Wednesday, February 12, 2014

Former New Orleans Mayor Found Guilty!

  • A federal jury found Ray Nagin guilty Wednesday of 20 of 21 counts against him. Each charge carries a sentence of three  to 20 years in prison.
The following is a post I wrote on Thursday, March 14th of 2013 and never published. It was to appear under the title "Former New Orleans Mayor Indicted". I never published the article because I felt few people cared or would be interested. As I write in the last sentence, Any of you who have read my book know I'm not a big fan of Nagin and that I criticized the huge amount of money America spent on New Orleans after Katrina. But today with the courts finding Ray Nagin guilty I can no longer resist! The bigger they are the harder they fall. This does include some politicians and also some two bit mayors that by fate rise to national prominence. I hope you find this a entertaining read.

                                FORMER NEW ORLEANS MAYOR INDICTED

Federal prosecutors today announced a 21-count indictment against former New Orleans Mayor Ray Nagin and accused him of enriching himself as the city struggled to rebuild in the wake of Hurricane Katrina. "The defendant C. Ray Nagin, knowingly devised a scheme and artifice to defraud the City of New Orleans and its citizens through bribery and a kickback scheme, and used his public office and his official capacity to provide favorable treatment that benefited the business and financial interests of individuals providing him with bribery/kickback payoffs in the form of checks, cash, granite inventory, wire transfers personal services and free travel," the indictment said. 

Nagin is accused of using the office of mayor to steer city projects to business associates who, in turn, allegedly paid kickbacks and bribes and flew him on lavish free trips to Hawaii, Jamaica, and Las Vegas. Nagin was charged with bribery, honest service wire fraud, money laundering, conspiracy and filing false tax returns. The indictment charges that Nagin established a family company in 2005 called Stone Age LLC and allegedly put bribes and kickback checks into the firm's accounts.

The indictment alleges that the former mayor on or about May 23, 2006 accepted a bribery/kickback payoff from a businessman in the form of private jet travel and limousine services to New York City, the indictment says that on the same day, Nagin allegedly waived penalties that were owed by the businessman on a delinquent tax bill owed to the City of New Orleans. The indictment also alleges Nagin accepted $50,000 from businessman Frank Fradella as well as monthly wire transfers of $12,500 that totaled $112,500. Fradella pleaded guilty to bribing a New Orleans city official in June 2012.

Prosecutors alleged that on June 20, 2009 Nagin awarded a $1 million Katrina sidewalk repair project to a local businessman, the very next day, a Nagin family member allegedly was paid a $10,000 kickback from that businessman. "This indictment should serve as a reminder to current and former public officials that, in the interest of full accountability, the FBI pursues corruption even after an official leaves office," said Michael Anderson, Special Agent in Charge of the FBI's New Orleans Field Office. Any of you who have read my book know I'm not a big fan of Nagin and that I criticized the huge amount of money America spent on New Orleans after Katrina.


  1. TO put your "criticized the huge amount of money America spent on New Orleans after Katrina" in perspective, what is your position on the huge amounts being spent on Sandy cleanup?

  2. Glad you asked, the Sandy aid bill was also "pork filled" and contained billions of dollars in spending on projects unrelated to damage caused by the storm or for long-term infrastructure improvements that should compete with other discretionary spending. Among expenditures criticized was $150 million to rebuild fisheries, including those in the Gulf Coast and even in Alaska, thousands of miles from Sandy's devastation, and $2 million to repair roof damage that pre-dates the storm on Smithsonian Institution buildings in Washington. As usual there are few details on which expenditures must be considered immediate disaster needs and addressed. Senate Republicans tried to shrink the $60.4 billion package to $24 billion for near-term projects, but this was defeated in the Democratic-controlled chamber. For details see;

  3. Hey Bruce,

    I have been reading quite a bit of your blog. The articles are very well written (a little biased, but who isn't?) I also read several blogs in one of your linked sites "How fiat Dies". Another great site as well. Thanks for the fine writing you have made available to everyone.

    Much of our thinking is parallel. I wrote an e-book called "A Perfect Storm". Written in November 2013 by Jonathan Witherell. It cost $3. Its is a possible explanation for calculating inflation using macro-economic theory.

    If you have complete disdain for it, email me and I will refund the $3. (Email address is in the book).

    Anyways keep up the great work.