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Eighteen Individuals Charged with Katrina-Related Federal Fraud Offenses, 141 Charged in District Since Storm
The United States Attorney’s Office for the Eastern District of Louisiana has today filed federal felony fraud charges against eighteen (18) individuals as a result of Katrina fraud offenses, announced United States Attorney Jim Letten, who is joined by Mercedes Marques, Assistant Secretary for Community Planning and Development, Department of Housing and Urban Development, David Welker, FBI Special Agent in Charge New Orleans Division, Nathan J. Lewis, Jr., United States Postal Inspection Service, and Michael Brannon, Special Agent in Charge of the United State Department of Homeland Security Inspector General’s Office, New Orleans Division.
Specifically, eleven (11) individuals have been charged via federal grand jury indictment, with seven (7) individuals charged via bills of information.
SHANDA MOORE, age 26, a resident of Baton Rouge, Louisiana, was charged in a one-count indictment with mail fraud relating to fraudulent applications she made to the American Red Cross for financial assistance during the aftermath of Hurricane Katrina. The indictment alleges that MOORE fraudulent received $8,490 from the American Red Cross. If convicted, MOORE faces a maximum term of imprisonment of twenty (20) years, a $250,0000 fine, restitution to the American Red Cross, and three (3) years of supervised release following imprisonment. The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U. S. Attorney Peter M. Thomson
REGINALD SHORT, age 39, a resident of Gibson, Louisiana, was charged in a one-count indictment with mail fraud relating to a series of fraudulent applications for financial assistance that he submitted to the American Red Cross between September 13, 2005 and October 14, 2005. The indictment alleges that as a result of ten fraudulent applications, SHORT received $9,090.00 from the American Red Cross. If convicted, SHORT faces a maximum term of twenty (20) years imprisonment, $250,0000 fine, restitution to the American Red Cross, and three (3) years of supervised release following imprisonment. This case was investigated by the United States Postal Service Inspectors and the Federal Bureau of Investigation and is being prosecuted by Assistant U. S. Attorney Dan Friel.
NORRIS SHORT, age 43, a resident of Gibson, Louisiana, was charged in a one-count indictment with Mail Fraud relating to a series of fraudulent applications for financial assistance he submitted to the American Red Cross between September 13, 2005 and October 14, 2005.
The indictment alleges that as a result of these applications SHORT fraudulently obtained $12,520.00 from the American Red Cross. If convicted, SHORT faces a maximum term of twenty (20) years imprisonment, a $250,000, restitution to the American Red Cross and three (3) years of supervised release. The case was investigated by the United States Postal Service Inspectors, the Federal Bureau of Investigation, and is being prosecuted by Assistant U. S. Attorney Dan Friel.
RAYMOND MOTEN, age 36, a former resident of New Orleans, Louisiana, was charged with wire fraud in a one-count indictment relating to fraudulent applications submitted to the American Red Cross on six (6) separate occasions between September 10, 2005 and October 6, 2005. The indictment alleges that as a result these applications, MOTEN fraudulently received $5,055 from the American Red Cross. If convicted, MOTEN faces a maximum term of imprisonment of twenty (20) years, a fine of $250,000, restitution to the American Red Cross and three (3) years of supervised release. The case was investigated by the Federal Bureau of Investigation and being prosecuted by Assistant U. S. Attorney Matt Chester.
THOMAS G. STEELE, age 62, a resident of Belle Chasse, Louisiana was charged in a one count bill of information for false statements to an agency of the United States, relating to his Louisiana Road Home grant. The indictment alleges that STEELE falsely claimed in his application the he was the owner and occupant of the property located in Belle Chasse, Louisiana and as a result of that application, received $119,935 from the United States Department of Housing and Urban Development. If convicted, STEELE faces a maximum of five (5) years imprisonment, a $250,000 fine, restitution to the Department of Housing and Urban Development, and three (3) years supervised release. This investigation was conducted by the Department of Housing and Urban Development Office of Inspector General and Department of Homeland Security Office of Inspector General, and is being prosecuted by Assistant U. S. Attorney Julia Evans.
WANITA S. WILLIAMS, age 33, a resident of Amite, Louisiana, was charged in a two count indictment with mail fraud relating to fraudulent applications she made to the American Red Cross for financial assistance after Hurricane Katrina. The indictment alleges that from September 14, 2005 through October 26, 2005, WILLIAMS presented fraudulent applications to different American Red Cross assistance centers on eight (8) occasions. As a result of these applications, WILLIAMS fraudulently received $10,355. If convicted, WILLIAMS faces a possible maximum sentence of forty (40) years imprisonment, a $500,000 fine, restitution to the American Red Cross and three (3) years supervised release. This investigation was conducted by the U. S. Postal Inspection Service and is being prosecution by Assistant U. S. Attorney Julia Evans.
