Sheriff Irvin F. Hingle Sentenced for Conspiracy to Commit Mail Fraud and Bribery

Irvin F. Hingle, a/k/a “Jiff,” Hingle, age 61, a resident of Belle Chasse, Louisiana, was sentenced today to 46 months’ imprisonment by U. S. District Judge Sarah R. Vance after he pleaded guilty to one count of conspiracy, announced U. S. Attorney Dana J. Boente. In addition to the term of imprisonment, Judge Vance ordered that Hingle be placed on two years of supervised release following the term of imprisonment, pay a $10,000 fine, and a $100 special assessment.
According to court documents, from approximately 1992 through 2011, Hingle was employed as the elected Sheriff of Plaquemines Parish, Louisiana. As the sheriff, Hingle was the chief law enforcement officer for Plaquemines Parish.
In 2007, the Plaquemines Parish Sheriff’s Office entered into a contract with Benetech LLC (Benetech) to provide services relating to recovery from damages due to previous and future natural disasters. In early- to mid-2008, on two separate occasions, Hingle, as the sheriff, approved Benetech’s invoices and issued checks to Benetech in connection with work purportedly done under the 2007 contract. Within weeks of Hingle’s approvals, W. Aaron Bennett, the owner of Benetech, paid Hingle $10,000 in cash, on two separate occasions, intending to influence him in connection with the contract between Benetech and the Plaquemines Parish Sheriff’s Office.
In addition, as the elected sheriff, Hingle was required to file annual campaign reports with the Louisiana Board of Ethics in Baton Rouge, Louisiana, and to certify, among other things, information relating to campaign contributions and expenditures. According to court documents, in 2008, Hingle solicited campaign contributions from contributors and instead of expending those funds for campaign-related activities, Hingle expended them for personal use in violation of Louisiana campaign finance laws. Hingle and others in his campaign finalized the 2008 campaign finance report and mailed it to Baton Rouge, Louisiana, in February 2009, falsely listing over $100,000 in expenditures as campaign-related when, in fact, they were for personal use.
The case was investigated by agents from the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation Division.
The case was prosecuted by Assistant U. S. Attorneys Matt Chester and Eileen Gleason.

Former Orleans Parish Deputy John P. Sens Sentenced for Conspiracy to Commit Bribery

John P. Sens, 52, a resident of New Orleans, Louisiana, was sentenced today to 60 months’ imprisonment by U.S. District Judge Kurt D. Engelhardt for conspiracy to commit bribery, announced U.S. Attorney Dana J. Boente. In addition to the term of imprisonment, Judge Engelhardt ordered that Sens be placed on three years of supervised release following the term of imprisonment, pay a $100 special assessment, and forfeit property valued at $67,903.25.
According to court documents, Sens, the former director of purchasing at the Orleans Parish Sheriff’s Office (OPSO), began illegally receiving things of value from two contractors, identified as Businessman A and Businessman B in court documents, in exchange for a rigged bidding system employed to steer OPSO work to Businessman A and Businessman B. In particular, from 2007 through 2011, Businessman A and Businessman B would submit bids for OPSO work in the names of their respective companies but, with the knowledge and participation of, among others, Sens, would also submit phony or fake bids for these same projects in the names of other local companies in an effort to give the appearance of a competitive bidding process. In many cases, the phony bids would intentionally be higher than the bids from Businessman A or Businessman B and, consequently, Sens would award the work to Businessman A or Businessman B.
In exchange for this rigged bidding process, according to court documents, Sens received various things of value from Businessman A and Businessman B. For example, from 2007 through 2011, Sens received approximately $30,000 in cash from Businessman A, as well as the digging and installation of a pool at a residence owned by Sens, at no cost to him. Similarly, during this same period of time, Businessman B paid for the purchase, framing, and matting of several paintings (so-called “Blue Dog” prints) for Sens.
The case was investigated by special agents of the Federal Bureau of Investigation.
The case was prosecuted by Assistant U.S. Attorneys Matt Chester and Jon Maestri.

