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.