Wednesday, October 6th, 2021

NEW ORLEANS – U.S. Attorney Duane A. Evans announced that DAVID HANSON, age 63,
from Abita Springs, Louisiana, and CLIFFORD “SKIP” KEEN, age 53, from Covington,
Louisiana, were each sentenced today to 50 months imprisonment by United States District Judge
Ivan L.R. Lemelle, after they previously pleaded guilty as charged to a one-count Bill of
Information charging them with conspiracy to commit honest services wire fraud and soliciting a
bribe, in violation of 18 U.S.C. ” 371, 1343, 1346, and 666(a)(1)(B). The charges stemmed from
their roles in the privatization of a work release program in Slidell, Louisiana, that operated
between 2013 and 2016. Additionally, HANSON and KEEN were sentenced to three (3) years
of supervised release, a $10,000 fine and a $100 mandatory special assessment fee. Restitution
ordered without prejudice, with the amount to be determined at a later date.

According to court documents, HANSON and KEEN, each of whom worked as Captains with the
St. Tammany Parish Sheriff’s Office (STPSO) discussed with then-Sheriff Rodney J. (“Jack”)
Strain about becoming owners of a work release program in Slidell, Louisiana that Strain decided
to privatize. As sheriff, Strain had authority, among other things, to enter into certain contracts
binding STPSO, including professional service contracts, unilaterally. Because STPSO rules
prohibited employees from “participating in a transaction in which he has a personal substantial
economic interest of which he may be reasonably expected to know involving the governmental
entity,” HANSON and KEEN would have had to resign from STPSO—thereby losing their
salaries and future pension increases—if they wanted to assume ownership and control of the
Slidell work release program. HANSON, KEEN, and Strain discussed ways to allow HANSON
and KEEN to maintain their employment and still profit from the Slidell work release program.
Ultimately, HANSON, KEEN, and Strain agreed to make KEEN’s adult son (Person 1) and
HANSON’s adult daughter (Person 2) owners of the Slidell work release program.

HANSON, KEEN, and Strain agreed that they needed to find another individual actually to
operate the Slidell work release program because Person 1 and Person 2 lacked sufficient
education, training, experience, or funding. They decided on Person 3, to whom HANSON
presented a series of conditions, including the following: Person 1 and Person 2 would each own
forty-five (45) percent of the Slidell work release program and would each receive forty-five (45)
percent of the profits, while Person 3 would own ten (10) percent, receive ten (10) percent of the
profits, and receive a salary; and Person 3 would be responsible for the daily operations of the
Slidell work release program. Person 3 was also responsible for providing the capital necessary
to initiate the program. On about May 1, 2013, Person 1, Person 2, and Person 3 entered into an
operating agreement that created St. Tammany Workforce Solutions, LLC, in which Person 1 and
Person 2 each had a forty-five percent ownership interest and Person 3 had only a ten percent
ownership interest.

On June 4, 2013, Strain entered into a cooperative endeavor agreement (“privatization
agreement”) on behalf of STPSO with St. Tammany Workforce Solutions, LLC to operate the
Slidell work release program. Although Person 1 and Person 2 acted effectively as passive
members and did not participate substantially in the operation, oversight, or administration of the
Slidell work release program, Person 3 was required to pay Person 1 and Person 2 salaries in
addition to their ownership disbursements. Person 3 was also directed to pay Person 4, who was
Strain’s relative and an employee at STPSO, approximately $30,000 per year for a no-show job
at the Slidell work release program.

During the time St. Tammany Workforce Solutions, LLC operated the Slidell work release
program, Person 1 and Person 2 received not less than $1,195,000 from St. Tammany Workforce
Solutions, LLC in the form of ownership disbursements, salary payments, and occasional lump
sum miscellaneous payments. Person 1 received no fewer than 145 payments totaling over
$550,000, and Person 2 received no fewer than 131 payments totaling over $600,000. Person 1
and Person 2 converted the majority of the money they received from St. Tammany Workforce
Solutions, LLC to cash. At the request of KEEN and HANSON, Persons 1 and 2 then transferred
a significant portion of the funds back to their fathers.

Additionally, HANSON, KEEN, and Strain understood that Strain would receive financial
compensation from them in exchange for bestowing the right to operate the Slidell work release
program on St. Tammany Workforce Solutions, LLC. HANSON and KEEN each gave Strain a
portion of the payments they received from St. Tammany Workforce Solutions LLC, through
Person 1 and Person 2, in cash payoffs in amounts greater than $1,000 on a recurring basis in
exchange for Strain bestowing the right to operate the Slidell work release program on St.
Tammany Workforce Solutions LLC. HANSON also arranged for Strain’s son to receive a check
in the amount of $4,000 because Strain gave the contract to operate the Slidell work release
program to St. Tammany Workforce Solutions, LLC. HANSON, KEEN, Strain, and others
attempted to conceal the scheme by, among other things, not including in the privatization
agreement the fact that Strain would receive financial compensation in exchange for bestowing
the right to operate the Slidell work release program on St. Tammany Workforce Solutions LLC,
communicating by cellular telephone, and providing most of the money to Strain in the form of
cash.

Strain was indicted in a sixteen-count indictment by a federal grand jury separately on August 29,
2019. See United States v. Strain, 19-173 “H” (E.D. La.). Trial in that matter is scheduled to begin
on December 6, 2021.

U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the Internal
Revenue Service – Criminal Investigation Division and thanks the Metropolitan Crime
Commission for its assistance. Assistant United States Attorneys Jordan Ginsberg, the Public
Corruption Unit Chief, and Elizabeth Privitera, the Violent Crime Unit Chief, are in charge of the
prosecution.