2011 Press Releases
July - September
23 September Miller Conviction Child Pornography
22 September Wilkerson Indictment
15 September Tax Preparer Edwards Sentencing
12 September MET Press Release
25 August MSBR Dangerfield Sentencing
18 August LOGA Guilty Plea
18 July MSBR Sentencing
14 July Valentine Fredrica Sentencing
8 July Copeland Guilty Plea
23 September Miller Conviction Child Pornography
LOUISIANA MAN CONVICTED OF
PRODUCING AND POSSESSING CHILD PORNOGRAPHY
WASHINGTON – Paul W. Miller of Denham Springs, La., was convicted late yesterday of two counts of producing and one count of possessing child pornography, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and United States Attorney Donald J. Cazayoux, Jr. of the Middle District of Louisiana.
Miller, 44, was convicted by a federal jury following a three-day trial. United States District Judge James J. Brady presided over the trial.
Evidence presented at trial showed that from October 2007 to May 2008, Miller sexually abused a 12-year-old girl and an 11-year-old girl and produced numerous photographs of the abuse. According to trial evidence, forensic examination of Miller’s computer revealed that Miller had used his computer to print and possess numerous images of child pornography, including both the images of child pornography he had produced and images of other child victims.
United States Attorney Donald J. Cazayoux, Jr., stated, “It is loathsome that there are people who treat our children in the way this defendant victimized these children. Rest assured that we will do everything in our power to prosecute these predators to the fullest extent under the law.”
Miller faces a maximum statutory sentence of 30 years in prison for each count of production of child pornography and 10 years in prison for the possession of child pornography count.
The case is being prosecuted by Trial Attorney Alecia Riewerts Wolak of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant United States Attorney Richard L. Bourgeois Jr. of the Middle District of Louisiana. The investigation was conducted by the FBI, the Denham Springs Police Department, and the Louisiana Attorney General’s Office.
22 September Wilkerson Indictment
OWNER OF BATON ROUGE
TAX PREPARATION SERVICE INDICTED
BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced that a Federal Grand Jury returned an indictment on Thursday, September 22, 2011, charging RONALD WAYNE WILKERSON, 42, of Baton Rouge, Louisiana, with endeavoring to impede the Internal Revenue Service, assisting the preparation of false tax returns, bank fraud, engaging in monetary transactions with criminally derived funds, and money laundering.
WILKERSON faces a maximum sentence of 232 years in prison, fines of $9,500,000, and forfeiture of all proceeds of the bank fraud and money laundering transactions.
The Indictment alleges that from July 2004 through April 2007, WILKERSON caused 635 false tax returns, claiming approximately $1,415,388 in false telephone excise tax refunds, to be submitted to the IRS. Based upon the false claims for telephone excise tax refunds, WILKERSON caused the IRS to issue refunds of $119,450. Upon identifying the fraud through proactive data analysis, the IRS refused to refund the remaining false claims of $1,295,938. As a result of the scheme, WILKERSON collected tax preparation fees of approximately $485,939, which funds he attempted to remove from a business bank account on the date that a search of the business premises was conducted for evidence of the scheme.
The Indictment also alleges that WILKERSON submitted many of the 635 false tax returns to HSBC Bank for the purpose of obtaining refund anticipation loans for taxpayers. The bank approved approximately 250 loans and ultimately lost approximately $500,959 as a result of the false tax returns which were supposed to serve as collateral for the refund anticipation loans.
“Return Preparer fraud is a priority for IRS Criminal Investigation and we have committed many resources to investigating and prosecuting cases just like these,” said Jim Lee, Special Agent in Charge, IRS-CI, New Orleans Field Office. “Taxpayers should be very selective in choosing a return preparer and have confidence knowing that person will prepare accurate tax returns which will not make fraudulent claims for refunds for which they are not entitled.”
U.S. Attorney Donald J. Cazayoux, Jr., stated, “We will continue to aggressively investigate and prosecute individuals who defraud the IRS and financial institutions. Diverting taxpayer monies to the benefit of corrupt tax preparers will not be tolerated. This investigation is another great example of federal agencies cooperating to combat such illegal activity in our community.”
The investigation of WILKERSON was conducted by the Internal Revenue Service Criminal Investigations. The case is being prosecuted by Assistant United States Attorney Rene Salomon.
