Ex-New Orleans Mayor Indicted for Corruption - Wall Street Journal

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[h=3]By CAMERON MCWHIRTER[/h]A federal grand jury in New Orleans on Friday indicted the city's former Mayor Ray Nagin on 21 corruption-related charges, including bribery, conspiracy, wire fraud, money laundering and filing false tax returns.
The indictment, which has been widely expected for months, accuses Mr. Nagin, who rose to national prominence as the city's leader during Hurricane Katrina, of taking cash and gifts from businessmen in exchange for awarding contracts and of using his influence to help their companies.
Mr. Nagin set up "a bribery and kickback scheme" to sell the power of his public office, according to the indictment. He also allegedly received a range of bribes, including tens of thousands of dollars in cash payoffs, granite for his family's granite business, private jet travel across the country and limousine rides, the indictment asserts.
Mr. Nagin's attorney, Robert Jenkins, didn't return calls seeking comment.
Mr. Nagin, 56 years old, has said little publicly in recent months, aside from posting Biblical and inspirational quotations on his Twitter feed. On Friday, he retweeted a statement by the televangelist Joel Osteen: "You are closest to your victory when you face the greatest opposition."
Mr. Nagin is set to be arraigned Jan. 31.
Friday's indictment alleges 59 "overt acts" in which the grand jury accuses Mr. Nagin of steering contracts, accepting bribes and trying to cover up a conspiracy.
The indictment also states that on Jan. 11, 2007, Mr. Nagin approved sale of city land "to a major retail corporation" to build a store in New Orleans. On Feb. 6, 2007, Stone Age LLC, a granite company owned by Mr. Nagin and family members, secured an "installation vendor relationship" with the same company, the indictment said.
While the company isn't named in the indictment, Home Depot Inc. did receive approval from the city to build a store in New Orleans' Central City neighborhood in 2007. The company later did award vendor status, for a limited period of time, to Stone Age LLC, Home Depot spokesman Stephen Holmes confirmed Friday.
"We are not aware of any allegations of wrongdoing by the Home Depot," Mr. Holmes said.
The indictment comes about a month and a half after Rodney Williams, a New Orleans businessman, pleaded guilty to bribery and agreed to cooperate with federal prosecutors investigating a former city official named in documents as "Public Official 'A.'" The high-ranking official was described as being in office for the same number of months and years as Mr. Nagin, and many media outlets identified the official as Mr. Nagin.
In June 2012, Frank Fradella, whose firms received millions of dollars in city contracts while Mr. Nagin was in office, pleaded guilty in federal court to securities fraud and conspiring to commit bribery. In his plea agreement, Mr. Fradella agreed to cooperate with prosecutors in an ongoing corruption investigation involving "Public Official 'A.'"
Friday's indictment against Mr. Nagin asserted that Mr. Williams, Mr. Fradella and others participated in the corruption scheme that the grand jury alleged was headed by Mr. Nagin.
Mr. Nagin was elected mayor in 2002 on a platform of stamping out public corruption. He became nationally known in 2005, when storm surges caused by Hurricane Katrina breached levees, flooding large parts of the city. Mr. Nagin publicly criticized the federal government for its slow response and demanded it provide more aid for rebuilding.
Mr. Nagin was re-elected in 2006, but residents grew frustrated with restoration efforts in his second term and his popularity waned. Term limits prohibited him from seeking a third term and he left office in 2010.
Dane Ciolino, who teaches criminal law at Loyola University New Orleans College of Law, said Mr. Nagin could face jail time of 15 to 25 years if convicted.

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