BATON ROUGE, LA—United States Attorney
Donald J. Cazayoux, Jr. announced that another public official has been
convicted in Operation Blighted Officials. Richard L. Chambers, Sr., age 67, of
LaPlace, Louisiana, pled guilty today before Chief U.S. District Judge Brian A.
Jackson to using an interstate facility in aid of racketeering, in violation of
Title 18, United States Code, Section 1952, and forfeiture, pursuant to Title
18, United States Code, Section 982. Chambers faces up to five years in prison,
three years of supervised release following imprisonment, a fine of $250,000,
and forfeiture of all proceeds from the offense. Sentencing is scheduled before
Chief Judge Jackson at 9:30 a.m. on Wednesday, November 14, 2012.
At today’s hearing, Chambers admitted
that, while serving as Deputy Commissioner for the Louisiana Department of
Insurance, he engaged in two bribery schemes in which he took bribes in
exchange for using his official position to (1) steer insurance business and
(2) support a conceptual trash can cleaning concept known as the Cifer 5000.
Insurance
Kickback Scheme
At today’s hearing, Chambers admitted
that he created a scheme whereby he would use his official position to steer
insurance business from municipalities and other sources to a licensed
insurance agent in exchange for bribes. Chambers admitted that, after
attempting the scheme with an undependable agent, Chambers enlisted the
participation of a different insurance agent to execute the scheme. Unbeknownst
to Chambers, the insurance agent he enlisted was an undercover special agent
with the Federal Bureau of Investigation.
Chambers admitted that, in February
2009, he arranged to take bribes from the insurance agent consisting of 40
percent of the commissions earned on business Chambers steered to the insurance
agent. Chambers admitted that he received a $2,000 cash bribe on July 21, 2009,
a $3,000 cash bribe on October 16, 2009, and a $500 cash bribe on March 10,
2010. In exchange, Chambers admitted that he used and agreed to use his
official position to, among other things, steer insurance business to the
insurance agent from municipalities such as St. Gabriel, Louisiana, and White
Castle, Louisiana. Chambers admitted that he even wrote a fraudulent letter in
his official capacity to the mayor of Cleveland, Ohio, in an attempt to steer
the city of Cleveland’s insurance business to the insurance agent.
Cifer
5000 Bribery Scheme
At today’s hearing, Chambers also
admitted to engaging in a bribery scheme with an individual he believed to be a
venture capitalist affiliated with the insurance agent and involved with a
conceptual trash can cleaning product known as the “Cifer 5000.” The Cifer 5000
was a product marketed as an automated waste container cleaning system using
specially designed and equipped trucks to clean and sanitize commercial and
residential waste containers. Its potential customer pool was represented to be
governmental entities. Unbeknownst to Chambers, the venture capitalist was an
undercover FBI agent and the Cifer 5000 was a fictitious product created by the
FBI.
Chambers admitted that, in May 2009, he
agreed to provide an official letter of support for the Cifer 5000 in exchange
for two cash payments totaling $5,000. Chambers believed the letter would be
used to generate significant private investor funding for the Cifer 5000.
Chambers admitted that he took $2,000 in cash from the venture capitalist on
May 12, 2009, and the remaining $3,000 in cash the following day. In exchange,
Chambers admitted that he provided the venture capitalist with the official
letter of support.
Status
of Other Operation Blighted Officials Defendants
George L. Grace, Sr.: In March 2012, the
former mayor of St. Gabriel, Louisiana, was convicted by a federal jury
following a six-week trial of violating RICO; engaging in honest services wire
and mail fraud, bribery, obstruction of justice, making false statements; and
use of an interstate facility in aid of racketeering. U.S. District Judge
Maurice Hicks detained Grace pending his sentencing currently scheduled for
9:00 a.m. on August 27, 2012.
Thomas A. Nelson, Jr.: In June 2011, the
former mayor of New Roads, Louisiana, was convicted by a federal jury following
a two-and-a-half-week trial of violating RICO; engaging in honest services wire
fraud; using an interstate facility in aid of racketeering; and making false
statements to the FBI. Chief Judge Jackson sentenced Nelson to 132 months in
prison.
Maurice Brown: In February 2011, the
former mayor of White Castle, Louisiana, was convicted by a federal jury
following a two-week trial of violating RICO; engaging in honest services wire
and mail fraud; and use of an interstate facility in aid of racketeering. Chief
Judge Jackson sentenced Brown to 120 months in prison.
Frederick W. Smith: In October 2011, the
chief of police for Port Allen, Louisiana, was convicted by a federal jury
following a two-week trial of 11 counts of violating RICO; engaging in honest
services wire and mail fraud; and using an interstate facility in aid of
racketeering. Chief Judge Jackson sentenced Smith to 90 months in prison.
Derek Lewis: In July 2011, the former
mayor of Port Allen, Louisiana, pled guilty to violating RICO and agreed to
cooperate with authorities. Chief Judge Jackson sentenced Lewis to 40 months’
imprisonment.
Johnny Johnson: In July 2010, the former
member of the Port Allen City Council pled guilty to using an interstate
facility in aid of racketeering and agreed to cooperate with authorities. Chief
Judge Jackson sentenced Johnson to two years’ probation, with a condition of
having to spend six months in a half-way house.
This ongoing investigation is being
conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office
for the Middle District of Louisiana, with assistance from the U.S. Department
of Housing and Urban Development-Office of Inspector General, and the U.S.
Department of Homeland Security-Office of Inspector General.
Operation Blighted Officials is being
prosecuted by Assistant United States Attorneys Corey R. Amundson, M. Patricia
Jones, and Michael J. Jefferson.
Posts
No comments:
Post a Comment