2008 Press Releases

January - March

28 March 2008 O'Connor Indictment

17 March 2008 CMI Indictment

7 March 2008 Williams - Patton - Drummer Sentencings

6 March 2008 FEMA Fraud - Hafford Sentenced

4 March 2008 FEMA Fraud - Cage guilty plea

22 February 2008 FEMA Fraud - Four more sentenced and Two more Indicted

14 February 2008 FEMA Fraud - Johnson found guilty

4 February 2008 FEMA Fraud - Dunn - Whitfield Indicted

29 January 2008 FEMA Fraud - Miller Sentenced

25 January 2008 FEMA Fraud - Lewis - Whitaker Sentenced

22 January 2008 Eight Indicted multi-state conspiracy to steal vehicles

28 March 2008 O'Connor Indictment

INDICTMENT IN BATON ROUGE, LOUISIANA, ON CHARGES OF FILING FALSE INCOME TAX RETURNS

United States Attorney David R. Dugas announced that a federal grand jury returned an indictment yesterday charging SEAN P. O’CONNOR of Baton Rouge, Louisiana, with three counts of filing false tax returns.

The indictment alleges that O’CONNOR falsely reported the amount of gross receipts or sales on U.S. Individual Income Tax Returns filed for calendar years 2001, 2002, and 2003. It is alleged that the amount of gross receipts the defendant failed to report for these three calendar years totals over $300,000.
IRS Special Agent-In-Charge Michael J. De Palma stated, "The efforts of Internal Revenue Service Criminal Investigation (CI) are directed at the portion of American taxpayers who willfully and intentionally violate their known legal duty of voluntarily filing income tax returns and/or paying the correct amount of income, employment, or excise taxes."

If convicted, O’CONNOR faces a penalty of up to three years in prison, a $250,000 fine, or both, on each count.

This case was investigated by the Internal Revenue Service, Criminal Investigation, and is being prosecuted by Assistant U.S. Attorney René Salomon.
NOTE: An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by the defendant. The defendant, of course, is presumed innocent until and unless he is proven guilty at trial.

17 March 2008 CMI Indictment

GRAND JURY INDICTS COLORADO COMPANY IN CONNECTION WITH DEATH OF HONEYWELL EMPLOYEE

United States Attorney David R. Dugas and Special Agent-in-Charge Warren Amburn of the Environmental Protection Agency, Criminal Investigation Division ("EPA-CID") announced today that a federal grand jury has returned an indictment charging Chemical and Metal Industries Inc. (“C&MI”), a company based in Colorado, with knowingly causing the illegal storage of hazardous waste, in violation of Title 42, United States Code, Section 6928(d)(2)(A) (Resource Conservation and Recovery Act), and negligently causing the release of hazardous air pollutants and thereby negligently placing another person in imminent danger of death, in violation of Title 42, United States Code, Section 7413(c)(4) (federal Clean Air Act).

Today’s charges stem from a long running investigation into an incident that occurred in the summer of 2003 at Honeywell’s Baton Rouge Plant. The indictment alleges that on July 29, 2003, Delvin Henry, an employee at the Baton Rouge Plant, opened a one-ton cylinder, which C&MI had labeled as containing relatively benign refrigerant while the cylinder was at C&MI’s Colorado facility. Once opened, approximately 1800 pounds of spent antimony pentachloride, which is highly toxic and corrosive hazardous material, was violently released from the cylinder. Mr. Henry was struck by the material and died the following day from his injuries.

Last year, Honeywell accepted responsibility for its role in the incident, pled guilty to negligent endangerment under the Clean Air Act, and was sentenced to pay a criminal fine of $8,000,000, restitution of $2,000,000 to Mr. Henry’s three children, community restitution of $750,000 to the Louisiana Department of Environmental Quality, community restitution valued at $750,000 to the Louisiana State Police Hazardous Materials Unit, and community restitution valued at $500,000 to the Louisiana State Police Emergency Operations Center.