LAURA McGEE, age 49, a resident of Pontchatoula, Louisiana, was charged in a one count bill of information for wire fraud relating to a series of fraudulent applications for financial assistance that she submitted to the American Red Cross. The indictment charges that MCGEE applied for and received disaster assistance funds from the Red Cross 5 times during a roughly five week period between September 15, 2005 and October 26, 2005. Based on these fraudulent applications, MCGEE obtained $4,695 from the American Red Cross. If convicted, MCGEE faces a possible maximum sentence of twenty (20) years imprisonment, a $250,000 fine, possible restitution to the American Red Cross and three (3) years of supervised release. This investigation was conducted by the Federal Bureau of Investigation and is being prosecuted by Assistant U. S. Attorney Dorothy Manning Taylor.
TERRANCE JACKSON, age 31, a resident of Hammond, Louisiana, was charged today in a one-count bill of information on charges relating to fraudulent applications he made to the American Red Cross. The indictment alleges that between September 16, 2005, and October 5, 2009, JACKSON applied for and received disaster assistance funds from the Red Cross on two occasions. As a result of the fraudulent application, JACKSON obtained $1,565 from the American Red Cross. If convicted, JACKSON faces a possible maximum sentence of twenty (20) years imprisonment, a $250,000 fine, possible restitution to the American Red Cross and three (3) years of supervised release. This case was investigated by the Federal Bureau of investigation, and is being prosecuted by Assistant U. S. Attorney Spiro Latsis.
STACIE DAWSON, age 46, a resident of Slidell, Louisiana, was charged in a one-count bill of information with wire fraud relating to fraudulent applications for American Red Cross assistance immediate aftermath of Hurricane Katrina. The bill of information charges that on seven (7) occasions between September 9, 2005, and October 6, 2005, DAWSON fraudulently applied for financial assistance in Georgia, Mississippi and Louisiana. As a result of these applications, DAWSON fraudulent received $7,860.00 from the American Red Cross. If convicted, DAWSON faces a possible maximum sentence of twenty (20) years imprisonment, a $250,000 fine, possible restitution to the American Red Cross and three (3) years of supervised release. This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U. S. Attorney Jordan Ginsberg.
ALETA JONES, age 25, a resident of LaPlace, Louisiana, was charged in a one-count indictment with wire fraud related to fraudulent applications for American Red Cross assistance in the immediate aftermath of Hurricane Katrina. The indictment alleges that on eight (8) occasions between September 12, 2005 and October 3, 2005, JONES visited Red Cross shelters in Mississippi, Alabama, Texas, and Louisiana,and applied for financial assistance. As a result of of these fraudulent applications, JONES received $10,955.00 from the American Red Cross. If convicted, JONES faces a possible maximum sentence of twenty (20) years imprisonment, a $250,000 fine, possible restitution to the American Red Cross and three (3) years of supervised release. This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U. S. Attorney Jordan Ginsberg.
DIONNE GARRETT, age 30, a resident of LaPlace, Louisiana, was charged in a one-count indictment with wire fraud related to fraudulent applications for American Red Cross assistance that she submitted in the immediate aftermath of Hurricane Katrina. The indictment alleges that on sixteen (16) different occasions between September 9, 2005, and October 6, 2005, GARRETT visited Red Cross shelters in Georgia, Alabama, Mississippi and Louisiana and applied for financial assistance. As a result of these fraudulent applications, GARRETT received $17,045.00 from the American Red Cross. If convicted, GARRETT faces a possible maximum sentence of twenty (20) years imprisonment, a $250,000 fine, possible restitution to the American Red Cross and three (3) years of supervised release This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U. S. Attorney Jordan Ginsberg.
FLORENCE RANDLE, age 57, a resident of Gibson, Louisiana, was charged with mail fraud today in a one-count indictment relating to fraudulent applications she made to the American Red Cross for financial assistance during the aftermath of Hurricane Katrina. The indictment alleges that on fourteen (14) occasions between September, 2005 and October, 2005, RANDLE applied for and received disaster assistance funds from the Red Cross. As a result of these fraudulent applications, RANDLE received $13,550 from the American Red Cross. If convicted, RANDLE faces a maximum term of imprisonment of twenty (20) years, a $250,0000 fine, restitution to the American Red Cross, and three (3) years of supervised release following imprisonment. The case was investigated by the U. S. Postal Inspection Service and the Federal Bureau of Investigation and is being prosecuted by Assistant U. S. Attorney Sharan E. Lieberman.
