BATON ROUGE, LA – United States Attorney David R. Dugas announced that another Louisiana resident was sentenced yesterday on fraud charges related to a hurricane disaster relief program. SHANDOLYN D. THOMAS, age 23, of Baton Rouge, Louisiana, pled guilty on October 2, 2008, to mail fraud in connection with the filing of a false and fraudulent application with the Federal Emergency Management Agency (FEMA) for Hurricane Katrina disaster assistance benefits. In the application, THOMAS fraudulently claimed that her primary residence at the time of the storm was in New Orleans, Louisiana, when, in fact, THOMAS was residing in Baton Rouge. The fraudulent application caused three checks totaling over $9,500.00 to be issued to THOMAS by FEMA. The Court also found that THOMAS solicited numerous other individuals to file fraudulent applications for disaster assistance benefits. THOMAS was sentenced yesterday by U.S. District Court Judge Frank J. Polozola to a term of imprisonment of thirty-three months, three years of supervised release, and $9,553 in restitution. The U.S. Postal Inspection Service and 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 seventy-five.

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 the Assistant Attorney General of the U.S. Department of Justice’s 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.

18 June FEMA Fraud - Fletcher Indicted

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

BATON ROUGE, LA – United States Attorney David R. Dugas announced that another Louisiana resident was indicted in federal court today on fraud charges related to hurricane disaster relief programs.

LYNN R. FLETCHER, age 44, of Denham Springs, Louisiana, was charged in a two-count indictment by a federal grand jury today with making false claims for disaster food stamp benefits. The indictment alleges that on or about September 9, 2005, FLETCHER submitted a fraudulent application for Hurricane Katrina disaster food stamp assistance. In her application, FLETCHER falsely claimed that Hurricane Katrina caused her to incur more than $1,000 in disaster-related expenses. FLETCHER also falsely claimed that her household included six members, all of whom were affected by Hurricane Katrina when, in fact, two of the individuals that FLETCHER identified in her application, and for which she provided dates of birth, gender, and race, were actually pets. As a result of FLETCHER’s fraudulent claim, FLETCHER received benefits to which she was not entitled.

The indictment also alleges that on or about September 17, 2008, FLETCHER submitted a fraudulent application for Hurricane Gustav disaster food stamp assistance. In this application, FLETCHER falsely claimed that her household included five members, all of whom were affected by Hurricane Gustav when, in fact, three of the individuals that FLETCHER identified in her application were household pets. As a result of FLETCHER’s fraudulent claim, she again received benefits to which she was not entitled.

The charges resulted from an investigation conducted by the United States Secret Service with assistance from the Louisiana Department of Social Service, Office of Family Support, Fraud & Recovery Section. If convicted, FLETCHER faces a maximum sentence of five (5) years imprisonment, a $250,000 fine, or both, per count.

Today’s indictment brings 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 seventy-five.

17 June FEMA Fraud - Another Guilty Plea

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

BATON ROUGE, LA – United States Attorney David R. Dugas announced that another Louisiana resident pled guilty today in federal court to fraud charges related to hurricane disaster relief programs. YOLANDA V. KING, age 42, of Baton Rouge, Louisiana, pled guilty today to a two-count bill of information charging her with making a false writing and document (Count One) and wire fraud (Count Two).

In response to Hurricane Katrina, the Federal Emergency Management Agency (FEMA) provided funding for a variety of disaster-related programs, including rental assistance payments to qualified individuals in need of such assistance. According to the plea agreement, KING created a fraudulent claim to FEMA in that from on or about January 12, 2006, through on or about August 31, 2006, KING submitted fraudulent documentation to FEMA claiming she was in need of disaster related rental assistance due to damage caused by Hurricane Katrina to her home and personal property. The fraudulent documentation submitted to FEMA by KING to support claims for rental assistance benefits caused funds totaling $6,166 to be mailed by FEMA to KING.