NOTE: An indictment is a determination by a grand jury that probable cause exists to believe that offenses have been committed by a defendant. The defendant is presumed innocent until and unless proven guilty at trial.
15 September Tax Preparer Edwards Sentencing
BATON ROUGE, LA., TAX PREPARER SENTENCED TO PRISON FOR AIDING IN PREPARATION OF FALSE TAX RETURNS
WASHINGTON - Melissa Edwards was sentenced by U.S. District Court Judge Brian A. Jackson to 30 months in prison based on her plea of guilty to one count of wilfully aiding and assisting in the preparation and filing of a false income tax return, the Justice Department and Internal Revenue Service (IRS) announced today. The court also ordered Edwards to serve a one-year term of supervised release following her prison term and to pay restitution to the IRS in the amount of $56,040. The case arises out of a March 31, 2010, indictment filed in the Middle District of Louisiana.
According to her plea agreement, Edwards, who worked at Jasmine and Melissa’s Tax Service in Baton Rouge, La., prepared fraudulent tax returns for 20 clients that reported falsely inflated telephone excise tax refund (TETR) credits in the total amount of $126,856. The TETR credit was a one-time credit available to taxpayers for the 2006 year. The sentencing court found that the tax loss, including all relevant conduct, was between $400,000, but less than $1 million.
John A. DiCicco, Principal Deputy Assistant Attorney General for the Department of Justice Tax Division, commended the IRS Special Agents who investigated this case, as well as Tax Division Trial attorneys Kevin C. Lombardi and Matthew J. Mueller, and Assistant U.S. Attorney Rene Salomon of the Middle District of Louisiana, who prosecuted the case.
United States Attorney Donald J. Cazayoux, Jr., stated, “We will continue to work with the Department of Justice to stamp out tax fraud in this district.”
More information about the Justice Department’s Tax Division and its enforcement efforts is available at www.usdoj.gov/tax/.
12 September MET Press Release
FORTY-EIGHT DRUG DEALERS CHARGED
United States Attorney Donald J. Cazayoux, Jr, DEA Special Agent-in-Charge Jimmy S. Fox III, Ascension Parish District Attorney Ricky Babin, Ascension Parish Sheriff Jeff Wiley, and Gonzales Chief of Police Sherman Jackson announced today the issuance of federal grand jury indictments against 25 individuals and the issuance of state drug warrants against 23 individuals accused of distributing illegal narcotics in Ascension Parish, Louisiana. The indictments and warrants result from a three month deployment of the DEA New Orleans Field Division’s Mobile Enforcement Team (MET) to Gonzales, Louisiana, at the request of and with the assistance of the Ascension Parish Sheriff’s Office and the Gonzales Police Department. The DEA, United States Marshal’s Service, Ascension Parish Sheriff’s Office, and Gonzales Police Department deployed arrest teams in the Gonzales area this morning to begin making arrests of these 48 individuals. Initial appearances for the defendants charged by federal indictment who were arrested today are being conducted tomorrow afternoon before Magistrate Judge Dolcia Dalby of the Middle District of Louisiana.
The Mobile Enforcement Team program was created by DEA in 1995 to respond to the problem of drug-related violent crime that plagues neighborhoods and communities throughout the United States. The MET program helps local law enforcement agencies attack the drug organizations in their neighborhoods and restores a safer environment for the residents of these communities. Local police chiefs and sheriffs can submit requests to the DEA for a MET deployment in their area. Upon approval, the entire MET team is deployed to the community to work with local law enforcement in a coordinated investigation of drug trafficking organizations in the community. Areas where MET teams have been successfully deployed typically see a reduction in not only drug trafficking activities, but also in other drug related crimes, including violent crimes.
United States Attorney Cazayoux said, “This MET deployment conducted by the New Orleans Mobile Enforcement Team was highly successful and should result in a significant reduction in drug trafficking and related criminal activity in Ascension Parish. The MET concept relies heavily on the support and assistance of local law enforcement authorities who provide the drug trafficking intelligence and local knowledge essential to successful drug investigations. I want to commend Sheriff Wiley, Chief Jackson, and their departments for their professional and tireless support of this investigation.”
DEA SAC Jimmy S. Fox III stated, “Today’s indictments and arrests stand as a warning to those individuals whose greed drives them to pollute the City of Gonzales and Ascension Parish with poisonous contraband. The message that law enforcement continues to send to drug dealers is, selling drugs will bring an end to your freedom..”
