2010 Press Releases
January - March
26 March FEMA Fraud - Taylor Sentencing
16 March Illegal Motion Stevens Bill
10 March Timothy Strain Arrest and Complaint
4 March FEMA Fraud - Montgomery T Sentencing
3 March Lee Guilty Plea
25 February Tammy Copeland Indictment
23 February Annual African American Heritage Celebration
18 February Dignam Indictment
17 February Thompson Sentencing
17 February Cotten Guilty Plea
14 January Neilson Press Release
13 January Chemical and Metal Industries Guilty Plea
26 March FEMA Fraud - Taylor Sentencing
SENTENCING IN BATON ROUGE, LOUISIANA, ON DISASTER RELIEF FRAUD CHARGE
BATON ROUGE, LA – United States Attorney David R. Dugas announced that another Louisiana resident was sentenced by U.S. District Court Judge Frank J. Polozola this week on a fraud charge related to a hurricane disaster relief program.
CHERYL M. TAYLOR, age 49, of Greensburg, Louisiana, pled guilty on July 9, 2009, to a bill of information charging her with forgery against the United States, in violation of Title 18, United States Code, Section 495. According to the stipulated factual basis in the plea agreement, TAYLOR altered the face of a U.S. Treasury check that had been made out to her for disaster relief benefits in the amount of $1,425 so that it appeared to be payable in the amount of $11,425. TAYLOR knew that she was only entitled to $1,425. It was further stipulated that TAYLOR took the check to her bank and caused it to be deposited into her personal account, which was credited with a deposit of $11,425. TAYLOR was sentenced this week to a term of imprisonment of two months followed by three years of supervised release. TAYLOR was also ordered to pay $5,293.99 in restitution to the Bank of Greensburg.
The Federal Bureau of Investigation and the U.S. Department of Homeland Security’s Office of Inspector General conducted the investigation of this case.
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 Disaster Fraud Hotline, 1-866-720-5721, 24 hours a day, seven days a week, until further notice. Information can also be emailed to the National Center for Disaster Fraud at disaster@leo.gov or sent by surface mail, with as many details as possible, to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
16 March Illegal Motion Stevens Bill
RACKETEERING CHARGED IN OPERATION “ILLEGAL MOTION”
BATON ROUGE, LA – United States Attorney David R. Dugas announced today that ROBERT L. STEVENS, age 61, of Baton Rouge, Louisiana, was charged in a Bill of Information with conspiracy to use interstate facilities in aid of racketeering for allegedly accepting bribes from individuals with pending criminal charges in the Baton Rouge City Court, and then sharing the proceeds of the bribes with a prosecutor who would arrange for the matters to be dismissed or otherwise “fixed.” The initial appearance and arraignment on these charges have not yet been scheduled.
The charges against STEVENS resulted from Operation “Illegal Motion,” an ongoing investigation conducted by the Federal Bureau of Investigation and the United States Attorney’s Office with the cooperation of the Louisiana Office of Inspector General; the Louisiana State Police; the Internal Revenue Service, Criminal Investigative Division; the Department of Homeland Security, Office of Inspector General and the Louisiana Department of Environmental Quality, Criminal Investigations Division. The cases are being prosecuted by Deputy Criminal Chief Corey R. Amundson and Assistant United States Attorney M. Patricia Jones.
STEVENS is the tenth individual charged as a result of Operation “Illegal Motion.” Nine
individuals have previously pleaded guilty to charges arising out of the investigation. STEVENS faces a maximum sentence of five (5) years in prison and a fine of $250,000.
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.
NOTE: A Bill of Information is a determination by the U.S. Attorney’s Office that there is probable cause to believe that an offense has been committed by the defendant. The defendant, of course, is presumed innocent until and unless he is proven guilty at trial.
10 March Timothy Strain Arrest and Complaint
ARREST IN BATON ROUGE, LOUISIANA, ON FRAUD CHARGES
United States Attorney David R. Dugas announced that TIMOTHY M. STRAIN, age 47, of Baton Rouge, Louisiana, was arrested today pursuant to a Criminal Complaint signed by U.S. District Court Magistrate Judge Christine M. Noland charging STRAIN with mail fraud and bank fraud. The affidavit filed in support of the Complaint alleges that STRAIN used fraudulent money orders to pay the balance due on two vehicle loans.
The mail fraud charge carries a maximum sentence of twenty years in prison. The bank fraud charge carries a maximum sentence of thirty years in prison.
The charges in the Complaint are the result of an ongoing investigation by the Treasury Inspector General for Tax Administration (TIGTA), the Federal Bureau of Investigation and the United States Attorney’s Office for the Middle District of Louisiana.
NOTE: A complaint is an accusation by a law enforcement agent 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.