STACIE L. WHEATEN, age 38, a resident of Atlanta, Georgia, was charged in a three-count indictment with mail fraud relating to fraudulent applications she made to the American Red Cross during the aftermath of Hurricane Katrina. The indictment alleges that on seventeen (17) occasions between September. 2005 and October, 2005, STACIE L. WHEATEN applied for and received disaster assistance funds from the Red Cross. As a result of these fraudulent applications, WHEATON received $13,185 from the American Red Cross that she was not entitled to. If convicted, WHEATEN faces a maximum term of sixty (60) years imprisonment, a $750,0000 fine, restitution to the American Red Cross, and three (3) years of supervised release. The case was investigated by the U. S. Postal Inspection Service and is being is being prosecuted by Assistant U. S. Attorney Sharan E. Lieberman.
DARNELL K. WHEATEN, age 41, a resident of Gibson, Louisiana, was charged in a four-count indictment with mail fraud relating to fraudulent applications he made to the American Red Cross during the aftermath of Hurricane Katrina. The indictment alleges that on seventeen (17) occasions between September, 2005 and October, 2005, DARNELL K. WHEATEN applied for and received disaster assistance funds from the Red Cross. Based on the fraudulent applications, WHEATEN received $17,265 from the American Red Cross. If convicted, WHEATEN faces a maximum term of imprisonment of eighty (80) years, a $1,000,000 fine, restitution to the American Red Cross, and three (3) years of supervised release. The case was investigated by the U. S. Postal Inspection Service and is being prosecuted by Assistant U. S. Attorney Sharan E. Lieberman.
MECHELL TURNER, age 30, a resident of Hammond, Louisiana, was charged in a two-count indictment for wire fraud relating to fraudulent applications to the American Red Cross for financial assistance during the aftermath of Hurricane Katrina. The indictment alleges that between September 2005 and October 2005, TURNER applied for assistance on ten (10) separate occasions. Based on these applications, TURNER fraudulently obtained $12,170 from the American Red Cross. If convicted, TURNER faces a maximum term of imprisonment of forty (40) years, a $500,000 fine, possible restitution to the American Red Cross and three (3) years of supervised release. The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Peter M. Thomson.
DONELLE HUMPHREY, age 47, a resident of Atlanta, Georgia, was charged in a one-count bill of information with making false statements to the United States. The bill of information charges that on October 9, 2006, HUMPHREY applied for a grant from the Road Home Program fraudulently claiming 1412 Deslonde Street, New Orleans, Louisiana as her primary residence at the time of Hurricane Katrina. As a result of this application, HUMPHREY received grant money totaling $22,320.93. If convicted, HUMPHREY faces a maximum sentence of five (5) years in prison, a $250,000 fine, possible restitution and a three (3) year term of supervised release. The case was investigated by agents of the Department of Housing and Urban Development, Office of Inspector General and is being prosecuted by Assistant U. S. Attorney Irene González.
MICHELE WISE, age 40, a resident of Slidell, Louisiana, was charged in a one-count bill of information with wire fraud. The bill of information alleges that WISE applied assistance from the American Red Cross on twelve (12) occasions between September 9, 2005 and October 5, 2005. As a result of these fraudulent applications, WISE received $15,085.00 from the American Red Cross. If convicted, WISE faces a maximum term of imprisonment of twenty (20) years, and/or a $250,000 fine, possible restitution and three (3) years supervised release. The case was investigated by agents of the Federal Bureau of Investigation and is being prosecuted by Assistant U. S. Attorney Irene González.
FREDERICK C. RABITO, age 64, a resident of Metairie, Louisiana, was charged in a one-count bill of information with making false statements to the United States. The bill of information alleges that on October 24, 2006, RABITO filed an application with Louisiana Road Home Program falsely claiming the property at 4801 Pontchartrain Drive, Slidell, Louisiana was his primary residence at the time of the storm. As a result of his false statement, he received $122,396.66 in Road Home assistance to which he was not entitled. If convicted, RABITO faces a maximum sentence of five (5) years in prison, a $250,000.00 fine, possible restitution and a three (3) year term of supervised release following any term of imprisonment. The case was investigated by the Department of Housing and Urban Development, Office of Inspector General, and the Department of Homeland Security, Office of Inspector General and is being prosecuted by Assistant U. S. Attorney Irene González.
