Congressman William Jefferson's siblings, niece also charged with fraud
/AP A brother, sister and niece of indicted U.S. Rep. William Jefferson were charged Wednesday with pocketing more than $600,000 in state and federal grant money intended for charitable and educational projects. A federal grand jury indicted New Orleans tax assessor Betty Jefferson, her brother, Mose Jefferson, and her daughter, Angela Coleman, on charges that include federal program fraud, identity theft and conspiracy to commit money laundering. U.S. Attorney Jim Letten said the family members used several nonprofit and for-profit companies to obtain grants designed to help pregnant teens, at-risk youths and others in need of assistance. They allegedly deposited some of the grant money into personal checking accounts and used it for personal expenses. "It's fair to say that the allegations in the indictment are very instructive on how such nonprofits can be exploited," Letten said. With Wednesday's 31-count indictment, four members of the politically prominent Jefferson family now face federal criminal charges. Rep. Jefferson, 61, a nine-term Louisiana Democrat, was indicted last year on bribery charges. He is awaiting a trial in Virginia and has denied wrongdoing. The congressman wasn't named in Wednesday's indictment, and faces a re-election campaign this fall.
Mose Jefferson, 66, pleaded not guilty in April to separate charges that he paid bribes to a former New Orleans school board president.
Wednesday's indictment also charges Betty Jefferson, 70, with four counts of tax evasion. She faces up to 279 years in prison. The grand jury also charged Mose Jefferson with making false statements to federal investigators. He faces up to 250 years in prison, while Coleman faces a maximum of 257 years behind bars.
The three defendants charged Wednesday are scheduled to make their initial court appearance on June 20.
The indictment outlines several alleged schemes to funnel state and federal grant money for personal uses.
Nearly a decade ago, the state awarded the defendants a grant of at least $55,000 for tutoring adults and high school dropouts to pass the state's graduate equivalency test. Prosecutors say they instead deposited $39,998 of that for personal use.
The nonprofits under Betty Jefferson's control included Care Unlimited Inc. and Central City Adult Education Agency Inc. She also controlled five for-profit companies and used them to funnel grant money from the nonprofits to the defendants, the indictment alleges.
Coleman owned A Plus Promotional Printing, a for-profit company that she allegedly used to transfer money from the nonprofits. Mose Jefferson was board chairman for the Orleans Metropolitan Housing and Community Development Inc., a nonprofit that secured grant money.
Mose Jefferson, 66, pleaded not guilty in April to separate charges that he paid bribes to a former New Orleans school board president.
Wednesday's indictment also charges Betty Jefferson, 70, with four counts of tax evasion. She faces up to 279 years in prison. The grand jury also charged Mose Jefferson with making false statements to federal investigators. He faces up to 250 years in prison, while Coleman faces a maximum of 257 years behind bars.
The three defendants charged Wednesday are scheduled to make their initial court appearance on June 20.
The indictment outlines several alleged schemes to funnel state and federal grant money for personal uses.
Nearly a decade ago, the state awarded the defendants a grant of at least $55,000 for tutoring adults and high school dropouts to pass the state's graduate equivalency test. Prosecutors say they instead deposited $39,998 of that for personal use.
The nonprofits under Betty Jefferson's control included Care Unlimited Inc. and Central City Adult Education Agency Inc. She also controlled five for-profit companies and used them to funnel grant money from the nonprofits to the defendants, the indictment alleges.
Coleman owned A Plus Promotional Printing, a for-profit company that she allegedly used to transfer money from the nonprofits. Mose Jefferson was board chairman for the Orleans Metropolitan Housing and Community Development Inc., a nonprofit that secured grant money.
