New Orleans Men Indicted for Conspiracy to Commit Wire Fraud, Theft of Government Funds, and Making False Statements to Federal Agents

From the U.S. Attorney’s Office, Eastern District of Louisiana

NEW ORLEANS – United States Attorney Duane A. Evans announced that NEELY B. HARGIS (“HARGIS”), age 60, and JOSEPH T. TROTTA (“TROTTA”), age 60, both of New Orleans, were indicted on April 19, 2024 for Conspiracy to Commit Wire Fraud, Count One; Theft of Government Funds, Counts 2 and 3; and Making False Statements to Federal Agents, Counts 4 and 5; in violation of Title 18, United States Code, Sections 1349, 641, and 1001(a)(2),  respectively.

According to the indictment, HARGIS and TROTTA, stole approximately $443,455.00 in Social Security Administration (“SSA”) and Coronavirus Aid, Relief, and Economic Security Act (“CARES ACT”) funds.  An individual, W.S., received SSA monthly benefits beginning in March of 1992.  W.S.’s monthly SSA benefits were directly deposited into her Capital One Bank (“Capital One”) account.  W.S. lived on North Dupre Street in New Orleans, Louisiana until her death on August 30, 1999.  From the time of W.S.’s death to July 6, 2020, the SSA deposited approximately $442,264.00 in SSA funds into W.S.’s Capital One account intended for W.S.

In November 2002, HARGIS and TROTTA purchased the North Dupre Street property. HARGIS and TROTTA were also the owners of a property located in New Smyrna Beach, Florida.  HARGIS and TROTTA stole over $443,400.00 in government funds from the Capital One account belonging to W.S.  Thereafter, HARGIS and TROTTA used those funds for personal expenses, e.g., auto loans, utility bills, credit cards, and health insurance bills.  For example, HARGIS and TROTTA electronically transferred money from W.S.’s Capital One account to make fifty-two (52) payments totaling $61,495.00 to Ford Motor Credit, for the purchase of two Lincoln vehicles.  Additionally, HARGIS and TROTTA electronically transferred money from W.S.’s Capital One account to make payments to the City of New Smyrna Beach Utility Commission for utility bills for the property located in New Smyrna Beach, Florida.  According to the indictment, both HARGIS and TROTTA, lied to special agents with the Social Security Administration, Office of Inspector General, when they were interviewed about the theft of the Social Security funds from W.S.’s Capital One account.

U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.

If convicted, HARGIS and TROTTA up to  twenty (20) years imprisonment, up to three (3) years of supervised release, and up to a $250,000 fine as to Count One; up to ten (10) years imprisonment, up to three (3) years of supervised release, and up to a $250,000 fine  as to Counts Two and Three; and, up to  five (5) years imprisonment, up to three (3) years of supervised release, and up to a $250,000 fine as to Counts Four and Five.  For each of the five counts, HARGIS and TROTTA also face payment of a mandatory $100 special assessment fee.

The U.S. Attorney’s Office would like to acknowledge the assistance of the Social Security Administration, Office of the Inspector General with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.