BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced yesterday that United States District Court Chief Judge Brian A. Jackson sentenced Manuel Wayne Holleman, age 44, to 138 months in prison, for manufacturing and distributing methamphetamine and other gun-related charges.

HOLLEMAN was arrested on February 7, 2011 after the Gonzales Police Department received information about possible drug-related activity at a Gonzales motel. Police found an active methamphetamine lab in HOLLEMAN’s motel room. A sawed-off shotgun and an additional firearm were also found in the motel room. When arrested, HOLLEMAN had a loaded semi-automatic pistol and several bags of methamphetamine in his jacket pocket.

HOLLEMAN was a convicted felon at the time of his arrest, and, therefore, he was prohibited from possessing a firearm. HOLLEMAN pled guilty to a five-count Indictment charging him with Possession with the Intent to Distribute Methamphetamine, Manufacturing Methamphetamine, Possession of a Firearm in Furtherance of a Drug Trafficking Crime, Possession of a Firearm by a Convicted Felon, and Possession of a Sawed-off Shotgun.

This matter was investigated by Special Agent Daniel Green, the Bureau of Alcohol, Tobacco, Firearms & Explosives, Gonzales Police Department, and Louisiana State Police. The matter was prosecuted by Assistant United States Attorney J. Lane Ewing, Jr.

28 March Hoover Sentencing

BATON ROUGE MAN SENTENCED FOR FIREARM OFFENSES

BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced today that U.S. District Court Chief Judge Brian A. Jackson sentenced William Travis Hoover, age 41, of Baton Rouge, Louisiana, to a term of imprisonment of 120 months and three years supervised release after imprisonment. Hoover had previously pled guilty to one count of possession of a firearm by a convicted felon and one count of possession of a stolen firearm.

On January 20, 2011, East Baton Rouge Sheriff’s Deputies were dispatched to a residence on Highland Road following a 911 call by a concerned citizen. As deputies arrived, they encountered Hoover fleeing the residence in a vehicle. Following a high speed chase on portions of Highland Road and Burbank Drive in Baton Rouge, deputies arrested Hoover after he flipped his vehicle while attempting to cut through the parking lot of a local business. Deputies discovered a stolen sawed-off shotgun inside Hoover’s vehicle.

United States Attorney Cazayoux stated, “This is an excellent example of the joint law enforcement efforts of the East Baton Rouge Parish Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, working together in an efficient and effective manner with outstanding results.”

This matter was investigated by the U.S. Attorney’s Office for the Middle District of Louisiana, the East Baton Rouge Parish Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The matter was prosecuted by Assistant United States Attorney Chris Dippel.

22 March William Griffin Sentenced Medicare Fraud

BATON ROUGE, LA.-AREA RESIDENTS SENTENCED
IN MEDICARE FRAUD SCHEME

WASHINGTON – Two patient recruiters for several Louisiana durable medical equipment (DME) companies were sentenced today for their roles in Medicare fraud schemes involving fraudulent claims and illegal kickback payments for unnecessary DME, announced the Department of Justice, the Department of Health and Human Services (HHS), the FBI, and the Louisiana State Attorney General’s Office.

Stephanie B. Williams and Mary H. Griffin were sentenced by U.S. District Judge James J. Brady of the Middle District of Louisiana to 48 months and 21 months in prison, respectively. Williams was ordered to pay $4 million in restitution and Griffin was ordered to pay $3.6 million in restitution. In addition, Judge Brady sentenced the defendants to two years of supervised release following their prison terms. Williams pleaded guilty on Dec. 13, 2011, and Griffin pleaded guilty on Oct. 31, 2011.

Williams and Griffin worked as recruiters for Healthcare 1 LLC, Medical 1 Patient Services LLC and Lifeline Healthcare Services Inc., Louisiana-based companies that fraudulently billed medical equipment to the Medicare program from 2004 to 2009. They and other recruiters were hired to obtain prescriptions for medical equipment such as leg braces, arm braces, power wheel chairs and wheel chair accessories. Williams and Griffin obtained information from Medicare beneficiaries as well as prescriptions for medical equipment from the beneficiaries’ physicians. These prescriptions were then used to submit fraudulent claims to the Medicare program. In addition, Griffin participated in a similar scheme at McKenzie Healthcare Solutions Inc., where she was paid kickbacks and caused the submission of fraudulent claims for medically unnecessary DME from 2005 to 2010.

According to court documents, from 2004 to 2010, the companies involved in these schemes submitted more than $30 million in fraudulent billing.

Today’s sentences were announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Donald J. Cazayoux Jr. of the Middle District of Louisiana; Mike Fields, Special Agent-in-Charge of the Dallas Region for the HHS Office of the Inspector General (HHS-OIG); David Welker, Special Agent-in-Charge of the FBI’s New Orleans Division; and James Buddy Caldwell, Louisiana State Attorney General.