Also as a result of Hurricane Katrina, FEMA provided funding for Disaster Unemployment Assistance (DUA). The Louisiana Department of Labor (LDOL) administered the DUA program for residents of the State of Louisiana. DUA provided financial assistance to individuals whose employment had been interrupted or lost as a direct result of a major disaster declared by the President of the United States. The plea agreement between KING and the United States of America also charged her with filing fraudulent claims for DUA benefits, wherein she falsely claimed she was unemployed due to Hurricane Katrina. It is alleged that the filing of these false claims caused funds to be transmitted from the LDOL into a Chase debit card account set up by LDOL for access by KING.

The charges resulted from an investigation conducted by the Federal Bureau of Investigation and the U.S. Department of Labor’s Office of Inspector General. If convicted on Count One, KING faces a maximum sentence of five (5) years imprisonment, a $250,000 fine, or both. In convicted on Count Two, KING faces a maximum sentence of twenty (20) 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 seventy-four.

1 June Barrow, Armstrong, Mayfield Sentenced

THREE DEFENDANTS SENTENCED IN BATON ROUGE, LOUISIANA, ON CHARGES OF MAKING A FALSE CLAIM AND DELAY OF MAIL

BATON ROUGE, LA – United States Attorney David R. Dugas announced that three Louisiana residents were sentenced Friday, May 29, 2009, in federal court by United States District Court Judge James Brady on charges of making false writings and documents, delay of mail, and making a false claim with the Federal Emergency Management Agency (FEMA).

KERALA R. BARROW, age 37, of Baton Rouge, Louisiana, pled guilty in August 2008 to an indictment charging her with making false writings and documents. The indictment charged that from on or about January 14, 2006, through on or about June 9, 2006, BARROW, who was hired to work at the United States Postal Service’s General Mail Facility on Bluebonnet Boulevard in Baton Rouge, Louisiana, submitted nineteen false and fraudulent time-sheets in which she claimed she had worked on days that she had not; claimed that she had worked more hours, or that she had worked longer shifts than she actually had; and forged the initials and/or signatures of her supervisors. BARROW was sentenced on Friday, May 29, 2009, to five years of probation, $6,822.19 in restitution, and a $100 special assessment. The case was investigated by the United States Postal Service’s Office of Inspector General.

JIMMIE ARMSTRONG, JR., age 21, of Baton Rouge, Louisiana, pled guilty in August 2008 to an indictment charging delay of mail. The indictment charged that in April of 2007, while a United States Postal Service employee, ARMSTRONG threw more than one hundred pieces of U.S. mail into a dumpster instead of delivering it. Agents from the U.S. Postal Service’s Office of Inspector General recovered the mail a few days later. ARMSTRONG was sentenced on Friday, May 29, 2009, to three years of probation, a $2,000 fine, and a $100 special assessment. The case was investigated by the United States Postal Service’s Office of Inspector General.

JOYCE G. MAYFIELD, age 53, of Baton Rouge, Louisiana, pled guilty in July 2008 to Count One of an indictment charging her with making a false claim and making false statements. The indictment charged that in September of 2005, MAYFIELD, while a United States Postal Service employee, filed a false and fraudulent claim with FEMA for Hurricane Katrina disaster assistance benefits, falsely claiming that she had been living in Gretna, Louisiana, at the time of the storm and that the storm caused her to have an essential need for food, clothing, and shelter. MAYFIELD was sentenced on Friday, May 29, 2009, to one year of probation, $4,358 in restitution, and a $100 special assessment. The case was investigated by the U.S. Postal Service’s Office of Inspector General, with assistance from the U.S. Department of Homeland Security’s Office of Inspector General.

28 May Chau Sentenced

OPERATION ZENITH DEFENDANT SENTENCED ON CHARGES OF MAIL FRAUD AND BRIBERY

BATON ROUGE, LA – United States Attorney David R. Dugas announced today that KHOA DINH “JAMES” CHAU, age 39, of Baton Rouge, Louisiana, was sentenced this morning before Chief U.S. District Court Judge Ralph E. Tyson to thirty-seven months imprisonment, a $30,000 fine, $98,695 in restitution, three years of supervised release following imprisonment, and a $200 special assessment. The sentence is a result of CHAU being convicted of mail fraud and bribery.

