New Orleans Official Accused in Kickback Scheme

Date: Monday, December 14, 2009, 5:12 am
By: Michael Kunzelman, Associated Press

Bookmark and Share

A member of the governing body of New Orleans' Sewerage and Water Board was indicted Friday for soliciting kickbacks.

NEW ORLEANS (AP) — A member of the governing body of New Orleans' Sewerage and Water Board was indicted Friday on charges he solicited kickbacks from companies with contracts to inspect damage from Hurricane Katrina.

Benjamin L. Edwards Sr., 55, directed board work to various companies and demanded payoffs that went from the companies to a church where he was a reverend, according to a federal grand jury's 33-count indictment.

Edwards allegedly withdrew millions of dollars from the church bank account to pay for vehicles and other personal expenses and to fund political campaigns, the indictment said. Edwards spent $269,250 in support of New Orleans Mayor Ray Nagin's 2006 re-election campaign, according to records on file with the state's ethics board. A spokeswoman for Nagin didn't immediately return a call and e-mail seeking comment.

Court records unsealed Friday also revealed that Edwards' brother, Bruce Edwards Sr., 50; and Oliver C. Coleman, 54; pleaded guilty earlier this month to charges related to the kickback scheme.

Bruce Edwards pleaded guilty to one count of wire fraud and one count of tax evasion. Coleman pleaded guilty to misprision of a felony.

Coleman was listed as the registered agent for one of the companies that Bruce Edwards secretly controlled, according to prosecutors. Coleman's actions "had the potential to obstruct the investigation," according to court papers filed Dec. 4.

Benjamin Edwards, an appointed member of the agency's board of directors since 1989, is accused of abusing his position to direct work to his brother, who secretly controlled a company that had a contract to inspect damage to the board's water distribution system from the 2005 hurricane.

U.S Attorney Jim Letten said nearly $3 million in payoffs went from companies to Third Shiloh Missionary Baptist Church. Benjamin Edwards served as director of the church, and his brother was a member of its board of directors. Letten wouldn't specify how much of the church's money was allegedly spent by Benjamin Edwards for his personal use.

"Cases like this give us, the citizens, a good look into how the functions of government can be abused by corruption," Letten said.

Edwards, who was appointed to his unpaid board position in 1989 by former Mayor Sidney Barthelemy, faces charges that include wire fraud, money laundering, extortion and tax evasion.

Edwards' lawyer, Robert Jenkins, said, "We're going to read the indictment, but at this stage (Edwards) maintains his innocence in this matter. We'll prepare for a trial. That's all we can do at this point."

Howard Schwartz, assistant special agent in charge of the FBI's New Orleans office, said the investigation was spawned by a complaint by a small business owner who was victimized by Edwards. Schwartz and Letten wouldn't identify the business owner or provide details of the business owner's complaint.

"Because of that one citizen, this is the result," Schwartz said.


Bookmark and Share
Please Login or Register to Rate this article



Please Login or Register to post comments on this article

  |   Read More Comments





Johnsonj2 you are correct. This is exactly how they expect us to act. Unbelievable. Unforgivable. We must separate our good selves from all the money grabbing backstabbers. They are bringing us all down.


by   
MacBen
December 14, 2009, 11:43 pm
----------------------------------------------------------------------------------------------------

This is the reason why the people can't get help because of crooks like these taking money for themselfs I hope they rot in hell all of them.


by   
Johnsonj2
December 14, 2009, 10:07 am
----------------------------------------------------------------------------------------------------
More Headlines
Little-Known Black History Fact: Alberta Hunter

Alberta Hunter was a jazz and blues artist who was in high demand all over the world in the 1920’s.

White House Sets Dance Series, Jamison Tribute

Several of the world's best-known dance companies will perform in the White House East Room next week.

Homeless Man Calls 911 from Hot Tub, Seeks Cocoa

A man who called 911 from the hot tub of a suburban home and asked for towels, hot chocolate and a hug got arrested instead.

Little-Known Black History Fact: The Margaret Garner Story

In 1865, a slave and mother named Margaret Garner would become the defendant in one of the longest public slave trials in history.

69-Year-Old Woman Shoots 18-Year-Old Intruder

A pistol-packing 69-year-old woman in northern Alabama believes intruders will think twice before messing with her again.

Divine Brown: Hugh Grant Arrest Changed Her Life

The ex-prostitute who became famous in 1995 for her $50 rendezvous with Hugh Grant has publicly thanked the actor for “changing” her life.

Little-Known Black History Fact: Slave Cabins of L’Hermitage

Archeologists at the National Park Service in Frederick County, Maryland have found slave artifacts from an 18th century plantation.

Arts Student Sues Over Pittsburgh Police Beating

Jordan Miles claims three white Pittsburgh police officers wrongfully assumed he was involved with drugs when they beat him.

Cops: Would-Be Burglar Gets Stuck in Grease Vent

A would-be burglar who tried to break into a South Carolina restaurant found himself in a tight and a greasy situation.

Little-Known Black History Fact: Solomon Michaux

Elder Solomon Lightfoot Michaux, also known as the “Happy Am I Preacher,” was a native of Buckroe Beach, Virginia and a devout Baptist.

Career Central
Search millions of job listings from across the web. New jobs added daily!



Post a Job on Black America Web!
advertising
advertising
advertising