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Five From Louisiana and One From Mississippi Indicted in Connection with Fraud and Money Laundering of a Total of $6.4 Million

New Orleans, Louisiana – On August 30, 2022, the Department of Justice U.S. Attorney’s Office Eastern District of Louisiana announced that Ryan P. Mullen, age 41, a resident of Jayess, Mississippi, Duane A. Dufrene, age 55, a resident of Destrehan, Louisiana, Dillon J. Arceneaux, age 31, a resident of Marrero, Louisiana, Lance M. Vallo, age 37, a resident of Gueydan, Louisiana, Grant C. Menard, age 35, a resident of Kaplan, Louisiana, and Zeb O. Sartin, age 35, a resident of Lafayette, Louisiana, were indicted on Friday, August 26, 2022, by a federal grand jury for conspiracy to commit bank fraud and conspiracy to commit money laundering, announced U.S. Attorney Duane A. Evans.

According to the indictment, Mullen and Dufrene conspired with Arceneaux, Vallo, Menard, and Sartin to defraud a merchant cash company based in Georgia by using a number of shell Louisiana companies with no assets. Mullen and Dufrene assisted in the establishment of Arceneaux, Vallo, Menard, and Sartin as the owners of existing corporations. Mullen and Dufrene then created bogus vendor accounts for the corporations, and Mullen, with the assistance of another person, created bogus bank records for the companies. Mullen then pretended to be a broker for the companies he helped establish under an alias.

Mullen used another broker to supply the victim merchant cash advance company with bogus vendor accounts and bank data in order to receive funds. The victim cash advance company approved the advances and began electronically wiring millions of dollars in advances to Arceneaux, Vallo, Menard, and Sartin. Arceneaux, Vallo, Menard, and Sartin laundered some of the funds by giving Mullen and Dufrene percentages. Arceneaux, Vallo, Menard, and Sartin subsequently shut down their non-existent enterprises before fully repaying the victim merchant cash advance company, resulting in $6.4 million in losses.

An indictment merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.

Mullen, Dufrene, Arceneaux, Vallo, Menard, and Sartin face up to five years in prison for the wire fraud conspiracy and up to twenty years in prison for the money laundering conspiracy if convicted. On the wire fraud counts, each defendant faces up to three years in prison and a $250,000 fine. Each defendant faces up to three years in prison and a $500,000 fine for the money laundering charges. A $100 special assessment fee is also required for each count. The government has filed a notice of fraud forfeiture seeking to forfeit a number of Rolls Royces and Bentleys purchased by Mullen.

U.S. Attorney Evans praised the Federal Bureau of Investigation and IRS-Criminal Investigation special agents for their handling of the case. Assistant United States Attorneys Edward J. Rivera and Andre Lagarde are prosecuting the case.

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