Greene County Supervisor Convicted of Bribery and Other Charges Related to Katrina Debris Removal Contracts

HATTIESBURG, MS—Earnest Holder, District III Supervisor of Greene County, Mississippi, was convicted by a jury in federal court in Hattiesburg today, U.S. Attorney John Dowdy announced. Holder was convicted of bribery, conspiracy to commit bribery, and perjury before a federal grand jury.

The evidence at trial showed that Holder voted to award county contracts in his district in Greene County, Mississippi to a particular company. The contracts were funded by FEMA. Holder awarded those contracts to that company, knowing in advance that the owner of the company had agreed to pay Holder illegal cash kick-backs in exchange for being awarded the contracts. Holder was also convicted by a jury in federal court in August of 2010, of filing false income tax returns. Holder faces a maximum penalty of 23 years in prison and fines of up to $1,000,000.00. He is scheduled for sentencing before U.S. District Judge Keith Starrett on June 23, 2011, at 9:30 a.m.

This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, and the Mississippi State Auditor’s Office. Assistant U.S. Attorney Ruth Morgan was lead prosecutor.

In September 2005, former Attorney General Alberto R. Gonzales created the national Hurricane Katrina Fraud Task Force, designed to deter, investigate, and prosecute disaster-related federal crimes such as charity fraud, identity theft, procurement fraud, and insurance fraud. The Hurricane Katrina Fraud Task Force—chaired by Assistant Attorney General for the Criminal Division, Lanny A. Breuer—includes members from the FBI, Department of Homeland Security Office of Inspector General, the Federal Trade Commission, the Department of Labor Office of Inspector General, the Postal Inspector’s Office, and the Executive Office of United States Attorneys, among others.

Pursuant to the Justice Department initiative, a local Katrina Fraud Task Force, consisting of over 20 federal and state law enforcement agencies, was formed in the Southern District of Mississippi to pursue and prosecute individuals who engage in fraud associated with the hurricanes.

If anyone has information concerning possible fraud being committed during the post-Katrina recovery effort, please call either the DHS-OIG Fraud Hotline at 1-866-720-5721 or the FBI Fraud Hotline at 1-800-225-5324.