCE 1,” while working in an undercover capacity in the Middle District of Louisiana and posing as a 13-year-old female, posted a message on a social media mobile application (“Mobile App”).  On March 18, 2021, Guidry contacted OCE 1 on the Mobile App.  During his communication with OCE 1, Guidry indicated that he was a 28-year-old male and acknowledged the age of OCE 1 as 13 years old.  During the same conversation, Guidry and OCE 1 exchanged phone numbers.

From approximately March 18 through May 20, 2021, Guidry engaged in sexually explicit text messages with OCE 1.  During these text messages, Guidry misrepresented his identity and claimed that his name was “James from Gonzales.”  On April 14, 2021, Guidry asked OCE 1 whether they could have sexual intercourse.  OCE 1 replied that she was not on birth control and asked Guidry to bring condoms when they met to have sexual intercourse.  Also, on April 14, 2021, Guidry sent OCE 1 a picture of his face, which law enforcement officers later used to match with Guidry’s photo on the Lafourche Parish Sheriff’s Office sex offender registration website.  On April 22, 2021, Guidry asked OCE 1 if she has any friends that he could have sexual intercourse with.  When OCE 1 replied yes, Guidry asked for the friend’s age.  OCE 1 replied, “13 like me.”

On April 27, 2021, OCE 1 provided Guidry with a telephone number utilized by a second OCE (“OCE 2”) working in an undercover capacity in the Middle District of Louisiana and posing as a 13-year-old female.  On or about April 27, 2021, Guidry texted OCE 2. OCE 2 advised Guidry that she was 13 years old.  From approximately April 27 through May 20, 2021, Guidry engaged in sexually explicit text messages with OCE 2.

On April 29, 2021, Guidry texted OCE 2 about meeting in person to have sexual intercourse.  OCE 2 asked when they would meet, and Guidry replied that they would meet on May 20, 2021.  Guidry explained that he would meet OCE 1 and OCE 2 at OCE 1’s house.  On May 20, 2021, Guidry traveled to a location designated by OCE 1, located within the Middle District of Louisiana, for the purpose of engaging in sexual activity with two females who Guidry believed to be 13-year-olds. While driving to the meeting location, Guidry stopped and purchased condoms.  Guidry arrived in the area of the meeting location in Baton Rouge, Louisiana at approximately 6:45 PM.  Based on the aforementioned communications, law enforcement officers arrested Guidry for various child exploitation offenses.

U.S. Attorney Ronald C. Gathe, Jr. stated, “This case highlights the commitment to protect our children from sexual predators.  May this sentence serve as a stark warning of the severe consequences to those who may be inclined to engage in similar conduct.  I am grateful for the excellent work of all those involved in bringing this defendant to justice.”

FBI New Orleans Special Agent in Charge Douglas Williams, Jr. stated, “Today’s sentencing sends a clear message that criminals like Dillon Guidry who destroy innocent lives will be held accountable.  Investigating individuals like Mr. Guidry is one of the highest priorities of the FBI and we will continue to take an aggressive approach to identify and hold accountable those who prey on our children.  We thank our partners at the United States Attorney’s Office for the Middle District of Louisiana, U.S. Homeland Security, Louisiana State Police, Louisiana Bureau of Investigation, and the East Baton Rouge Sheriff’s Office for their strong partnership and unrelenting pursuit of justice.”

This matter was investigated by the Federal Bureau of Investigation, Department of Homeland Security, the Louisiana Attorney General’s Office, Louisiana State Police, Louisiana Bureau of Investigation, and the East Baton Rouge Parish Sheriff’s Office and prosecuted by Assistant United States Attorney Edward H. Warner and Assistant United States Attorney Jamie A. Flowers Jr., who also serves as Deputy Chief for the United States Attorney’s Office.

Ronald C. Gathe, Jr. has been sworn in as the United States Attorney for the Middle District of Louisiana by District Judge Brian A. Jackson.  Mr. Gathe was nominated by President Joseph R. Biden and confirmed by the United States Senate last week.

A Louisiana native and an attorney for more than two decades, Mr. Gathe is a career prosecutor.  Most recently, he served as the Chief of Trials in the Office of the District Attorney for the 18th Judicial District Court.  Previously, he served for 19 years as an Assistant District Attorney and Section Chief in the Office of the District Attorney for the 19th Judicial District Court where he prosecuted a wide range of criminal matters, including crimes of violence, theft, and various drug charges.  Mr. Gathe also operated his private practice at the Law Offices of Ronald C. Gathe, Jr. & Associates, L.L.C., where he concentrated on general areas of law including personal injury, estate planning, and corporate matters.  Mr. Gathe began his legal career as a judicial law clerk for the Honorable James Best in Iberville, West Baton Rouge, and Pointe Coupee Parishes.

Mr. Gathe received his B.S. from Xavier University of Louisiana, New Orleans, and his Juris Doctor from Southern University Law Center, Baton Rouge.

United States Attorney Ronald C. Gathe, Jr. stated, “I’m really looking forward to this part of this chapter of my life and look forward to serving the people of Louisiana.”

Acting United States Attorney Ellison C. Travis announced that U.S. Chief District Judge Shelly D. Dick sentenced Donatraus Hudson, a/k/a “Dontarius Hudson,” age 22, of Baton Rouge to 120 months in federal prison following his conviction of possessing a firearm by a convicted felon.  Hudson’s federal prison sentence will be served consecutive to any term of imprisonment imposed on charges currently pending in Louisiana state court.  The Court further sentenced Hudson to three years of supervised release following his term of imprisonment and ordered that the firearm and ammunition involved be forfeited.

According to admissions Hudson made as a part of his guilty plea, on September 10, 2020, the United States Marshal Service Fugitive Task Force executed an arrest warrant for Hudson on state charges for armed robbery at his residence in Baton Rouge.  Shortly thereafter Baton Rouge Police officers obtained a search warrant for Hudson’s residence and a search of the premises was conducted, in which a loaded SCCY, a model CXP-2, 9 mm semi-automatic pistol and additional ammunition were found.

Prior to possessing the firearm, Hudson was convicted in September of 2019 of simple burglary and in April of 2018 of attempted possession of a Schedule IV-controlled dangerous substance. Both of these prior felony convictions were in East Baton Rouge Parish.

Acting U.S. Attorney Ellison Travis stated, “Keeping repeat offenders off our streets remains a top priority of this office.  Our office is committed to working with our law enforcement partners to keep our communities safe.  This was a team effort and congratulations to our prosecutor, the ATF, and the Baton Rouge Police Department for the great work on this case.”

“The sentence imposed today lets repeat offenders know that they will pay a price for their crimes,” said ATF New Orleans Field Division Special Agent in Charge Kurt Thielhorn. “The collaborative effort of the U.S. Attorney’s Office, local law enforcement, and the ATF is the foundation for keeping our neighborhoods and communities safe from violent criminals.” 

This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Baton Rouge Police Department.  The case was prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.

A federal grand jury recently returned a three-count indictment charging Lestreonia Renee Rodrigue, age 26, of Plaquemine, Louisiana, with mail fraud and wire fraud.  Rodrigue appeared for her arraignment today and pled not guilty to the pending charges. 

According to the indictment, between July 2020 and June 2021, Rodrigue submitted claims for unemployment benefits in her name and in the names of other individuals in multiple states, including California, among others.  Rodrigue also submitted claims for Paycheck Protection Program (“PPP”) benefits in the names of fictitious businesses and based on fictitious business profits and losses. 

Further, Rodrigue obtained names, birth dates, and Social Security numbers of others, and submitted fraudulent claims for unemployment benefits in their names, with and without their knowledge or consent.  Rodrigue used social media to obtain as many people’s identifying information as possible to file as many unemployment claims as possible.  Upon submitting the claims and receiving the funds, she either gave a cut of the funds to the people or kept all the funds for herself.  Through her scheme, Rodrigue obtained hundreds of thousands of dollars in prepaid debit cards in the mail.  

In March 2021, Rodrigue also devised a scheme to defraud the Small Business Administration by filing false and fraudulent applications for PPP funds.  In furtherance of the scheme, on or about March 6, 2021, she submitted false and misleading PPP applications in the business name of “Lestreonia Rodrigue” seeking PPP funds.  Rodrigue submitted a forged bank statement, false tax documents, and made misrepresentations in her PPP applications. 

Throughout the course of the fraudulent schemes, Rodrigue caused $20,833.00 to be deposited into her bank account, to which she was not entitled.  Additionally, Rodrigue caused over $500,000 in prepaid debit cards to be mailed to her addresses, to which she and others were not entitled.

This matter is being investigated by the Federal Bureau of Investigation and the U.S. Department of Labor and is being prosecuted by Assistant United States Attorney Edward H. Warner and Assistant United States Attorney Elizabeth White who also serves as Deputy Criminal Chief. 

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

Acting U.S. Attorney Ellison C. Travis announced that the Department of Justice’s Bureau of Justice Assistance (BJA) has awarded $272,998 collectively to the East Baton Rouge Sheriff’s Office, Ascension Parish Sheriff’s Office, and Livingston Parish Sheriff’s Office.  These awards will be used to support criminal justice initiatives that fall under one or more of the allowable JAG program areas, which may include multijurisdictional drug and gang task forces, crime prevention and domestic violence programs, courts, corrections, treatment, justice information sharing initiatives, or other programs aimed at reducing crime and/or enhancing public/officer safety.

The Edward Byrne Memorial Justice Assistance Grant (JAG) Program is the leading source of federal justice funding to state and local jurisdictions.  It allows states and units of local government, including tribes, to support a broad range of activities to prevent and control crime based on their own state and local needs and conditions. Grant funds can be used for state and local initiatives, technical assistance, training, personnel, equipment, supplies, contractual support, and information systems for criminal justice, including for any one or more of the following program areas: 1) law enforcement programs; 2) prosecution and court programs; 3) prevention and education programs; 4) corrections and community corrections programs; 5) drug treatment and enforcement programs; 6) planning, evaluation, and technology improvement programs; 7) crime victim and witness programs (other than compensation); and 8) mental health programs and related law enforcement and corrections programs, including behavioral programs and crisis intervention teams.  Learn more at https://bja.ojp.gov/program/jag/overview.

Acting United States Attorney Ellison C. Travis and Louisiana Attorney General Jeff Landry are urging suspected Hurricane Ida fraud victims to file complaints with the National Center for Disaster Fraud (NCDF) via phone at (866) 720-5721 or online at www.justice.gov/DisasterComplaintForm.  Since the storm, numerous complaints have been filed regarding contractor, FEMA, and Small Business Administration (SBA) fraud.

The NCDF is a nationwide organization of law enforcement agents that further detects, investigates, and prosecutes those responsible for disaster related fraud.  The NCDF Hotline receives complaints that are reviewed by law enforcement and referred to Federal, State, and local agencies for investigation.

Acting U.S. Attorney Travis stated, “My office has no tolerance for criminals who target disaster victims.  Working with Attorney General Landry and other federal, state, and local law enforcement agencies, we can protect victims of Ida from criminals who, out of wanton greed, exploit this tragedy for their own gain.  Potential fraudsters must know that, under Federal law, there is a 30-year maximum sentence in Federal prison for those who commit fraud related to disasters.  My office will continue to act aggressively to bring to justice those who would further harm victims of Hurricane Ida and other disasters.  After a storm, fraudulent contractors will target those affected by offering to perform repairs quickly, while at the same time demanding payment before any work is completed.  You can avoid becoming a victim by never paying a contractor for work that has not been completed, hiring well-known local contractors with a reputation for performing good work, asking your insurance claim adjuster to review a contract before you sign, ask for proof of liability insurance and state licensure, and never paying with cash since that leaves no trail if an investigation becomes necessary.  Payment should only be made with a check or credit/debit card.”

“Our office and the NCDF share a common aim to aggressively investigate, apprehend, and prosecute those who exploit calamity for personal reward,” said Attorney General Landry. “We stand united with our law enforcement partners to ensure victims of Hurricane Ida receive the help they need and do not fall prey to another tragedy.”

If you were visited by a FEMA inspector or received a letter from FEMA or the SBA stating that you have filed a claim for disaster assistance when you have not, you may be a victim of Federal disaster-assistance fraud.  If this applies to you, it is important for you to contact FEMA at 800-621-3362, or the SBA at 800-827-5722, to let them know the application is fraudulent.

