FRANK FRADELLA’S GUILTY PLEA USED TO LEVERAGE AN INDICTMENT AGAINST NEW ORLEANS MAYOR RAY NAGIN
Due to the MCC’s role in the conviction of former Benetech founder Aaron Bennett on bribery charges, another informant came forward to provide information about Frank Fradella. Initially facing federal charges in Dallas for securities fraud for artificially inflating the value of his company’s stock, Fradella was also found to have been engaged if corrupt activities with former New Orleans Mayor Ray Nagin. Witnesses and information gathered from an informant by the MCC and given to federal authorities uncovered that Fradella provided truckloads of granite at no cost to Mayor Nagin for his family’s granite installation business. Fradella would later enter into a plea agreement in Federal Court where he admitted to bribing Nagin with the granite and made a $50,000 payment to Nagin while he was still in office and a subsequent $10,000 per month retainer after Nagin left public service. Frank Fradella was sentenced to a year and a day imprisonment and ordered to pay a fine of $10,000.
US Attorney’s Press Release – Frank Fradella Guilty Plea – June 27, 2012
US Attorney’s Office Press Release – C. Ray Nagin Indictment – January 18, 2013
FEDERAL CONVICTIONS OF JEFFERSON PARISH OFFICIALS AARON BROUSSARD, TOM WILKINSON, TIM WHITMER, AND KAREN PARKER, AS WELL AS VENDOR BILL MACK
Since 2009, the MCC has been following a corruption scandal in Jefferson Parish which began with a tip that West Jefferson Hospital awarded an insurance contract to a company that was splitting commissions with then Jefferson Parish Chief Accounting Officer Tim Whitmer. Information from that tip evolved into a wide ranging corruption investigation which generated indictments against former Jefferson Parish President Aaron Broussard, his ex-wife Karen Parker, former Jefferson Parish Attorney Tom Wilkinson, former CAO Tim Whitmer, and vendor William “Bill” Mack. In 2012, all four Jefferson Parish officials and the vendor pled guilty. Aaron Broussard was sentenced to 3 years and 10 months imprisonment and ordered to pay restitution. Wilkinson, Whitmer, and Parker all received probation and were ordered to pay fines and restitution. Mack was sentenced to 1 year and 8 months imprisonment. The U.S. Attorney’s Office acknowledged the MCC’s assistance in the case.
US Attorney’s Press Release – Karen Parker – January 17, 2012
US Attorney’s Press Release – Timothy Whitmer – March 22, 2012
US Attorney’s Press Release – William Mack – August 16, 2012
US Attorney’s Press Release – Thomas Wilkinson – September 24, 2012
US Attorney’s Press Release – Aaron Broussard – September 25, 2012
LOUISIANA LEGISLATIVE AUDITOR ISSUES REPORT ON ORLEANS PARISH CRIMINAL AND CIVIL DISTRICT COURTS
The MCC received information that the judges of Orleans Parish Criminal and Civil District Court were using their judicial expense funds to purchase insurance for the judges and their dependents, pay travel expenses, and provide full time payments to court employees. Judicial expense funds are intended to support court operations and under Louisiana law judges are to receive no additional compensation beyond their salaries or any type of supplemental insurance beyond what is available to all state employees. The Legislative Auditor conducted a review, based on a referral by the MCC, and found that Criminal District Court had spent $637,000 and Civil District Court spent more than $191,000 on insurance policies for the judges and their dependents. The case is now in the hands of the the Supreme Court for administrative action.
Legislative Auditor Report for Orleans Parish Criminal District Court – November 26, 2012
Legislative Auditor Report for Orleans Parish Civil District Court – November 26, 2012
MCC ASSISTS IN FEDERAL PROBE OF STATE HOME ELEVATION PROGRAM
Information developed by the MCC and given to the FBI resulted in two guilty pleas by former members of the state’s Hazard Mitigation Grant Program, a publicly run agency, which provided grants to homeowners after Hurricanes Katrina and Rita to rebuild homes at safely elevated levels. Brianna Lafrance and Wanda Acker Williams of New Orleans pled guilty to selling lists of home owners who had received grants to ex-con Rickey Davis. Davis and his patrons then tried to resell the names to private contractors including contractor Aaron Bennett of Benetech. Davis pled guilty to federal bribery charges for bribing state officials in the Hazard Mitigation Grant Program and was sentenced to 7 years in prison.