The cases were prosecuted by Assistant Chief William Pericak, Trial Attorneys David Maria, Abigail Taylor and Alexander Berlin and former Assistant Chief Ben Curtis of the Criminal Division’s Fraud Section. The cases were investigated by the FBI, HHS-OIG and the Medicaid Fraud Control Unit of the Louisiana State Attorney General’s Office (MFCU), and were brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division's Fraud Section and the U.S. Attorney's office for the Middle District of Louisiana.

Since its inception in March 2007, the Medicare Fraud Strike Force operations in nine locations have charged more than 1,190 defendants that collectively have billed the Medicare program for more than $3.6 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.

21 March Kinchen Joshua Sentencing

DRUG DEALER SENTENCED TO FIFTEEN YEARS

BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced that yesterday, United States District Judge Frank J. Polozola sentenced Joshua Kinchen, age 25, a resident of Denham Springs, to a fifteen year term of imprisonment for distribution of crack cocaine. Judge Polozola observed that the defendant had been arrested for a number of crimes, many of which posed a risk of serious harm to others. The Court noted that the defendant’s criminal history reflected a complete lack of respect for the law and required it to fashion a sentence which would deter him and others from violating the law, as well as protect the public from the defendant and others like him.

On September 21, 2011, a jury found the defendant guilty of distribution of crack cocaine. Evidence at trial showed that Kinchen sold approximately 55.2 grams of crack cocaine. During the trial, the defendant contended his brother, Nathaniel Kinchen, Jr., sold the crack. The defendant argued that he had been misidentified.

On January 18, 2012, Nathaniel Kinchen, Jr. pled guilty to aiding and abetting another to distribute crack cocaine. At his guilty plea, Nathaniel Kinchen, Jr. acknowledged that his brother and another individual participated in the distribution of the crack cocaine, and that on August 9, 2009 his brother, Joshua Kinchen, had actually delivered the crack.

On July 15, 2009, less than a month before the transaction for which the defendant was sentenced by Judge Polozola, Kinchen pled guilty to possession of cocaine in the 19th Judicial District Court, Baton Rouge, Louisiana, for conduct stemming from an arrest on October 24, 2008, when deputies found approximately twenty-one grams of crack cocaine, $3,522 cash, and a .40 caliber pistol in the defendant’s possession.

The matter was investigated by Task Force Agent Patrick Knab of the Denham Springs City Police and Special Agent Brett Skiles of the Federal Bureau of Investigation. This matter was prosecuted by Assistant United States Attorneys Robert W. Piedrahita and J. Christopher Dippel, Jr.

20 March Thomas Sentencing

FLORIDA MAN SENTENCED FOR
WIRE FRAUD AND AGGRAVATED IDENTITY THEFT

BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced that ARNOLD H. THOMAS, 47, of Fernandina Beach, Florida, was sentenced today by United States District Court Chief Judge Brian A. Jackson to 94 months imprisonment and ordered to pay $1,254,533 in restitution. THOMAS had previously pled guilty pursuant to a plea agreement to one count of wire fraud and one count of aggravated identity theft.

According to the plea agreement filed with the Court, THOMAS devised a scheme to defraud the Louisiana Workforce Commission by fabricating wage reports for various individuals and then later filing false applications for unemployment benefits in those names. Some of the individual identities used by THOMAS were stolen. In all, THOMAS submitted approximately 392 false applications resulting in a loss of approximately $1,254,533.

United States Attorney Donald J. Cazayoux, Jr. stated, “This significant sentence serves as a reminder of our office’s strong commitment to hold accountable anyone who defrauds our public assistance programs for their personal gain.”

“Today’s sentencing highlights our efforts to investigate fraud against the Department of Labor’s Unemployment Insurance (UI) programs. The defendant falsely submitted quarterly wage reports in the names of fictitious companies, illegally used the names of third-party individuals and failed to pay related employment taxes in order to receive UI benefits for considerable personal financial gain. The Office of Inspector General and its law enforcement partners remain committed to combating these types of crimes,” said David C. Wickersham, Special Agent-in-Charge for the Dallas Regional Office of the U.S. Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.

The investigation of THOMAS was conducted by the United States Department of Labor – Office of Inspector General and the Social Security Administration – Office of Inspector General, with the assistance of the Louisiana Workforce Commission. The case was prosecuted by Assistant United States Attorney Rich Bourgeois who serves as Deputy Criminal Chief.

14 March Smith Sentencing

FORMER CHIEF OF POLICE OF PORT ALLEN, LOUISIANA SENTENCED TO SEVEN AND A HALF YEARS IMPRISONMENT

BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr., announced the results of another lengthy sentence imposed in Operation Blighted Officials. Chief U.S. District Judge Brian A. Jackson sentenced FREDERICK W. SMITH, age 41, of Port Allen, Louisiana, to 90 months imprisonment, one year supervised release following imprisonment, a $17,000 fine, and forfeiture of $18,990.

