Destrehan Man Admits to $3M Bank & Laundry Scheme

NEW ORLEANS – A brazen scheme to defraud lenders out of millions of dollars has landed a Destrehan man in federal court. DUANE A. DUFRENE, 54, pleaded guilty on November 24, 2021, to one count of conspiracy to commit bank fraud and one count of money laundering before U.S. District Court Judge Jane Triche Milazzo, according to U.S. Attorney Duane A. Evans.

The indictment, now unsealed, reveals that DUFRENE colluded with Ryan Mullen to inflate property values and fabricate financial records to secure loans for a residence in Jayess, Mississippi, and two hotels and a bed and breakfast in Natchez, Mississippi. The lenders targeted included State Bank and Trust, Keesler Federal Credit Union, and Red Oak Capital Group, LLC. The operation relied heavily on fictitious entities, falsified tax returns, and deliberately misleading appraisals.

The con began with the Jayess residence, where DUFRENE provided Mullen with false financial information which was then presented to State Bank and Trust. The sales of The Briars bed and breakfast and the two Natchez hotels were even more elaborate, incorporating not only fabricated documents prepared by DUFRENE but also artificially inflated appraisals achieved through secret side agreements between Mullen and Dufrene. This allowed them to secure loans based on properties worth far more than their actual value.

The payoff? A cool $90,000 for DUFRENE, paid by Mullen after the properties changed hands. Mullen, however, reaped the lion’s share – over $3 million in fraudulently obtained funds. He then splurged on a fleet of at least 20 high-end luxury vehicles, many of which have already been seized by federal authorities. It was a classic case of greed and deception, fueled by a willingness to break the law.

DUFRENE now faces a potential thirty-year sentence for the bank fraud conspiracy and an additional ten years for the money laundering charge. If convicted on both counts, he could spend up to 40 years behind bars. Beyond imprisonment, he’s looking at up to five years of supervised release and a $1,000,000 fine for the bank fraud count, plus an additional three years of supervised release and a $250,000 fine for the money laundering count. A mandatory special assessment fee of $100 will also be applied to each charge. Sentencing is scheduled for February 23, 2022.

U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and IRS-Criminal Investigation agents in building the case. Assistant United States Attorneys Edward J. Rivera and Andre Lagarde are prosecuting the matter. The feds are sending a clear message: financial crimes, no matter how complex, will be pursued and prosecuted to the fullest extent of the law. This case underscores the importance of vigilance in the financial sector and the dedication of law enforcement to protecting consumers and institutions from fraud.”