FRAUDULENT CHILDCARE GRANT LEADS TO CONSPIRACY TO COMMIT WIRE FRAUD CONVICTION

Demietriek Scott, age 50, of New Orleans, Louisiana, pleaded guilty before United States District Judge Brian A. Jackson to conspiracy to commit wire fraud, announced U.S. Attorney Kurt L. Wall.

According to admissions made during his plea, Scott conspired with another to devise a scheme to obtain federal funds in the form of LaCAP grant money from the Louisiana Department of Education. Scott and his co-conspirator made a non-existent childcare provider appear operational and manipulated spreadsheets and data systems utilized by the Louisiana Department of Education to steal $74,250 in federal funds. This prosecution demonstrates the Trump Administration's commitment to fighting fraud and the need for the recent creation of the Task Force to Eliminate Fraud.

LaCAP grants are associated with monies that are paid in connection with a Presidentially Declared Major Disaster or Emergency. Scott's conviction is punishable by a maximum penalty of thirty years in prison, a fine of $1,000,000, and a period of supervised release.

U.S. Attorney Kurt L. Wall praised the work of the U.S. Department of Health and Human Services, Office of Inspector General, and the Louisiana State Police. Assistant U.S. Attorney Jeremy S. Johnson leads the prosecution. "If you choose to steal money taxpayer money that is designated to help those in need, you will be prosecuted to the fullest," U.S. Attorney Wall stated.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department's work to combat fraud supports President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.