SMITH’s sentence was based on his corrupt activities while serving as the Chief of Police for the City of Port Allen, Louisiana. In October 2011, following a seven-day trial, a federal jury convicted SMITH on all counts of an indictment charging him with violating the Racketeer Influenced and Corrupt Organizations Act (RICO), mail fraud, wire fraud, and use of an interstate facility in aid of racketeering.

The evidence at trial established that SMITH solicited and took thousands of dollars in cash, tickets to professional sporting events, a luxury hotel stay, and expensive meals from individuals posing as businessmen in connection with an FBI undercover operation. In exchange, SMITH took the following official actions: (1) provided the businessmen with an official PAPD Lieutenant’s Badge, an official PAPD Sergeant’s Badge, an official PAPD Commission Card; (2) caused a Louisiana State Police ticket to be dismissed by the District Attorney’s Office for the 18th Judicial District; (3) caused a Port Allen City Marshal ticket to be dismissed by the Port Allen City Prosecutor’s Office; (4) provided an official letter designed to cause a Connecticut Superior Court Judge to grant leniency for a drug defendant he did not know; and (5) provided confidential law enforcement information concerning numerous individuals.

In addition to those completed bribes, SMITH sought many others, including his request for $3,500 in cash in exchange for more official PAPD badges, police blue lights, a police bullet-proof vest, and weapons from the PAPD evidence room. SMITH also solicited a six-month lease on a condominium in New Orleans in exchange for providing confidential law enforcement information.

SMITH began engaging in criminal activity before having any contact with the businessmen. Through the then-Mayor of Port Allen, SMITH unlawfully provided confidential law enforcement information to the businessmen and agreed to continue providing such information in exchange for bribes. Upon meeting the businessmen in-person, SMITH began talking about criminal activity within 90 seconds.

SMITH lied to employees of the West Baton Rouge Office of Homeland Security in connection with numerous requests for confidential law enforcement information. As an example, SMITH falsely told a dispatcher that he was seeking information on four individuals as part of a burglary investigation. In fact, SMITH was seeking the information in order to provide it to people he believed to be businessmen in exchange for bribes.

SMITH is the third defendant to be sentenced in Operation Blighted Officials. Chief Judge Jackson previously sentenced former New Roads Mayor Thomas Nelson, Jr., to 11 years imprisonment after Nelson was convicted at trial of racketeering and other offenses. Chief Judge Jackson also previously sentenced former White Castle Mayor Maurice Brown to 10 years imprisonment after Brown was convicted at trial of racketeering and other offenses. The remaining defendants to be sentenced are former St. Gabriel Mayor George Grace, Sr., who was recently convicted at trial, former Port Allen Mayor Derek Lewis, who pled guilty, and former Port Allen Council Member Johnny Johnson, who pled guilty.

U.S. Attorney Cazayoux stated: “The Court sent a strong message today that those who engage in public corruption in this district will be dealt with severely. This case is particularly disturbing given that the defendant was a Chief of Police. We hope that this defendant’s actions will not overshadow the honest work and dedication by the vast majority of law enforcement officers, including the many honorable and fine members of the Port Allen City Police Department. My office, together with the FBI and our other federal, state, and local partners, will continue to aggressively pursue such matters wherever the evidence and facts take us.”

FBI Special Agent-in-Charge David Welker stated: “As police officers, we are entrusted to uphold the laws of the United States and Louisiana. If the law is to be honored, it first must be respected by those who enforce it. Chief Smith failed his obligation to remain faithful to this oath to uphold the law and as a result, tarnished the badge that so many wear proudly and so many have made great sacrifices to defend.”

This ongoing investigation is being conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office for the Middle District of Louisiana, with assistance from the U.S. Department of Housing and Urban Development, Office of Inspector General, and the U.S. Department of Homeland Security, Office of Inspector General. This matter was prosecuted by Assistant United States Attorneys Corey R. Amundson, M. Patricia Jones, and Michael J. Jefferson.

7 March Frank Sentencing

DRUG DEALER SENTENCED TO LIFE IN PRISON

BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr. announced that yesterday, United States District Judge James J. Brady sentenced DONALD RAY FRANK, age 56, of Baton Rouge, to serve a term of life imprisonment following his conviction by a jury for conspiracy to possess with the intent to distribute and to distribute five kilograms or more of cocaine.

On September 9, 2009, the defendant, acting on behalf of another, brokered a deal to obtain fourteen kilograms of cocaine. The defendant expected to make $28,000 from this deal in his role as a broker.

Later that day, the defendant went to a business establishment located at or near Westmoreland and Government Street, Baton Rouge, Louisiana, where his associate would be arriving with the cash for this transaction. Minutes later, the defendant’s associate arrived with a duffel bag filled with cash. When the defendant’s associate noticed police approaching the area, he fled in his vehicle, and after a short pursuit, police apprehended and identified the defendant’s associate as Jeffery Perry, a resident of Baton Rouge. Police seized Perry’s duffel bag and found approximately $300,005.

The defendant had two prior felony drug convictions in Baton Rouge and one in Orange County, Texas.