This case is part of Operation Zenith, a long-running investigation into fraud and corruption in the collection and payment of sales and payroll taxes. CHAU’s sentence was based upon his fraudulent under-reporting of taxable sales from his business by over $1,000,000 and his participation in a scheme to bribe a Louisiana Department of Revenue Auditor to conceal the fraud. Operation Zenith has resulted in charges against seven individuals, five of whom have pled guilty.

CHAU is the second defendant to be sentenced in Operation Zenith. On April 28, 2008, Chief Judge Tyson sentenced Humam S. Al-Alousi, age 50, of Baton Rouge, Louisiana, to sixty months imprisonment, a $100,000 fine, $220,401 in restitution, three years of supervised release following imprisonment, and a $300 special assessment. Defendants Jamal M. Roman and Mohamed H. Ruman have pled not guilty, and trial is set for January 25, 2010. Mr. Roman faces charges of conspiracy, mail fraud, and bribery, including allegations that he funneled $700,000 to Syria as part of the conspiracy.

Operation Zenith is the result of the combined efforts of the United States Attorney’s Office, the Federal Bureau of Investigation, and the Louisiana State Police Criminal Intelligence Unit. The investigation was greatly assisted by the cooperation of the East Baton Rouge Parish Auditor’s Office. Other governmental agencies and entities also provided assistance, including the U.S. Department of Homeland Security, the Louisiana State University Police Department, the Louisiana Department of Labor, the Louisiana Department of Revenue, the Internal Revenue Service, and the Government of Lebanon. U.S. Attorney Dugas stated, “With help from concerned citizens and our federal, state and local partners, this office will continue to pursue those who seek to exploit our communities and its taxpayers through fraud and corruption. Operation Zenith demonstrates the success that can come when federal, state, and local governments come together in a cooperative law enforcement effort. The Louisiana State Police Criminal Investigative Unit was particularly instrumental in the success of this investigation.”

Operation Zenith is being prosecuted by Deputy Criminal Chief Corey R. Amundson.

27 May Thompson Pleads Guilty

GUILTY PLEAS IN BATON ROUGE, LOUISIANA, TO FRAUD AND IDENTITY THEFT CHARGES

BATON ROUGE, LA – United States Attorney David R. Dugas announced today that ROBERT THOMPSON, the leader of a massive identity theft and bribery scheme, pled guilty this afternoon before Chief U.S. District Court Judge Ralph E. Tyson to charges of conspiracy, wire fraud, mail fraud, bank fraud, computer fraud, access device fraud, aggravated identity theft, money laundering, and obstruction of justice. One of his co-conspirators, CHARLENE B. JACKSON, also pled guilty this afternoon before Judge Tyson to conspiracy to commit wire fraud, mail fraud, and money laundering.

This matter involves THOMPSON engaging in multiple conspiracies with numerous co-conspirators to obtain and use the personal and financial information of over fifty-five (55) individuals, churches, financial institutions, and businesses, without their knowledge or authorization, to steal from their bank accounts and use their credit to obtain things of value, including attempting to steal $20,000,000 from one victim’s bank accounts. To facilitate the scheme, among other things, while an inmate at Elayn Hunt Correctional Center, THOMPSON bribed a corrections officer at the facility $10,000 to provide THOMPSON with cell phones.

The charged defendants include:

• ROBERT THOMPSON, a.k.a. John Lawson, age 41, of Zachary, Louisiana, has pled guilty to multiple counts of conspiracy, wire fraud, mail fraud, money laundering, access device fraud, aggravated identity theft, bank fraud, computer fraud, obstruction of justice, and forfeiture.