Former KPMG Partner Scott London Pleads Guilty in Insider Trading Scheme

Former KPMG partner Scott London pleaded guilty this morning to a federal charge of securities fraud through insider trading. London pleaded guilty pursuant to a plea agreement discussed in an announcement from last month. In court today, London admitted taking cash bribes and luxury items in exchange for providing confidential information he obtained as an employee of the international accounting firm. Federal prosecutors and London’s defense attorney have not agreed on the specific amount of money involved in this case—meaning the value of the bribes, the losses suffered by companies whose stock was illegally traded, and the profits realized by Bryan Shaw remain the subject of dispute between the parties. However, the government believes that Shaw realized profits of approximately $1.27 million after trading on the insider information provided by London.
London pleaded guilty before United States District Judge George H. Wu, who scheduled a sentencing hearing for October 21 at 8:00 a.m.
- Related U.S. Attorney’s Office press release: Former Senior Partner at KPMG Agrees to Plead Guilty in Los Angeles to Federal Charges Related to Insider Trading Scheme

CEO of Orange County Mortgage Lender Sentenced to 41 Months in Federal Prison in Ponzi Scheme

SANTA ANA, CA—The CEO of an Orange County-based mortgage banking and financial services firm was sentenced today to 41 months in federal prison for operating a Ponzi scheme that collected more than $6.7 million from more than two dozen victims, announced Andrė Birotte, Jr., the United States Attorney in Los Angeles, and Bill L. Lewis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office.
David Lee Hardin, Jr., 59, of Coto De Caza, who is the CEO and majority shareholder of a group of companies including Covenant Mortgage, Covenant Marketing, Covenant Debt Solutions, Covenant Insurance, and HRE Mortgage, was sentenced by United States District Judge James V. Selna. In addition to the prison term, Judge Selna ordered Hardin to pay $1.5 million in restitution. Judge Selna noted that such investment fraud schemes are prevalent in the Orange County area and that Mr. Hardin’s sentence was meant to serve as a deterrent to others.
Hardin pleaded guilty in March 2013 to mail fraud, admitting that his victims suffered losses of approximately $1.5 million.
From April 2007 through July 2010, Hardin solicited investments in a side venture related to his companies’ mortgage business. The investments were structured as loans to Hardin’s companies at fixed rates of interest. Hardin told the investors that their funds would be used to finance a home building project, to originate mortgages, and to fund his debt settlement business and that returns would be generated through home sales and fees from mortgage originations and debt settlement services. In reality, Hardin used a large percentage of the funds to make purported “interest” payments to earlier rounds of investors, in the typical pattern of a Ponzi scheme. He used other funds for personal expenses, including rent and car payments. Still other funds were used for operational costs of Hardin’s other businesses, including employee salaries and operating costs.
The criminal case against Hardin is the result of an investigation by the Federal Bureau of Investigation.
Media Contact:
Assistant U.S. Attorney Joshua Robbins: 714-338-3500
U.S. Attorney’s Office Press Relations: 213-894-6947
FBI Press Relations: 310-996-3343

Father and Son Convicted of Operating $100 Million Ponzi Scheme That Targeted Members of the Church of Jesus Christ of Latter-day Saints

