New Orleans councilman charged with Katrina fraud
NEW ORLEANS - A New Orleans city councilman has been charged in federal court with plotting to steal federal funds intended to help a nonprofit group after Hurricane Katrina.
A court filing Wednesday charges Jon Johnson with conspiracy to commit theft of government funds and to submit false documents.
Johnson is accused of diverting money intended for the Ninth Ward Housing Development Corp. for personal use, including expenses for his failed 2007 campaign for a seat in the Louisiana Senate.
The documents say Johnson controlled the finances of the group, which obtained Federal Emergency Management Agency grants for house gutting and mold remediation after the August 2005.