• ECKNOZZIO C. JACKSON, age 38, of Baton Rouge, Louisiana, has pled guilty to mail fraud and bank fraud in connection with his agreeing to a $10,000 bribe from Thompson.

• CHARLENE B. JACKSON, age 40, of New Iberia, Louisiana, has pled guilty to conspiracy to commit wire fraud, mail fraud, and money laundering.

• SEDRIC L. JACKSON, age 35, of Baton Rouge, Louisiana, has pled guilty to conspiracy to commit wire fraud and obstruct justice.

• DACOBIA L. HAMILTON, age 31, of Baton Rouge, Louisiana has pled guilty to wire fraud.

• ZELBONY O. TAYLOR, age 32, of Baton Rouge, Louisiana, has pled guilty to conspiracy to commit wire fraud and obstruct justice.

• MURKEL L. PARKER, age 33, of Baton Rouge, Louisiana, has pled guilty to unauthorized use of an access device.

• BARBARA THOMAS, age 46, of Tallulah, Louisiana, has pled guilty to wire fraud.

• KELVIN ARCHIE, age 40, of Texas, is charged in a bill of information with one count of use of an unauthorized access device.

This ongoing investigation is being led by the U.S. Attorney’s Office, the Federal Bureau of Investigation, the East Baton Rouge Parish Sheriff’s Office, and the security and investigations staff of the Elayn Hunt Correctional Center. Many other agencies have assisted in the investigation, including the Madison Parish Sheriff’s Office; the Concordia Parish Sheriff’s Office; East Feliciana Parish Sheriff’s Office; the Ascension Parish Sheriff’s Office; the Hardeman County, Tennessee, Sheriff’s Office; the Bolivar, Tennessee, Police Department; the Baton Rouge Police Department, and the Louisiana Department of Corrections.

United States Attorney David R. Dugas stated, “Investigating and prosecuting individuals engaged in identity theft and corruption is a high priority for the U.S. Department of Justice. This matter illustrates how great results come from collaborative efforts by federal, state, and local agencies. I would especially like to highlight the dedication of the East Baton Rouge Sheriff’s Office throughout the investigation and prosecution of this matter.”

This matter is being prosecuted by Assistant United States Attorney Corey R. Amundson, who serves as a Deputy Criminal Chief, and Assistant United States Attorney Alan A. Stevens.

22 May Walters Conviction

CONVICTION IN BATON ROUGE, LOUISIANA, ON CHARGES OF CONSPIRACY TO DISTRIBUTE AND TO POSSESS WITH THE INTENT TO DISTRIBUTE COCAINE, AND UNLAWFUL USE OF COMMUNICATIONS FACILITIES

BATON ROUGE, LA – United States Attorney David R. Dugas announced that a federal jury in Baton Rouge, Louisiana, on May 20, 2009, convicted TOMMY WALTERS, age 32, of Baton Rouge, Louisiana, of conspiracy to distribute and to possess with the intent to distribute five kilograms or more of a substance containing a detectable amount of cocaine, and fifty grams or more of a substance containing a detectable amount of cocaine base, also known as “crack cocaine,” Schedule II controlled substances, in violation of Title 21, United States Code, Section 841(a)(1); and three counts of the use of a communications facility (telephone) in committing and causing and facilitating the commission of a felony, in violation of Title 21, United States Code, Sections 846 and 841(a)(1).

WALTERS was prosecuted as a result of “Operation Snake Eyes,” an extensive investigation conducted by the Organized Crime and Drug Enforcement Task force (OCDETF) for the Middle District of Louisiana. The OCDETF is a multi-agency task force formed to investigate and prosecute criminal groups and individuals who organize, direct, finance, or are otherwise engaged in high level drug trafficking and related financial crimes. The OCDETF for the Middle District of Louisiana is comprised of agents from the Baton Rouge Resident Office of the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service-Criminal Investigation Division, and the U.S. Marshal’s Office. Other participating members in this OCDETF investigation included the Houston Field Division of the DEA, the Louisiana Attorney General’s Office, the Louisiana Alcohol, Tobacco Control Board, the Louisiana State Police, the Louisiana National Guard, the East Baton Rouge Parish Sheriff’s Office, the West Baton Rouge Parish Sheriff’s office, the Ascension Parish Sheriff’s Office, the Iberville Parish Sheriff’s office, the Baton Rouge Police Department, the Gonzales Police Department, and the Houston, Texas, Police Department.