PHOENIX.—Guy Andrew Williams, 42, and Brent F. Williams, 66, both of Mesa, Arizona, were convicted by a federal jury in Phoenix on June 28, 2013, of 38 counts of conspiracy, wire fraud, mail fraud, and money laundering. The two-week trial was conducted by U.S. District Judge Jack Zouhary, a visiting judge from the Northern District of Ohio.
U.S. Attorney John Leonardo stated, “Affinity fraud is a particularly reprehensible crime because it depends upon a betrayal of trust to defraud victims of their money. The defendants preyed upon those with whom they made connections through church or in the community. This verdict holds the defendants accountable for their crimes and sends a message to others who would engage in such misconduct.”
FBI Special Agent in Charge Douglas G. Price, Phoenix Division, stated, “The guilty verdict rendered in this matter holds Guy and Brent Williams accountable for their actions. The FBI and the IRS are committed to investigating and pursuing those who conspire and prey on trusting individuals for their own personal gain. The FBI and our law enforcement partners will continue to combat fraud as it relates to money laundering, wire and mail fraud.”
“The defendants lived lavish lifestyles and enriched themselves at the expense of their unsuspecting investors. This classic Ponzi scheme serves as an unfortunate reminder that everyone should exercise extreme caution before committing their hard-earned money to investment opportunities that promise returns that sound too good to be true” said Dawn Mertz, Special Agent in Charge of the Phoenix Field Office of Internal Revenue Service, Criminal Investigation.
“This verdict should serve as a strong deterrent to others who would misuse our nation’s mail system to commit mail fraud,” said Acting Phoenix Division Postal Inspector in Charge Adrian Gonzalez. “The United States Postal Inspection Service remains dedicated to our mission to enforce the laws that defend the nation’s mail system from illegal use and ensure public trust in the mail. Postal inspectors will continue to partner with fellow law enforcement agencies to bring those perpetuating fraud to justice.”
According to the evidence at trial, Guy Andrew Williams and his father, Brent F. Williams, served as the managing director and chief financial officer, respectively, of a group of Mesa, Arizona-based investment funds known as the “Mathon” entities. The evidence at trial showed that the Mathon entities collected more than $100 million in funds from investors from February 2002 until April 2005.
The evidence at trial further showed that Mathon’s investors, the majority of whom were members of the Church of Jesus Christ of Latter-Day Saints and hailed from Arizona, Utah, and Nevada, were generally told that their money would be used to make short-term loans to third-party borrowers at a high interest rate and that Mathon had an extensive track record of making such loans. In fact, the evidence at trial showed that the defendants and their business partners ran Mathon as a Ponzi scheme—that is, by using the overwhelming majority of incoming money from new investors to pay back initial investors. Finally, the evidence at trial showed that the defendants and their business partners paid themselves extravagant salaries and bonuses exceeding $10 million and also used their investors’ money to make millions of dollars of “loans” to companies they secretly controlled.
The sentencing of Guy Andrew Williams and Brent F. Williams is currently scheduled for September 30, 2013, before Judge Zouhary. Also scheduled to be sentenced on that date are Duane Hamblin Slade and Russell Laurence Sewell, two other members of Mathon’s management team who pleaded guilty to related charges before trial.
The defendants face a potential maximum sentence of 20 years in federal prison on each count of conspiracy, wire fraud, and mail fraud, and a potential maximum sentence of 10 years in federal prison on each count of money laundering. Each count also carries a maximum fine of $250,000.
The investigation in this case was conducted by Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigations Division, the U.S. Postal Inspection Service, and the Securities Division of the Arizona Corporation Commission. The prosecution was handled by Assistant U.S. Attorneys Peter S. Sexton, Kevin M. Rapp, and Dominic Lanza.

FBI and U.S. Marshals Service Arrest Fugitive Bruce Lee Marshall

The FBI arrested Bruce Lee Marshall, a.k.a. Francois Marshall or Francois Delacroix, 38 of San Francisco, in Mesa, Arizona, on July 2, 2013.
After making his initial appearance today in the U.S. District Court of Arizona, he will be prosecuted by the U.S. Attorney’s Office for the Northern District of California.
According to an indictment, Marshall was charged with mail fraud. He was employed by a San Francisco educational software start-up company.
This investigation was conducted jointly by FBI San Francisco and Phoenix agents and deputies from the U.S. Marshals Service of the Northern District of California.
Defendants are presumed innocent until proven guilty in a court of law.
Members of the media should call:
FBI San Francisco:
Public Affairs Specialist Julianne Sohn or Peter Lee at 415-553-7450
FBI Phoenix:
Special Agent Manuel Johnson at 623-466-1842
U.S. Marshals Service of the Northern District of California:
Deputy Joseph Palmer at 415-730-5243

Federal and State Prosecutors Join Louisville Metro Police to Charge Repeat, Violent Offenders in Project Recoil