Acting United States Attorney Ellison C. Travis announced that U.S. Chief Judge Shelly D. Dick sentenced Corey Roshel Powell, age 43, of Delhi, Louisiana, to 29 months in federal prison following his conviction for a scheme to defraud the USDA’s summer food service program.  The Court further sentenced Powell to serve three years of supervised release following his term of imprisonment. 

According to admissions made as part of his guilty plea, Powell owned and operated The NELLA Foundation (NELLA), a non-profit organization domiciled in Darrow, Louisiana, which served as a sponsor for the SFSP.  Over the course of the summers of 2014 and 2015, Powell and his co-defendant, Janie Johnson Smith, inflated the number of meals NELLA purportedly served to low-income children and submitted fraudulent claims for reimbursement based on the inflated numbers.  Powell and Smith also falsified program documents to support the false claims for reimbursement.  Once the funds were transmitted to NELLA, Powell and Smith used SFSP funds for their own personal expenses such as car and rent payments, or withdrew the funds as cash.  Additionally, Powell and Smith ordered food for NELLA’s purported operations through lines of credit obtained with food distribution companies, and once reimbursed for these expenses by the Louisiana Department of Education, the two defaulted on the lines of credit and instead converted the funds for their own personal use and financial gain.  Over a two year period, NELLA submitted and received approximately $265,000 in SFSP funds. 

The USDA’s Summer Food Service Program is a federally-funded child nutrition program that is administered by the Louisiana Department of Education. The SFSP is designed to ensure that children in low-income areas continue to receive nutritious meals during the summer when school is not in session.

Acting U.S. Attorney Travis stated, “The conviction and sentence of Mr. Powell reaffirms our commitment to protect government programs intended for those who truly need assistance.  I want to thank our prosecutor, the FBI, and the Louisiana Office of Inspector General for their work on this case.”

“Today’s sentencing sends a clear message that individuals like Mr. Corey Roshel Powell, who brazenly steal from children in need, will be held accountable.  Mr. Powell, out of personal greed, committed fraud against USDA Summer Foods Service Program which is designed to provide children in low-income areas nutritious meals during the summer when school is not in session,” said FBI New Orleans Special Agent in Charge Douglas A. Williams, Jr.  “We thank our partners at the United States Attorney's Office Middle District of Louisiana and the Louisiana Office of Inspector General for their strong partnership and unrelenting pursuit of justice."

Louisiana Inspector General Stephen Street commented, “The federal prison sentence imposed upon Mr. Powell today is entirely appropriate in light of his brazen theft of over a quarter million dollars intended to feed hungry children.  We will never tolerate such callous disregard for the welfare of children, and today’s sentence hopefully sends that message.”  Street added, “I want to thank acting United States Attorney Ellison Travis and his staff for their work on this prosecution, as well as our partners at the FBI.”

This matter is being investigated by the Baton Rouge Resident Agency of the Federal Bureau of Investigations and the Louisiana Office of Inspector General and is being prosecuted by Assistant United States Attorney Kristen Craig.

Acting U.S. Attorney Ellison C. Travis announced that the Department of Justice’s Bureau of Justice Assistance and Bureau of Statistics have awarded $4,192,789 collectively to the Louisiana Commission on Law Enforcement and the Louisiana Office of Student Financial Assistance.

The Louisiana Commission on Law Enforcement is a foundation located in Baton Rouge dedicated to improving the operations of the criminal justice and juvenile justice systems and to promoting public safety by providing progressive leadership and coordination within the criminal justice community.

The Louisiana Office of Student Financial Assistance is a Program of the Louisiana Board of Regents, administering the state's scholarship and grant programs, and the state's Internal Revenue Code Section 529 college savings program.

Grantees will use funds to:

• support a broad range of activities to prevent and control crime based on their own state and local needs and conditions;

• assist state and local governments in developing and implementing substance abuse treatment programs in state and local correctional and detention facilities and to create and maintain community-based residential, jail-based, and aftercare services for offenders;

• continue working on coming into compliance with PREA Standards in order to better protect individuals from sexual abuse and sexual harassment in confinement facilities; and

• provide student loan repayment assistance for local, state, and federal public defenders and local and state prosecutors who commit to extended service in those roles and who have the least ability to repay their loans.

Acting U.S. Attorney Ellison C. Travis announced that the Department of Justice’s Office of Violence Against Women (OVW) has awarded $270,782 collectively to the Louisiana Coalition Against Domestic Violence, Inc. and the Louisiana Foundation Against Sexual Assault, Inc. to assist victims of sexual assault.

Nationwide, OVW is making 56 awards totaling $28.2 million through the Fiscal Year 2021 Sexual Assault Services Formula Program.

The SAS Formula Program directs grant dollars to states and territories to assist them in supporting rape crisis centers (including governmental rape crisis centers not in territories and tribal governmental programs) and nonprofit, nongovernmental organizations that provide core services, direct intervention, and related assistance to victims of sexual assault, regardless of age. Funds provided through the SAS Formula Program are designed to supplement other funding sources directed at addressing sexual assault on the state and territorial levels.  Rape crisis centers and other nonprofit organizations, such as dual programs providing both domestic violence and sexual assault intervention services, play a vital role in assisting sexual assault victims through the healing process, as well as assisting victims through the medical, criminal justice, and other social support systems.

OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation.  Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault, and stalking.  In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges.  Learn more at www.justice.gov/ovw.

Acting U.S. Attorney Ellison C. Travis announced that the Middle District of Louisiana received $16,506,360 from the Department of Justice’s Office of Justice Programs and its component, the Office for Victims of Crime, to enhance crime victim services in the State and to enhance State compensation payments to eligible crime victims.  Victims of Crime Act (VOCA) compensation funds provide financial assistance to Federal and State victims of crime.  The funds are typically awarded by the State to local community-based organizations that provide direct services to crime victims.

The recipient of this award, the Louisiana Commission on Law Enforcement, is a foundation located in Baton Rouge dedicated to improving the operations of the criminal justice and juvenile justice systems and to promoting public safety by providing progressive leadership and coordination within the criminal justice community.

Acting U.S. Attorney Travis stated, “The Department of Justice is committed to the rights of victims, and while United States Attorney Offices enforce federal criminal law and bring offenders to justice, these awards are important to provide comfort and peace of mind to those that have suffered at the hands of the criminal element.”

The Medicare Fraud Strike Force (“MFSF”) is part of a joint initiative between the U.S. Department of Justice, U.S. Department of Health and Human Services and state Medicaid Fraud Control Units to reduce and prevent Medicare and Medicaid fraud through enhanced interagency cooperation.  Its purpose is to focus on the worse offenders in fraud, in the highest intensity regions, using data analysis techniques to identify abnormal billing levels in health care fraud “hot spots,” i.e., cities with unusually high levels of billing and other fraud.  The U.S. Department of Justice currently maintains 15 strike forces operations in 24 federal districts and has charged more than 4,600 defendants who have collectively billed federal health care programs and private insurers for approximately $23 billion.  In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

As part of the recent National Enforcement Action, Acting United States Attorney Ellison C. Travis announced new charges against two individuals for health care related crimes in Baton Rouge.  On September 9, 2021, a federal grand jury returned a seven-count indictment charging Terry Steven Wilks, Jr., age 39, of Greenwell Springs, Louisiana, and Leslie Amanda McHugh, age 36, of Riverview, Florida, with conspiracy to defraud the United States and to pay and receive kickbacks, offering and paying kickbacks, and soliciting and receiving kickbacks. 

According to the indictment, Wilks was the owner of Acadian Diagnostic Laboratories, LLC, a clinical laboratory based in Baton Rouge that provided diagnostic testing services, including urine drug testing.  Acadian was enrolled as a Medicare and a TRICARE provider.  McHugh was formerly a registered nurse licensed in the State of Florida.  The indictment alleges that in 2015, the Florida Board of Nursing revoked McHugh’s nursing license, and in 2016, Medicare excluded her from participation in all federal health care programs.  According to the indictment, despite her exclusion and subsequent purported termination from Acadian, Wilks continued to pay McHugh to refer doctors’ orders and specimens to Acadian for urine drug testing in exchange for kickback payments.  These payments were allegedly made in cash, as well as funneled through a company created by Wilks.  The indictment alleges that from August 2017 to April 2018, Wilks and McHugh caused Acadian to submit approximately $549,580 in claims to Medicare and $17,612 in claims to TRICARE for laboratory testing services that were referred by McHugh in exchange for kickback payments. 

Acting U.S. Attorney Ellison Travis stated, “My office will continue to work tirelessly with our outstanding federal, state and local partners to identify and bring justice to those who commit healthcare related crimes.  This takedown was a team effort, and I commend the excellent work performed by our prosecutors and the men and women of the agencies involved.”

“Today's indictment sends a clear message to individuals like Terry Wilks and Leslie McHugh who engage in kickback schemes which defraud health care programs that they will be held accountable. Mr. Wilks and Ms. McHugh took advantage of a system set up to help patients get much-needed government assistance and instead benefitted themselves," said FBI New Orleans Special Agent in Charge Douglas A. Williams, Jr. "We would like to thank our state and federal partners with the Medicare Fraud Strike Force for their strong partnership and unrelenting pursuit of justice."

Miranda L. Bennett, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General, Dallas Region, stated: “Today’s indictment is yet another example of our commitment to vigorously defend the Medicare Trust Fund.  Paying and receiving kickbacks for referrals undermines federal health care programs.  We will continue to pursue those who conduct fraudulent kickback schemes to safeguard the beneficiaries of these programs.”

“I applaud my Medicaid Fraud Control Unit and our partners at the U.S. Attorney’s Office for their efforts to end criminal activity, especially when it is being perpetuated by people who are supposed to be taking care of our State’s vulnerable,” said Attorney General Jeff Landry.

This matter is being investigated by HHS-OIG, the FBI, and the Defense Criminal Investigative Service and was brought as part of the MFSF, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Louisiana.  The case is being prosecuted by Assistant United States Attorney Kristen L. Craig and Department of Justice Trial Attorney Justin M. Woodard. 

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

The National Center for Disaster Fraud reminds the public to be aware of and report any instances of alleged fraudulent activity related to relief operations and funding for victims. Unfortunately, criminals can exploit disasters, such as Hurricane Ida, for their own gain by sending fraudulent communications through email or social media and by creating phony websites designed to solicit contributions.

Tips should be reported to the National Center for Disaster Fraud at (866) 720-5721. The line is staffed 24 hours a day, seven days a week. Individuals may also file complaints online at www.justice.gov/DisasterComplaintForm.

The U.S. Department of Justice established the National Center for Disaster Fraud to investigate, prosecute, and deter fraud in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region. Its mission has expanded to include suspected fraud from any natural or manmade disaster. More than 30 federal, state, and local agencies participate in the National Center for Disaster Fraud, which allows the center to act as a centralized clearinghouse of information related to disaster relief fraud.

The public should remember to perform due diligence before giving contributions to anyone soliciting donations or individuals offering to provide assistance to those affected by the tornadoes. Solicitations can originate from social media, e-mails, websites, door-to-door collections, flyers, mailings, telephone calls, and other similar methods.

Before making a donation of any kind, consumers should adhere to certain guidelines, including:

• Do not respond to any unsolicited (spam) incoming e-mails, including clicking links contained within those messages, because they may contain computer viruses.
• Be skeptical of individuals representing themselves as members of charitable organizations or officials asking for donations via e-mail or social networking sites.
• Beware of organizations with copy-cat names similar to but not exactly the same as those of reputable charities.
• Rather than follow a purported link to a website, verify the legitimacy of nonprofit organizations by utilizing various Internet-based resources that may assist in confirming the group’s existence and its nonprofit status.
• Be cautious of e-mails that claim to show pictures of the disaster areas in attached files because the files may contain viruses. Only open attachments from known senders.
• To ensure contributions are received and used for intended purposes, make contributions directly to known organizations rather than relying on others to make the donation on your behalf.
• Do not be pressured into making contributions; reputable charities do not use such tactics.
• Be aware of whom you are dealing with when providing your personal and financial information. Providing such information may compromise your identity and make you vulnerable to identity theft.
• Avoid cash donations if possible. Pay by credit card or write a check directly to the charity. Do not make checks payable to individuals.

Legitimate charities do not normally solicit donations via money transfer services. Most legitimate charities’ websites end in .org rather than .com.