Operation Snake Eyes has resulted in the conviction of nineteen defendants including WALTERS, and the organization’s ring leader, Dwayne “Tulu” Terrell.

Chief U.S. District Court Judge Ralph E. Tyson presided over the three-day jury trial. Assistant United States Attorneys Jennifer Kleinpeter and Robert Piedrahita prosecuted the case on behalf of the United States.

Prior to trial, the United States filed an information and notice of sentencing enhancement seeking to increase the defendant’s sentence to a mandatory term of life imprisonment based on two prior felony drug convictions. If granted, the defendant faces a mandatory life sentence.

21 May Mail Fraud Indictment

INDICTMENT IN BATON ROUGE, LOUISIANA, ON CHARGES OF MAIL FRAUD

United States Attorney David R. Dugas announced that a federal grand jury returned an indictment today charging HUSAM MUBARAK, age 45, of Baton Rouge, Louisiana, with twenty-four counts of mail fraud. MUBARAK is the former imam at Islamic Center of Baton Rouge.

The indictment alleges that MUBARAK falsely reported the amount of gross receipts of Atcha Bakery & Café, Inc., 3221 Nicholson Drive, Baton Rouge, Louisiana, to the Louisiana Department of Revenue and the East Baton Rouge City Parish Department of Revenue. It is alleged that the amount of gross receipts the defendant failed to report for these twelve months in 2006 and 2007 totals over $232,000.

If convicted, MUBARAK faces a sentence of up to twenty years in prison, a $250,000 fine, or both, on each count.

This case was investigated by the Federal Bureau of Investigation, Louisiana State Police, United States Immigration and Customs Enforcement, United States Department of Labor’s Office of Inspector General, Louisiana Department of Revenue, and East Baton Rouge City Parish Government – Department of Revenue, and is being prosecuted by Assistant United States Attorney Walt Green.

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.

14 May Bankruptcy Fraud Indictment

INDICTMENT IN BATON ROUGE, LOUISIANA, ON CHARGES OF BANKRUPTCY FRAUD

United States Attorney David R. Dugas announced that a federal grand jury returned an indictment yesterday charging LEE M. ALLEN, age 66, and SANDRA SUE ALLEN age 62, both residents of Zachary, Louisiana, with bankruptcy fraud in connection with their bankruptcy case filed in June 2005.

The eight count indictment alleges that the two women posed as a married husband and wife, both on their bankruptcy petition filings and schedules, and under oath in a proceeding conducted before a bankruptcy trustee in August 2005. The indictment further alleges the two women concealed from creditors and the bankruptcy estate over $18,000 worth of jewelry and over $138,000 which Sandra Sue Allen received from her mother who had died in March 2005. The alleged scheme involved converting the proceeds which Sandra Sue received from the sale of her mother’s home in Chicago into a series of bank cashier checks during the existence of the bankruptcy estate. The checks were then used to purchase land in Zachary and two mobile homes that were placed on the land. None of the transactions were disclosed in the bankruptcy proceedings. Public records associated with both the purchase of the land and attaching the mobile homes to the land indicated the two defendants were unmarried women.

If convicted of all counts, Sandra Sue Allen could receive a maximum sentence of forty years imprisonment and a $2 million fine, while Lee M. Allen could receive a maximum sentence of thirty years imprisonment and a $1.5 million fine.

The case was investigated by the Federal Bureau of Investigation; the Office of the United States Trustee in Bankruptcy, Fifth District, headquartered in New Orleans; and Assistant U.S. Attorney Ian F. Hipwell.

