FRANK FRADELLA, FORMER NEW ORLEANS CONTRACTOR, PLEADS GUILTY TO CONSPIRACY TO BRIBE A CITY OFFICIAL AND SECURITIES FRAUD
FRANK J. FRADELLA, age 56, a Covington resident, pled guilty today to conspiracy to bribe a City of New Orleans official and securities fraud before United States District Judge Susie Morgan, announced U. S. Attorney Jim Letten and United States Attorney Sarah Saldaña of the Northern District of Texas. The charges include conspiring to deprive the citizens of the City of New Orleans of the honest services of the city official, Public Official “A,” and filing a false certification of financial reports by a corporate officer.
According to the Bill of Information charging FRADELLA, beginning in January, 2007 and continuing through until March, 2011, FRADELLA, a former City of New Orleans contractor who operated various corporate entities, participated in a conspiracy in which he and others provided payoffs to Public Official “A.” These payoffs constituted bribery concerning programs receiving federal funds, and additionally constituted honest services wire fraud in depriving the citizens of New Orleans of their right to receive the honest services of Public Official “A.” As alleged in the Bill of Information, Public Official “A” used his public office and his official capacity to benefit FRADELLA’S business interests. FRADELLA also pled guilty to filing a false certification of financial reports by a corporate officer.
As described in Count 2 of the bill of information, FRADELLA, as CEO of Home Solutions of America, Inc., (a publicly-traded company) falsely certified financial reports to the SEC. These false reports artificially inflated the company’s revenue and income.
As a result of FRADELLA’S guilty plea to the charged statutes, FRADELLA faces up to five (5) years imprisonment, criminal forfeiture and fines as to Count 1 (Bribery Conspiracy) and up to ten (10) years imprisonment, criminal forfeiture and fines as to Count 2 (Securities Fraud). FRADELLA executed a plea agreement with the Government which was made part of the court record at the guilty plea hearing today. A major component of that agreement is a requirement that FRADELLA cooperate with the prosecution on this and other cases. If the Court accepts the plea agreement, FRADELLA faces a maximum of seven (7) years imprisonment.
Speaking to today’s guilty plea, U. S. Attorney Jim Letten stated:
“Today’s conviction is an important one, and is continuing evidence of our absolute and unswerving dedication to identify, prosecute, and eliminate fraud and corruption which has plagued our governmental institutions for too long. This conviction is but another step in the process of deliberately and systematically following the trail of corruption in government, wherever that leads. My heartfelt thanks and that of our entire team, goes out to our partners in the FBI and IRS-CID, together with New Orleans Inspector General Ed Quatrevaux and his team of dedicated professionals who have from the outset provided invaluable assistance in this and other cases.”
U. S. Attorney Letten, as well as the investigative and prosecution team, offer their thanks to Rafael Goyeneche and the Metropolitan Crime Commission for providing valuable assistance in this successful case.
The case was investigated by the Federal Bureau of Investigation, the Securities and Exchange Commission, the IRS-CID New Orleans, and the New Orleans Inspector General’s Office. The case is being prosecuted by Assistant U. S. Attorneys Matthew Coman and Richard Pickens, as well as Assistant U. S. Attorney Alan Buie from the Northern District of Texas.
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims or have knowledge of waste, abuse, or allegations of mismanagement involving disaster relief operations, contact the National Center for Disaster Fraud toll free at: (866) 720-5721. You can also fax information to: (225) 334-4707 or e-mail it to: email@example.com