4 March FEMA Fraud - Montgomery T Sentencing
SENTENCING IN BATON ROUGE, LOUISIANA, ON DISASTER RELIEF FRAUD CHARGE
BATON ROUGE, LA – United States Attorney David R. Dugas announced that another Louisiana resident was sentenced by U.S. District Court Judge Frank J. Polozola yesterday on a fraud charge related to a hurricane disaster relief program.
TERRY D. MONTGOMERY, age 25, of Baton Rouge, Louisiana, pled guilty on July 23, 2008, to Count Two of an indictment charging illegal conversion of government property in connection with his fraudulent receipt of Federal Emergency Management Agency (FEMA) disaster relief benefits after Hurricane Katrina. MONTGOMERY was sentenced yesterday to a term of imprisonment of twelve months, followed by three years of supervised release. MONTGOMERY was also ordered to pay $2,000 in restitution.
The U.S. Postal Inspection Service conducted the investigation of this case with assistance from 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 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 Disaster Fraud Hotline, 1-866-720-5721, 24 hours a day, seven days a week, until further notice. Information can also be emailed to the National Center for Disaster Fraud at disaster@leo.gov or sent by surface mail, with as many details as possible, to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
BUSINESSMAN CONVICTED OF CORRUPTION AND GUN CHARGES IN OPERATION ILLEGAL MOTION
BATON ROUGE, LA – United States Attorney David R. Dugas announced today that MICHAEL LEE, age 46, of Baton Rouge, Louisiana, appeared before U.S. District Court Judge James Brady and pleaded guilty to charges contained in a corruption-related indictment (“corruption indictment”) and a firearm-related indictment (“firearm indictment”).
With regard to the corruption indictment, LEE pleaded guilty to conspiring to violate the Racketeer Influenced and Corrupt Organizations Act (RICO), violating the RICO Act, using an interstate facility in aid of racketeering, and making false statements to the FBI. With regard to the firearm indictment, LEE pleaded guilty to possessing a firearm in violation of a protective order. LEE faces up to 60 years in prison and a $1,250,000 fine.
During today’s hearing, LEE admitted to, among other things, facilitating cash payments to Edward James in exchange for James causing the corrupt dismissal, reduction, or otherwise “fixing” of numerous charges against LEE and others, including battery, domestic violence, and drug charges. LEE also admitted that he lied to FBI agents and that he advised “John Doe” to bribe the victim in a battery case so that the victim would not complain about the battery case being corruptly dismissed.
LEE is the ninth individual convicted as a result of Operation “Illegal Motion.”
The charges against LEE result from Operation “Illegal Motion,” an ongoing investigation conducted by the Federal Bureau of Investigation and the United States Attorney’s Office with the cooperation of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Louisiana Office of Inspector General; the Louisiana State Police; the Internal Revenue Service, Criminal Investigative Division; the U.S. Department of Homeland Security, Office of Inspector General; and the Louisiana Department of Environmental Quality, Criminal Investigations Division. The cases are being prosecuted by Deputy Criminal Chief Corey R. Amundson and Assistant United States Attorney M. Patricia Jones.
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.
25 February Tammy Copeland Indictment
INDICTMENT IN BATON ROUGE, LOUISIANA, ON CHARGE OF USE OF INTERSTATE FACILITIES IN THE COMMISSION OF A MURDER FOR HIRE
United States Attorney David R. Dugas announced that a federal grand jury returned an indictment today charging TAMMY L. COPELAND, age 34, of Denham Springs, Louisiana, with the use of interstate facilities in the commission of a murder for hire.
A Criminal Complaint was filed on February 17, 2010, alleging that COPELAND attempted to hire someone to kill her ex-husband who lives in Canada. The indictment alleges that COPELAND used a federally insured credit union and a telephone, and caused another to use a telephone, facilities of interstate commerce, with the intent that the murder be committed in violation of Louisiana law (Louisiana Revised Statutes 14:30.1 – second degree murder; 14:28.1 – solicitation for murder; and 14:27 and 14:30:2 – attempted second degree murder) as consideration for the receipt of $5,000 in United States currency.
If convicted, COPELAND could receive a maximum sentence of ten years imprisonment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Robert Piedrahita.
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 she is proven guilty at trial.
23 February Annual African American Heritage Celebration
ANNUAL AFRICAN AMERICAN HERITAGE CELEBRATION
AT THE BATON ROUGE FEDERAL COURTHOUSE
BATON ROUGE, LA – Chief Judge Ralph E. Tyson, Judge James J. Brady, Judge John V. Parker, and Judge Frank J. Polozola of the United States District Court for the Middle District of Louisiana and the agencies of the federal courthouse will host the Fifteenth Annual Federal Courthouse African American Heritage Celebration at 1:00 p.m. on Friday, February 26, 2010, in Courtroom 1, on the third floor of the Russell B. Long Federal Building and Courthouse.