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.

14 May FEMA Fraud - One Pleads Guilty, One Sentenced, Two Indicted

ANOTHER PLEADS GUILTY, ANOTHER SENTENCED, AND TWO MORE INDICTED IN BATON ROUGE, LOUISIANA, ON DISASTER RELIEF FRAUD CHARGES

BATON ROUGE, LA – United States Attorney David R. Dugas announced that another Louisiana resident was sentenced, another pled guilty, and two more were indicted during the last week in federal court on fraud charges related to hurricane disaster relief programs.

STACIE D. ELLERSON, age 44, of Baton Rouge, Louisiana, was charged in a three-count indictment by a federal grand jury on May 7 with wire fraud (Count One), making a false claim (Count Two), and making false statements (Count Three). The indictment alleges that ELLERSON submitted an application to the Federal Emergency Management Agency (FEMA) for Hurricane Katrina disaster assistance benefits that contained false and fraudulent representations, causing her to receive benefits to which she was not entitled. The charges resulted from an investigation conducted by the U.S. Postal Service’s Office of Inspector General and the U.S. Department of Homeland Security’s Office of Inspector General. If convicted on Count One, ELLERSON faces a maximum sentence of twenty (20) years imprisonment, a $250,000 fine, or both. In convicted on Counts Two or Three, ELLERSON faces a maximum sentence of five (5) years imprisonment, a $250,000 fine, or both, per count.

VERONICA A. WILLIAMS, age 40, of Geismar, Louisiana, was charged in a two-count indictment by a federal grand jury on May 7 with mail fraud (Count One) and making a false claim (Count Two). The indictment alleges that WILLIAMS, after having already filed an application to FEMA for Hurricane Katrina disaster assistance benefits in her own name, submitted, and aided and abetted another to submit, an application to FEMA for disaster benefits that contained false and fraudulent representations. The submission of the fraudulent application caused FEMA to mail disaster relief funds to a Post Office box in Geismar, Louisiana, allowing WILLIAMS to gain control over the funds, knowing that they had been obtained as a result of fraud. The charges resulted from an investigation conducted by the U.S. Postal Inspection Service. If convicted on Count One, WILLIAMS faces a maximum sentence of twenty (20) years imprisonment, a $250,000 fine, or both. If convicted on Count Two, WILLIAMS faces a maximum sentence of five (5) years imprisonment, a $250,000 fine, or both.

SANDRA R. DAVIS, age 38, of Baton Rouge pled guilty on May 12, 2009, before U.S. District Court Judge Frank J. Polozola to Count One of an indictment charging her with mail fraud in connection with the filing of a fraudulent application for disaster assistance benefits.
The case was investigated by the U.S. Postal Inspection Service. As a result of her guilty plea, DAVIS faces a maximum sentence of twenty years imprisonment, a $250,000 fine, or both. She may also receive a term of supervised release after imprisonment of not more than three years. According to the plea agreement, the Court will order DAVIS to pay restitution in the amount of $6,386.

CHARLES P. JENKINS, JR., age 38, of Baton Rouge, Louisiana, pled guilty on September 22, 20008, to Count One of an indictment charging him with making a false claim, in connection with the filing of a fraudulent application for disaster assistance benefits. JENKINS was sentenced today by Chief U.S. District Court Judge Ralph E. Tyson to three years of probation and $2,000 in restitution. The U.S. Postal Service’s Office of Inspector General and the U.S. Department of Homeland Security’s Office of Inspector General conducted the investigation of this matter.

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 seventy-four.