U.S. Attorney Dugas stated: "The U.S. Department of Justice is committed to working with our federal and state partners to enforce our nation's environmental laws and ensure the safety of our workers. Corporations, like individuals, have a responsibility to comply with the law and a failure to do so will not be tolerated.”

This case is being prosecuted by Deputy Criminal Chief Corey R. Amundson. The initial appearance has yet to be set.

7 March 2008 Williams - Patton - Drummer Sentencings

SENTENCES IN BATON ROUGE, LOUISIANA, ON CHARGES OF CONSPIRACY TO FILE FALSE CLAIMS FOR INCOME TAX REFUNDS AND FOR MAKING FALSE CLAIMS FOR INCOME TAX REFUNDS

BATON ROUGE, LA – United States Attorney David R. Dugas announced that, after having pled guilty, DARRIN KEITH WILLIAMS, 36, of Baton Rouge; JOSHUA RAMON WILLIAMS, 30, of McKinney, Texas; KARLOS D(ANDREA PATTON, 33, of Franklin, Louisiana; and REGINALD DANE DRUMMER, 28, of Baton Rouge were sentenced yesterday by United States District Court Judge John V. Parker for their participation in a tax fraud scheme charged by a federal grand jury in January 2007. A fifth defendant, FARAUN KENNOTIS PRUITT, 33, of Houston, Texas, is set to be sentenced on April 11. All five defendants were charged in a 21-count indictment with conspiring to file false claims for federal income tax refunds in violation of Title 18, United States Code, Section 286, while they had been employed at a local Baton Rouge store of a nationwide retailer of athletic shoes. All defendants had also been charged in varying, separate counts of making and causing to be made false claims for income tax refunds, in violation of Title 18, United States Code, Section 287, each of which was connected with the conspiracy.

The five defendants were charged with causing 107 fraudulent income tax returns to be filed over the internet between December 2001 and April 2002, almost all seeking refund anticipation loans, also known as (RALs.( All RALs were sought through Santa Barbara Bank and Trust, a California bank authorized by the Internal Revenue Service to participate in such a program in order for a taxpayer to get near instant access to anticipated refund amounts. The defendants persuaded other people to provide their names, social security numbers, and dates of birth, thereafter causing fraudulent returns to be filed with false employment, wage, and withholding amounts. The conspiracy charged the 107 false tax returns sought $249,188 in unauthorized funds from the United States.

For their pleas to the conspiracy count, DARRIN WILLIAMS was sentenced to 18 months confinement, JOSHUA WILLIAMS was sentenced to 12 months confinement, and KARLOS PATTON was sentenced to 5 months confinement. Each defendant was also sentenced to three years of supervised release following confinement. During supervised release, PATTON will also be confined to home detention with electronic monitoring for a 5-month period, at his expense. All three of these codefendants were jointly ordered to pay restitution totaling $102,763.95, of which $56,269 is to be paid to the U.S. Department of Treasury and $46,494.95 to Santa Barbara Bank.

For his plea to two of the substantive counts of making and causing to be made false claims for income tax returns, REGINALD DRUMMER was sentenced to probation for 3 years and ordered to pay a $2,000 fine. He was also ordered to pay $1,830 in restitution to Santa Barbara Bank and $3,768 to the U.S. Department of Treasury.

This case was investigated by special agents of the Internal Revenue Service Criminal Investigation and the U.S. Attorney(s Office for the Middle District of Louisiana, and was prosecuted by Assistant United States Attorney Ian F. Hipwell.

IRS Criminal Investigation, New Orleans Field Office, Special Agent in Charge Michael J. DePalma commented that (the object of these schemes is to defraud the government and the taxpaying public. In this case, IRS-CI identified and investigated the persons involved in this scheme resulting in today’s sentences. The message these sentences sends is that participation in these types of fraudulent refund schemes does not pay and those involved will be vigorously prosecuted.

