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Wed July 18, 2012
Jon Johnson pleads guilty in Katrina fraud
A New Orleans city councilman pleaded guilty Wednesday to a federal criminal charge of misusing federal money intended to help a nonprofit organization after Hurricane Katrina and diverting some of it to one of his political campaigns.
Jon Johnson, who is 63, faces up to 5 years imprisonment and a $250,000 fine.
U.S. District Judge Lance Africk set sentencing for Oct. 25.
Johnson said he will resign from his seat on the council.
In a statement distributed before the court hearing, he said he made the decision after meeting with federal officials about his use of Federal Emergency Management Agency money sent to the nonprofit he led, as well as information he provided the Small Business Administration about work on his personal residence.