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Justice News

Department of Justice
U.S. Attorney’s Office
Eastern District of Louisiana

FOR IMMEDIATE RELEASE
Thursday, March 19, 2015

Marrero Woman Pleads Guilty to Theft of Hurricane Gustav Recovery Funds

U.S. Attorney Kenneth A. Polite announced that CAROLYN TREAUDO, age 54, of Marrero, pled guilty yesterday to theft of government funds.  TREAUDO admitted to stealing approximately $94,840 from the Federal Emergency Management Agency during 2009 and 2010.  The funds were administered by the Louisiana Governor’s Office of Homeland Security and Emergency Preparedness under a program to return disaster-affected locations, including schools, to pre-disaster conditions by reimbursing expenses and paying replacement costs.

According to court documents, TREAUDO obtained the funds by making false representations in connection with a property associated with her non-profit organization, Conquering Word Christian Academy.  TREAUDO represented that the location was a school prior to Hurricane Gustav, when, as she well knew, the location had not been registered as a school with the state prior to this disaster.  TREAUDO also intentionally and repeatedly submitted claims for reimbursement of fictitious expenditures and for replacement of fictitious supplies.  TREAUDO bolstered these claims with false invoices to make it appear as if she had spent funds on repairs and supplies when, as she well knew, these expenditures had not occurred.

TREAUDO faces up to ten years’ incarceration and a fine of up to $250,000.  U.S. District Judge Kurt D. Engelhardt set sentencing for June 24, 2015.

U.S. Attorney Polite praised the work of the Department of Homeland Security - Office of Inspector General in investigating this matter and thanked the Louisiana Legislative Auditor for its assistance.  Assistant U.S. Attorney Chandra Menon is in charge of this prosecution.

Updated September 2, 2015