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.
A former New Orleans pastor has been sentenced to 10 years in prison for stealing nearly $1 million in disaster loan payments meant to rebuild a church after Hurricane Katrina.
Toris Young pleaded guilty in January to theft of government funds and mail fraud. The sentence handed down Thursday by U.S. District Judge Carl Barbier was roughly twice that recommended in federal sentencing guidelines.
Young also must pay $963,900 in restitution to the Small Business Administration.
NEW ORLEANS (AP) — Federal prosecutors say a 41-year-old businessman who moved to New Orleans from Georgia after the catastrophic BP oil spill in 2010 has been charged with defrauding a compensation fund set up for victims.
The Justice Department says Dwayne Smith was charged last week on one count of mail fraud.
U.S. Attorney Jim Letten alleges Smith moved to New Orleans four months after the Deepwater Horizon explosion and set up a business called D&D Designs.