New Orleans Man Indicted for Fraud Charges Related to Hurricane Katrina

NEW ORLEANS, LA—LIONEL PERKINS, JR., age 58, a resident of New Orleans, Louisiana, was charged in a three-count indictment yesterday by a Federal Grand Jury for theft of government funds and wire fraud, announced U.S. Attorney Jim Letten.

According to the indictment, after Hurricane Katrina devastated the New Orleans area, the defendant filed an application for SBA disaster loan assistance representing that he owned a property located at 2307 General Taylor Street, New Orleans, Louisiana, and that the property was his primary residence on August 29, 2005. It is alleged that PERKINS fraudulently represented that he was a full-time resident of the General Taylor Street property, when, in fact, he had been living at and receiving Section 8 Housing Assistance for a home located on Rousseau Street, New Orleans, Louisiana at the time of the storm. As a result of this representation, PERKINS received $110,900.00 from the SBA, for which he was not entitled.

Furthermore, the indictment alleges that from November 2006 through May 2007, PERKINS devised a scheme to defraud the Louisiana Road Home Program and obtain HUD Community Development Block Grant money in the amount of $150,000 by false representations. As a result of PERKINS’S alleged fraudulent conduct involving the Louisiana Road Home Program, he was awarded a grant of $150,000. Additionally, PERKINS is charged with having caused the agents for the Louisiana Road Home Program to send a wire transfer of $58,500 in grant funds to the Small Business Administration’s bank account in New York City, New York to partially pay off a Small Business Administration loan in his name.

If convicted of all counts, PERKINS faces a maximum term of imprisonment of forty (40) years, a total fine of $750,000.00 and three (3) years of supervised release following any term of imprisonment. Additionally, the Indictment provides for forfeiture of PERKINS’ property in payment for his fraudulent conduct.

U.S. Attorney Letten reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.

This case was investigated by Special Agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, Special Agents of the U.S. Small Business Administration, Office of Inspector General, Department of Homeland Security, Office of Inspector General, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Jordan Ginsberg.