6 March 2008 FEMA Fraud - Hafford Sentenced

ANOTHER SENTENCED IN BATON ROUGE, LOUISIANA, ON DISASTER RELIEF FRAUD CHARGES

BATON ROUGE, LA – Another Louisiana resident was sentenced in federal court on fraud charges related to a hurricane disaster relief program, United States Attorney David R. Dugas announced today.

JUANA G. HAFFORD, age 49, of Baton Rouge, Louisiana, pled guilty on February 26, 2007, to Count One of an indictment charging her with making a false and fraudulent claim for disaster assistance benefits. HAFFORD was sentenced today by Chief U.S. District Court Judge Ralph E. Tyson to three years of probation and $4,358 in restitution to the Federal Emergency Management Agency (FEMA). The U.S. Department of Homeland Security’s Office of Inspector General conducted the investigation of this matter.

The number of individuals who have been charged in the Middle District of Louisiana with violations related to hurricane disaster relief funds stands at one hundred thirty-eight.

In September 2005, Attorney General Alberto R. Gonzales created the Hurricane Katrina Fraud Task Force, designed to deter, investigate and prosecute disaster-related federal crimes such as charity fraud, identity theft, procurement fraud and insurance fraud. The Hurricane Katrina Fraud Task Force – chaired by Assistant Attorney General Alice S. Fisher of the Criminal Division – includes the FBI, the U.S. Inspectors General community, the U.S. Secret Service, the U.S. Postal Inspection Service, the Executive Office for United States Attorneys and others.

For further information, contact David R. Dugas, U.S. Attorney for the Middle District of Louisiana, or Lyman Thornton, First Assistant U.S. Attorney, at (225) 389-0443. Anyone suspecting criminal activity involving disaster assistance programs can make an anonymous report by calling the toll-free Hurricane Relief Fraud Hotline, 1-866-720-5721, 24 hours a day, seven days a week, until further notice. Information can also be emailed to the Hurricane Katrina Fraud Task Force at HKFTF@leo.gov or sent by surface mail, with as many details as possible, to Hurricane Katrina Fraud Task Force, Baton Rouge, LA 70821-4909.

4 March 2008 FEMA Fraud - Cage guilty plea

ANOTHER PLEADS GUILTY IN BATON ROUGE, LOUISIANA, ON DISASTER RELIEF FRAUD CHARGES

BATON ROUGE, LA – Another Louisiana resident pled guilty in federal court on fraud charges related to a hurricane disaster relief program, United States Attorney David R. Dugas announced today.

DENEATRICE D. CAGE, age 29, of Baton Rouge, Louisiana, pled guilty today before U.S. District Court Judge James J. Brady to Count One of an indictment charging her with mail fraud. The case was investigated by the U.S. Postal Inspection Service. As a result of her guilty plea to Count One, CAGE faces a maximum sentence of twenty (20) years imprisonment, a $250,000 fine, or both. As part of the plea agreement, the U.S. Attorney’s Office will dismiss Count Two of the indictment when CAGE is sentenced on Count One.

The number of individuals who have been charged in the Middle District of Louisiana with violations related to hurricane disaster relief funds stands at one hundred thirty-eight.

22 February 2008 FEMA Fraud - Four more sentenced and Two more Indicted

FOUR MORE SENTENCED AND TWO MORE INDICTED ON DISASTER RELIEF FRAUD CHARGES IN BATON ROUGE, LOUISIANA,

BATON ROUGE, LA – United States Attorney David R. Dugas announced that four more Louisiana residents have been sentenced and two more indicted this week on fraud charges related to hurricane disaster relief programs.