Acting United States Attorney Ellison C. Travis announced that U.S. District Judge John W. deGravelles sentenced Brian Spears, age 43, of Baker, Louisiana, to 112 months in federal prison following his convictions for possession with the intent to distribute heroin, methamphetamine, Xanax and Tramadol and possession of a firearm in furtherance of a drug trafficking crime.  The Court further sentenced Jones to serve 3 years of supervised release following his term of imprisonment and ordered that the firearms involved be forfeited.

According to admissions as part of his guilty plea, on November 4, 2019, deputies with the East Baton Rouge Parish Sheriff’s Office sought and obtained a search warrant for Spears’ residence based on learning Spears was selling illegal drugs from his residence.  On November 12, 2019, EBRSO deputies observed Spears leave his residence and drive to a nearby house a few blocks away.  Deputies followed Spears and arrested him as he exited from his vehicle.  A loaded AK-47 was found on the driver’s floorboard of Spears’ vehicle.

EBRSO deputies then executed the search warrant of Spears’ residence, where they found 90.8 grams of heroin, 2.6 grams of methamphetamine, 16 dose units of Xanax, and 2 dose units of Tramadol, a digital scale, and a loaded Glock 21, 9mm handgun.  EBRSO also found three children under the age of 10 in the home alone when they arrived.  Spears’ residence is less than 900 yards from an East Baton Rouge Parish school.  Both the Ak-47 and the Glock 21 were loaded with extended round magazines.

Acting U.S. Attorney Travis stated, “This conviction and sentence of a repeat offender reaffirms our commitment to fight violence by investigating, arresting, and prosecuting convicted criminals who decide to illegally possess firearms and sell drugs.  Great credit goes to our partnership with local authorities for this result.  I want to thank our prosecutor, the ATF, and the East Baton Rouge Sheriff’s Office for their work on this case.”

“One of ATF’s primary missions is to investigate illegal possession of firearms by violent offenders,” said ATF New Orleans Field Division Special Agent in Charge Kurt Thielhorn.  “The sentence imposed today is an example of ATF’s partnership with the East Baton Rouge Sheriff’s Office to identify and investigate individuals that plague our communities with gun violence and drugs.”

This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the East Baton Rouge Sheriff’s Office.   It was prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.

Acting United States Attorney Ellison C. Travis announced that U.S. District Judge John W. deGravelles sentenced Edward Thompson, age 35, of Baton Rouge, Louisiana, to 78 months in federal prison following his conviction for possession of a firearm by a felon.  The Court further sentenced Thompson three years of supervised release following his term of imprisonment and ordered that the firearm involved be forfeited.  

According to admissions made as part of his guilty plea, on January 4, 2020, the Baton Rouge Police Department was dispatched to the 3200 block of Fairfields Avenue in Baton Rouge, in response to an accident involving one vehicle that had run off the road and sideswiped a utility pole before coming to a stop.  Upon arrival, officers found the driver, later determined to be Thompson, asleep at the wheel.  The vehicle was still in contact with the utility pole and Thompson was the driver and sole occupant of the vehicle.

Officers approached the vehicle and detected the smell of marijuana.  While questioning Thompson, officers observed a gun in between the driver’s seat and driver’s side door, as well as a clear baggie with a green leafy substance in the handle compartment of the driver’s side door.  Officers retrieved the firearm, which was identified as a Smith & Wesson, model SD40, .40 caliber semi-automatic pistol. 

Thompson was identified as a convicted felon.  He admitted to possessing the firearm and said he needed it because of where he lives.  After being taken into custody, officers located a clear baggie containing a white crystal, powdery substance in the pocket of Thompson’s pants, which Thompson stated was crystal methamphetamine.  Officers also retrieved a clear baggie containing a white powdery substance and another with a rock like substance.  Thompson told officers the baggies contained crack cocaine.

Prior to possessing the firearm, Thompson had four prior felony convictions, all in East Baton Rouge Parish: in November 2004, for possession of cocaine; in August 2005, for simple robbery and illegal use of a weapon; in February 2016, for aggravated flight from an officer and possession of Schedule II methamphetamine; and in March 2017, for possession of cocaine.

Acting U.S. Attorney Travis stated, “Keeping guns out of the hands of prohibited persons is one of my office’s top priorities.  I commend our dedicated law enforcement personnel from BRPD and ATF and our prosecution team for their outstanding efforts to take a dangerous repeat offender off the streets of Baton Rouge.” 

“The sentence imposed today sends a message to repeat offenders who illegally possess firearms that they will be held accountable for their crimes,” said ATF New Orleans Field Division Special Agent in Charge Kurt Thielhorn.  “The collaborative effort of federal and local law enforcement of keeping our neighborhoods and communities safe is a top priority for ATF.” 

This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with critical assistance from the Baton Rouge Police Department.  The case was prosecuted by Assistant United States Attorney Kristen L. Craig. 

Acting United States Attorney Ellison C. Travis announced that Dillon M. Guidry, age 28, of Thibodaux, Louisiana, pled guilty before Brian A. Jackson to attempted coercion and enticement of a minor.  As a result of his conviction, Guidry faces a significant term of imprisonment, a fine, and a period of supervised release.

According to admissions made during his plea, on or about March 17, 2021, an FBI online covert employee (“OCE”), herein referred to as “OCE 1,” while working in an undercover capacity in the Middle District of Louisiana and posing as a 13-year-old female, posted a message on a social media mobile application (“Mobile App”).  On March 18, 2021, Guidry contacted OCE 1 on the Mobile App.  During his communication with OCE 1, Guidry indicated that he was a 28-year-old male and acknowledged the age of OCE 1 as 13 years old.  During the same conversation, Guidry and OCE 1 exchanged phone numbers.

From approximately March 18 through May 20, 2021, Guidry engaged in sexually explicit text messages with OCE 1.  During these text messages, Guidry misrepresented his identity, and claimed that his name was “James from Gonzales.”  On April 14, 2021, Guidry asked OCE 1 whether they could have sexual intercourse.  OCE 1 replied that she was not on birth control and asked Guidry to bring condoms when they met to have sexual intercourse.  Also, on April 14, 2021, Guidry sent OCE 1 a picture of his face, which law enforcement officers later used to match with Guidry’s photo on the Lafourche Parish Sheriff’s Office sex offender registration website.  On April 22, 2021, Guidry asked OCE 1 if she has any friends that he could have sexual intercourse with.  When OCE 1 replied yes, Guidry asked for the friend’s age.  OCE 1 replied “13 like me.”

On April 27, 2021, OCE 1 provided Guidry with a telephone number utilized by a second OCE (“OCE 2”) working in an undercover capacity in the Middle District of Louisiana and posing as a 13-year-old female.  On or about April 27, 2021, Guidry texted OCE 2. OCE 2 advised Guidry that she was 13 years old.  From approximately April 27 through May 20, 2021, Guidry engaged in sexually explicit text messages with OCE 2.

On April 29, 2021, Guidry texted OCE 2 about meeting in person to have sexual intercourse.  OCE 2 asked when they would meet, and Guidry replied that they would meet on May 20, 2021.  Guidry explained that he would meet OCE 1 and OCE 2 at OCE 1’s house.  On May 20, 2021, Guidry traveled to a location designated by OCE 1, located within the Middle District of Louisiana, for the purpose of engaging in sexual activity with two females who Guidry believed to be 13-year-olds. While driving to the meeting location, Guidry stopped and purchased condoms.  Guidry arrived in the area of the meeting location in Baton Rouge, Louisiana at approximately 6:45 PM.  Based on the aforementioned communications, law enforcement officers arrested Guidry for various child exploitation offenses.

Acting U.S. Attorney Ellison C. Travis stated, “Our children are among the most vulnerable in our society.  This plea demonstrates our dedication to protecting children from predators who seek to exploit them.  I want to thank our prosecutors, the FBI, and our state and local law enforcement agencies for their partnership and collaboration on this case.”

This matter is being investigated by the Federal Bureau of Investigation, Department of Homeland Security, the Louisiana Attorney General’s Office, Louisiana State Police, and the East Baton Rouge Parish Sheriff's Office and is being prosecuted by Assistant United States Attorney Edward H. Warner and Assistant United States Attorney Jamie A. Flowers Jr., who also serves as Deputy Chief for the United States Attorney’s Office.

Baltimore, Maryland – The U.S. Attorney’s Office for the District of Maryland has seized the two domains of “https://usahealthwarehouse.com” and “walmartpandemicgrant.com”.  The website domain  https://usahealthwarehouse.com  purported to sell and distribute a trademarked COVID-19 vaccine while the “walmartpandemicgrant.com” domain claimed to be the legitimate website for the Walmart Foundation and offered purported “funds and resources” to those affected by Covid-19. Instead, both domains were allegedly used to collect the personal information of individuals visiting the sites in order to use the information for nefarious purposes, including fraud, phishing attacks, and/or deployment of malware.

Individuals visiting the sites will now see a message that they have been seized by the federal government and will be redirected to another site for additional information.  These seizures mark the third and fourth COVID fraud related domain name seized by the Maryland U.S. Attorney’s Office and HSI in the month of July 2021. 

The seizure of the two domain names was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge James R. Mancuso of Homeland Security Investigations - Baltimore.

According to the affidavit in support of the seizure, the HSI Intellectual Property Rights Center (“IPRC”) and the HSI Cyber Crimes Center (“C3”) were alerted that the dark web vendor “Ghostman20” offered the sale of a trademarked and branded COVID-19 vaccine. The personal profile of Ghostman20 listed a phone number that linked to the website https://usahealthwarehouse.com. The website displayed a real biotechnology company’s trademarked logo and offered the biotechnology company’s trademarked COVID-19 vaccine for $34.00 USD per vial. The website also claimed to offer an extensive range of powders, research chemicals, cannabinoid’s, hormones, and online doctor that could provide a “consultation” when provided medical records.

The website is not authorized to use the real biotechnology company’s trademarked logo, nor is it authorized to sell the biotechnology company’s COVID-19 vaccine.

According to the affidavit in the support of the “walmartpandemicgrant.com” domain seizure, the HSI Intellectual Property Rights Center (“IPRC”) and the HSI Cyber Crimes Center (“C3”) discovered the fraudulent domain. A domain analysis conducted by an HSI Cyber Operations Officer (“COO”) indicated that the https://walmartpandemicgrant.com mimicked the exact verbiage of the legitimate Walmart Foundation website. However, the illegitimate domain required extensive personal identifying information including social security number, date of birth, driver’s license, and the weight stated on your driver’s license, gender, current mailing address and more personal identifying information that is normally not required on a legitimate website. The HSI COO concluded that the domain name not only used this website to obtain personal information but also used the counterfeit Walmart mark to traffic counterfeit goods and services.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.             

Acting United States Attorney Jonathan F. Lenzner commended HSI for its work in this investigation.  Mr. Lenzner recognized the U.S. Food and Drug Administration’s Office of Criminal Investigations, the U.S. Postal Inspection Service and the Baltimore County Police Department for their assistance and thanked Assistant U.S. Attorneys Aaron S.J. Zelinsky and Sean R. Delaney, who are handling the case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao/md.

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Acting United States Attorney Ellison C. Travis announced that Chief U.S. Judge Shelly D. Dick has sentenced the final two defendants to federal prison following their convictions for conspiracy to commit bank fraud and bank fraud.

The recent sentencings stem from a lengthy federal, state, and local investigation that began in 2017.  The investigation spanned numerous jurisdictions across several states and led to convictions against ten (10) individuals for participating in a fraudulent scheme targeting victims across the Southeast, including more than 100 victims in Louisiana. 

As the charging documents explain, and numerous defendants have admitted, from August 2016 through February 2017, the defendants traveled through numerous states, including Louisiana, where they would break into unattended vehicles, steal the victims’ licenses, checkbooks, and credit and debit cards, and then use the stolen items to conduct fraudulent financial transactions at the victims’ banks.  As alleged in the Indictment, throughout the course of the conspiracy, in an effort to evade detection and capture, the defendants would monitor social media and other websites for reports of criminal activity attributed to the “Felony Lane Gang,” a term often used to describe criminals engaged in this type of scheme, and use the information to plot the courses of their trips.  Across dozens of burglaries and fraudulent bank transactions, between August 2016 and February 2017, the group caused more than $350,000 in loss in Louisiana alone.

