What's New In New Orleans?

The imposing presence of Robert A. Cerasoli as the city's first inspector general is the clearest sign that the changes Hurricane Katrina wrought on New Orleans in 2005 were not limited to physical devastation. By declaring war on municipal corruption, Cerasoli has signaled that life in the Big Easy no longer will be so easy.

A sign of change that transcends federal dollars was the arrival last August of Cerasoli, the nation's foremost inspector general, who served 10 years as Massachusetts state IG. "I was amazed when I arrived to find that just about everybody I met had been the victim of a holdup," Cerasoli told me. He wondered why crime was much more rampant in New Orleans than in Atlanta, a larger city with a smaller police force.

Cerasoli is working closely with U.S. Attorney Jim Letten to crack down on corruption.

Judge won't drop charges against Rep. William Jefferson

It seems that William "Dollar Bill" Jefferson will have to face the music after all since the judge won't drop the charges:

Facing 16 bribery-related charges stemming from business deals in West Africa, Jefferson sought to unravel the government's case by claiming that some of the testimony provided to the grand jury by six current or former staffers violated the U.S. Constitution.

Come on Jefferson: It is time you pay the piper.

Corruption In The Big Easy

It is very quiet on the home front. There are no new allegations being made about bribery, mail fraud, obstruction of justice, etc. It seems that those who have been caught up in the recent corruption scandals are quietly sitting back and making their deals, with the feds, in the hopes of obtaining lighter sentences.

We haven't heard anything new about former school board member Ellenese Brooks-Simms. Former New Orleans Mayor, Marc Morial's aunt, Lillian Smith Haydel, is still awaiting sentencing. We really don't expect too much to come out of her mouth concerning any other wrongdoing, but it makes you wonder: Why is it taking so long for her to be sentenced? I am also curious as to what other information Ellenese Brooks-Simms will provide. I hope she fully cooperates with the feds in order for the City of New Orleans to really clean house. We are tired of the reputation we now have and we all hope that one day things change.

Former Fruit of the Loom Exec Receives His Fate

It seems that Stan "Pampy" Barre's act of money laundering, mail fraud and obstruction of justice has been taken on the road like a well known script from a bad play. Fruit of the Loom has its own bandit in treachery. According to a news report, a former Fruit of the Loom executive and two other south-central Kentucky residents have been sentenced in a scheme to defraud Kentucky-based Fruit of the Loom, prosecutors said Tuesday.

Kalen Wade Watkins, 45, of Alvaton, a former executive with the company, was sentenced to 10 years and one month for conspiracy to commit mail fraud, money laundering and obstruction of justice, U.S. Attorney David L. Huber's office said in a statement.

Laura Leigh Wells, 33, of Bowling Green, was sentenced to one year and one day, and Tyrone Nathaniel Tackett, 36, of Bowling Green, was sentenced to one year and three months for conspiring to defraud the underwear manufacturer.

Watkins previously pleaded guilty to a scheme in which, as Fruit of the Loom's environmental director, he hired companies owned by several co-conspirators to perform services for the company and approved inflated invoices from the companies, according to Huber's office.

Wells, of Environmental Technology Associates, and Tackett, of Cyclone Inc., paid Watkins hundreds of thousands of dollars in kickbacks.

U.S. District Judge Thomas B. Russell also ordered the three to pay restitution totaling nearly $1.7 million and were given three years of supervised released when their sentences end.

Let's hope Mr. Barre gets a similar sentence as Mr. Watkins.

The 'Who You Know' Doctrine

After I read this article, I could not help be reminded of the political scale in New Orleans.

Corruption in Hungary - It's WHO you know - paper
Budapest, December 3 (MTI) - A Hungarian wanting to manage an administrative matter had best know someone in the office handling it, reported Monday's national daily Nepszabadsag, analyzing corruption reports from private citizens and businesses.

While comparatively few people reported having to pay bribe money, nearly half the survey said their business was handled faster if they had friends in the administrative offices.