The featured guest speaker will be Sylvia Weatherspoon, co-anchor of WBRZ News 2 Louisiana. Musical entertainment will be provided by Southern University Interdenominational Choir.
Members of the public and the press are invited to attend. For further information, please contact Michael Jefferson, Assistant United States Attorney, at (225) 389-0443.
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 yesterday charging GAIL RAY DIGNAM, age 62, a resident of New Orleans, Louisiana, with mail fraud, in violation of Title 18, United States Code, Sections 1341 and 2.
The two-count indictment alleges that Dignam, in 2004 and 2005, used her position as Director of the Louisiana Governor’s Program on Abstinence (GPA) to defraud the State of Louisiana. The indictment alleges that Dignam defrauded the GPA by, among other things, fraudulently executing a contract between the GPA and a GPA contractor and then preparing and submitting fraudulent monthly invoices and time-sheets in the contractor’s name, all without the contractor’s knowledge or authority. In her role as Director of the GPA, Dignam approved the fraudulent invoices for payment and directed a portion of the money to her son.
“Fraud against federally funded programs will be vigorously investigated by the Office of Inspector General,” said Mike Fields, Special Agent in Charge of the Dallas region of the Office of Inspector General for the U.S. Department of Health and Human Services. “The mere allegation of corruption in a federal program hampers its effectiveness and diminishes its value in the eyes of the people. We hope this indictment sends a warning that the HHS Office of Inspector General will not tolerate fraud against HHS programs.”
If convicted of both counts, Gail Ray Dignam could receive a maximum sentence of forty years imprisonment and a $500,000 fine.
The case was investigated by the Office of Inspector General for the United States Department of Health and Human Services, the Federal Bureau of Investigation, and the Louisiana Legislative Auditor. The case is being prosecuted by Assistant U.S. Attorneys René Salomon and Alan A. Stevens of the United States Attorney’s Office for the Middle District of Louisiana.
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.
17 February Thompson Sentencing
WHITE COLLAR DEFENDANT SENTENCED TO 309 YEARS IN PRISON
BATON ROUGE, LA – United States Attorney David R. Dugas announced today that Chief U.S. District Judge Ralph E. Tyson sentenced ROBERT THOMPSON, also known as John Lawson, age 43, of Zachary, Louisiana, to a term of imprisonment of 309 years. THOMPSON, the leader of a massive identity theft and bribery scheme, was sentenced based on charges of conspiracy, wire fraud, mail fraud, bank fraud, computer fraud, access device fraud, aggravated identity theft, money laundering, and obstruction of justice. This is the longest sentence of any white collar offender in the history of the Middle District of Louisiana.
The matter involved THOMPSON engaging in multiple conspiracies with numerous co-conspirators to obtain and use the personal and financial information of over sixty-one (61) 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, THOMPSON bribed a corrections officer at Elyan Hunt Correctional Center $10,000 to provide THOMPSON with cell phones while an inmate at the facility.
The other charged defendants include:
* ECKNOZZIO C. JACKSON, age 39, 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 41, of New Iberia, Louisiana, has pled guilty to conspiracy to commit wire fraud, mail fraud, and money laundering.
* SEDRIC L. JACKSON, age 36, of Baton Rouge, Louisiana, has pled guilty to conspiracy to commit wire fraud and obstruct justice.
* DACOBIA L. HAMILTON, age 32, of Baton Rouge, Louisiana has pled guilty to wire fraud.
* ZELBONY O. TAYLOR, age 33, of Baton Rouge, Louisiana, has plead guilty to conspiracy to commit wire fraud and obstruct justice.
* MURKEL L. PARKER, age 34, of Baton Rouge, Louisiana, has plead guilty to unauthorized use of an access device.
* BARBARA THOMAS, age 47, of Tallulah, Louisiana, has plead guilty to wire fraud.
* KELVIN ARCHIE, age 41, 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 Elyan 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.
17 February Cotten Guilty Plea
GUILTY PLEA IN BATON ROUGE, LOUISIANA, TO WILLFULLY SUBSCRIBING A MATERIALLY FALSE TAX RETURN AND FELON IN POSSESSION
BATON ROUGE, LA – United States Attorney David R. Dugas announced that SHAWN O’SHAY COTTEN, age 44, of Baton Rouge, Louisiana, pled guilty February 4 before Chief U.S. District Court Judge Ralph E. Tyson to Count One of an indictment charging him with willfully filing a materially false tax return for the year 2000, in violation of Title 26, United States Code, Section 7206(1) and one count of an indictment charging him with possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1).