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.
25 August MSBR Dangerfield Sentencing
BATON ROUGE WOMAN SENTENCED TO 30-MONTH PRISON TERM FOR HEALTH CARE FRAUD
BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced that STEPHANIE DANGERFIELD, age 50, of Baton Rouge, Louisiana, was sentenced this morning by U.S. District Court Judge James J. Brady to serve thirty (30) months in federal prison for her role in a multi-year health care fraud scheme that she perpetrated in the Baton Rouge area.
DANGERFIELD was charged, along with three others, in a superseding indictment that was filed on December 8, 2010. The indictment alleged that DANGERFIELD was a manager of a company known as Medical Supplies of Baton Rouge, Inc. (“MSBR”), which was engaged in the business of providing power wheelchairs, orthotics, and other durable medical equipment to Medicare beneficiaries. In connection with her guilty plea, DANGERFIELD admitted that from on or about November 2005, through at least on or about early 2008, she conspired with her co-defendants to use MSBR to defraud the Medicare Program and commit health care fraud. Specifically, DANGERFIELD and her co-conspirators routinely submitted claims to Medicare seeking reimbursement for a set of expensive braces (including a back brace, knee braces, and other items), knowing that the braces were not medically necessary and had not been prescribed for the beneficiaries by their physicians.
Through the submission of such false claims, DANGERFIELD and her co-conspirators attempted to obtain more than $5.4 million in Medicare funds. On January 24, 2011, DANGERFIELD pled guilty to one count of conspiracy to commit health care fraud.
This morning, Judge Brady sentenced DANGERFIELD to serve a term of imprisonment of 30 months. DANGERFIELD was also ordered to pay $688,178 in restitution, and ordered to forfeit an additional $688,178 in proceeds from her health care fraud scheme. Following her release from imprisonment, DANGERFIELD will be required to serve a 2-year term of supervised release.
DANGERFIELD was the last of the MSBR defendants to be sentenced. Her co-defendants were previously sentenced as follows:
• Samuel B. Johnson: On June 30, 2011, Judge James J. Brady sentenced Johnson, MSBR’s co-owner, to serve a term of imprisonment of 60 months. Johnson was also ordered to pay $878,280 in restitution, and ordered to forfeit an additional $928,280 in proceeds from his crimes.
• Thompson W. Chinwoh. On July 18, 2011, Judge Brady sentenced Thompson Chinwoh, MSBR’s co-owner, to serve a term of imprisonment of 48 months. Chinwoh was ordered to pay $878,280 in restitution, and ordered to forfeit an additional $878,280 in proceeds from his crimes.
• Bradis M. Hicks. On April 7, 2011, Judge Brady sentenced Hicks to serve a 2-year term of probation as a result of her role in the defendant’s fraudulent scheme. Hicks had previously pled guilty to the wrongful disclosure of individually identifiable health information.
The investigation of this matter was conducted by the U.S. Department of Health and Human Services’ Office of Inspector General, the Federal Bureau of Investigation, and the Louisiana Attorney General’s Office. The case is being prosecuted by Assistant United States Attorneys Alan Stevens, Helina Dayries, and Chris Dippel. The case was brought as part of the Medicare Fraud Strike Force, supervised by the U.S. Attorney’s Office for the Middle District of Louisiana and the Criminal Division’s Fraud Section.
Since their inception in March 2007, Medicare Fraud Strike Force operations in seven districts have obtained indictments of more than 1,000 individuals who collectively have falsely billed the Medicare program for more than $2.3 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
United States Attorney Donald J. Cazayoux, Jr. stated, “It is imperative that we fight to protect our Medicare and Medicaid systems from fraud, especially during this time of financial insecurity. While we are gratified at the successful completion of this case, we must and will continue to work with our federal and state partners to prosecute vigorously those who attempt to undermine our health care system.”
Mike Fields, Special Agent-in-Charge of the HHS-Inspector General’s Office for the Dallas region stated, “The OIG, FBI, U.S. Department of Justice, and the Louisiana Medicaid Fraud Control Unit have been and will continue to be relentless in the pursuit of anyone intent on stealing the health care benefits of our nation’s sick, disabled, and elderly. Today’s judgment and sentencing is the latest, but certainly not the last, achieved by the Baton Rouge Medicare Fraud Strike Force.”
