Con Man Who Defrauded Healthcare Companies Sentenced To 5 Years In Federal Prison

BATON ROUGE, LA - United States Attorney Walt Green announced today that U.S. District Court Judge John W. DeGravelles sentenced LARRY D. BUTLER, age 50, of Baton Rouge, Louisiana, to sixty (60) months in federal prison as a result of his scheme to defraud two of his former employers.   BUTLER was also ordered to make restitution in the amount of $118,806.98 to his victims, and to serve a three-year term of supervised release following his release from imprisonment.  At the sentencing hearing,  Judge DeGravelles noted BUTLER’s significant criminal history and the nature of his criminal actions.

On January 9, 2015, BUTLER was convicted of wire fraud, in violation of Title 18, United States Code, Section 1343, and false representation of a social security number, in violation of Title 42, United States Code, Section 408(a)(7)(b).  His convictions stem from his scheme to defraud the Louisiana Health Cooperative, Inc., and the Mary Bird Perkins Cancer Center, from July 2013 through August 2014.  Specifically, BUTLER used false credentials, a false social security number, and other false documentation, to conceal his significant criminal history and thereby obtain the pay and benefits associated with being employed by the victim non-profit organizations.  BUTLER also misused company credit cards for personal expenses, including furniture, travel, and meals.  Through his schemes, BUTLER fraudulently obtained nearly $119,000.

United States Attorney Walt Green stated:  “This case demonstrates the damage that can be wrought by fraudsters who deceive good, hardworking people to obtain undeserved employment and then abuse their positions to steal more.  This sort of conduct not only causes financial injury to the employers, it victimizes their honest employees.   In this case, the fraudulent conduct is particularly egregious, given the noble missions of these victims to provide affordable health care and to treat and fight cancer.   My office will continue to vigorously prosecute individuals who defraud and steal from our employers.  I appreciate the great work performed in this case by the prosecutors, the U.S. Secret Service, the Baton Rouge Police Department, and the Mississippi Department of Corrections, along with the cooperation of the District Attorney’s Office for the Nineteenth Judicial District.”

This matter was prosecuted by Assistant United States Attorneys Ryan R. Crosswell and Alan A. Stevens, who serves as a Deputy Criminal Chief.  This matter was investigated by the U.S. Secret Service and the Baton Rouge Police Department, with valuable assistance provided by the Mississippi Department of Corrections.