According to the stipulated factual basis, COTTEN operated an internet business which sold herbal and dietary supplements throughout the United States. On his 2000 tax return, COTTEN under-stated his businesses’ gross receipts by approximately $307,057. Such misrepresentation of his businesses’ gross receipts caused a tax loss of $122,740 to the United States.
On September 16, 2009, while COTTEN was on pre-trial release, Deputy United States Marshals arrested him for failing to appear in court as scheduled. Because COTTEN was found in possession of multiple firearms, and had been previously convicted of wire fraud in 1994, he was deemed a felon in possession of firearms.
As a result of his guilty pleas to tax fraud and felon in possession of firearms, COTTEN faces a maximum sentence of a term of imprisonment of not more than thirteen (13) years, a $500,000 fine, or both, in addition to restitution in the amount of $171,892. Sentencing has not yet been set.
This matter was investigated by Special Agents of the Internal Revenue Service-Criminal Investigations and the United States Marshals Service. The matter is being prosecuted by Assistant United States Attorneys René I. Salomon and Walt Green, along with Kevin Lombardi and Matt Mueller , attorneys of the Department of Justice Tax Division.
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.
14 January Neilson Press Release
INDICTMENT IN OXFORD, MISISSIPPI, ON CHARGES OF ACTS AFFECTING A PERSONAL FINANCIAL INTEREST AND FALSE STATEMENTS TO A FEDERAL AGENCY AND AGENT
United States Attorney David R. Dugas announced that a federal grand jury returned a five- count indictment charging PHILIP HALBERT NEILSON, age 49, a resident of Oxford, Mississippi, with acts affecting a personal financial interest and false statements to a federal agency and agent.
The indictment alleges that NEILSON is a Special Agent of the Federal Bureau of Investigation (FBI) and that beginning in 2001 he took an active part in the construction and lease of the Oxford FBI Building. Counts One and Two allege that NEILSON failed to disclose to the FBI the fact that he had a financial interest in the Oxford FBI Building since 2004.
Counts Three and Four allege that in 2004 and 2005, as the Supervisory Senior Resident Agent in Charge of the Oxford Resident Agency, NEILSON was required to truthfully complete an annual report of his assets and income, liabilities, and positions with organizations outside of his FBI employment. The indictment further alleges that NEILSON knowingly and willfully made and used, and caused to be made and used, a false writing and document (that is, his 2004 and 2005 Confidential Financial Disclosure Reports), knowing the Reports to contain material false and fraudulent statements and entries.
Count Five alleges that in October 2008, NEILSON knowingly and willfully made, and caused to be made, a materially false and fraudulent statement and representation to an agent of the Department of Justice, Office of the Inspector General, during an interview of NEILSON.
If convicted of all counts, PHILIP HALBERT NEILSON could receive a maximum sentence of twenty-five years imprisonment and a $1.25 million fine.
The case is being investigated by Special Agent Susan Howell of the Department of Justice, Office of the Inspector General, and Assistant United States Attorneys René Salomon and Rich Bourgeois of the United States Attorney’s Office for the Middle District of Louisiana.
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 is, of course, presumed innocent until and unless he is proven guilty at trial.
13 January Chemical and Metal Industries Guilty Plea
COLORADO COMPANY PLEADS GUILTY IN CONNECTION WITH DEATH OF HONEYWELL EMPLOYEE
BATON ROUGE, LA - United States Attorney David R. Dugas announced that Chemical and Metal Industries Inc. ((C&MI(), a company based in Colorado, pled guilty before U.S. District Court Judge James J. Brady today to 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). As a result of its guilty plea, the defendant corporation faces a term of probation of up to five years and a fine the greater of five hundred thousand dollars ($500,000), twice the gross gain from the offense, or twice the gross loss from the offense. The Court may also order restitution to the victim.
Today(s guilty plea stems from a long-running investigation by the U.S. Attorney(s Office, the U.S. Environmental Protection Agency(s Office of Criminal Enforcement, and the Louisiana State Police into an incident that occurred in the summer of 2003 at Honeywell(s Baton Rouge Plant. 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 a 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.
In 2008, 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.(
"C&MI's mislabeling of a hazardous waste contributed to the death of a worker and serves as a lesson to those who falsely argue that environmental crimes are 'only paper' violations," said Ivan Vikin, Special Agent-in-Charge of EPA's Office of Criminal Enforcement in Dallas. "Anyone who 'cuts corners' and puts the public or the environment at risk will be prosecuted."
This case is being prosecuted by Assistant United States Attorney Corey R. Amundson, who serves as a Deputy Chief of the Criminal Division.
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.