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
GUILTY PLEA IN BATON ROUGE, LOUISIANA, TO BANK FRAUD & MONEY LAUNDERING
BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr., announced that STEVEN HAROLD LOGA, age 42, of Denham Springs, Louisiana, pled guilty today before Senior United States District Court Judge Frank J. Polozola to a two count Bill of Information which charged him with bank fraud and money laundering.
According to the stipulated factual basis, LOGA owned and operated Warehouse Food Group, a Baton Rouge wholesaler which sold seafood to institutional food service companies. Between June 2008 and October 2008, LOGA defrauded Fidelity Bank by obtaining credit advances secured by fraudulent collateral. Fidelity Bank lost approximately $1,229,745 as a result of the scheme. Once LOGA collected the proceeds of the fraud, he then conducted various, substantial, financial transactions with the illegal proceeds at another local bank.
As a result of his guilty plea to bank fraud, LOGA faces a maximum sentence of a term of imprisonment of not more than thirty (30) years, a $1,000,000 fine, or both, in addition to restitution in the amount of$1,229,745; as a result of his guilty plea to money laundering, LOGA faces a maximum sentence of a ten (10) year term of imprisonment, a fine of $250,000, or both. A sentencing date has not yet been set.
Donald J. Cazayoux, Jr., United States Attorney, stated that “This is another case which demonstrates our commitment to going after white collar criminals who seek to undermine our financial institutional systems. This plea is the result of the collaborative efforts of the IRS and FBI with our office, and we look forward to continuing these joint efforts to catch and punish fraudsters.”
Jim Lee, Special Agent-in-Charge, IRS-Criminal Investigation, stated that “IRS stands ready to partner with all law enforcement agencies to pursue individuals who commit bank fraud which can negatively impact our community and economy.”
David Welker, Special Agent-in-Charge, FBI-New Orleans Field Division, stated that “White collar crimes such as this continue to erode the stability of our economy. The FBI will continue to collaborate with our law enforcement partners to identify, aggressively investigate, and bring to justice, those individuals that would defraud our financial institutions.”
This matter was investigated by Special Agents of the Internal Revenue Service-Criminal Investigations and the Federal Bureau of Investigation. The matter is being prosecuted by Assistant United States Attorney René I. Salomon.
BATON ROUGE MAN SENTENCED TO FOUR-YEAR PRISON TERM FOR HEALTH CARE FRAUD
BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced that THOMPSON W. CHINWOH, age 57, of Baton Rouge, Louisiana, was sentenced this morning by U.S. District Court Judge James J. Brady to serve forty-eight (48) months in federal prison for his role in a multi-year health care fraud scheme that he perpetrated in the Baton Rouge area.
CHINWOH was charged, along with three others, in a superseding indictment that was filed on December 8, 2010. The indictment alleged that CHINWOH was one of the owners of a company known as Medical Supplies of Baton Rouge, Inc. (“MSBR”), which was engaged in the business of providing power wheelchairs, orthotics and other durable medical equipment to Medicare beneficiaries. In connection with his guilty plea, CHINWOH admitted that from in or about November of 2005 through at least in or about June of 2009, he conspired to use MSBR to defraud the Medicare Program and commit health care fraud. Specifically, CHINWOH and his co-conspirators routinely submitted claims to Medicare seeking reimbursement for a set of expensive braces (including a back brace, knee braces, and other items), knowing that the braces were not medically necessary and had not been prescribed for the beneficiaries by their physicians.
Through the submission of such false claims, CHINWOH and his co-conspirators attempted to obtain more than $5.4 million in Medicare funds. On January 24, 2011, CHINWOH pled guilty to one count of conspiracy to commit health care fraud.
This morning, Judge Brady sentenced CHINWOH to serve a term of imprisonment of 48 months. CHINWOH was also ordered to pay $878,280 in restitution, and ordered to forfeit an additional $878,280 in proceeds from his health care fraud scheme. Following his release from imprisonment, CHINWOH will be required to serve a 2-year term of supervised release.
The status of the other defendants in this case is as follows:
• Samuel B. Johnson: On June 30, 2011, Judge James J. Brady sentenced Johnson, MSBR’s co-owner, to serve a term of imprisonment of 60 months. Johnson was also ordered to pay $878,280 in restitution, and ordered to forfeit an additional $928,280 in proceeds from his crimes.