Last week, Chief Judge Dick sentenced Michael D. Gibbs, age 29, of Fort Lauderdale, Florida, to 96 months in federal prison following his conviction for conspiracy to commit bank fraud and bank fraud.  The Court further sentenced Gibbs to serve five years of supervised release following his term of imprisonment, ordered him to pay $224,068 in restitution, and further ordered him to forfeit an additional $72,103.36 in proceeds from his crime.  Gibbs joined the group in August 2016, and he often assisted the other members of the conspiracy by providing the female co-conspirators with stolen licenses and other stolen items so that the items could be used to conduct fraudulent bank transactions.  At last week’s sentencing, Chief Judge Dick determined that Gibbs played a leading role as an organizer and leader of the conspiracy. 

Yesterday, Geoffrey D. Green, age 37, of Lauderdale Lakes, Florida, was also sentenced to prison, marking the tenth defendant sentenced to federal prison as a result of this scheme.

Through this investigation, the following defendants were prosecuted:

• As mentioned above, on July 8, 2021, Michael D. Gibbs, a/k/a “BG,” age 29, of Ft. Lauderdale, Florida, was sentenced to serve 96 months in federal prison and pay $224,068 in restitution.

• Brandon J. Gassett, a/k/a “Boot Daddy” and “Twan,” age 30, of Ft. Lauderdale, Florida, pled guilty to conspiracy to commit bank fraud and bank fraud.  On October 29, 2020, Gassett was sentenced to serve 84 months in federal prison and pay $224,068 in restitution.

• Raymond Mathews, a/k/a “Bo” and “Boot,” age 35, of Overland Park, Florida, pled guilty to conspiracy to commit bank fraud.  On June 9, 2021, Mathews was sentenced to serve 48 months in federal prison and pay $224,068 in restitution.

• Frank Jackson, age 27, of Oakland Park, Florida, pled guilty to conspiracy to commit bank fraud and bank fraud.  On July 2, 2020, Jackson was sentenced to serve 33 months in federal prison.

• Geoffrey D. Green, age 37, of Lauderdale Lakes, Florida, pled guilty to conspiracy to commit bank fraud.  On July 15, 2021, Green was sentenced to serve 41 months in federal prison.

• Erin Brown, charged in Case 17-80-SDD-EWD, pled guilty to conspiracy to commit bank fraud.  On September 26, 2018, Brown was sentenced to serve 24 months in federal prison.

• Natasha Hammett, charged in Case 17-81-BAJ-RLB, pled guilty to conspiracy to commit bank fraud.  On September 20, 2018, Hammett was sentenced to serve 4 months in federal prison.

• Tina Eggleston, charged in Case 17-136-JWD-RLB, pled guilty to conspiracy to commit bank fraud.  On August 23, 2018, Eggleston was sentenced to serve 10 months in federal prison and pay restitution, among other conditions.

• Johnny Jones, charged in Case 17-137-JWD-EWD, pled guilty to conspiracy to commit bank fraud and possession of unauthorized access devices.  On August 27, 2018, Jones was sentenced to serve 10 months in federal prison.

• Allen Clark, charged in Case 18-9-SDD-EWD, pled guilty to conspiracy to commit bank fraud and possession of unauthorized access devices.  On September 13, 2018, Clark was sentenced to serve 16 months in federal prison.

In addition, all of the defendants sentenced to date have been ordered to pay restitution for their crimes and serve terms of supervised release following their release from prison.

Acting U.S. Attorney Ellison C. Travis stated, “The convictions and sentencings of these interstate criminals send a clear message that this type of organized crime will be vigorously investigated and prosecuted to the fullest extent of the law.  I want to congratulate our prosecutors and all of our federal, state, and local partners around the country for their tireless efforts.”

“Today’s sentencing represents the culmination of a multi-year investigation of an organized ring of individuals who traveled across various states, including Louisiana, to prey on vulnerable citizens and exploit the integrity of our financial institutions.  The FBI will continue to work with our law enforcement partners to dismantle multistate identity theft rings that grossly impact the American people,” said Special Agent in Charge Douglas Williams, Jr.  “I would like to recognize the tremendous collaboration and assistance provided by the Jefferson Parish Sheriff’s Office, East Baton Rouge Sheriff’s Office, East Baton Rouge District Attorney’s Office, Florida Highway Patrol and the assigned prosecutors from the U.S. Attorney’s Office for the Middle District of Louisiana.”

Jefferson Parish Sheriff Joseph P. Lopinto, III stated, “This group preyed on victims across several states for months, but the coordinated efforts of federal, state, and local law enforcement agencies were able to identify and arrest them to stop them in their tracks.  My thanks go out to our partners in federal law enforcement and the U.S. Attorney’s Office who helped to bring this coalition of agencies together to bring these perpetrators to justice.”

East Baton Rouge Parish District Attorney Hillar Moore stated, “This case represents the success that the criminal justice system can obtain through hard work and collaboration.  The level of detail by the law enforcement agencies in the various cities affected as well as the prosecutorial collaboration by the counties and parishes involved made this effort possible and for justice to be served.  The United States Attorney’s Office took the lead in organizing all of these crimes to be handled fairly and efficiently in one court.” 

This matter was investigated by the Federal Bureau of Investigation, the Jefferson Parish Sheriff’s Office, the Baton Rouge Police Department, the East Baton Rouge Parish Sheriff’s Office, Ascension Parish Sheriff’s Office, Walker Police Department, Lafayette Police Department, Covington Police Department, Oxford (Mississippi) Police Department, Florida Highway Patrol and Asheville (North Carolina) Police Department.  The investigation has received substantial assistance from the United States Marshal’s Service, 19th JDC District Attorney’s Office in East Baton Rouge, Louisiana, the Johnson County, Wyoming Prosecuting Attorney’s Office, and the State Attorneys’ Offices for the 3rd and 17th Judicial Circuits in Florida.

This matter was prosecuted by Assistant United States Attorney Alan Stevens, who serves as Senior Litigation Counsel for the United States Attorney’s Office, and former Assistant United States Attorneys Chris Dippel and Cal Leipold.   

Acting United States Attorney Ellison C. Travis announced that U.S. District Judge John W. deGravelles sentenced Adrian C. Hammond, Jr., age 41, of Baton Rouge, Louisiana, to 24 months in federal prison following the Court’s determination that Hammond violated the terms of his federal supervised release.  The Court also ordered the defendant to pay his outstanding restitution balance of approximately $250,000.

Previously, in 2017, Hammond was convicted of bank fraud, money laundering, and obstructing the due administration of the Internal Revenue Code.  Hammond’s convictions arose from two separate, but related, criminal schemes.  First, as Hammond admitted in connection with his guilty plea, he defrauded a local bank by submitting false documents in support of a loan application for a new restaurant that Hammond was attempting to open at the time, and after obtaining the bank’s money, Hammond caused a series of financial transactions intended to conceal and disguise the funds.  Meanwhile, Hammond had a significant unpaid tax liability with the Department of the Treasury—Internal Revenue Service, and the IRS was taking steps to collect what Hammond owed.  As Hammond admitted, he engaged in a series of acts intended to obstruct the IRS, including allowing a fictitious document to be filed in the 19th Judicial District Court that purported to withdraw a tax lien that the IRS had properly filed against Hammond, and then engaging in a series of transactions that circumvented an IRS levy and enabled Hammond to obtain funds for promoting a concert on the campus of Southern University, which funds should have been paid to the IRS.

In August 2018, Hammond was sentenced to serve 12 months and one day in federal prison.  Hammond was ordered to pay approximately $258,000 in restitution and to forfeit an additional $213,656.12.  Significantly, the Court ordered Hammond to serve a three-year term of supervised release following his release from prison.  After serving his prison sentence, Hammond began serving his term of supervised release in August 2019.

At yesterday’s hearing, the Court found that Hammond had violated the conditions of his supervised release.  Specifically, the Court found that Hammond failed to timely report to his supervising probation officer his March 2021 arrest by the Baton Rouge Police Department, during which Hammond was stopped while allegedly driving more than 100 miles an hour, and which led to his arrest for DWI (second offense), reckless driving, and several other offenses.  The Court also found that Hammond had failed to comply with court-ordered substance abuse testing and treatment – that Hammond had failed to submit to court-ordered drug tests and that he had taken other steps intended to circumvent his required testing.

The original investigation was led by the U.S. Treasury Inspector General for Tax Administration (TIGTA) and the Federal Bureau of Investigation, which received valuable assistance from the Internal Revenue Service’s Examination and Collection Divisions, and was prosecuted by Assistant United States Attorney Alan Stevens, who serves as Senior Litigation Counsel for the United States Attorney’s Office.

Acting United States Attorney Ellison C. Travis announced today that U.S. Chief Judge Shelly D. Dick sentenced Michael J. Kaiser, age 43, of Krotz Springs, Louisiana, to 77 months in federal prison following his conviction for wire fraud.  The Court further sentenced Kaiser to serve 3 years of supervised release following his term of imprisonment.  Kaiser was also ordered to pay a total of $53,153 in restitution to Trade Construction Company, LLC (“Trade”) and Motiva Enterprises, LLC.  Kaiser was remanded to federal prison at the conclusion of the hearing.

According to admissions made as part of his guilty plea, from September 2015 through February 2017, Kaiser devised and intended to devise a scheme and artifice to defraud his then-employer, Trade, and to obtain money and property from Trade by means of materially false and fraudulent pretenses, representations, and promises.  The object of his scheme was to unlawfully enrich himself and circumvent a court order requiring garnishment of 25 percent of his wages. Kaiser executed his scheme through three primary means. First, Kaiser used his Trade-issued credit card for personal purchases and submitted false and fraudulent receipts and expense reports in order to conceal his fraud. Second, Kaiser made numerous false and fraudulent representations, which included a purported court filing with forged signatures of a district judge and deputy clerk of court for the 19th Judicial District Court, in order to circumvent a valid garnishment order against him. Third and finally, Kaiser submitted false and fraudulent invoices and requests for payment, on behalf of a self-created company in which he was the sole manager and member. As a result of his fraudulent scheme, Kaiser caused an actual loss of over $53,000.

Acting U.S. Attorney Ellison C. Travis stated, “Betrayal of trust such as this oftentimes threatens the financial integrity of professional businesses.  Mr. Kaiser defrauded a company for his own personal benefit and was held accountable by today’s sentence.  We will continue to vigorously pursue those who use their trust and skill to steal from others and, more importantly, restore justice to the victims to the best of our ability.  I applaud the efforts of our prosecutors and the FBI for their exemplary work in this case.”

This matter was investigated by the Baton Rouge Resident Agency of the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Caroline Gardner and M. Patricia Jones, who also serves as Appellate Chief, as well as former Assistant United States Attorney Chris Dippel.

Acting United States Attorney Ellison C. Travis announced that Chief U.S. District Judge Shelly D. Dick sentenced Raymond Mathews, age 35, of Oakland Park, Florida, to 48 months in federal prison following his conviction for conspiracy to commit bank fraud.  The Court further sentenced Mathews to serve five years of supervised release following his term of imprisonment, ordered him to pay $224,068 in restitution, and further ordered him to forfeit an additional $77,070.69 in proceeds from his crime.

Today’s sentence stems from a lengthy federal, state, and local investigation that spanned numerous jurisdictions across several states and led to convictions against ten (10) individuals for participating in a fraudulent scheme targeting victims in the Middle District of Louisiana.  As the charging documents explain, and numerous defendants have admitted in connection with their guilty pleas, from August 2016 through February 2017, the defendants traveled through numerous states, including Louisiana, where they would break into unattended vehicles, steal the victims’ licenses, checkbooks, and credit and debit cards, and then use the stolen items to conduct fraudulent financial transactions at the victims’ banks.  As alleged in the Indictment, throughout the course of the conspiracy, in an effort to evade detection and capture, the defendants would monitor social media and other websites for reports of criminal activity attributed to the “Felony Lane Gang,” a term often used to describe criminals engaged in this type of scheme.  The defendants would use social media postings regarding Felony Lane Gang activity to plot the courses of their trips (e.g., to avoid locations where they perceived banks and law enforcement to be particularly effective at detecting fraud) and to increase the success of their endeavor (e.g., by checking to make sure that their own photographs and identities had not been publicly disseminated). 

As Mathews admitted in connection with his guilty plea, he joined the group in August 2016 and participated in trips about once a month, through February 2017.  Mathews often assisted the other members of the conspiracy by filling out the stolen checks and forging the victims’ signatures on the checks, so that other members of the conspiracy could take the checks and fraudulently cash them at the victims’ banks.  Mathews is the eighth defendant from this investigation to be sentenced to federal prison as a result of his role in this scheme.