This case was investigated by the Narcotics Division of Baton Rouge Police Department and the Drug Enforcement Administration. This matter was prosecuted by Assistant United States Attorneys Robert W. Piedrahita and J. Lane Ewing, Jr.

7 March Browns Indictment

BATON ROUGE WOMEN INDICTED FOR IDENTITY THEFT

BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced that a Federal Grand Jury returned an indictment on Wednesday, February 29, 2011, charging TRACHELL NAKIA BROWN, 26, and TREVIA LATOYA BROWN, 27, both of Baton Rouge, Louisiana, with bank fraud, access device fraud, aggravated identity theft, and illegal use of social security account numbers.

The Indictment alleges that from January 2007 through January 2010 TRACHELL NAKIA BROWN and TREVIA LATOYA BROWN stole the identities of several area individuals and thereafter obtained unauthorized credit cards in the names of the victims. The defendants used the fraudulently obtained credit cards to make unauthorized purchases in excess of $148,000. The defendants created more than 20 unauthorized credit card accounts and defrauded at least 9 different federally insured financial institutions during a 3 year scheme to unlawfully enrich themselves.

If convicted, TRACHELL BROWN faces a maximum sentence of 315 years in prison and an additional mandatory minimum 8 years if convicted of aggravated identity theft. TRACHELL BROWN is subject to fines of $9,500,000.

If convicted, TREVIA BROWN faces a maximum sentence of 120 years in prison and an additional mandatory minimum sentence of 4 years if convicted of aggravated identity theft. TREVIA BROWN is subject to fines of $3,750,000.

U.S. Attorney Donald J. Cazayoux, Jr., stated, “This is a very serious case involving federal laws designed to prevent criminals from stealing and misusing the identities of law-abiding citizens. Such egregious abuse of our citizens and financial institutions will not be tolerated. We will do everything within our power to work with our law enforcement partners like the United States Postal Inspection Service to investigate those persons who attempt to profit from the good names and credit of the citizens of the Middle District of Louisiana.”

Postal Inspector-in-Charge Robert Wemyss stated, “When the mail is used to commit crimes like this, Postal Inspectors diligently pursue those responsible. People trust the mail, and it's our job to ensure that its integrity is protected.”

The Indictment is the result of a lengthy investigation by agents of the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorneys Rene Salomon and Shubhra Shivpuri.

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.

5 March Erwin Indictment

MISSISSIPPI MAN INDICTED FOR FAILURE
TO REGISTER AS A SEX OFFENDER

BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced today that a Federal Grand Jury returned an indictment on Wednesday, February 29, 2011, charging JASON GABRIEL ERWIN of Summit, Mississippi, with failure to register as a sex offender in Livingston Parish. ERWIN was arrested Friday, March 2, 2012.

The Indictment alleges that from November 2010 through April 2011, JASON GABRIEL ERWIN, a convicted sex offender, traveled to Louisiana from Mississippi and worked in Livingston Parish, but failed to register as a sex offender with Livingston Parish and Louisiana authorities.

The Sex Offender Registration and Notification Act (“SORNA”) was passed by Congress in 1996 as a part of the Adam Walsh Child Protection and Safety Act. The purpose of SORNA is to create a comprehensive national system for registering sex offenders and sharing data about such offenders among law enforcement agencies around the country and with the public. Under SORNA, every state is required to maintain a sex offender registry. A “sex offender” is defined as someone who has been convicted of a “sex offense,” which is in turn defined as a criminal offense that has an element involving a sexual act or sexual contact with another, or certain offenses involving minor victims. Sex offenders are required to register in every jurisdiction where the offender resides, works, or is a student. The registration must be kept current for a period of time depending on the nature and severity of the underlying sex offense conviction. Sex offenders must update their registration whenever they change employment, residence, or enroll in school. The registration process requires sex offenders to provide information about their physical description, a recent photo, criminal history, address of their residence and employment, a DNA sample, driver’s license, fingerprints and other information vital to tracking sex offenders.

If convicted, JASON GABRIEL ERWIN faces a maximum sentence of 10 years in prison and a fine of $250,000.

U.S. Attorney Donald J. Cazayoux, Jr., stated, “This indictment places sex offenders who fail to register on notice that we will find, investigate, and prosecute you.”

U.S. Marshal Kevin Harrison stated, “The United States Marshal’s Service will continue to aggressively investigate sex offender registration cases with our state and local partners to ensure that such offenders comply with the law. If sex offenders choose not to comply with the law’s requirements, they will be prosecuted.”

The Indictment is the result of a six-month investigation by the United States Marshal’s Service with the assistance of the Livingston Parish Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Rene Salomon.

1 March Dignam Sentencing

FORMER DIRECTOR OF THE LOUISIANA GOVERNOR’S PROGRAM ON ABSTINENCE SENTENCED TO SERVE 70 MONTHS IN PRISON

BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr. announced today that United States District Judge James J. Brady sentenced Gail Ray Dignam, age 64, currently of Diamondhead, Mississippi, and formerly of Baton Rouge, to seventy (70) months in prison, to pay restitution, and to a year of supervised release after imprisonment.

