New Orleans Businessman Pleads Guilty to Defrauding Investors

U.S. Attorney Kenneth A. Polite announced that JOHN F. KELLY, III, age 55, of Metairie, pled guilty today to wire fraud.

According to court documents, KELLY operated a tax sale investment business with investor monies from 2011 through 2014. During this time period, KELLY defrauded his investors by diverting their investment funds for his own personal use and benefit. As part of the scheme to defraud, KELLY used investor monies to pay off personal loans and to purchase real estate properties in New Orleans that he titled in separate corporate entities he controlled.

 The maximum penalty for wire fraud is twenty years imprisonment and a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victims.  U.S. District Judge Kurt D. Engelhardt set sentencing for August 24, 2016.

U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigations Division, in investigating this matter.  Assistant United States Attorneys Richard R. Pickens, II, Andre J. Lagarde, and Hayden M. Brockett are in charge of the prosecution.