Home New Orleans Press Releases 2009 Mandeville Mayor Pleads Guilty to Defrauding Citizens of His Honest Services and Tax Evasion
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Mandeville Mayor Pleads Guilty to Defrauding Citizens of His Honest Services and Tax Evasion

U.S. Attorney’s Office October 16, 2009
  • Eastern District of Louisiana (504) 680-3000

NEW ORLEANS, LA—EDWARD J. PRICE, III, a/k/a Eddie Price, age 56, a resident of Mandeville, Louisiana, pled guilty in federal court today before U. S. District Judge Martin L.C. Feldman, to a two count Bill of Information(which was unsealed this morning) charging honest services mail fraud, as well as tax evasion, announced U.S. Attorney Jim Letten along with David Welker, Special Agent in Charge of the Federal Bureau of Investigation and Michael DePalma, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division. The Bill of Information charging PRICE in these counts which was filed October 13, 2009, had been sealed until this morning.

According to the factual basis filed in federal court today, PRICE, as the elected Mayor of Mandeville, was a public official who was prohibited by state law from receiving gifts and gratuities from professional service contractors for the City of Mandeville and developers with substantial business interests with the City of Mandeville. Beginning in 2003 and continuing through 2007, PRICE accepted numerous trips from the City’s engineer and a developer in the Mandeville, Louisiana area to participate in expensive golf tournaments in Pebble Beach, California. These trips had a value in excess of $45,000. In addition, PRICE’s plea of guilty to honest services mail fraud included admissions that PRICE illegally utilized funds from his campaign fund account to pay various personal expenses such as gambling debts, membership fees in fishing clubs and carnival organizations, food for consumption by members of his household, and other personal expenses. PRICE admitted through the factual basis that he had taken funds from his campaign account to pay for these expenses, and in many cases, falsely reported to the State of Louisiana that the expenses were for campaign-related activities, such as tents, food for fund-raising golf tournaments, and for political consulting services.

In addition, PRICE failed to file a tax return for the 2007 tax year, thereby evading taxes on his income as mayor as well as the value of the gifts and gratuities he received and funds he had taken from his campaign account.

PRICE faces a maximum term of imprisonment of twenty-five (25) years, a maximum fine of $500,000, and up to five (5) years of supervised release following any term of imprisonment.

FBI Special Agent in Charge, David Welker stated:

“This is the result of people calling and reporting corrupt activity. The FBI is uniquely qualified and capable of following up, investigating the allegations, and bringing the subjects to justice. We have been at this same place five times in the past three weeks. This is not by accident or chance. It is not that corruption has increased, but this is the result of what we, the FBI, can do when the community gets involved.”

IRS Special Agent in Charge, Michael DePalma added:

“We are pleased with today’s plea. This investigation is another example where the teamwork between the IRS, FBI and the United State Attorney’s Office has brought justice to our community. The citizens of this community are the victims in these crimes. They must believe that they can trust the officials that they elect to represent them. They must have trust that the public’s interest will be served and not the interest of the politician. It is the mission of the IRS Criminal Investigation Division to assure honest taxpayers that everyone must comply with the same laws, regardless of his or her political status in the community. We work tirelessly to accomplish this mission, and we won’t stop until the job is done.”

U.S. Attorney Jim Letten stated:

“Today, an elected Louisiana public official, in this case the Mayor of Mandeville, has been convicted of violating the public trust and depriving citizens of the City of Mandeville and the State of Louisiana of his honest and faithful service. This serves as yet another example of a public official utilizing his office and position to enrich himself. We in federal law enforcement will continue to relentlessly pursue corruption wherever it exists in the hope that those who hold office or seek to hold office will utilize the power vested in those positions to serve the public’s interests rather than use their offices as instrumentalities for self-dealing.

The FBI, IRS-CID, and U.S. Attorney extend their gratitude for the substantial assistance and information provided by the New Orleans Metropolitan Crime Commission, as well as to Louisiana State Attorney General Buddy Caldwell and his staff along with the Louisiana Legislative Auditor.

The case was investigated by the Federal Bureau of Investigation, and the Criminal Investigation Division of the Internal Revenue Service. The prosecution is being handled by Deputy Chief of the Criminal Division, Assistant United States Attorney Fred P. Harper, Jr.

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