N.O. Again Targeted By Feds
by JIM BEAM - The American Press (excerpt)

Another scandal in New Orleans? Ho hum, what else is new?

The latest shady operation involves the New Orleans Affordable Homeownership Corp., better known as NOAH. It is a non-profit group created to oversee the gutting or cleanup of homes damaged by Hurricane Katrina. City officials have been unable to verify the work that 19 contractors claim they did at 46 addresses and for which they billed NOAH. One of those companies is owned by Mayor Ray Nagin’s brother-in-law. Another firm had business ties to the former director of NOAH. Like most investigations of this type, it will be some time before we get a clear picture of what really happened with the NOAH program. However, enough questions have already been raised to indicate something is amiss here.

Speaking of time, when do you suppose U.S. Rep. William Jefferson, D-New Orleans, will go on trial on his bribery and racketeering charges? That case has been bouncing around for years, and Jefferson will be able to run for re-election a second time before it ever gets to court. Jefferson isn’t the only member of his family in trouble. Betty Jefferson, his sister and a New Orleans assessor, her daughter and Mose Jefferson, William and Betty’s brother, have pleaded not guilty to charges that include federal program fraud, identity theft and conspiracy to commit money laundering. The charges are related to charities run by members of the Jefferson family.

Relatives and associates of former New Orleans Mayor Marc Morial also got into trouble with the law, but Morial hasn’t been implicated in any of the dealings. Glenn Haydel, his uncle, pleaded guilty to defrauding the Regional Transit Authority of a half-million dollars in a fraudulent bond refinancing scheme. Lillian Smith Haydel, his wife, pleaded guilty to a scheme involving the New Orleans public school system. Jacques Morial, the former mayor’s brother, pleaded guilty to federal tax charges.

State Sen. Derrick Shepherd, a Democrat from Marrero in neighboring Jefferson Parish, is scheduled to go on trial in October on fraud and conspiracy charges. Because of a scuffle with his former girlfriend, Shepherd is under home detention until his trial. There is also a question about whether the senator actually lives in the district he represents. The Louisiana Board of Ethics has said Shepherd was involved in improper transactions with the state Department of Insurance. That issue has yet to be resolved, and the state Supreme Court has suspended his law license.

Is it any wonder that President Bush and Congress were skeptical about giving Louisiana billions of dollars in federal funds after hurricanes Katrina and Rita?