SHAWANDA R. JOHNSON, age 35, of Baton Rouge, Louisiana, was sentenced by U.S. District Court Judge James J. Brady yesterday to a term of imprisonment of five months on each of two counts and $2,000 in restitution. After JOHNSON completes her term of imprisonment, she will be placed on supervised release for a period of three years. JOHNSON had been indicted in June of 2007 in a two-count indictment alleging that on September 15, 2005, JOHNSON filed a false and fraudulent application for Hurricane Katrina disaster assistance benefits in which she falsely claimed that she was living in New Orleans at the time of the storm. The indictment charged JOHNSON with one count of mail fraud, in violation of 18 U.S.C. § 1341, and one count of making a false and fraudulent claim for FEMA disaster assistance benefits, in violation of 18 U.S.C. § 287. She pled guilty to the indictment on August 15, 2007. The case was investigated by the United States Postal Inspection Service and the U.S. Department of Homeland Security’s Office of Inspector General.
STEPHANIE JACKSON, age 37, of Baton Rouge, was also sentenced by Judge Brady yesterday to a term of probation of two years and $1,216.52 in restitution. JACKSON had been indicted on May 24, 2007, and charged with making a false claim for disaster assistance benefits and illegal conversion of government property. On August 29, 2007, after a jury trial, JACKSON was convicted of both counts. The case was investigated by the U.S. Department of Homeland Security’s Office of Inspector General and the Federal Bureau of Investigation.
LORETTA J. RUSSELL, age 49, of Baton Rouge, was sentenced by Chief U.S. District Court Judge Ralph E. Tyson yesterday to a term of probation of two years and $2,000 in restitution. RUSSELL pled guilty in August of 2007 to making a false and fraudulent claim for disaster assistance benefits. In the parties’ plea agreement, RUSSELL admitted that on or about September 22, 2005, having already submitted an application for FEMA benefits in her own name, she submitted a second application, this time fraudulently posing as another individual and falsely claiming that he had suffered storm-related damage. The case was investigated by the U.S. Department of Housing and Urban Development’s Office of Inspector General and the U.S. Department of Homeland Security’s Office of Inspector General.

FREDRICA L. EHIOROBO, age 21, of Baton Rouge, was sentenced by Senior U.S. District Court Judge John V. Parker today on Hurricane Katrina-related fraud charges. EHIOROBO pled guilty in June of 2007 to making a false and fraudulent claim for disaster assistance benefits. In the parties’ plea agreement, EHIOROBO admitted that on or about September 15, 2005, she submitted a fraudulent application for FEMA benefits in which she falsely claimed that she had been living in New Orleans, Louisiana at the time of the storm. She was sentenced today to a term of probation of three years and $2,000 in restitution. The case was investigated by the Federal Bureau of Investigation and the U.S. Department of Homeland Security’s Office of Inspector General.
Finally, on February 20, 2008, a federal grand jury returned indictments against MARY A. ROBERTSON, age 33, of Plaquemine, Louisiana, and CASSANDRA A. BELL, age 24, of Baton Rouge. ROBERTSON was charged with five counts of mail fraud. The indictment alleges that ROBERTSON filed a fraudulent application for FEMA benefits and caused FEMA to disburse five disaster assistance benefit checks totaling more than $25,000. The case was investigated by the U.S. Secret Service, the U.S. Department of Homeland Security’s Office of Inspector General, and the Social Security Administration. If convicted, ROBERTSON faces a maximum sentence of twenty years imprisonment, a $250,000 fine, or both, per count.

BELL is charged with one count of mail fraud (Count One) and one count of making a false claim (Count Two). The charges resulted from an investigation conducted by U.S. Postal Inspection Service and the Department of Homeland Security’s Office of Inspector General. If convicted on Count One, BELL faces a maximum sentence of twenty years imprisonment, a $250,000 fine, or both. If convicted on Count Two, BELL faces a maximum sentence of five years imprisonment, a $250,000 fine, or both.

The number of individuals who have been charged in the Middle District of Louisiana with violations related to hurricane disaster relief funds stands at one hundred thirty-eight.