The status of the other charged defendants in this investigation is as follows:

• Michael D. Gibbs, age 28, of Ft. Lauderdale, Florida, pled guilty to conspiracy to commit bank fraud and bank fraud, and is awaiting sentencing. 
• Brandon J. Gassett, age 30, of Ft. Lauderdale, Florida, pled guilty to conspiracy to commit bank fraud and bank fraud.  On October 29, 2020, Gassett was sentenced to serve 84 months in federal prison and pay $224,068 in restitution.
• Frank Jackson, age 27, of Oakland Park, Florida, pled guilty to conspiracy to commit bank fraud and bank fraud.  On July 2, 2020, Green was sentenced to serve 33 months in federal prison. 
• Geoffrey D. Green, age 37, of Lauderdale Lakes, Florida, pled guilty to conspiracy to commit bank fraud, and is awaiting sentencing.
• Erin Brown, charged in Case 17-80-SDD-EWD, pled guilty to conspiracy to commit bank fraud.  On September 26, 2018, Brown was sentenced to serve 24 months in federal prison.
• Natasha Hammett, charged in Case 17-81-BAJ-RLB, pled guilty to conspiracy to commit bank fraud.  On September 20, 2018, Hammett was sentenced to serve 4 months in federal prison.
• Tina Eggleston, charged in Case 17-136-JWD-RLB, pled guilty to conspiracy to commit bank fraud.  On August 23, 2018, Eggleston was sentenced to serve 10 months in federal prison and pay restitution, among other conditions.
• Johnny Jones, charged in Case 17-137-JWD-EWD, pled guilty to conspiracy to commit bank fraud and possession of unauthorized access devices.  On August 27, 2018, Jones was sentenced to serve 10 months in federal prison.
• Allen Clark, charged in Case 18-9-SDD-EWD, pled guilty to conspiracy to commit bank fraud and possession of unauthorized access devices.  On September 13, 2018, Clark was sentenced to serve 16 months in federal prison.

In addition, all of the defendants sentenced to date have been ordered to pay restitution for their crimes and serve terms of supervised release following their release from prison.

Acting U.S. Attorney Ellison C. Travis stated, “The convictions and sentencings of these interstate criminals sends a clear message that this type of organized crime will be vigorously investigated and prosecuted to the fullest extent of the law.  I want to congratulate our prosecutors and all of our federal, state, and local partners around the country for their tireless efforts.”

Douglas Williams, Jr., FBI New Orleans Special Agent in Charge, stated, “The FBI will continue to aggressively pursue those individuals, such as Mr. Raymond Mathews, who seek to unjustly enrich themselves at the expense of others.  The investigation of the Felony Lane Gang’s criminal activities was expansive and far reaching.  The successful results of the investigation and prosecution would not have been possible without the substantial assistance of our law enforcement partners and the U.S. Attorney’s Office for the Middle District of Louisiana.”

This matter is being investigated by the Federal Bureau of Investigation, the Jefferson Parish Sheriff’s Office, the Baton Rouge Police Department, the East Baton Rouge Parish Sheriff’s Office, Ascension Parish Sheriff’s Office, Walker Police Department, Lafayette Police Department, Covington Police Department, Oxford (Mississippi) Police Department, Florida Highway Patrol and Asheville (North Carolina) Police Department.  The investigation has received substantial assistance from the 19th JDC District Attorney’s Office in East Baton Rouge, Louisiana, the Johnson County, Wyoming Prosecuting Attorney’s Office, and the Third Judicial Circuit of Florida State Attorney’s Office. 

This matter is being prosecuted by Assistant United States Attorney Alan Stevens, who serves as Senior Litigation Counsel for the United States Attorney’s Office, and former Assistant United States Attorneys Chris Dippel and Cal Leipold.   

Acting United States Attorney Ellison C. Travis announced that U.S. District Judge John W. deGravelles sentenced Jonathan Kimbrell, age 46, of Livingston, Louisiana, to 292 months in federal prison following his conviction for attempted enticement of a minor.  The Court further sentenced Kimbrell to five years of supervised release following his term of imprisonment and he must register as a convicted sex offender upon his release from prison.

Kimbrell was unanimously convicted by a jury on February 13, 2020, after a four-day trial.  As the evidence at trial demonstrated, from May 2, 2019, until June 6, 2019, he communicated online with two undercover FBI agents.  Kimbrell believed that he was communicating with an 11-year old girl, her stepfather, and her mother, when in fact, the FBI agents had undertaken those online personas.  He believed that the “stepfather” had been repeatedly molesting his “stepdaughter” and was now offering the “child” for sexual encounters by another adult.  Kimbrell did his best to convince the stepfather, mother, and child that he should be allowed to join in molesting the child.  Hundreds of emails were exchanged over more than 30 days in which Kimbrell sent numerous graphic emails describing how he would have sex with the child.  Kimbrell also did his best to convince the three that sex would be better with him than with the stepfather.  During the conversations with the fictitious child, Kimbrell developed and encouraged the nicknames of “Turtle” for himself and “Princess” for the child.   Eventually, Kimbrell met the undercover agents whom he believed to be the stepfather and mother at a restaurant in Denham Springs to discuss the ground rules for his first sexual encounter with the 11-year old girl.  At this meeting, he believed the child to be waiting in a motel room across the parking lot.  Kimbrell was arrested as he left the restaurant walking toward the motel where he believed the child was waiting.  When he was arrested, Kimbrell was found to be in possession of two boxes of condoms, personal lubricant, and baby oil.  Kimbrell was also in possession of a rhinestone key chain that spelled out “Princess,” which he had purchased as a gift for the child.

Acting U.S. Attorney Travis stated, “This conviction and sentence demonstrates our continued commitment to bring justice to those individuals such as Kimbrell who exploit or harm our children.  Working alongside our law enforcement partners in protecting our communities from child predators is a top priority of this office and I commend our prosecutor and our partners at FBI, Louisiana State Police, East Baton Rouge Sheriff’s Office, and Denham Springs Police Department for their excellent work in this matter.”

“Investigating individuals like Jonathan Kimbrell is one of the highest priorities of the FBI. As this case shows, the FBI continues to vigorously investigate and identify unknown individuals involved in the sexual exploitation of children.  This sentence is the culmination of an investigation and successful prosecution by federal prosecutors, special agents, and intelligence analysts who work tirelessly to remove sexual predators from children’s lives,” stated FBI Special Agent in Charge Douglas Williams, Jr.  “I would also like to thank our partners the Louisiana State Police, East Baton Rouge Sheriff’s Office, and Denham Springs Police Department for their collaboration and efforts with this investigation.”

This matter was investigated by the Federal Bureau of Investigation, Louisiana State Police, East Baton Rouge Sheriff’s Office, and Denham Springs Police Department.  The case was prosecuted by Assistant United States Attorneys Frederick A. Menner, Jr. and Demetrius D. Sumner. 

A federal grand jury recently returned a seven-count indictment charging Shawnda Rochelle Augustus, age 39, of Baton Rouge, Louisiana, with wire fraud and aggravated identity theft for allegedly obtaining and attempting to obtain unemployment benefits following the floods of 2016 and pandemic unemployment benefits in 2020.  Augustus appeared for her arraignment and pled not guilty to the pending charges. 

In August 2016, the President issued a major disaster declaration for portions of Louisiana devastated by historic flooding.  The declaration authorized the Federal Emergency Management Agency (FEMA) to provide federal funds for disaster relief programs, including disaster unemployment benefits to those who could no longer work as a result of the floods.  In March 2020, the President declared a national emergency as a result of the COVID-19 (coronavirus) pandemic, and signed into law the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act.  The CARES Act was designed to mitigate the effects of the COVID-19 pandemic by providing emergency assistance for individuals, including new types of unemployment benefits for those individuals who were not longer employed as a result of the pandemic.   In Louisiana, both the disaster unemployment assistance (DUA) and pandemic unemployment assistance (PUA) programs were administered by the Louisiana Workforce Commission (LWC).  In other states, the PUA program is administered by the state’s unemployment insurance agency. 

According to the indictment, following the floods of 2016, Augustus engaged in a scheme to defraud and to obtain money from FEMA by submitting fraudulent applications for DUA benefits to the LWC, both in her own name, and in the names of other victims, without their knowledge or consent.  As a result of these submissions, Augustus received or attempted to receive approximately $244,036 in fraudulent DUA benefits. 

The indictment further alleges that Augustus engaged in multi-state fraud scheme to obtain PUA benefits to which she was not entitled. Specifically, Augustus submitted fraudulent applications for PUA benefits in Louisiana, and in multiple other states, including Arizona, Georgia, Tennessee, Hawaii, and Nebraska, among others.  Augustus also obtained the personal identifying information of victims, including names, dates of birth, and Social Security numbers.  Using these stolen identities, Augustus submitted fraudulent applications for PUA benefits in the names of those victims in multiple states.  According to the indictment, Augustus received approximately $123,908 in false claims for PUA benefits. Once the funds were transmitted, Augustus allegedly withdrew the funds as cash, or used the funds to pay for hotels, airline tickets, and purchases at restaurants and retail stores.   

This matter is being investigated by the Federal Bureau of Investigation and U.S. Department of Labor is being prosecuted by Assistant United States Attorney Kristen L. Craig. 

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

Acting United States Attorney Ellison C. Travis announced that U.S. District Judge John W. deGravelles sentenced Eddie Darnell Jones, Sr., age 47, of Zachary, Louisiana, to 200 months in federal prison following his convictions for possession of a firearm by a convicted felon, possession with the intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime.  The Court further sentenced Jones to serve four years of supervised release following his term of imprisonment and ordered that the firearm involved be forfeited.

According to admissions made as part of his guilty plea, on March 8, 2019, deputies with the East Baton Rouge Sheriff’s Office initiated a traffic stop of a Mercedes-Benz C240, in the Banks Town area of Baton Rouge.  At the time of the stop, Jones was the driver and registered owner of the vehicle.  As the deputies made contact with the vehicle’s occupants, they smelled marijuana emanating from the vehicle and observed a digital scale and clear plastic baggie containing what appeared to be four Xanax pills, in plain view on top of the center console.  Jones was immediately advised of his Miranda rights and detained.  

During a subsequent search of Jones’ vehicle, the deputies recovered a loaded, SCCY CPX-2, 9mm handgun, found on the driver’s floorboard; more than $20,000 in small denominations of cash in various locations throughout the vehicle; and distribution quantities of methamphetamine and marijuana. The deputies also found numerous clear plastic sandwich bags throughout the vehicle.  Following the search, Jones admitted that everything found in the vehicle, including the aforementioned firearm, belonged to him.

Prior to possessing the firearm, Jones was convicted in East Baton Rouge Parish in 2016 of possession with intent to distribute marijuana, MDMA, cocaine, and alprazolam, and one count of attempted possession of a firearm by a convicted felon.  Additionally, Jones had several other prior felony convictions in the 19th and 20th Judicial District Courts for the State of Louisiana. 

Acting U.S. Attorney Ellison Travis stated, “This conviction and sentence of a repeat offender reaffirms our commitment to fight violence by investigating, arresting, and prosecuting convicted criminals who decide to illegally possess firearms and sell drugs.  Great credit goes to our partnership with local authorities for this result.  I want to thank our prosecutor, the ATF, and the East Baton Rouge Sheriff’s Office for their work on this case.”

“The sentence imposed today sends a message to repeat offenders, like Eddie Darnell Jones, Sr., who are prohibited from possessing firearms that they will be held accountable for their actions,” said ATF New Orleans Field Division Special Agent in Charge Kurt Thielhorn.  “The collaborative effort of federal and local law enforcement in Baton Rouge, including the U.S. Attorney’s Office, has ultimately made our community safer.”

This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the East Baton Rouge Sheriff’s Office.   It was prosecuted by Assistant United States Attorney Caroline Gardner. 

The Department of Justice today announced criminal charges against 14 defendants, including 11 newly-charged defendants and three who were charged in superseding indictments, in seven federal districts across the United States for their alleged participation in various health care fraud schemes that exploited the COVID-19 pandemic and resulted in over $143 million in false billings.

“The multiple health care fraud schemes charged today describe theft from American taxpayers through the exploitation of the national emergency,” said Deputy Attorney General Lisa O. Monaco. “These medical professionals, corporate executives, and others allegedly took advantage of the COVID-19 pandemic to line their own pockets instead of providing needed health care services during this unprecedented time in our country. We are committed to protecting the American people and the critical health care benefits programs created to assist them during this national emergency, and we are determined to hold those who exploit such programs accountable to the fullest extent of the law.”