LOUISVILLE, KY—U.S. Attorney David J. Hale was joined today by Jefferson County Commonwealth’s Attorney Thomas B. Wine; Louisville Metro Police Chief Steve Conrad; Special Agent in Charge-ATF Louisville, Stuart L. Lowrey; Special Agent in Charge-FBI Louisville, Perrye Turner; U.S. Marshall James E. Clark; and Assistant County Attorney Ann Dyke in the announcement of the initial results of Project Recoil, a coordinated review and prosecution of violent gun crime arrests in metro Louisville. The review effort includes federal and state prosecutors, agents, and officers from the U.S. Attorney’s Office, the Jefferson County Commonwealth’s Attorney’s Office, Jefferson County Attorney’s Office, ATF, FBI, and LMPD’s Viper and Robbery Units.
“To the metro Louisville community, we want you to know that the police officers, federal agents, and federal and state prosecutors are working together to fight violent crime in Louisville. It is a determined and unified effort. It is a priority for each of the law enforcement agencies assembled here,” stated U.S. Attorney David J. Hale during the press conference held at the U.S. Attorney’s Louisville Offices.
“There is a strong bond between the Office of United States Attorney and the Office of Commonwealth’s Attorney. Our prosecutors have a great professional working relationship. They understand the state and federal systems and know which system gives us the best opportunity to get dangerous criminals off the streets both quickly and for as long as possible,” stated Thomas Wine, Commonwealth’s Attorney.
“By working together, we are leveraging each others’ strengths to ensure criminals that use firearms are held accountable,” stated Chief Steve Conrad, Louisville Metro Police Department.
ATF Special Agent in Charge Stuart Lowrey said, “Through Project Recoil, ATF, Louisville Metro PD, our federal law enforcement partners, and our federal and state prosecutors are coordinating our efforts to maximize our impact on violent crime in the Louisville Metro area. This violent crime reduction partnership plays an important role in combating violent gun crime. It allows law enforcement to share intelligence and operate with greater unity of effort, stemming the flow of crime guns and investigating and prosecuting the people who illegally possess or use firearms to commit violent crimes.”
“Project Recoil is an excellent example of law enforcement’s commitment to cooperation and collaboration, the most effective weapon against crime,” said Perrye K. Turner, Special Agent in Charge of the FBI in Kentucky.
This successful team approach to prosecuting violent offenders in Louisville began five months ago and has resulted in three federal indictments with four defendants being charged. Each week, prosecutors from the U.S. Attorney’s Office, Commonwealth’s Attorney’s Office, and the County Attorney’s Office meet with officers from LMPD Viper Unit and agents and analysts from the ATF, FBI, and U.S. Marshals Service. They review recent arrest reports from metro Louisville involving illegal firearms and violent crime.
Three cases developed out of Project Recoil include Troy Lamont Gaines, Jr., 22, and Shaundrell Robinson, 33, who were charged in a 22-count federal indictment on April 2, 2013. The defendants have prior felony convictions and were charged with 11 armed robberies between December 5, 2012 and January 3, 2013, in Metro Louisville. During one robbery, a shot was allegedly fired by Gaines during a struggle with a customer. These defendants face a minimum of 25 years for each armed robbery, under federal statutes. Dorris Trice, III, 31, was charged as a multiple convicted felon by a federal grand jury in Louisville on June 19, 2013. The three-count indictment includes possessing a firearm that he allegedly used during the robbery of a food mart on March 3, 2013. Yesterday, a federal grand jury in Louisville returned a four-count indictment against Lavon Crayton, 31, charging him with being a convicted felon in possession of a weapon and possession with the intent to distribute
In conclusion, U.S. Attorney Hale stated, “Project Recoil is one piece of a comprehensive anti-violent crime strategy which emphasizes collaboration among federal, state, and local law enforcement and prosecutorial agencies to more effectively investigate and prosecute violent criminals in Louisville. By working together, and by including all of our community stakeholders in the broad effort to stem violent crime, we will reduce violence and its impact on our city.”