14 February 2008 FEMA Fraud - Johnson found guilty

GUILTY VERDICT IN BATON ROUGE, LOUISIANA, ON FRAUD CHARGES RELATED TO A HURRICANE DISASTER RELIEF PROGRAM

BATON ROUGE, LA – United States Attorney David R. Dugas announced that a federal jury convicted ROY JOHNSON, age 51, of Baton Rouge, yesterday on fraud charges related to a hurricane disaster relief program.

The indictment, filed July 11, 2007, charged JOHNSON with three counts of mail fraud in connection with a fraudulent application for expedited disaster assistance benefits. JOHNSON applied for disaster assistance from the Federal Emergency Management Agency (FEMA) on September 17, 2005, falsely claiming that he had been living in New Orleans during Hurricane Katrina and that he had evacuated to Denham Springs, Louisiana. In fact, at the time of the storm, and for all of 2005, JOHNSON was in state custody in the Baton Rouge, Louisiana, area. Prior to being incarcerated, JOHNSON lived in Baton Rouge. Through his false and fraudulent representations to FEMA, JOHNSON caused FEMA to mail him three checks for disaster assistance, totaling over $14,000. JOHNSON was found guilty yesterday on all three counts.

U.S. District Court Judge James J. Brady presided over the two-day jury trial. Assistant United States Attorneys Alan A. Stevens and René I. Salomon prosecuted the case on behalf of the United States. JOHNSON faces a maximum sentence of twenty years imprisonment, a $250,000 fine, or both, on each of the three counts. Judge Brady will sentence the defendant following the completion of a pre-sentence investigation. The case was investigated by the U.S. Department of Homeland Security’s Office of Inspector General.

The number of individuals who have been charged in the Middle District of Louisiana with violations related to hurricane disaster relief funds stands at one hundred thirty-six.

4 February 2008 FEMA Fraud - Dunn - Whitfield Indicted

TWO MORE INDICTED IN BATON ROUGE, LOUISIANA, ON DISASTER RELIEF FRAUD CHARGES

BATON ROUGE, LA – Two more Louisiana residents were indicted by a federal grand jury last week on fraud charges related to a hurricane disaster relief program, United States Attorney David R. Dugas announced today.

QUENTIN C. DUNN, a/k/a CARLNEL WHITFIELD, age 26, of Jackson, Louisiana, was charged in an indictment on January 31, 2008, with two counts of mail fraud and one count of access device fraud in connection with fraudulent applications for Hurricane Katrina disaster relief. The indictment charges DUNN with carrying out a scheme to defraud the Federal Emergency Management Agency (FEMA) and the Louisiana Department of Labor (LDOL) by causing two fraudulent applications for disaster unemployment assistance (DUA) to be filed on his behalf. The indictment alleges that these applications falsely claimed that DUNN had been employed in New Orleans at the time of the disaster, and had lost employment due to Hurricane Katrina. The filing of these allegedly fraudulent applications caused approximately $4,410 in benefits to be transferred to DUA debit cards accessed by DUNN. The charges resulted from an investigation conducted by the U.S. Department of Labor, the Social Security Administration’s Office of Inspector General and the U.S. Postal Inspection Service. If convicted on the mail fraud charges, DUNN faces a maximum sentence of 20 years imprisonment, a $250,000 fine, or both, per count. If convicted on the access device fraud charge, DUNN faces a maximum sentence of 10 years imprisonment, a $250,000 fine or both.