Today’s sentencing follows a three-day jury trial in October of 2011, at which the defendant was convicted of two counts of mail fraud. The case arose from a fraudulent scheme that the defendant executed from 2004 through 2006 while she served as Director of the Louisiana Governor’s Program on Abstinence (GPA). The evidence presented at trial showed that the defendant used her position at the GPA to execute fraudulent contracts between the GPA and a contractor. The defendant then prepared and approved fraudulent invoices totaling more than $50,000, which funds the defendant directed to bank accounts in Louisiana and Utah that she and other members of her family controlled. The evidence presented at trial also showed that the defendant had previously used her positions at two other not-for-profit and/or charitable organizations to defraud such organizations out of more than $330,000, which the defendant routed to members of her family and companies that she and her family members controlled.

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.

U.S. Attorney Donald J. Cazayoux, Jr. stated, “Today’s sentence sends a strong signal to those who occupy positions of public trust that they may not use their positions to line their pockets and unlawfully divert public funds to themselves and their family members. Our office, together with our law enforcement partners, will continue to aggressively pursue corruption wherever it is found.”

“Today's sentence finalizes one of the most interesting investigations conducted in our area. Ms. Dignam has left a path of corruption and deceit across our country,” said William W. Root, Assistant Special Agent-in-Charge for the Inspector General for the U.S. Department of Health and Human Services. “Ms. Dignam took advantage of charities and DHHS grants to serve her own self interests, and America is tired of the fraud, waste and abuse of their tax dollars,” said Root.

FBI Special Agent-in-Charge David Welker stated, “As always, when a public servant seeks to enrich themselves at the expense of the public they serve, the true victims are the citizens who cannot take advantage of the program which was defrauded!”

The case was prosecuted by Assistant United States Attorney Alan A. Stevens and United States Attorney Donald J. Cazayoux, Jr.

29 February AA Guilty Plea

THREE MORE CONVICTED OF HEALTH CARE FRAUD IN BATON ROUGE, LOUISIANA

BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced that LINDA M. JACKSON, age 49, pled guilty yesterday before Chief U.S. District Court Judge Brian A. Jackson to conspiracy to commit health care fraud. The case arose from a multi-year health care fraud scheme involving a company known as A&A Durable Medical Supply, LLC (“A&A”), in Plaquemine, Louisiana, which JACKSON operated and managed. JACKSON’s guilty plea follows those entered by former A&A employees EUNICE SPARROW, age 68, and UNIECESCO SMITH, age 29, both of whom pled guilty last week to multiple counts of health care fraud.

According to the factual basis entered in connection with her guilty plea, from April of 2007 through April of 2009, JACKSON worked with others to defraud the Medicare Program. JACKSON and others accomplished the scheme by knowingly submitting reimbursement claims to Medicare that falsely and fraudulently represented that: (1) certain equipment was medically necessary and had been ordered for the beneficiaries by their physicians; and (2) that the equipment reflected in the claims had in fact been provided to the beneficiaries. For example, JACKSON routinely submitted claims to Medicare seeking reimbursement for power wheelchairs, knowing that A&A had not provided power wheelchairs to the beneficiaries and knowing that the beneficiaries’ physicians had not prescribed power wheelchairs for the beneficiaries. According to the stipulated factual basis, the intended loss from this one portion of JACKSON’s scheme exceeded $1 million. JACKSON also submitted approximately 60 false claims totaling more than $170,000 for a device called a “cranial cervical orthosis,” knowing that A&A had not provided any of the devices to Medicare beneficiaries and that none of the devices had been prescribed by the beneficiaries’ physicians.

As a result of her guilty plea, JACKSON faces a maximum sentence of a term of imprisonment of ten years and a fine. In addition, JACKSON has agreed to forfeit all property derived from the proceeds of her crime and to make full restitution.

SPARROW and SMITH--JACKSON’s mother and daughter, respectively--entered guilty pleas on February 22, 2012 to several counts of health care fraud. In their plea agreements, SPARROW and SMITH admitted that they knowingly aided and abetted the submission of JACKSON’s fraudulent Medicare claims by completing and signing false delivery tickets and other fraudulent documents at JACKSON’s direction. A&A kept the fraudulent documents in its patient files in an attempt to substantiate the claims it submitted to Medicare, and JACKSON later provided the false documents to an auditor who requested the patient files in the course of an investigation into A&A’s claims.

United States Attorney Donald J. Cazayoux, Jr. remarked, “Perpetrators of health care fraud increase the costs of care for us all. The public deserves a health care system free of those who seek personal gain through crime. This successful prosecution demonstrates our firm commitment to the aggressive and effective prosecution of Medicare fraud.”

