Press Releases
NEW ORLEANS MAN PLEADS GUILTY TO FEDERAL DRUG CHARGES
December 12, 2008
FOR IMMEDIATE RELEASE
MALCOLM R. PETAL, age 38, a resident of New Orleans, Louisiana, pled guilty today before U. S. District Judge Lance Africk to conspiracy to bribe a state official in connection with a program receiving federal funds, announced U. S. Attorney Jim Letten.
According to court documents, between 2003 and 2004, PETAL, a Louisiana film producer, conspired with WILLIAM E. BRADLEY, an attorney and associate of MARK SMITH, former Director of the Governor’s Office of Film and Television Development to give something of value to SMITH, in connection with the approval of $1.35 million in Louisiana tax credits relating to the filming of live music festivals in 2002 and 2003. PETAL admitted that he paid a total of $135,000 to BRADLEY contingent upon SMITH’S approving the tax credits.
On September 7, 2007, SMITH pled guilty to conspiracy and bribery in connection with a program receiving federal funds and is scheduled for sentencing before U. S. District Judge Kurt Engelhardt on January 14, 2009.
Speaking to today’s court proceedings, FBI Assistant Special Agent in Charge, Howard Schwartz stated:
“Today’s plea is the result of a long and complex investigation involving the FBI, IRS and the U. S. Attorney’s Office. Our efforts are a clear signal that we will not tolerate any corruption, at any level within the State of Louisiana. This investigation is ongoing and we will continue to aggressively pursue any and all leads.”
Michael J. De Palma, Special Agent in Charge of Internal Revenue Service Criminal Investigation stated:
"We are pleased with today's plea. It is the goal of IRS Criminal Investigation to work with the Department of Justice to ensure that those engaged in illegal activities are brought to justice. Special Agents of IRS CI are highly skilled investigators that will work tirelessly with other federal and state agencies to stop those Individuals who scheme and conspire with each other to benefit themselves to the detriment of other citizens and their government."
Jim Letten, U. S. Attorney added:
“Our goal is simple: together, we in federal enforcement will do everything in our power to identify, expose, attack, and deter corruption in our governmental institutions, and in particular, wherever that corruption threatens free enterprise and commerce. Today’s conviction will serve to provide a level playing field for those companies seeking to do business in Louisiana - and especially those which are engaged in the growing film industry which has become a critical part of State’s economic growth and recovery. Stated simply, we will not allow corrupt practices and greed to threaten our ability to build a viable and vibrant economy in Louisiana.”
PETAL faces a maximum term of imprisonment of five (5) years, a fine of $250,000.00, and up to three (3) years of supervised release following any term of imprisonment. Sentencing has been scheduled for February 26, 2009 at 2:00 P.M.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division. The prosecution is being handled by Assistant U. S. Attorneys Eileen Gleason, G. Dall Kammer and Matthew S. Chester.
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