Additionally, the Center for Program Integrity, Centers for Medicare & Medicaid Services (CPI/CMS) separately announced today that it took adverse administrative actions against over 50 medical providers for their involvement in health care fraud schemes relating to COVID-19 or abuse of CMS programs that were designed to encourage access to medical care during the pandemic.

“Medical providers have been the unsung heroes for the American public throughout the pandemic,” said FBI Director Christopher Wray. “It’s disheartening that some have abused their authorities and committed COVID-19 related fraud against trusting citizens. The FBI, along with our federal law enforcement and private sector partners, are committed to continuing to combat healthcare fraud and protect the American people.”

The defendants in the cases announced today are alleged to have engaged in various health care fraud schemes designed to exploit the COVID-19 pandemic. For example, multiple defendants offered COVID-19 tests to Medicare beneficiaries at senior living facilities, drive-through COVID-19 testing sites, and medical offices to induce the beneficiaries to provide their personal identifying information and a saliva or blood sample. The defendants are alleged to have then misused the information and samples to submit claims to Medicare for unrelated, medically unnecessary, and far more expensive laboratory tests, including cancer genetic testing, allergy testing, and respiratory pathogen panel tests. In some cases, and as alleged, the COVID-19 test results were not provided to the beneficiaries in a timely fashion or were not reliable, risking the further spread of the disease, and the genetic, allergy, and respiratory pathogen testing was medically unnecessary, and, in many cases, the results were not provided to the patients or their actual primary care doctors.  The proceeds of the fraudulent schemes were allegedly laundered through shell corporations and used to purchase exotic automobiles and luxury real estate.

“It’s clear fraudsters see the COVID-19 pandemic as a money-making opportunity — creating fraudulent schemes to victimize beneficiaries and steal from federal health care programs,” said Deputy Inspector General for Investigations Gary L. Cantrell of  Health and Human Services – Office of Inspector General (HHS-OIG). “Our agency and its law enforcement partners are aggressively and effectively investigating these egregious crimes, which is made equally clear given the results of this takedown. We will continue to support the unprecedented COVID-19 public health effort by holding accountable people who use deceptive tactics to profit from the pandemic.”

In another type of COVID-19 health care fraud scheme announced today, defendants are alleged to have exploited policies that were put in place by CMS to enable increased access to care during the COVID-19 pandemic. For example, pursuant to the COVID-19 emergency declaration, telehealth regulations and rules were broadened so that Medicare beneficiaries could receive a wider range of services from their doctors without having to travel to a medical facility. The cases announced today include first in the nation charges for allegedly exploiting these expanded policies by submitting false and fraudulent claims to Medicare for sham telemedicine encounters that did not occur. As part of these cases, medical professionals are alleged to have offered and paid bribes in exchange for the medical professionals’ referral of medically unnecessary testing.

The law enforcement action today also includes the third set of criminal charges related to the misuse of Provider Relief Fund monies. The Provider Relief Fund is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted March 2020 designed to provide needed medical care to Americans suffering from COVID-19.

The Fraud Section is prosecuting the cases in the following districts: Western District of Arkansas, Northern District of California, Middle District of Louisiana, Central District of California, Southern District of Florida, District of New Jersey, and the Eastern District of New York.

Today’s enforcement actions were led and coordinated by Assistant Chief Jacob Foster and Trial Attorneys Rebecca Yuan and Gary A. Winters of the National Rapid Response Strike Force of the Health Care Fraud Unit of the Criminal Division’s Fraud Section, in conjunction with the Health Care Fraud Unit’s Medicare Fraud Strike Forces (MFSF) in Miami, Los Angeles, the Gulf Coast, and Brooklyn, as well as the U.S. Attorneys’ Offices for the Northern District of California, Western District of Arkansas, and Middle District of Louisiana.

The MFSF is a partnership among the Criminal Division, U.S. Attorneys’ Offices, the FBI and HHS-OIG. In addition, U.S. Postal Inspection Service, Internal Revenue Service Criminal Investigation, Veterans Affairs Office of Inspector General, Department of Defense Office of Inspector General, Federal Deposit Insurance Corporation, Louisiana Medicaid Fraud Control Unit, and other federal and state law enforcement agencies participated in the law enforcement action.

The law enforcement action was brought in coordination with the Health Care Fraud Unit’s COVID-19 Interagency Working Group, which is chaired by the National Rapid Response Strike Force and organizes efforts to address illegal activity involving health care programs during the pandemic.

The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

Case Summaries

Western District of Arkansas

Billy Joe Taylor, 42, of Lavaca, Arkansas, was charged by criminal complaint with health care fraud in connection with an alleged scheme to defraud the United States of over $88 million, including over $42 million in false and fraudulent claims during the COVID-19 health emergency that were billed in combination with claims that were submitted for testing for COVID-19 and other respiratory illnesses. Taylor, the owner and operator of Vitas Laboratories LLC and Beach Tox LLC, two testing laboratories, allegedly used access to beneficiary and medical provider information from prior laboratory testing orders to submit fraudulent claims for urine drug tests and other laboratory tests, including respiratory pathogen panel and COVID-19 tests, that were not actually ordered or performed. The complaint also alleges that hundreds of claims were submitted for beneficiaries after they had died or otherwise ceased providing samples. The case is being prosecuted by Senior Litigation Counsel James Hayes and Trial Attorney D. Keith Clouser of the National Rapid Response Strike Force, and Assistant U.S. Attorney Kenneth Elser of the U.S. Attorney’s Office for the Western District of Arkansas.

Northern District of California

Mark Schena, 58, of Los Altos, California, the president of Arrayit Corporation, is charged along with two others, the Arrayit Vice President of Marketing and the President of an Arizona marketing organization, in connection with the submission of over $70 million in false and fraudulent claims for allergy and COVID-19 testing. The superseding indictment against Schena includes new counts of health care fraud, a conspiracy to pay kickbacks, and payment of kickbacks in connection with false and fraudulent statements about the existence, regulatory status, and accuracy of an Arrayit COVID-19 test. The conspiracy allegedly sought to induce the ordering of the Arrayit COVID-19 test and to bundle, i.e., require combination with, the COVID-19 test and Arrayit’s medically unnecessary allergy test. The COVID-19 test results were not provided in a timely fashion and were not reliable in detecting COVID-19. The cases are being prosecuted by Acting Principal Deputy Assistant Chief Justin Weitz of the Market Integrity and Major Fraud Unit of the Fraud Section, Assistant Chief Jacob Foster of the National Rapid Response Strike Force, and Assistant U.S. Attorney Wil Frentzen of the U.S. Attorney’s Office for the Northern District of California.

Central District of California

Petros Hannesyan, 36, of Burbank, California, was charged with the theft of government property and wire fraud in connection with $229,454 that he obtained from COVID-19 relief programs. Hannesyan, the owner of Hollywood Home Health Services, Inc., a home health agency located in Los Angeles, allegedly misappropriated funds from the CARES Act Provider Relief Fund and submitted false loan applications and a false loan agreement to the Economic Injury Disaster Loan Program, rather than use the funds for COVID-19 patient care and to support small businesses experiencing disruption due to the COVID-19 pandemic. The case is being prosecuted by Trial Attorney Alexis Gregorian of the Los Angeles Strike Force.

Southern District of Florida

Michael Stein, 35, and Leonel Palatnik, 42, both of Palm Beach County, Florida, were charged in connection with an alleged $73 million conspiracy to defraud the United States and to pay and receive health care kickbacks during the COVID-19 pandemic. Stein, the owner and operator of purported consulting company 1523 Holdings, LLC, and Palatnik, an owner and operator of Panda Conservation Group, LLC, a Texas company that owned and operated testing laboratories in Dallas and Denton, Texas, allegedly exploited temporary waivers of telehealth restrictions enacted during the pandemic by offering telehealth providers access to Medicare beneficiaries for whom they could bill consultations. In exchange, these providers agreed to refer beneficiaries to Panda’s laboratories for expensive and medically unnecessary cancer and cardiovascular genetic testing. The case is being prosecuted by Trial Attorney Ligia Markman of the National Rapid Response Strike Force.

Juan Nava Ruiz, 44, and Eric Frank, 47, both of Coral Springs, Florida, were charged for an alleged $9.3 million health care kickback scheme, along with Christopher Licata, 44, of Boca Raton, Florida, who was previously charged in a separate Indictment. Licata, an owner of Boca Toxicology, LLC, a clinical laboratory based in Boca Raton, allegedly offered and paid kickbacks to patient brokers, including Ruiz and Frank, in exchange for referring Medicare beneficiaries to Boca Toxicology for various forms of genetic testing and other laboratory testing that they did not need, including the submission of $422,748 in claims related to medically unnecessary respiratory pathogen panel testing and genetic testing that was improperly bundled with COVID-19 testing. The cases are being prosecuted by Trial Attorney Jamie de Boer of the Miami Strike Force. 

Middle District of Louisiana

Malena Lepetich, 38, of Belle Chase, Louisiana, was charged for an alleged $15 million scheme to commit health care fraud, to defraud the United States, and to pay and receive health care kickbacks. Lepetich, the owner of MedLogic, LLC, a clinical laboratory based in Baton Rouge, Louisiana, allegedly solicited and received kickbacks in exchange for referrals of urine specimens for medically unnecessary testing. Lepetich also allegedly offered to pay kickbacks for referrals of specimens for COVID-19 and respiratory pathogen testing. Finally, Lepetich allegedly caused the submission of over $10 million in claims to Medicare, Medicaid, and Blue Cross Blue Shield of Louisiana for panels of expensive respiratory testing that was medically unnecessary. The case is being prosecuted by Trial Attorney Justin M. Woodard of the Gulf Coast Strike Force and Assistant U.S. Attorney Kristen Craig of the U.S. Attorney’s Office for the Middle District of Louisiana.

District of New Jersey

Alexander Baldonado, 65, of Queens, New York, was charged with six counts of health care fraud. Baldonado, a medical doctor, allegedly participated in an event that advertised COVID-19 testing. In addition to authorizing the COVID-19 tests, Baldonado allegedly ordered expensive and medically unnecessary cancer genetic testing for Medicare beneficiaries who attended the event. Baldonado also allegedly billed Medicare for services, including lengthy office visits, that he never provided to these beneficiaries. Approximately $2 million in claims were submitted as a result of Baldonado’s COVID-19 health care fraud scheme, and approximately $17 million in claims were submitted as a result of Baldonado’s broader health care fraud scheme. The case is being prosecuted by Trial Attorney Rebecca Yuan of the National Rapid Response Strike Force.

Donald Clarkin, 65, of Staten Island, New York, was charged in connection with a $5.4 million conspiracy to defraud the United States and pay and receive health care kickbacks. Clarkin, a partner at a diagnostic testing laboratory, allegedly exploited the pandemic by offering kickbacks in exchange for respiratory pathogen panel tests that would be improperly bundled with COVID-19 tests and billed to Medicare. Clarkin also allegedly paid and received kickbacks and bribes in exchange for arranging for the ordering of medically unnecessary genetic tests that were ineligible for Medicare reimbursement. The case is being prosecuted by Trial Attorney Rebecca Yuan of the National Rapid Response Strike Force.  

Eastern District of New York

Peter Khaim, 41, and Arkadiy Khaimov, 38, both of Forest Hills, New York, who owned and controlled several New York pharmacies and sham pharmacy wholesaling companies, were charged in a superseding indictment for their participation in an alleged $45 million health care fraud, wire fraud, and money laundering scheme. The defendants and their co-conspirators allegedly obtained billing privileges for multiple pharmacies by using nominees to serve as the purported owners and supervising pharmacists. The defendants then allegedly submitted false and fraudulent claims to Medicare, including by using COVID-19 “emergency override” billing codes to circumvent otherwise applicable pre-authorization requirements and limits on the frequency of refills for expensive drugs (primarily, the cancer treatment gels Targretin and Panretin). The defendants allegedly used an elaborate network of international money laundering operations to conceal and disguise the proceeds of the scheme. The case is being prosecuted by Trial Attorney Andrew Estes of the Brooklyn Strike Force.

The Department of Justice needs the public’s assistance in remaining vigilant and reporting suspected fraudulent activity. To report suspected fraud, contact the National Center for Disaster Fraud (NCDF) at (866) 720-5721 or file an online complaint at: https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form. Complaints filed will be reviewed at the NCDF and referred to federal, state, local, or international law enforcement or regulatory agencies for investigation.