Special Agent-in-Charge Mike Fields of the U.S. Department of Health and Human Services (HHS), Office of Inspector General, Office of Investigations, Dallas Regional Office, said, “The Office of the Inspector General is proud of the accomplishments gained so far by the joint effort of the Baton Rouge Medicare Fraud Strike Force. The three guilty pleas obtained here send a strong warning to anyone defrauding the Medicare program. We will continue to investigate and prosecute you."

Special Agent-in-Charge David Welker of the Federal Bureau of Investigation-New Orleans Field Division stated, “The results in this investigation demonstrate the continued aggressive posture of the FBI along with our law enforcement partners regarding combating health care fraud.”

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 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, the Medicare Fraud Strike Force operations in nine locations have charged more than 1,190 defendants who collectively have falsely billed the Medicare program for more than $3.6 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.

16 February Bryson Indictment

LSU STUDENT INDICTED FOR VIOLATIONS OF
STOLEN VALOR ACT

BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced that a Federal Grand Jury returned an indictment on Friday, February 24, 2012, charging ANDREW I. BRYSON, 31, of Baton Rouge, Louisiana, with falsely claiming to have been awarded the Purple Heart and unauthorized wearing of military medals. BRYSON faces a maximum sentence of two years in prison and fines of $200,000.

The Indictment alleges that BRYSON falsely represented himself to have been awarded the Purple Heart in an attempt to defraud the Louisiana Office of Motor Vehicles and obtain a military honor license plate for Purple Heart recipients. BRYSON is also charged with wearing several military medals and ribbons, namely the Purple Heart and Joint Service Commendation medals, at an awards ceremony honoring veterans without authorization.

The investigation of BRYSON was conducted by the Federal Bureau of Investigations with assistance from the Louisiana State University Police Department. The case is being prosecuted by Assistant United States Attorney Cam T. Le.

15 February Tapp Sentencing

BATON ROUGE MAN SENTENCED FOR DISTRIBUTION OF
CRACK COCAINE

BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced today that U.S. District Court Judge James J. Brady sentenced REGINALD TAPP, also known as Reginald Augustus, age 52, of Baton Rouge, Louisiana, to a term of imprisonment of ten years and four years supervised release after imprisonment.

TAPP was sentenced following his guilty plea to one count of distribution of 28 grams or more of cocaine base, also known as crack cocaine. TAPP has two prior drug trafficking convictions for possession with intent to distribute cocaine in 1999 and 1993.

United States Attorney Cazayoux praised the coordinated efforts of the Drug Enforcement Administration’s Mobile Enforcement Team (also known as MET Team), the Ascension Parish Sheriff’s Office, and the Gonzales Police Department for their joint law enforcement investigations directed at career drug traffickers to remove them from the streets.

This matter was investigated by the Ascension Parish Sheriff’s Office, the Gonzales Police Department, and DEA’s MET Team. The matter was prosecuted by Assistant United States Attorney Susan C. Amundson.

13 February Black History Program Notice

ANNUAL AFRICAN AMERICAN HERITAGE CELEBRATION AT THE BATON ROUGE FEDERAL COURTHOUSE

BATON ROUGE, LA – Chief Judge Brian A. Jackson, Judge James J. Brady, 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 Seventeenth Annual Federal Courthouse African American Heritage Celebration at 1:00 p.m. on Wednesday, February 15, 2012, in Courtroom 1, on the third floor of the Russell B. Long Federal Building and Courthouse.

The featured guest speaker will be Dr. Saundra McGuire, Professor of Chemistry and Assistant Vice Chancellor for Learning, Teaching, and Retention at Louisiana State University. The theme of this year’s program will be “Continuing the Legacy of Education: From the Past to the Present into the Future.” Musical entertainment will be provided by Leroy Pero and Don Gros.

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.

9 February LOGA Sentencing

DENHAM SPRINGS MAN SENTENCED
FOR BANK FRAUD & MONEY LAUNDERING

BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr., announced today that Senior United States District Court Judge Frank J. Polozola sentenced STEVEN HAROLD LOGA, age 42, of Denham Springs, Louisiana, today to a term of imprisonment of 46 months, restitution of $1,208,078.63, and a term of 2 years supervised release.

LOGA was sentenced following his guilty plea to a two count Bill of Information which charged him with bank fraud and money laundering.

According to the stipulated factual basis supporting the guilty pleas and convictions, 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; such financial transactions with the proceeds of bank fraud constituted money laundering.

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 and money laundering which 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.

3 February Carlson Sentencing

ARIZONA MAN SENTENCED FOR FAILURE TO REGISTER
AS A SEX OFFENDER

BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced today that U.S. District Court Judge James J. Brady sentenced NOEL CARLSON, age 38, of Mesa, Arizona, to a term of imprisonment of twenty-one months and five years supervised release after imprisonment.

CARLSON was sentenced following his guilty plea to one count of failure to register as a sex offender. CARLSON had been convicted of attempted possession and distribution of child pornography in Arizona in 1997 and received a probated sentence. He absconded from probation in 2010 and became a fugitive. CARLSON moved to Louisiana in January 2010 and was later arrested by the Marshals-led Sex Offender Locate and Arrest Team (SOLAT) in Baton Rouge, Louisiana, in January 2011.