Fully 46.9 percent of the sample said their personal contacts speeded things up, although only 8.1 percent supplied a gift to support the contact. Even fewer, 3.2 percent said they had been asked for money to speed up their business, while only 1.8 percent said officials had asked them for money to approve a request.

The sample also found family services to operate best among the various offices of public administration, while they qualified employment centres as the worst. The least popular bureau - and apparently the one where one-third of people have had to contend with corruption - is the land title office, Nepszabadsag wrote.

New Orleans own brand is the 'Who You Know' Doctrine. 'What You Know' gets you nowhere in The Big Easy where political corruption continues to run rampant.

Former New Orleans' Councilman to be Sentenced Wednesday

Former Councilman Oliver Thomas is scheduled to be sentence Wednesday at 10 a.m.

Though he faces a maximum of 10 years in prison, Thomas is likely to receive far less for various reasons, including his previously clean record, his admission of guilt and the relatively small amount of money, about $20,000, that he confessed to taking.

Federal sentencing guidelines call for a sentence in the range of 30 to 37 months based on the offenses Thomas admitted, according to Tulane law professor and former federal prosecutor Tania Tetlow. Federal judges are no longer required to follow sentencing guidelines.

However, it appears unlikely he will receive extra leniency in exchange for providing what federal law calls "substantial assistance" in the investigation or prosecution of another person, according to courthouse observers. Were that the case, prosecutors would have almost certainly asked Vance to delay Thomas' sentencing.

"When someone is cooperating, you usually see one or two motions to continue," said Loyola Law School professor Dane Ciolino. "The purpose is to make sure he cooperates as expected, and that he testifies as expected."

"The government has a policy of waiting (to sentence a convict) until after he has testified," agreed lawyer Julian Murray, a former federal prosecutor. "It doesn't mean he hasn't given them some information that was helpful, but it's unlikely he'll testify in another case."

Not only does a delay ensure prosecutors the testimony they seek, it gives them time to complete the paperwork to request a downward departure, often known as a cooperation letter, or a 5K1 after the section of the federal sentencing code that describes it.

That Thomas' sentencing appears to be on schedule is a "pretty good suggestion that he is not cooperating -- or at least has not been able to deliver any additional wrongdoers to the government," Ciolino said.

In contrast, Ciolino noted, convicted restaurateur and political operative Stan "Pampy" Barre, -- who helped provide the government with the evidence it needed to prosecute Thomas -- still awaits sentencing.

Barre pleaded guilty in January to conspiring to skim more than $1 million from a large City Hall energy contract awarded by former Mayor Marc Morial. His sentencing, now set for January, has been delayed numerous times.

Thomas' lawyer, Clarence Roby, said he couldn't discuss the details of Thomas' conversations with investigators. But he hinted that his client hadn't provided the government much information, and he said he doesn't expect any delay in the sentencing.

"He's cooperated the best he could," Roby said of Thomas. "But unlike Stan Barre and others, he didn't necessarily walk in saying, 'Let me tell you about every corrupt act I've ever witnessed.' He's in an unenviable position. But he's taken responsibility for his misdeeds."

Ex-Drug Court contractors plead innocent in fraud case

Two former subcontractors of a St. Tammany Parish Drug Court contractor that drew state and court auditors’ scrutiny entered innocent pleas to felony criminal charges Thursday.

Guice Giambrone, 61, of Baton Rouge, and Slidell Police Officer William Massimini, 31, pleaded innocent to the charge of second-degree injuring of a public record.

Massimini also pleaded innocent before Judge Patricia Hedges of the 22nd Judicial District Court to the charge of public payroll fraud.

A June 2007 Louisiana Legislative Auditor compliance audit found Massimini and Giambrone may have broken state law in their handling of payment records state auditors believe were falsified.

The reports were purported to support Massimini’s pay for work as a compliance officer for the Slidell Juvenile Drug Court between January 2005 and January 2006.

A St. Tammany Parish grand jury indicted the men in late August. On Thursday, Hedges also set a Jan. 7 trial date for Giambrone and Massimini, who are co-defendants.