24 April FEMA Fraud - Another Sentenced

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

BATON ROUGE, LA – United States Attorney David R. Dugas announced that another Louisiana resident was sentenced yesterday on fraud charges related to a hurricane disaster relief program. GERALDINE J. FRANKLIN, age 50, of Baton Rouge, Louisiana, pled guilty on January 15, 2009, to two counts of making a false claim in connection with applications submitted to federal agencies providing Hurricane Katrina disaster assistance benefits. On or about September 9, 2005, FRANKLIN submitted a fraudulent application with the United States Department of Agriculture for Hurricane Katrina disaster food stamp assistance, falsely claiming disaster-related food expenses and falsely claiming that Hurricane Katrina damaged or destroyed her home and delayed or reduced her household income. On or about September 15, 2005, FRANKLIN submitted a fraudulent application for Hurricane Katrina disaster relief benefits with the Federal Emergency Management Agency (FEMA), fraudulently misrepresenting her primary residence at the time of the storm and falsely claiming that Hurricane Katrina caused damage to her home and personal property at this fraudulent address. FRANKLIN was sentenced yesterday by U.S. District Court Judge James J. Brady to three years of probation, $2,786 in restitution, and $200 in special assessments. The U.S. Postal Service’s Office of Inspector General, the U.S. Department of Homeland Security’s Office of Inspector General, and the U.S. Department of Agriculture’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 seventy-two.

24 April Donald Auzine Sentenced

DEFENDANT SENTENCED IN BATON ROUGE, LOUISIANA, ON CHARGE OF UNLAWFUL DISPENSATION OF CONTROLLED SUBSTANCES

BATON ROUGE, LA – United States Attorney David R. Dugas announced that DONALD P. AUZINE, age 39, of Prairieville, Louisiana, was sentenced today in federal court by Chief U.S. District Court Judge Ralph E. Tyson on a charge of unlawful dispensation of controlled substances, in violation of Title 21, United States Code, Section 841(a)(1).

AUZINE was a physician registered by the DEA to dispense controlled substances in the course of his professional practice. From June 2007 through March 2008, AUZINE either prescribed or directed the dispensing of the following controlled substances without a legitimate medical purpose and not in the usual course of medical practice: Adderall, a Schedule II controlled substance; Oxycodone, a Schedule II controlled substance; Hydrocodone, a Schedule III controlled substance; and Benzphetamine, a Schedule III controlled substance.

AUZINE pled guilty on May 19, 2008, and was sentenced today to a term of imprisonment of thirty-seven months followed by a term of supervised release of three years, and a $10,000 fine. AUZINE was released on bond and was ordered to report to a facility designated by the Bureau of Prisons on June 1, 2009.

“Medical doctors occupy a special position of privilege and trust in our society. Doctors who abuse that trust by illegally dispensing controlled substances are subject to the Controlled Substances Act and will be dealt with accordingly,” said U. S. Attorney David R. Dugas.

This case was investigated by the U.S. Drug Enforcement Administration, the U.S. Food and Drug Administration, the Internal Revenue Service, the Federal Bureau of Investigation, the Ascension Parish Sheriff’s Office, and the Baton Rouge City Police Department, and was prosecuted by Assistant United States Attorney Joseph E. Blackwell.

23 April David Norman Sentenced

DENHAM SPRINGS RESIDENT SENTENCED ON CHILD PORNOGRAPHY CHARGE

BATON ROUGE, LA – United States Attorney David R. Dugas announced today that DAVID NORMAN, age 40, of Denham Springs, Louisiana, was sentenced this morning by U.S. District Court Judge James J. Brady on a child pornography charge. NORMAN pled guilty on September 30, 2008, to a bill of information charging him with receiving child pornography, in violation of Title 18, United States Code, Section 2252(a)(2). NORMAN was sentenced to a term of imprisonment of 121 months followed by ten years of supervised release.

This case was brought as part of Project Safe Childhood. In February 2006, Attorney General Alberto R. Gonzales created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, 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 identify and rescue victims.

This investigation involved the U.S. Attorney’s Office for the Middle District of Louisiana; the Livingston Parish Sheriff’s Office; the London, England, Metropolitan Police; and the U.S. Department of Homeland Security, Immigration and Customs Enforcement. This matter was prosecuted by Assistant United States Attorney Rich Bourgeois.