CARLSON was required to register as a sex offender in Louisiana within 3 days of moving to Louisiana pursuant to the Sex Offender Notification and Registry Act, also known as the Adam Walsh Act. The registration process would have notified CARLSON’S neighbors of his address and status as a sex offender. CARLSON admitted that he failed to register in Louisiana in order to evade law enforcement authorities in Arizona.

United States Attorney Cazayoux remarked, “CARLSON’S 21-month sentence in this case sends a message to unregistered sex offenders that their crime will not be perceived as merely a paperwork violation. It should be a wake-up call to those sex offenders who have not yet registered that their failure to do so will not be tolerated in our district.”

United States Marshal Kevin C. Harrison stated, “Apprehensions and prosecutions of people like CARLSON reassure the public of our commitment to insure their safety and more importantly, as in this case, the safety of their children. The Adam Walsh law was borne out of a notorious tragedy and with this conviction a signal goes out to people like CARLSON that we will find you, arrest you, convict you and send you to prison so that our community never experiences the depths of despair like that of the Walsh family.”

This matter was investigated by the United States Marshals-led SOLAT, which includes Louisiana State Police, the Louisiana Office of Probation and Parole, the Ascension Parish Sheriff’s Office, the East Baton Rouge Parish Sheriff’s Office, the West Baton Rouge Parish Sheriff’s Office, and the Baton Rouge Police Department. The SOLAT identifies and investigates unregistered sex offenders and conducts compliance checks on high level registered sex offenders. The matter was prosecuted by Assistant United States Attorney Susan C. Amundson.

3 February Spears Sentencing

CAREER OFFENDER SENTENCED TO 30 YEARS
FOR DISTRIBUTION OF CRACK

BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr. announced yesterday that U.S. District Court Judge Frank J. Polozola sentenced REGINALD SPEARS, a/k/a RLS AR ABDUL AZIZ, age 41, of Baton Rouge, LA, to thirty years imprisonment and eight years supervised release after imprisonment.

SPEARS, a/k/a AZIZ was found guilty after a two-day jury trial on June 26-27, 2011, of possession with the intent to distribute cocaine base, also known as crack cocaine. SPEARS, a/k/a AZIZ, has two prior federal drug trafficking convictions resulting in his designation as a "career offender" under the United States Sentencing Guidelines, and the enhanced sentence of thirty years.

United States Attorney Cazayoux praised the coordinated efforts of the Baton Rouge Police Department and the Federal Bureau of Investigation for their joint law enforcement investigations directed at career drug traffickers to remove them from the streets of Baton Rouge.

This matter was investigated by the U.S. Attorney's Office, the Baton Rouge Police Department, and the Federal Bureau of Investigation. The matter was prosecuted by Deputy Criminal Chief and Assistant United States Attorney Jennifer Kleinpeter and Assistant United States Attorney Lane Ewing.

24 January Clark and Lavan Guilty Plea

GUILTY PLEAS IN HEALTH CARE FRAUD CASE

BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced that CARLA CLARK, age 47, and LILLIE LAVAN, age 57, both of Pineville, Louisiana, pled guilty today before Senior U.S. District Court Judge Frank J. Polozola to counts of an indictment charging health care fraud.

The indictment arose from a health care fraud scheme involving two companies known as Fusion Services, L.L.C. (“Fusion”), and Grace Social Services, L.L.C. (“Grace”), which operated in Alexandria, Louisiana and the surrounding areas. CLARK and LAVAN were Licensed Clinical Social Workers who worked with Sonya Williams, the owner of Fusion and Grace. CLARK and LAVAN participated in creating false and misleading medical records for Fusion indicating that Medicare beneficiaries had received individual, face-to-face psychotherapy when, in fact, no such services had been provided. Williams then prepared false claims for the purported psychotherapy services to elderly patients and submitted them to Medicare for reimbursement. Medicare paid Fusion and Grace approximately $349,715 as a result of the billings, much of the profits were deposited into Williams’ personal accounts.

As a result of her guilty pleas, CLARK faces a maximum sentence of imprisonment of 20 years, a $500,000 fine, or both. As a result of her guilty plea, LAVAN faces a maximum sentence of imprisonment of 10 years, a $250,000 fine, or both. The Court may also order CLARK and LAVAN to pay restitution. Sentencing has not yet been set for either defendant.

United States Attorney Donald J. Cazayoux, Jr. stated, “This plea is the result of another successful effort by the Medicare Fraud Strike Force to root out and prosecute health care fraud. Rest assured, we will continue to pursue these fraudsters who undermine our health care system. I commend our partners with the U.S. Department of Health and Human Services, the Federal Bureau of Investigation, the Internal Revenue Service, and AdvanceMed for their continued focus and diligence in finding and stopping fraud within our Medicare system.”