JIMMY RAY WHITFIELD, age 22, of Zachary, Louisiana, was charged in an indictment on January 31, 2008, with one count of mail fraud and one count of access device fraud in connection with fraudulent applications for Hurricane Katrina disaster relief. The indictment charges WHITFIELD with carrying out a scheme to defraud FEMA and LDOL by filing a false claim for DUA in his own name, falsely stating he had been employed in New Orleans at the time of the disaster and had lost employment due to Hurricane Katrina. The indictment also charges WHITFIELD with aiding and abetting another person in obtaining money from LDOL as a result of her filing false claims in the names of two people whom he knew did not exist. The filing of these allegedly fraudulent applications caused approximately $2,548 in benefits to be transferred to a DUA debit card in WHITFIELD’s name, and approximately $7,764 in benefits to be transferred to DUA debit cards issued under two fictitious names. The charges resulted from an investigation conducted by the U.S. Department of Labor and the U.S. Postal Service’s Office of Inspector General. If convicted on the mail fraud charge, WHITFIELD faces a maximum sentence of 20 years imprisonment, a $250,000 fine, or both. If convicted on the access device fraud charge, WHITFIELD faces a maximum sentence of 10 years imprisonment, a $250,000 fine or both.

Last week’s indictments bring the total number of individuals who have been charged in the Middle District of Louisiana with violations related to hurricane disaster relief funds to one hundred thirty-six.

29 January 2008 FEMA Fraud - Miller Sentenced

ANOTHER SENTENCED IN BATON ROUGE, LOUISIANA, ON DISASTER RELIEF FRAUD CHARGES

BATON ROUGE, LA – Another Louisiana resident was sentenced in federal court yesterday on fraud charges related to a hurricane disaster relief program, United States Attorney David R. Dugas announced.

FRED DANIEL MILLER, age 40, of Conway, Arkansas, pled guilty on May 21, 2007, to an indictment charging him with wire fraud. MILLER was sentenced yesterday by U.S. District Court Judge James J. Brady to a term of imprisonment of fifteen months, three years of supervised release, and restitution in the amount of $3,822.00 payable to the Federal Emergency Management Agency (FEMA). According to the Factual Basis, MILLER had filed for benefits under the Disaster Unemployment Assistance (DUA) program, which is funded by FEMA to provide financial assistance to individuals whose employment has been lost or interrupted as a direct result of a major disaster. MILLER was incarcerated at Orleans Parish Prison before Hurricane Katrina struck the state in August 2005 and was evacuated to several detention facilities before being released on September 30, 2005. As an inmate, MILLER was unemployed and not entitled to disaster unemployment assistance. The U.S. Department of Labor’s Office of Inspector General and the Federal Bureau of Investigation conducted the investigation of this matter.

The number of individuals who have been charged in the Middle District of Louisiana with violations related to hurricane disaster relief funds stands at one hundred thirty-four.

25 January 2008 FEMA Fraud - Lewis - Whitaker Sentenced

TWO MORE SENTENCED IN BATON ROUGE, LOUISIANA, ON DISASTER RELIEF FRAUD CHARGES

BATON ROUGE, LA – Two more Louisiana residents were sentenced this week in federal court on fraud charges related to a hurricane disaster relief program, United States Attorney David R. Dugas announced.

TERRI L. LEWIS, age 41, of Baton Rouge, Louisiana, pled guilty on August 15, 2007, to Count One of an indictment charging her with making a false and fraudulent claim for disaster assistance benefits. LEWIS was sentenced on January 23, 2008, by U.S. District Court Judge Frank J. Polozola to three years of probation and $2,000 in restitution to the Federal Emergency Management Agency (FEMA). The Federal Bureau of Investigation conducted the investigation of this matter.

PAMELA D. WHITAKER, age 44, of Baton Rouge, Louisiana, pled guilty on August 2, 2007, to an indictment charging her with two counts of mail fraud in connection with checks received from FEMA. WHITAKER was sentenced on January 24, 2008, by U.S. District Court Judge James J. Brady to three years of probation, including one month of home confinement, and $4,358 in restitution to FEMA. The U.S. Postal Inspection Service conducted the investigation of this matter.

The number of individuals who have been charged in the Middle District of Louisiana with violations related to hurricane disaster relief funds stands at one hundred thirty-four.

