Chamico president Charles “Chuck” Mizell Jr. and eight of his employees, indicted last week in an alleged scheme involving unemployment insurance benefits, are charged with various counts of mail fraud and conspiracy to commit mail fraud.

A federal grand jury handed down the felony indictments last Thursday in the U.S. District Court for the Eastern District of Louisiana, and the detailed indictment was obtained from the U.S. Attorney’s Office Monday.

Mizell, 44, is a resident of Bogalusa and son of Bogalusa Mayor Charles Mizell, who owned Chamico prior to running for office in 2010. The younger Mizell is charged with one count of conspiracy to commit mail fraud and five counts of mail fraud.

Terry Castilow, 48, of Bogalusa, faces one count of conspiracy to commit mail fraud and four counts of mail fraud, while James Creel, 48, of Bogalusa; Tenille Nielson, 34, of Franklinton; Jerry Athey, 56, of Bogalusa; David Lowe, 48, of Bogalusa; and Roger Nadeau, 51, of Linn Mo., were each indicted on one count of conspiracy to commit mail fraud and one count of mail fraud.

William Darryl King, 47, of Angie, and Jacqueline Myers, 27, of Franklinton, are each charged with one count of conspiracy to commit mail fraud.

King, Creel and Nielson are scheduled to be arraigned in federal court in New Orleans on Thursday at 2 p.m. Mizell, Castilow, Nadeau, Lowe, Athey and Myers are scheduled for arraignment on May 7 at 2 p.m.

A defense motion to continue the arraignments for Nielson, Creel and King has been filed but not yet signed by a judge on Tuesday, the U.S. Attorney’s Office said.

If convicted, the defendants face a maximum sentence of five years in prison on the conspiracy count and 20 years in prison on each of the mail fraud counts. The defendants also face a $250,000 fine and three years of supervised release as to each count, according to the U.S. Attorney’s Office.

Conspiracy to

commit mail fraud

To receive unemployment insurance benefits, an unemployed worker must file a claim with the Louisiana Workforce Commission. The claim includes information on the claimant’s last employer and the reason for the separation. Based in part on the separation information and wage credits earned by the claimant, the LWC will determine if the claimant is qualified to receive benefits.

Subsequently, the claimant must continue to contact the LWC on a weekly basis and certify his or her eligibility for benefits, showing they are able, available and actively seeking full-time employment.

The indictment alleges the employees applied to the LWC for unemployment insurance benefits, and that Mizell signed off on the claims, stating the defendants were not employed by Chamico because of lack of work. In fact, the defendants were employed at the time of the claims, the indictment alleges.

The indictment states the employees and Mizell conspired to devise a scheme to defraud the LWC of money, claiming the employees were laid off by Chamico and eligible to receive unemployment insurance benefits. By doing so Mizell did not have to pay them their full salaries, saving Chamico and himself money. The indictment alleges Mizell had Chamico checks cashed to pay the defendants the difference in their salaries after the LWC paid them the fraudulent unemployment insurance benefits.

According to the indictment, the acts occurred as follows:

• On or about Sept. 24, 2009, Castilow applied for unemployment insurance benefits. On or about Sept. 28, 2009, her Notice of Claim Filed form was returned to the LWC, and from on or about Oct. 3, 2009, to on or about March 27, 2010, she made weekly representations to LWC that she was unemployed and not paid by Chamico.

• On or about Sept. 24, 2009, Myers applied for unemployment insurance benefits, and on or about Sept. 28, 2009, her Notice of Claim Filed form was returned to LWC. From about Sept. 27, 2009, to on or about March 27, 2010, Myers made weekly representations to LWC that she was unemployed and not being paid by Chamico.

• On or about June 30, 2010, Creel applied for unemployment insurance benefits. On or about July 2, 2010, Chamico signed off on LWC forms, and from on or about July 10, 2010, to Jan. 1, 2011, Creel made weekly representations to LWC that he was unemployed and not paid by Chamico.

• On or about Sept. 5, 2013, Creel applied again for unemployment insurance benefits, and on or about Sept. 8, 2013, Creel’s Notice to Base Period Employer form was returned to LWC. From on or about Sept. 21, 2013, until Oct. 5, 2013, Creel made weekly representations to LWC that he was unemployed and not paid by Chamico.

• On or about May 13, 2013, Nielson applied for unemployment benefits, and on or about May 14, 2013, her verification form was returned by Chamico to the LWC. From on or about June 8, 2013, to Dec. 14, 2013, Nielson made weekly representations to the LWC that she was unemployed and not paid by Chamico.

• On or about May 13, 2013, King applied for unemployment insurance benefits, and on or about May 14, 2013, King’s form was returned to the LWC by Chamico. From on or about May 25, 2013, to on or about June 8, 2013, and again on or about Sept. 14, 2013, to on or about Jan. 11, 2014, King made weekly representations to the LWC that he was unemployed and not paid by Chamico.

• On or about May 16, 2013, Athey applied for unemployment insurance benefits. On or about May 20, 2013, his Notice of Claim Filed form was returned to the LWC on behalf of Chamico, and from on or about May 25, 2013, until Sept. 21, 2013, Athey made weekly representations to the LWC that he was unemployed and not paid by Chamico.

• On or about May 16, 2013, Nadeau applied for unemployment insurance benefits, and on or about May 20, 2013, Nadeau’s verification form was returned to the LWC on behalf of Chamico. From on or about May 25, 2013, to July 27, 2013, Nadeau made weekly representations to the LWC that he was unemployed and not paid by Chamico.

• On or about May 19, 2013, Lowe applied for unemployment insurance benefits, and on or about May 22, 2013, Lowe’s verification form was returned by Chamico to the LWC. From on or about June 8, 2013, until on or about Dec. 14, 2013, Lowe made weekly representations to the LWC he was unemployed and not paid by Chamico.

Mail fraud counts

According to the indictment, the defendants mailed forms through the United States Postal Service, fraudulently confirming unemployment to the LWC. There are five incidents resulting in separate counts in the indictment, which allege:

• On or about June 30, 2010, Mizell and Creel did mail or cause to be mailed a form fraudulently claiming Creel was unemployed due to lack of work, resulting in a benefit of $247 for Creel.

• On or about May 14, 2013, Mizell, Castilow and Nielson did mail or cause to be mailed a form fraudulently claiming Nielson was unemployed due to a lack of work. This resulted in a $247 benefit for Nielson.

• On or about May 20, 2013, Mizell, Castilow and Athey did mail or cause to be mailed a form fraudulently claiming Athey was unemployed due to lack of work. This resulted in Athey’s receipt of $516 in benefits.

• On or about May 20, 2013, Mizell, Castilow and Nadeau did mail or cause to be mailed a form fraudulently claiming Nadeau was unemployed due to a lack of work, resulting in Nadeau’s receipt of $247 in benefits.

• On or about May 21, 2013, Mizell, Castilow and Lowe did mail or cause to be mailed a form fraudulently claiming Lowe was unemployed due to a lack of work, resulting in Lowe receiving $247 in benefits.

Though Castilow is accused of participating in four of the five mail fraud counts, the U.S. Attorney’s Office would not discuss her role in the alleged crimes.