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Nonprofit agency head's sentencing delayed hours

4 years 4 months 1 week ago Thursday, October 16 2014 Oct 16, 2014 October 16, 2014 1:15 PM October 16, 2014 in News
Source: Associated Press

NEW ORLEANS - Prosecutors say a nonprofit agency's former director should repay the federal government $350,000 overpaid to contractors hired to gut houses after Hurricane Katrina.

Defense attorney Edward Castaing says Shirley Jackson should be held responsible for about $150,000 of the overpayments by New Orleans Affordable Housing.

U.S. District Judge Mary Ann Vial Lemmon must decide what Jackson must repay as part of her sentence on one count of conspiracy. Jackson pleaded guilty. Sentencing was set for Thursday afternoon.

Paperwork filed with Jackson's guilty plea listed nearly $50,000 in kickbacks.

Federal prosecutor Fred Harper told Lemmon the indictment gives examples rather than a full accounting. He says federal agents went house by house to find those where government money was paid but charities or volunteers did the gutting.

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