To date, as a result of FBI and U. S. Postal Inspection Service investigations, the United States Attorney’s Office for the Eastern District of Louisiana has prosecuted a total of 126 individuals for Katrina-related fraud offenses (excluding public corruption cases) with a total amount of restitution of over $3 million ordered by the sentencing courts..
Additionally, as a result of the investigative work of the HUD Inspector General’s Office and the DHS Inspector General’s Office, the United States Attorney’s Office for the Eastern District of Louisiana has prosecuted a total of fifteen (15) individuals for Louisiana Road Home-related offenses – including the three individuals charged today. The total amount of fraud charged in the federal Road Home cases to date is $1,446,397. Total disaster fraud cases in the Eastern District of Louisiana to date is 141,
U. S. Attorney Letten reiterated that these indictments and bills of information are merely charges and that the guilt of each defendant must be proven beyond a reasonable doubt.
Additionally, on Wednesday, August 26, 2009, DERRICK BEAULIEU, age 38, of New Orleans, pled guilty in federal court before U. S. District Judge Sarah Vance to one count of conspiracy to steal government funds and wire fraud involving elderly individuals’ Road Home grants. According to the factual basis, BEAULIEU admitted that in the summer of 2007, while employed in the Closing Department of the First American Title Company, he conspired with others to target elderly Road Home grantees. BEAULIEU further admitted that he would alter the documentation so that the funds would be wired into his co-defendants’ personal bank accounts at ASI Credit Union. In an effort to keep the fraudulently wired money in their possession the conspirators would call their bank, ASI Credit Union, and pose as relatives of the elderly individuals. BEAULIEU faces a maximum term of imprisonment of five (5) years, a $250,000 fine, and three years of supervised release following any term of imprisonment. He will be sentenced by the Honorable District Judge Sarah Vance on November 18, 2009 at 9:30 A.M. Co-defendants Shawnzell Venson and Willie Smith are scheduled to go to trial on September 28, 2009. The case was investigated by agents with Department of Housing and Urban Development-Office of Inspector General, the Federal Bureau of Investigation and Department of Homeland Security, Office of Inspector General. The case was be prosecuted by Assistant United States Attorneys Emily Greenfield and Julia Evans.
Department of Housing and Urban Development Assistant Secretary for Community Planning and Development Mercedes Marquez said:
“We at HUD have zero tolerance for fraud under any circumstances, particularly in the Road Home Program, upon which families and communities across the state are relying to rebuild not simply their homes but their lives. Disaster assistance should go to the people who need it, and I commend U. S. Attorney Letten for bringing these indictments and sending a clear message that fraud and abuse of the public trust will not be tolerated.”
FBI Special Agent In Charge David Welker stated:
“It is evident that two groups of people did not cease to function as a result of Katrina. Those people who chose to defraud the very system designed to help victims of Katrina, and law enforcement, who, even though personally impacted by the storm, endured personal hardships, and persevered to bring criminals to justice. These eighteen indictments today are reflective of the continued vigilance of law enforcement to identify and prevent subjects from defrauding the programs established to help the people of this region recover.”
U. S. Postal Inspection Service Houston Division Inspector in Charge Manuel Gonzales-Latimer added:
“The U. S. Postal Inspection Service has a long and successful history of arresting those who use the U. S. Mails to defraud consumers, businesses or government agencies. Our mission is to ensure the public's confidence in the mails remains strong.”
DHS Inspector General Richard Skinner added:
"We all suffer when federal programs are undermined by fraud. Today's indictments should send a clear message that we intend to stop these types of fraudulent practices. DHS OIG will continue to be committed to working with our law enforcement partners to identify and aggressively investigate all allegations of fraud, waste, and abuse to protect the integrity of DHS personnel, programs, and operations."
Speaking to today’s federal charges, U. S. Attorney Letten stated:
“As the great City of New Orleans and this extraordinary region continues its
rebuilding process, we and our partners in federal law enforcement – including
FBI, HUD-IG, U. S. Postal Inspection Service, and DHS Inspector General’s
Office, will use all resources available to fiercely protect those funds which
the American people have made available for the benefit of our citizens and
our communities. No amount of fraud – however small or large – will be
tolerated as we defend the public trust in the historic struggle to rebuild a
great American city and region.”
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