They formerly worked as subcontractors for Human Services Foundation of Baton Rouge. Under contract with the court, the nonprofit helped administer the entire 22nd Judicial District Drug Court program, of which the Slidell program is part, for eight years until July 2006.

The contract ended after court officials uncovered financial questions later brought to light in the 2005 audit released in August 2006 and the subsequent compliance audit this year.

Human Services Foundation officials have denied wrongdoing or knowledge of it.

The Drug Court program helps nonviolent juvenile and adult drug offenders get off drugs and employed. The 22nd Judicial District’s jurisdiction encompasses Washington and St. Tammany parishes.

The questioned documents were produced after court officials began asking questions nearly two years ago about Massimini’s work, the June compliance audit says.

Massimini was charged with checking up on juvenile clients for the Slidell court, a job outside his duty as a city police officer. Some of the questioned documents claimed that he visited clients the day Hurricane Katrina struck Slidell, Aug. 29, 2005, auditors said.

Giambrone is accused of turning in some of the questioned documents.

Jim Moorman, Giambrone’s attorney, said his client simply delivered records and did not falsify them. Giambrone told the auditors the same thing.

Massimini’s attorney, Vince Lobello, didn’t return a call seeking comment Thursday.

The Slidell Police Department continues to employ Massimini. He was moved from a detective’s post to desk duty in the Patrol Division before his indictment Aug. 29, said Capt. Kevin Foltz, police spokesman.

Massimini has been instructed not to engage in police enforcement action while his case and an internal police investigation continue, Foltz said.

The change in job assignments is not a demotion, he said.

Convicted Felon, Stan "Pampy" Barre Accused of telling lies to lessen his prison sentence

Federal investigators are probing an allegation that Orleans Parish School Board member and state House candidate Una Anderson accepted a cash bribe, delivered to her husband six years ago in exchange for her help steering a School Board trash-collection contract to two local garbage haulers, sources close to the investigation said.

Anderson said she does not believe she is the target of any federal inquiry. If she is, she said, that's because restaurateur and convicted felon Stan "Pampy" Barre is telling investigators anything he can in hopes of reducing his prison sentence after he pleaded guilty to federal fraud charges related to a crooked City Hall energy deal. Barre faces sentencing in January.

"If Stan Barre is saying that I took a bribe, he is telling a lie," Anderson said. "I've done nothing unethical or illegal."

Jimmie Woods and Alvin Richard, the respective owners of Metro Disposal Inc. and Richard's Disposal Inc., the two trash-hauling companies that got the work, said through their attorneys that no bribes were paid to anyone.

"I'm aware that allegations may have been made," said Richard's attorney, Robert Glass. He added that Richard is "not a suspect" but that he is "answering questions from the authorities."

"All I can say is my client absolutely denies" paying a bribe, said Herbert Larson, Woods' attorney.

Larson also said: "If you want the real explanation, it is that Stan Barre will do anything, including roll over on Mother Teresa, to get out of 9 1/2 years in jail. He will say anything and do anything."

Larson's comment refers to the prison term Barre potentially faces. In June, one of Barre's co-conspirators, former city property management director Kerry DeCay, was sentenced to nine years in prison after pleading guilty to the same charges as Barre.

The harsh sentence might have served as a wake-up call to Barre, a gregarious restaurateur, political operative and close ally of former New Orleans Mayor Marc Morial. Barre, absent a kind word from the feds, seemed destined for a similar stretch in the penitentiary. |Read more|

Moyo Indicted in moneylaundering case linked to Senator Derrick Shepherd

A twice-convicted bond broker -- who federal authorities say hired state Sen. Derrick Shepherd to launder money she obtained illegally -- was indicted by a grand jury yesterday on 15 counts of selling insurance despite being barred from the practice.

Gwendolyn Joseph Moyo, 52, could face up as many as 9 years in federal prison under sentencing guidelines if she is convicted, according to court testimony Tuesday.

The indictment lists 15 projects for which Moyo allegedly provided phony performance bonds, all of them during 2006. Moyo was prohibited by federal law from engaging in the insurance business because of her two prior convictions on federal charges "involving dishonesty and a breach of trust."