Assistant Special Agent-in-Charge William W. Root, Health and Human Services said, “We are proud of the outstanding work by the Medicare Fraud Strike Force. The guilty pleas today sends a message to other perpetrators that we will thoroughly investigate all allegations of health care fraud. Protecting the programs intended for our nation’s most vulnerable citizens is paramount to our mission.”

FBI Special Agent-in-Charge David W. Welker said, “Today’s guilty pleas are the result of the hard work of Agents and analysts from Health and Human Services, Internal Revenue Service – CID, the FBI as well as prosecutors from the United States Attorney’s Office. Gone unchecked conduct such as displayed by Ms. Clark and Ms. Lavan will continue to raise the cost of healthcare for every American citizen. The FBI and its law enforcement partners will continue to aggressively seek out and investigate healthcare fraud and bring to justice those perpetrators who would abuse the system.”

The investigation of this matter is ongoing, and is being conducted by the U.S. Department of Health and Human Services’ Office of Inspector General, the Federal Bureau of Investigation, the Internal Revenue Service, and AdvanceMed, the Medicare Program Safeguard Contractor which assists with health care fraud investigations. The case is being prosecuted by Assistant United States Attorneys Catherine M. Maraist and Leetra Harris.

24 January Myers Indictment

BATON ROUGE TAX RETURN PREPARER INDICTED FOR TAX FRAUD, WIRE FRAUD, AND IDENTITY THEFT

BATON ROUGE – United States Attorney Donald J. Cazayoux, Jr. announced that an indictment was unsealed today charging ANGELA MYERS, 48, of Baton Rouge, Louisiana with eleven counts of filing false claims for tax refunds, five counts of wire fraud, five counts of identity theft, two counts of filing a false income tax return, and criminal forfeiture.

According to the indictment filed against her, MYERS operated Angie’s Tax Service, an income tax preparation business in Baton Rouge. MYERS and others electronically filed eleven false claims for refund with the IRS. She and others also used names and Social Security numbers of other individuals without proper authorization to electronically file false tax returns.

“It is a continuing priority of the United States Attorney’s Office to prosecute individuals who seek to defraud the United States using stolen identities,” said United States Attorney for the Middle District of Louisiana Donald J. Cazayoux, Jr. “Those who attempt to cheat the system by victimizing others will be held accountable for their actions.”

“The Justice Department is working closely with the IRS to investigate, prosecute, and punish tax refund crimes committed through the theft of identities,” said Principal Deputy Assistant Attorney General John A. DiCicco of the Justice Department’s Tax Division. “Now, more than ever, we must remain vigilant against the unauthorized use of identification information to defraud the U.S. government.”

“The IRS is aggressively pursuing those who steal others’ identities in order to file false returns,” said Steven Miller, IRS Deputy Commissioner for Services and Enforcement. “Our cooperative work with the U.S. Attorney's Office will help protect taxpayers in Louisiana from being victimized by identity theft. The IRS is taking additional steps this tax season to further prevent, detect and resolve identity theft cases as soon as possible.”

An indictment is merely a formal charge by the grand jury. The defendant is presumed innocent unless and until proven guilty in a U.S. District Court. The case was investigated by the IRS - Criminal Investigation, and is being prosecuted by trial attorneys Matthew Mueller and Kevin Lombardi of the Tax Division and Assistant U.S. Attorney Richard L. Bourgeois, Jr.

Additional information about the Tax Division and its enforcement efforts may be found at www.usdoj.gov/tax/. Additional information about tax fraud schemes to watch out for may be found on the IRS Criminal Investigation web site.

10 January Macedo Sentencing

HOUSTON MAN SENTENCED FOR DRUG DISTRIBUTION

BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced today that U.S. District Court Judge James J. Brady sentenced JONAS B. MACEDO, age 53, of Houston, Texas, to a term of imprisonment of sixty months and four years supervised release after imprisonment.

MACEDO was sentenced following his guilty plea to one count of possession with the intent to distribute 500 grams or more of cocaine. MACEDO was stopped for a traffic violation on August 5, 2010, while traveling on Interstate-12 in Baton Rouge, Louisiana. During a search of his vehicle, officers assigned to the East Baton Rouge Parish High Intensity Drug Trafficking Area or HIDTA team, located approximately 4 ½ pounds of cocaine in a hidden compartment inside of the engine block.

United States Attorney Cazayoux praised the coordinated efforts of the Baton Rouge Police Department, the Drug Enforcement Administration, and the Louisiana State Police, as examples of joint law enforcement conducted in an efficient and effective manner with outstanding results.

This matter was investigated by the U.S. Attorney’s Office for the Middle District of Louisiana, the Baton Rouge Police Department, and the Drug Enforcement Administration, with assistance from the Louisiana State Police Crime Lab. The matter was prosecuted by Assistant United States Attorney Chris Dippel.

The United States Attorney's Office

Middle District of Louisiana

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2012 Press Releases

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