To learn more about the department’s COVID response, visit: https://www.justice.gov/coronavirus. For further information on the Criminal Division’s enforcement efforts on PPP fraud, including court documents from significant cases, visit the following website: https://www.justice.gov/criminal-fraud/ppp-fraud.

An indictment, complaint, or information is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Acting United States Attorney Ellison C. Travis announced that Chief Judge Shelly D. Dick sentenced Louis Butler, III, age 40, of Baton Rouge, Louisiana, to 180 months in federal prison, following his convictions for possession with the intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon.  The Court also sentenced Butler to three years of supervised release following his term of imprisonment and ordered that the firearm involved be forfeited.  

According to admissions made as part of his guilty plea, on September 2, 2020, law enforcement officials executed a valid search warrant on Butler’s residence in Baton Rouge.  During the search, officials located approximately 244.6 grams of methamphetamine, three digital scales, baggies, packaging material, cutting agents (quinine), empty pill capsules, a loaded Jimenez Arms 9mm pistol, and $2,040 in cash.

During a post-Miranda interview, Butler admitted knowledge and possession of these items.  He further admitted that the substance recovered from his residence was, in fact, methamphetamine and that he sells methamphetamine to supplement his income.  Prior to possessing the firearm, Butler had two felony convictions:  In January 2008, Butler was convicted of illegal use of a weapon, and in November 2008, he was convicted of possession of cocaine.

Acting U.S. Attorney Travis stated, “Keeping guns out of the hands of violent felons is one of my office’s top priorities.   We will continue to work tirelessly with our federal, state, and local partners to protect our district from chronic offenders.  I want to thank our prosecutors, the ATF, and the East Baton Rouge Sheriff’s Office for their work on this case.”

“One of ATF’s primary missions is to investigate illegal possession of firearms by violent individuals,” said New Orleans Field Division Special Agent in Charge Kurt Thielhorn.  “ATF works with our law enforcement partners to ensure that violent criminals are held accountable for their actions.”

This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with critical assistance from the East Baton Rouge Parish Sheriff’s Office.  The case was prosecuted by Assistant United States Attorney Jeremy S. Johnson. 

A federal grand jury recently returned an eight-count indictment charging Haskell Knight, a/k/a “Trey Knight,” age 56, and Emily Knight, a/k/a “Emily Ricciardelli,” a/k/a “Emily Fryer,” age 37, both of Franklin, Tennessee, with conspiracy to commit wire fraud and wire fraud.  Each appeared for their arraignments and pled not guilty to the pending charges. 

According to the indictment, beginning in March 2016, Haskell Knight and Emily Knight, a husband and wife who at the time lived in Texas and Florida, purported to start a new business.  Haskell Knight raised investment funds while Emily Knight handled the bank account.  The business was called Udoxa, which allegedly was to market nutritional supplements.  The Knights raised $200,000 from four investors who contributed $50,000 each.  However, while Udoxa was formed on paper, it never conducted actual sales.  Haskell Knight solicited investments under false pretenses and then did little to follow through with starting the business.  Knight misrepresented the existence of a rich investor, available formation capital, and the strength of the startup, all to obtain funding, and then failed to use the funds in the agreed-upon manner.  Emily Knight accepted a total of $100,000 in wire transfers from two investors, one of whom lived in Baton Rouge.  Those funds went in part to pay old business debts and personal expenses.  $100,000 from the other two investors was not deposited into the Udoxa account and disappeared.

This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Brian K. Frazier, who also serves as Chief of the Criminal Division. 

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

In honor of National Police Week, Acting U.S. Attorney Ellison C. Travis recognizes the service and sacrifice of federal, state, local, and Tribal law enforcement. This year, the week is observed Sunday, May 9 through Saturday, May 15, 2021.

“This week is a time to honor our law enforcement officers who have made the ultimate sacrifice in service to our nation,” said Attorney General Garland. “I am constantly inspired by the extraordinary courage and dedication with which members of law enforcement act each day, putting their lives on the line to make our communities safer. To members of law enforcement and your families: we know that not a single day, nor a single week, is enough to recognize your service and sacrifice. On behalf of the entire Department of Justice, you have our unwavering support and eternal gratitude.”

Acting U.S. Attorney Travis stated, ““Every day, law enforcement personnel confront the darkest aspects of our world.  They are dedicated public servants who are sworn to protect the public any time that peace, safety, and justice are threatened.  This week especially, we honor their service, pray for those wounded in the line of duty, and cherish the memories of the fallen.”

In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices.  Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.  

Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty, and commitment to keeping our communities safe. This year the COVID-19 pandemic has highlighted law enforcement officers’ courage and unwavering devotion to the communities that they have sworn to serve.

During the Roll Call of Heroes, a ceremony coordinated by the Fraternal Order of Police (FOP), more than 300 officers will be honored.  Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), of the law enforcement officers who died nationwide in the line of duty in 2020, nearly 60 percent succumbed to COVID-19. Here in the Middle District of Louisiana, two officers died in the line of duty.  

Additionally, according to statistics reported by the Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 46 law enforcement officers died as a result of felonious acts and 47 died in accidents in 2020.  LEOKA statistics can be found on FBI’s Crime Data Explorer website. 

The names of the 394 fallen officers who have been added in 2020 to the wall at the National Law Enforcement Officer Memorial will be read on Thursday, May 13, 2021, during a Virtual Candlelight Vigil, which will be livestreamed to the public at 8:00 pm EDT. The Police Week in-person public events, originally scheduled for May, have been rescheduled due to ongoing COVID-19 concerns to October 13-17, 2021. An in-person Candlelight Vigil event is scheduled for October 14, 2021.

Those who wish to view the Virtual Candlelight Vigil on May 13, 2021, can watch on the NLEOMF YouTube channel found at https://www.youtube.com/user/TheNLEOMF. The FOP’s Roll Call of Heroes can be viewed at www.fop.net.

To learn more about National Police Week in-person events scheduled for October, please visit www.policeweek.org.

Acting United States Attorney Ellison C. Travis announces support of DEA’s 11th Annual Prescription Drug Take Back Day to be held on April 24, 2021.  The National Prescription Drug Take Back Day is a bi-annual event that aims to provide a safe, convenient, and responsible means of disposing of prescription drugs, while also educating the general public about the potential for abuse of medications.  This service is free and anonymous, no questions asked.

Per new, official CDC numbers, opioid overdose deaths have increased during the pandemic (May 2019-May 2020).  Rates of prescription drug abuse in the United States are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs.  Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet.

DEA and its partners will collect tablets, capsules, patches, and other solid forms. Liquids, including intravenous solutions, syringes and other sharps, and illegal drugs will not be accepted. DEA will continue to accept vaping devices and cartridges at any of its drop off locations, as long as the lithium batteries are removed.  

In addition to DEA’s National Prescription Drug Take Back Day, prescription drugs can be disposed of at any of the 11,000 authorized collectors at any time throughout the year. For more information, visit:  https://apps2.deadiversion.usdoj.gov/pubdispsearch/spring/main?execution=e1s1.

Participating in the next DEA Take Back Day on Saturday, April 24, simply means cleaning out your medicine cabinet or anywhere you keep unused, unwanted or expired medications and dropping them off at your nearest collection site.  You can learn more about the event and find a collection site at takebackday.dea.gov or call 800-882-9539.

A Louisiana doctor was sentenced today to 18 months in prison for his role in a scheme to receive approximately $336,000 in illegal health care kickback payments.

Gray Wesley Barrow, M.D., 61, of Baton Rouge, pleaded guilty to one count of conspiracy to pay and receive health care kickbacks on Nov. 20, 2018. According to court documents, Barrow was a co-owner of Louisiana Spine & Sports LLC, a pain management clinic located in Baton Rouge. Barrow agreed to send urine specimens collected from his patients to a drug testing laboratory in return for an unlawful kickback calculated as a percentage of the reimbursements paid to the laboratory by Medicare and other health care benefit programs.

From approximately January 2014 through July 2016, Barrow sent specimens collected from his patients to the laboratory and received approximately $1.58 million in disbursements from the laboratory. Of that $1.58 million, approximately $336,000 represented kickback payments associated with testing performed on specimens of Medicare beneficiaries, which the court ordered Barrow to forfeit as part of today’s sentence. Additionally, Barrow was ordered to pay $336,000 in restitution.

Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Ellison C. Travis of the Middle District of Louisiana;  Special Agent in Charge Miranda Bennett of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office; and Special Agent in Charge Bryan A. Vorndran of the FBI’s New Orleans Field Office made the announcement.

HHS-OIG and the FBI investigated the case.

Assistant Chief Dustin M. Davis and Trial Attorney Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Elizabeth E. White of the U.S. Attorney’s Office for the Middle District of Louisiana prosecuted the case.

The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

A Louisiana doctor was sentenced today to 18 months in prison for his role in a scheme to receive approximately $336,000 in illegal health care kickback payments.

Gray Wesley Barrow, M.D., 61, of Baton Rouge, pleaded guilty to one count of conspiracy to pay and receive health care kickbacks on Nov. 20, 2018. According to court documents, Barrow was a co-owner of Louisiana Spine & Sports LLC, a pain management clinic located in Baton Rouge. Barrow agreed to send urine specimens collected from his patients to a drug testing laboratory in return for an unlawful kickback calculated as a percentage of the reimbursements paid to the laboratory by Medicare and other health care benefit programs.

From approximately January 2014 through July 2016, Barrow sent specimens collected from his patients to the laboratory and received approximately $1.58 million in disbursements from the laboratory. Of that $1.58 million, approximately $336,000 represented kickback payments associated with testing performed on specimens of Medicare beneficiaries, which the court ordered Barrow to forfeit as part of today’s sentence. Additionally, Barrow was ordered to pay $336,000 in restitution.

Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Ellison C. Travis of the Middle District of Louisiana;  Special Agent in Charge Miranda Bennett of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office; and Special Agent in Charge Bryan A. Vorndran of the FBI’s New Orleans Field Office made the announcement.

HHS-OIG and the FBI investigated the case.

Assistant Chief Dustin M. Davis and Trial Attorney Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Elizabeth E. White of the U.S. Attorney’s Office for the Middle District of Louisiana prosecuted the case.

The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

Acting United States Attorney Ellison C. Travis announced that U.S. District Judge Brian A. Jackson sentenced Nathan Haymer, age 43, of Houston, Texas, to 13 months in federal prison following his conviction for federal program theft.  The Court further sentenced Haymer to serve three years of supervised release following his term of imprisonment and ordered him to pay restitution in the amount of $78,690.16, as well as a money judgment for the same amount. 

According to admissions made as part of his guilty plea, Haymer served as Director of Bands at Southern University A&M College (“Southern University”) and, in that role, was responsible for leading Southern University’s marching band, which performed at Southern University athletic events and a wide variety of other events both within Louisiana and across the United States.  Haymer’s duties included making purchases and paying expenses during the band’s trips.

According to the Bill of Information containing the charges, from November 2016 through March 2018, Haymer intentionally misapplied more than $30,000 that Southern University had provided to him to be used for official band expenses.  Specifically, according to the Bill, on more than a dozen occasions, Haymer submitted false documents, such as fictitious and forged invoices from purported vendors, knowing that he had not incurred the expenses reflected on the documents. 

Acting U.S. Attorney Travis stated, “The conviction and sentence of Mr. Haymer reaffirms our commitment to investigating, arresting, and prosecuting individuals who betray the trust of taxpayers.  Great credit goes to our partnership with local authorities for this result.  I want to thank our prosecutor, the FBI, the Louisiana Legislative Auditor, and Louisiana State Police for their work on this case.”

“Mr. Haymer willfully stole money that was intended to support the students and their nationally acclaimed band program at Southern University.  We hope that this sentencing brings a level of comfort and satisfaction that justice has prevailed for the students and the taxpayers that Mr. Haymer attempted to defraud," said Bryan Vorndran, FBI New Orleans Special Agent in Charge.  “I would like to thank the efforts put forth by our partners at the Louisiana Legislative Auditor, Louisiana State Police, and the U.S. Attorney’s Office, Middle District of Louisiana for helping the FBI disrupt fraud like this.”

“It is disappointing when seemingly trustworthy employees misuse public funds.  We will continue to aggressively investigate such complaints to ensure public funds are used for their intended purposes,” states Roger Harris, Director of Investigative Audit for the Legislative Auditor’s Office.

