Press Releases
STATE SENATOR DERRICK SHEPHERD AND OTHERS CHARGED BY FEDERAL GRAND JURY
April 10, 2008
FOR IMMEDIATE RELEASE
DERRICK D.T. SHEPHERD, age 38, a resident of Harvey, Louisiana; GWENDOLYN JOSEPH MOYO, age 53, a resident of New Orleans, Louisiana; JAMES ZOUCHA, 66, a resident of Oceanside, California; along with AA COMMUNICATIONS, INC. and CAPITAL MANAGEMENT ASSET GROUP (CMAG), Nevada corporations controlled by MOYO, were charged in a forty-one count superseding indictment by a Federal Grand Jury with Conspiracy to Commit Mail and Wire Fraud; Mail Fraud; Wire Fraud; Participation in Business of Insurance by a Person Previously Convicted of a Felony Involving Dishonesty; Conspiracy to Commit Money Laundering; and Money Laundering, announced U.S. Attorney Jim Letten.
According to the indictment, MOYO was twice convicted in the District of Arizona for conspiracy to defraud the United States; making false statements; mail fraud; wire fraud; and fraudulent use of a Social Security number; all felony crimes involving dishonesty and breach of trust. Those convictions occurred in 1989 and 1991 and MOYO was sentenced to a nine (9) year term of imprisonment. Despite being prohibited from participating in the insurance business because of her prior convictions, the indictment alleges that MOYO, through her companies, AA COMMUNICATIONS and CAPITAL MANAGEMENT ASSET GROUP, marketed construction bonds to contractors and other entities which had difficulty placing coverage in the standard market. According to the indictment, MOYO’S clients paid her for worthless performance, payment, or bid bonds then completed the jobs without realizing they had not been covered. According to the indictment, it is alleged that ZOUCHA went in the bonding business with MOYO, acting as the President of AA COMMUNICATIONS, serving essentially as a “straw man” or nominee for MOYO, generally facilitating the business while keeping Moyo’s name off the legal documentation. MOYO, ZOUCHA, AA COMMUNICATIONS, and CMAG were neither licensed nor authorized to transact insurance in California, Louisiana, nor any other state.
The indictment alleges that on November 17, 2006, MOYO, AA COMMUNICATIONS, CMAG, and ZOUCHA, and certain of their officers and employees, were ordered by the 19th Judicial District Court, Parish of East Baton Rouge, State of Louisiana, to cease and desist from engaging in the business of insurance in a suit brought by Commissioner of Insurance James J. Donelon. After MOYO and AA COMMUNICATIONS were ordered to cease and desist from engaging in the business of insurance and their bank accounts had been seized by state regulators, the indictment alleges that DERRICK D.T. SHEPHERD, an attorney and Louisiana State Senator, was employed by MOYO to launder construction bond premiums for MOYO and AA COMMUNICATIONS in order to conceal her and her companies’ actions. In so doing, SHEPHERD promoted and facilitated MOYO’s and AA COMMUNICATIONS’ unlawful activity.
If convicted of Count 1, Conspiracy to Commit Mail and Wire Fraud, MOYO, SHEPHERD, ZOUCHA, AA COMMUNICATIONS, and CMAG, each face a maximum term of imprisonment of five (5) years, a fine of $250,000.00 and three (3) years of supervised release following any term of imprisonment.
If convicted of Counts 2 - 6, Mail Fraud, MOYO, SHEPHERD, ZOUCHA, AA COMMUNICATIONS, and CMAG, each face a maximum term of imprisonment of twenty (20) years, a fine of $250,000.00 and three (3) years of supervised release following any term of imprisonment, as to each of the five (5) counts. SHEPHERD is charged in Counts 4, 5, and 6; the remaining defendants are charged in Counts 2 - 6.
If convicted of Counts 7 - 15, Wire Fraud, MOYO, ZOUCHA, AA COMMUNICATIONS, and CMAG, each face a maximum term of imprisonment of twenty (20) years, a fine of $250,000.00 and three (3) years of supervised release following any term of imprisonment, as to each of the nine (9) counts.
If convicted of Counts 16 - 24, Participation in Business of Insurance by a Person Previously Convicted of a Felony Involving Dishonesty, MOYO faces a maximum term of imprisonment of five (5) years, a fine of $250,000.00 and three (3) years of supervised release following any term of imprisonment, as to each of the nine (9) counts.
If convicted of Count 25, Conspiracy to Commit Money Laundering, MOYO, SHEPHERD, ZOUCHA, AA COMMUNICATIONS, and CMAG, each face a maximum term of imprisonment of twenty (20) years, a fine of $250,000.00 and three (3) years of supervised release following any term of imprisonment.
If convicted of Counts 26 - 41, Money Laundering, which charge distinct transactions, MOYO and AA COMMUNICATIONS, each face a maximum term of imprisonment of ten (10) years, a fine of $250,000.00 and three (3) years of supervised release following any term of imprisonment, as to each of the sixteen (16) counts. SHEPHERD, ZOUCHA, and CMAG are not charged in Counts 26 - 41.
Speaking to today’s indictment, U. S. Attorney Jim Letten stated:
“Today, we have demonstrated our absolute commitment to the mission of the U. S. Attorney’s Office, the FBI and IRS to seek out corruption wherever it exists. To anyone - whether public official or citizen - who has violated, or is in the process of violating the public trust, or profiting at the expense of our citizens, know this:
We are determined to protect our citizens and will continue to maintain an environment which is hostile and perilous to corruption and anyone who engages in it.”
FBI Special Agent in Charge James Bernazzanni added:
“The current corruption efforts of the FBI, the IRS and the U. S. Attorney’s Office are on a roll. The pins of corruption are falling. Public corruption in Greater New Orleans is in full retreat. To those few corrupt public pins still standing, you should be worried, and aptly so. You are now the focus of the eye of this tiger. The FBI, the IRS and the U. S. Attorney’s Office will not rest until we ensure that service to the public is for the benefit of the people and not some unscrupulous public official.”
IRS CID Special Agent in Charge Michael J. De Palma stated:
“ The IRS mission in fraud investigations is to identify and recommend for prosecution those who engage in activities that lead to violations of the Federal money laundering statutes. We will continue to work jointly with our law enforcement partners at the U. S. Attorney’s Office and the FBI to investigate these matters vigorously and completely.”
U. S. Attorney Letten reiterated that the superseding indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
The case is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service/Criminal Investigations Division with the assistance of the Louisiana Department of Insurance, and prosecuted by Assistant United States Attorneys Michael W. Magner and Gregory Kennedy.
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