2 April Blunt Pleads Guilty

GUILTY PLEA IN BATON ROUGE, LOUISIANA, TO CHARGE OF MAKING A FALSE CLAIM

BATON ROUGE, LA – United States Attorney David R. Dugas announced that BARBARA WILLETT BLUNT, age 57, of Baton Rouge, Louisiana, pled guilty yesterday before U.S. District Court Judge James J. Brady to a Bill of Information charging her with making a false claim in violation of Title 18, United States Code, Section 287.

The Bill of Information to which Blunt pled charged that BLUNT defrauded the State of Louisiana and the U.S. Department of Health and Human Services by submitting a false and fraudulent claim seeking funds from the Child Care Assistance Program (CCAP), a federally funded program to assist children from low income families. According to the factual basis presented to the Court by the United States, BLUNT served as the owner and Chief Executive Officer of a child care facility known as “Nanna’s House” in Baton Rouge. In examining the records of Nanna’s House, auditors and agents identified a pattern of over-billing during a five-year period from 2003 through 2008. The Plea Agreement entered into between BLUNT and the United States stipulates that BLUNT owes the United States $298,248 in restitution.

As a result of her guilty plea, BLUNT faces a maximum sentence of a term of imprisonment of five years, a $250,000 fine, or both. The Court may also order BLUNT to pay restitution in accordance with law. Sentencing has not yet been set.

This matter was investigated by the U.S. Department of Health and Human Services’ Office of Inspector General and the Louisiana Department of Social Services (DSS). The case is being prosecuted by Assistant United States Attorney René I. Salomon.

Special Agent in Charge Mike Fields of the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations, Dallas Regional Office, said, “Government program fraud is a major and increasingly serious problem that costs
taxpayers billions of dollars while depriving children and families in need of the care and support they deserve."

DSS Secretary Kristy Nichols said, “For an individual to use the guise of a child care to line her pockets illegally with over a quarter of a million dollars of public money only reiterates the importance of steps we have already begun to take to crack down on fraud and abuse at child care centers with the use of technology. The Child Care Provider Task Force is an important effort by the U.S. Attorney, Health and Human Services’ Office of the Inspector General, DSS and the Louisiana Attorney General to fight child care fraud, and we look forward to working with them to put an end to future fraud and abuse.”

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.

1 April Davis Pleads Guilty

FORMER BATON ROUGE, LOUISIANA POLICE OFFICER
PLEADS GUILTY TO CIVIL RIGHTS VIOLATION

WASHINGTON – Nathan Davis, a former police officer with the Baton Rouge Police Department in Baton Rouge, La., pleaded guilty today to a felony civil rights violation for use of excessive force, announced David R. Dugas, U.S. Attorney for the Middle District of Louisiana, and Loretta King, Acting Assistant Attorney General for Civil Rights. At today’s court hearing, defendant Davis admitted that he intentionally used excessive force in March 2007 against a man who had been arrested, handcuffed and taken to a police department holding center.

Davis admitted that he purposefully used excessive and unreasonable force against B.T, a man who at the time of the abuse was handcuffed and sitting on the floor of a detention cell, by pepper spraying him in the face without any justification. Davis faces a maximum of ten years in prison. The court has not yet scheduled sentencing.

“When a police officer, like the defendant, misuses his authority to abuse a person entrusted to his care, he violates the public trust and he makes it more difficult for other law enforcement officers to do their very difficult jobs,” Acting Assistant Attorney General King said. “The Civil Rights Division is committed to the vigorous enforcement of federal laws prohibiting this type of misconduct by law enforcement officials.”

U.S. Attorney Dugas said “No one in this country, including law enforcement officers, is above the law.”

This case was investigated by the FBI and the Baton Rouge Police Department and was prosecuted by Assistant U.S. Attorney Robert Piedrahita and Civil Rights Division Trial Attorney Kathleen Monaghan.

The United States Attorney's Office

Middle District of Louisiana

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