This matter was investigated by the Federal Bureau of Investigation, the Louisiana Legislative Auditor, and Louisiana State Police, and prosecuted by Assistant United States Attorney Alan Stevens, who also serves as Senior Litigation Counsel.    

Ellison C. Travis has been appointed and sworn in as the Acting United States Attorney for the Middle District of Louisiana following the resignation of Brandon J. Fremin who had served as the United States Attorney since 2018.

Mr. Travis stated, “It is a great honor to serve in this position, as this office has a long history of seeking justice. I can assure the public that our professional staff will continue our mission, and aggressively enforce federal law by working with federal, state, and local partners to prosecute criminals and pursue federal civil enforcement actions when appropriate.”

Mr. Travis has served as First Assistant United States Attorney in the Middle District of Louisiana since 2018.  Previously, he was with the Louisiana Department of Justice for over twenty years.  During his tenure with the Louisiana Department of Justice, Mr. Travis served as the Director of the Medicaid Fraud Control Unit, Criminal Division (2017-2018), as an Assistant Attorney General in the Medicaid Fraud Control Unit (2002–2017), and as an Assistant Attorney General in the Criminal Division (1997–2002).  Mr. Travis also served as an Assistant District Attorney (1990–1996).  During his thirty years in public service, Mr. Travis has prosecuted all manner of criminal matters, including violent crimes, financial crimes, and public corruption.  Mr. Travis helped author and pass legislation to penalize those who commit electronic abuse of persons with infirmities and those who commit public program fraud.  He also represented the Medicaid Fraud Control Unit in the state Legislative Task Force on Medicaid Fraud Prevention.

Mr. Travis received his J.D. from Louisiana State University, Paul M. Hebert Law Center, and his B.A. in Economics from Louisiana State University.

United States Attorney Brandon J. Fremin announced today that he has submitted his resignation as United States Attorney for the Middle District of Louisiana, effective February 28, 2021.  Mr. Fremin was appointed by President Donald J. Trump to the position of United States Attorney in February 2018.

U.S. Attorney Fremin stated, “Serving our nation, our state, and our community as the United States Attorney has been the highest honor of my career as a prosecutor. I will always remain grateful for being entrusted with the awesome responsibility of leading an office of the highest caliber attorneys and support staff, who have earned a great reputation for fairness, diligence, and honesty in the pursuit of justice. The success of the office belongs to them, and they have my admiration and respect. I also wish to thank our many law enforcement partners on the local, state, and federal levels, whose tireless and unwavering dedication to public safety were critical in striving to achieve our common goal of making our communities safer.”

As U.S. Attorney, Mr. Fremin’s priorities have been protecting Americans from terrorism and threats to national security as well as combating violent crime, cyber threats, the opioid epidemic, and fighting healthcare and disaster fraud.  Protecting the country’s most vulnerable – children, the elderly, and victims of exploitation – has also been a focus of Mr. Fremin’s office.

As the chief federal law enforcement officer in the Middle District of Louisiana, Mr. Fremin oversaw the investigation and prosecution of all federal criminal violations within the district.  Under Mr. Fremin’s leadership, the Criminal Division has aggressively fought violent crime by pursuing violent offenders.  In his first year in office, these efforts resulted in an increase in the prosecution of gun cases of 103% compared to the average of the prior four years and in the following year, 2019, resulted in an increase of 176% in gun case convictions compared to the average of the prior four years.  Relationships with state, local, and community leaders and law enforcement agencies were strengthened, and through the Organized Crime Drug Enforcement Task Force (OCDETF), Mr. Fremin led his office to amplify efforts in removing violent criminals from the streets.  In one operation alone, 43 offenders were prosecuted, one of the largest such prosecutions in the history of the district, and in various other operations, major drug traffickers and violent criminals were sent to federal prison with large sentences of 300 months, 360 months, 384 months, and life. 

Mr. Fremin’s tenure as the United States Attorney was not without challenges.  Among them were the longest government shutdown in American history; nationwide civil unrest, riots, and violence; and a viral pandemic unlike any other since 1918.  Despite the challenges, the Middle District continued to obtain successful results.  With the Department of Justice committed to strengthening efforts to reduce gun violence, Mr. Fremin oversaw the implementation of two new DOJ initiatives.  The first to launch was Project Guardian, a nationwide initiative to reduce gun violence and enforce federal firearms laws through information-sharing and enforcing gun prohibitions based on domestic violence convictions and mental health denials.  Under this initiative, a Baton Rouge man was convicted of multiple firearms violations, including possession of a firearm by a person adjudicated as a mental defective in the first federal trial in the Middle District during COVID-19 restrictions.  The second initiative, focusing on domestic violence, was launched in 2020 and was implemented to work with state and local prosecutors and law enforcement agencies to generate domestic violence referrals involving firearms.  Mr. Fremin and his office, along with local District Attorneys, were at the forefront of this initiative, creating educational materials for distribution and conducting a statewide CLE training on the federal response to domestic violence crimes to generate more federal referrals in Louisiana.  Additionally, during Mr. Fremin’s tenure, Baton Rouge was designated as one of ten new National Public Safety Partnership (PSP) sites, whose goal was to focus on areas with elevated violent crime rates.  Mr. Fremin and his office collaborated with local leadership in areas such as data collection and analysis; violence reduction initiatives; crime-science research findings; and ways to enhance partnerships in the community to reduce violence and increase public safety. 

Under Mr. Fremin’s direction, white collar criminals were vigorously prosecuted.  Among them included one of the largest healthcare prosecutions in our district involving a genetic testing scheme with a loss of $240 million to Medicare.  This prosecution was in concert with four other federal districts engaged in a sweeping federal law enforcement action that resulted in charges in five federal districts against 35 defendants associated with dozens of telemedicine companies and cancer genetic testing laboratories for their alleged participation in one of the largest health care fraud schemes ever charged. According to the charges, these defendants fraudulently billed Medicare more than $2.1 billion nationally for these tests.  Other white collar prosecutions included the former President of Our Lady of the Lake Foundation for wire fraud and money laundering and a former Southern University band director for embezzlement.  Mr. Fremin’s tenure also saw the prosecution and sentencing of a Florida man sentenced to 121 months for an investment fraud scheme involving Baton Rouge area victims, all of whom were elders, and which resulted in the forfeiture of nearly $4 million in assets through seizures including over $2 million in a Swiss Bank account, all of which has been returned to the victims; the conviction and sentencing (144 months) of a Baton Rouge man for multi-million dollar bank and wire fraud schemes; the conviction of a financial adviser sentenced to 168 months in federal prison for stealing $1.1 million from elderly investors; and the conviction and sentencing of a Zachary man  to 195 months for production of child pornography. 

Throughout his time as the United States Attorney, Mr. Fremin was committed to the prosecution of those persons who violated the civil rights of others, including the conviction of a former major at Louisiana State Penitentiary at Angola for beating a handcuffed and shackled inmate.  Recently, the Middle District joined forces with the U.S. Attorneys for the Eastern and Western Districts of Louisiana and the Department of Justice’s Civil Rights Division in D.C. for a civil investigation under the Civil Rights of Institutionalized Persons Act (CRIPA) into the Louisiana Department of Public Safety and Corrections’ prisoner release practices and policies.

Under Mr. Fremin’s leadership, the office’s commitment to law enforcement and our communities went beyond the courtroom. During his tenure, the U.S. Attorney’s law enforcement community outreach program sponsored and conducted trainings for over 2,400 state and local law enforcement officers from over 105 agencies across the state of Louisiana and beyond. Topics included Gangs and Drugs, Protecting Churches, Officer-Involved Shoots, Opioid/Fentanyl Procedures, Meth Investigations, Jail Gang Intelligence, Pharmaceutical Drug Investigations, Follow the Money, and many, many more.

Mr. Fremin led the Civil Division in fighting healthcare fraud, protecting the interests of the United States, aggressively pursuing the forfeiture of criminal proceeds, and ensuring the collection of millions of dollars in criminal and civil judgments for federal programs and victims of crime.  Notable achievements in the Civil Division included a $13.42 million settlement under the False Claims Act with the Louisiana Department of Health; a $2.5 million settlement against home health companies who defrauded the Medicare and Louisiana Medicaid programs; a $1.262 million false claims settlement against Louisiana pediatric dental providers for defrauding Louisiana Medicaid; and the successful resolution of a 40 year old desegregation case in St. Helena Parish.  Mr. Fremin’s leadership saw an increase in criminal and civil asset forfeitures and criminal and civil collections, with over $30 million collected by the Civil Division’s Asset Recovery Unit and the majority of that amount returned to victims of crimes.

During his tenure as U.S. Attorney, Mr. Fremin also served as the Executive Director of the National Center for Disaster Fraud (“NCDF”).  The NCDF receives and processes disaster fraud-related complaints nationwide and facilitates complaints to the appropriate federal, state, and local investigative agencies.  Since March 1, 2018, the NCDF has received and processed over 28,000 disaster-related complaints.  Under Mr. Fremin’s leadership, the NCDF quickly engaged in the fight against COVID fraud, as directed by the Attorney General, and has received and processed over 18,000 COVID-related complaints since March 2020.  The NCDF team reviewed,  identified, and referred a multitude of matters to numerous agencies, including, but not limited to, the Federal Trade Commission, the Federal Bureau of Investigation, the Food and Drug Administration, the Department of Labor – OIG, local authorities, and many other agencies.  Under Mr. Fremin’s direction, the NCDF created and launched a web-intake portal to expedite the process for intaking complaints from the public, which has proven instrumental given the volume of matters received.

Mr. Fremin also served on the Attorney General’s Advisory Subcommittee for Cyber & Intellectual Property, which collaborated with the Department of Justice, U.S. Attorneys, and other federal components to discuss current trends in cybercrime; and the Attorney General’s Advisory Subcommittee for Civil Rights, which focused on human trafficking, voting rights, and hate crimes.  To further hate crime prevention efforts, Mr. Fremin and his office made it a priority to meet with and build relationships with community and religious leaders, understanding the needs and priorities of the community and opening the lines of communication to increase public safety.

“U.S. Attorney Brandon Fremin has been instrumental in bringing violent criminals to justice, helping to reduce violent crime rates, and improving cooperation within law enforcement,” said ATF Special Agent in Charge Kurt Thielhorn. “It’s been my pleasure to serve with him in our efforts to make our communities safer.”

DEA Special Agent in Charge Brad L. Byerley said, “I would like to thank Mr. Fremin for his relentless friendship and partnership with DEA.  With resolve and conviction, Mr. Fremin has successfully led the U.S. Attorney’s Office in the Middle District of Louisiana, all while combatting drug trafficking and the violent crimes associated with it, making our communities safer places to live.  Together, DEA and the U.S. Attorney’s Office, along with our federal, state and local law enforcement partners, have successfully put drug traffickers and violent criminals in prison where they belong.”

“The outstanding partnership that the FBI New Orleans has shared with the U.S. Attorney’s Office in the Middle District of Louisiana has resulted in a reduction in violent crime, gang violence, fraud, and public corruption. This is a direct result of the leadership of Mr. Fremin,” stated Special Agent in Charge Bryan Vorndran. “We thank him for his friendship and his unyielding desire to protect our communities and make them safer for the citizens of Louisiana.”

Special Agent in Charge Leslie Pichon of the United States Secret Service New Orleans Field Office, which includes the Middle District of Louisiana said, “Mr. Fremin has been an outstanding partner to the Secret Service and has gone above and beyond to ensure the success of the Secret Service‘s integrated mission; protecting our nation’s leaders and investigating complex cyber enabled financial crimes were executed with the full support and leadership of the United States Attorney. We wish him the best in his future endeavors.”

Mr. Fremin is a career prosecutor who has served the community and his country for many years. Prior to his appointment as the U.S. Attorney, he served as the Director of the Criminal Division for the Office of the Louisiana Attorney General.  He has also served as a Criminal Investigator, Assistant District Attorney, and Section Chief in the Office of the District Attorney for the 19th Judicial District of Louisiana and as an Assistant U.S. Attorney in the Middle District of Louisiana.  Mr. Fremin earned a Bachelor’s degree in Criminal Justice, with honors, from Southeastern Louisiana University and a Bachelor of Civil Law and Juris Doctor from the Paul M. Hebert Law Center at Louisiana State University.  Mr. Fremin is also a veteran of the United States Marine Corps, where he earned the rank of sergeant.