22 January 2008 Eight Indicted multi-state conspiracy to steal vehicles

INDICTMENT IN BATON ROUGE, LOUISIANA, ON CHARGES OF CONSPIRACY, TRAFFICKING IN MOTOR VEHICLES WITH REMOVED AND ALTERED IDENTIFICATION NUMBERS, AND REMOVING AND ALTERING MOTOR VEHICLE IDENTIFICATION NUMBERS

BATON ROUGE, LA – United States Attorney David R. Dugas announced today that on January 17, 2008, a federal grand jury in the Middle District of Louisiana returned an indictment against eight individuals charging them with a wide ranging, multi-state conspiracy to steal and alter Vehicle Identification Numbers (VIN) on multiple vehicles from the New Orleans, Baton Rouge and Houma, Louisiana, areas.

ANDRE COLEMAN, age 30, of Terrytown, Louisiana; DAVID GRACE, age 31, of New Orleans, Louisiana; MARVIN HUDSON, age 29, of New Orleans, Louisiana; COREY PEMBROOK, age 30, of Algiers, Louisiana; YUKOBI LEWIS, age 25, of Slidell, Louisiana; BRANDIN LEARSON, age 23, of New Orleans, Louisiana; CARNELL ROUSELL, age 27, of Metairie, Louisiana; and REGINALD TAYLOR, age 46, of Harvey, Louisiana, have been indicted on charges of conspiracy, trafficking in motor vehicles with removed and altered identification numbers, and removing and altering motor vehicle identification numbers.

Count One of the Indictment alleges that beginning on an exact date unknown and continuing to in or about November of 2007, within the Middle District of Louisiana and elsewhere, the defendants and others conspired to obtain stolen motor vehicles, to alter the identification numbers for those vehicles and to sell the vehicles, knowing that identification numbers for such vehicles had been altered. The indictment charges that members of the conspiracy stole vehicles from car dealerships in Baton Rouge, Ascension Parish, Houma and New Iberia, Louisiana; Houston, Texas; and Hattiesburg, Mississippi, using duplicate keys obtained with the assistance of a dealership employee in Baton Rouge and by employing “key swap” schemes. The VIN’s on those vehicles were then removed and replaced with VIN’s from salvaged vehicles obtained by members of the conspiracy.

Counts Two through Four of the Indictment charge LEWIS, GRACE and LEARSON with possessing specific vehicles with altered VIN’s with the intent to sell the vehicles, knowing that the VIN’s had been altered. Counts Five through Seven of the Indictment charge PEMBROOK, HUDSON and COLEMAN with illegally altering VIN’s on specific vehicles. The indictment alleges that in some cases VIN’s were altered and vehicles were sold at a warehouse located in Gonzales, Louisiana.

If convicted, the defendants face maximum sentences of five years on the conspiracy and possession counts and ten years on the altering VIN counts.

The case was investigated by the Federal Bureau of Investigation, the Louisiana State Police, the East Baton Rouge Parish Sheriff’s Office, the Baton Rouge Police Department, the New Orleans Police Department, the Terrebonne Parish Sheriff’s Office, the Jefferson Parish Sheriff’s Office, the U.S. Department of Homeland Security’s Office of Inspector General, the United States Marshals Service, and the Louisiana Department of Public Safety and Corrections.

Also assisting in the investigation was the National Insurance Crime Bureau, General Motors and the U.S. Attorney’s Office in the Eastern District of Louisiana. The case is being prosecuted by Assistant United States Attorney Richard L. Bourgeois, Jr.

U. S. Attorney David R. Dugas said, “This indictment is the result of a two year investigation employing sophisticated investigative techniques and outstanding coordination and information sharing by federal, state and local investigative agencies. The FBI and its partners in this investigation are to be commended for their cooperative and effective handling of this complex and difficult investigation.”

NOTE: An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by the defendants. The defendants, of course, are presumed innocent until and unless they are proven guilty at trial.

The United States Attorney's Office

Middle District of Louisiana

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2008 Press Releases

January - March