In 13 of the 15 cases listed in the indictment, the "purported insurer" was First Nations Insurance Group, a company based on Ontario, Canada, according to an FBI affidavit. Smith said that Moyo had at one time had a business relationship with FNIG, but in December 2005, the company revoked her appointment.

Company officials could not be reached for comment.

In one of the cases, a bond provided by Moyo was purportedly underwritten by United Assurance Co. Limited, based in Grenada. That company is not licensed to do business in Louisiana.

The state Department of Insurance received a complaint about a bond for which Moyo served as agent last year and began an investigation. In November, the department secured an order allowing its agents to seize records and bank accounts from her business, AA Communications.

After that action, Moyo was unable to cash checks from her bond sales that were made out to AA Communications, Special Agent Peter Smith testified at a detention hearing for Moyo on Monday.

She signed a series of checks for bond fees totaling $140,686 over to Shepherd in early December, Smith testified. Shortly thereafter, Shepherd wrote out checks totaling about $75,000 to Moyo personally.

On the memo line of each check, Shepherd wrote "settlement proceeds," Smith's affidavit notes. Shepherd is called "Mr. A" throughout the affidavit, but in court, Smith used the senator's name.

Congressman Jefferson wants his trial moved

Congressman Jefferson wants his trial moved out of Virginia because he assumes that he won't receive a fair trial. Mr. Jefferson wants to insult the black race by assuming that since he is a black corrupt politician, black people will condone his behavior. It is time we as a people stand united against corrupt politicians, like Congressman Jefferson, and let them know that we will no longer tolerate corrupt politicians in the big easy. Additionally, his legal argument has no merit.

Jefferson's legal team amended its earlier claim that the government orchestrated a sting operation in the heavily white suburbs of northern Virginia to avoid trying an African-American defendant in the majority black city of Washington, D.C.

Race did not play a factor in the government's sting operation because he was the one who accepted the bribe. It is time for him to stand up for once and be a man. Admit to his guilt and accept responsibility for his actions.

Graft In US Army Contracts

"On the fourth Sunday in July, John Lee Cockerham was here in his hometown for the baptism of his twin sons.


People in this northwest corner of Louisiana think of him as an unlikely success story, a man who started with nothing to become a major in the Army. He and his 17 siblings grew up without electricity and running water. His parents earned barely enough to keep everyone fed.

Yet even after he made it out of Castor, his ties to these backwoods remained strong. The congregation at New Friendship Baptist Church celebrated his last promotion with a parade. At his sons’ baptism, he told fellow worshipers that he hoped to instill in his children the values he had wrested from hardship.

Less than 24 hours later Major Cockerham was behind bars, accused of orchestrating the largest single bribery scheme against the military since the start of the Iraq war. According to the authorities, the 41-year-old officer, with his wife and a sister, used an elaborate network of offshore bank accounts and safe deposit boxes to hide nearly $10 million in bribes from companies seeking military contracts."
|Read more|

Jacques Morial Failed To File Taxes

"While many of the cases against members of Marc Morial's inner circle have had clear links to contracts awarded during his City Hall tenure, Jacques Morial's offense does not appear to have any relation to his brother's actions as mayor between 1994 and 2002. Marc Morial, who has headed the National Urban League since 2003, has not been accused of any wrongdoing."

"More jail sentences are pending, however, in connection with the highest-profile case to come out of the City Hall investigation: a scheme to skim more than $1 million from the city's massive energy-efficiency contract with Johnson Controls Inc., which was awarded during the waning months of Marc Morial's mayoral term."

"One of the four co-conspirators, Kerry DeCay, who headed the city's property management department under Morial, began serving a nine-year stint in a Massachusetts prison last month after pleading guilty to corruption charges."

"The other participants in the conspiracy -- restaurateur Stan "Pampy" Barre, a Morial family confidant; businessman Reggie Walker; and former Johnson Controls project manager Terry Songy -- are cooperating with investigators and awaiting sentencing." | Read more|