fraud

Latest News
1:09 pm
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.

Katrina Recovery Fraud
12:46 pm
Thu July 12, 2012

Ex-pastor sentenced to 10 years for stealing $1M

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.

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Latest News
8:56 pm
Wed July 11, 2012

Woman collected mother's Social Security 13 1/2 years after death

Federal prosecutors say a 75-year-old woman has admitted collecting her mother's Social Security payments for 13½ years after her mother died.

U.S. Attorney Jim Letten says Shirley A. Bunda of Gretna got more than $173,000 to which she wasn't entitled, and pleaded guilty Wednesday to one count of theft of government funds.

A news release says Bunda and her mother shared a joint checking account, and her mother's Social Security payments came by direct deposit.

Gulf Oil Spill Fraud
9:38 am
Tue May 15, 2012

Man Accused of Defrauding Spill Victims' Fund

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.

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PayPal Fraud
3:06 pm
Sat April 28, 2012

N.O. man arrested on identify theft, fraud charges

A New Orleans man has been arrested on fraud and identity theft charges for allegedly engaging in a scheme to defraud the PayPal online payments service.

Federal prosecutors said Friday's arrest of 28-year-old Giray Biyikioglu, a Turkish national who lives in New Orleans, follows a Secret Service probe.

Prosecutors said Biyikioglu illegally used somebody else's identity and conducted transactions of up to $190,000 as part of his alleged scheme to defraud.

No additional details about the case were immediately disclosed.

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