• Stephanie Dangerfield. On January 24, 2011, along with Johnson and CHINWOH, Dangerfield also pled guilty to conspiracy to commit health care fraud. Dangerfield is scheduled to be sentenced on August 25, 2011.
• Bradis M. Hicks. On April 7, 2011, Judge Brady sentenced Hicks to serve a 2-year term of probation as a result of her role in the defendant’s fraudulent scheme. Hicks had previously pled guilty to the wrongful disclosure of individually identifiable health information in violation of Title 42, United States Code, Section 1320d-6.
The investigation of this matter was conducted by the U.S. Department of Health and Human Services’ Office of Inspector General, the Federal Bureau of Investigation, and the Louisiana Attorney General’s Office. The case is being prosecuted by Assistant United States Attorneys Alan Stevens, Helina Dayries, and Chris Dippel. The case was brought as part of the Medicare Fraud Strike Force, supervised by the U.S. Attorney’s Office for the Middle District of Louisiana and the Criminal Division’s Fraud Section.
Since their inception in March 2007, Medicare Fraud Strike Force operations in seven districts have obtained indictments of more than 1,000 individuals who collectively have falsely billed the Medicare program for more than $2.3 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
14 July Valentine Fredrica Sentencing
BATON ROUGE WOMAN SENTENCED FOR SOCIAL SECURITY FRAUD
BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced that U.S. District Judge Brian A. Jackson sentenced FREDRICA N. VALENTINE, also known as Fredrica Chalk, age 37, of Baton Rouge, Louisiana, to serve sixteen (16) months in prison, pay restitution of $24,222, and serve two years of supervised release following her release from imprisonment.
VALENTINE pled guilty on April 14, 2011, to submitting false reports to the Social Security Administration. In 2006 and 2008, VALENTINE submitted false reports to the Social Security Administration stating that a family member was living with her. VALENTINE was receiving monthly Social Security Retirement and Survivors Insurance benefits on behalf of the family member. In fact, the family member was not living with VALENTINE, but was living in Georgia, and if VALENTINE had truthfully reported this fact, she would have stopped receiving the family member’s benefits. Instead, as a result of the false reports, VALENTINE continued to fraudulently receive Social Security benefits, totaling $22,222, for a period of approximately two and a half years. Meanwhile, VALENTINE also defrauded the Federal Emergency Management Agency (“FEMA”) by filing a fraudulent application for FEMA benefits following Hurricane Katrina. Through this application, VALENTINE received an additional $2,000 to which she was not entitled.
The investigation of VALENTINE was conducted by the Social Security Administration’s Office of Inspector General and the U.S. Department of Homeland Security’s Office of Inspector General. The case was prosecuted by Assistant United States Attorney Alan A. Stevens.
DENHAM SPRINGS WOMAN GUILTY OF FEDERAL MURDER-FOR-HIRE
BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced that TAMMY COPELAND, age 37, of Denham Springs, Louisiana, pled guilty today before U.S. District Court Judge Brian A. Jackson to use of interstate commerce facilities in the commission of murder-for-hire.
COPELAND was charged in a criminal complaint filed February 17, 2010, alleging that she solicited an individual to hire a “hit” man to murder her ex-husband, who was then residing in Canada, and to make it appear as though he died as a result of an accident. Unbeknownst to COPELAND, the individual she solicited to hire was an individual who was cooperating with the F.B.I.
A federal grand jury indicted COPELAND on February 25, 2010, alleging that COPELAND agreed to pay $5,000 for the murder of her ex-husband and that she used and caused another to use facilities of interstate commerce, a federally insured credit union and a telephone, with the intent that a murder be committed.
The defendant admitted meeting with a “hit” man. During a recorded phone conversation, the “hit” man told COPELAND the murder would cost $5,000. Outside a local Baton Rouge restaurant, COPELAND delivered a deposit of $2,000 with the remainder to be paid upon completion of the murder. COPELAND supplied the “hit” man with photographs of her ex-husband, an address where he might be found, and described her ex-husband’s work habits, schedule, house alarms, and dogs he might have at his residence.
As a result of her guilty plea, COPELAND faces a maximum penalty of ten (10) years imprisonment, a fine of $250,000, or both. A sentencing date has not been set.
The investigation of COPELAND was conducted by agents of the Federal Bureau of Investigation and the FBI’s Safe Streets Task Force.The case is being prosecuted by Assistant United States Attorney Robert W. Piedrahita.