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Justice News

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

FOR IMMEDIATE RELEASE
Thursday, June 22, 2017

New Orleans Businessman Sentenced for Defrauding Investors

Acting U.S. Attorney Duane A. Evans announced that JOHN F. KELLY, III, age 56, of Metairie, was sentenced yesterday after previously pleading guilty to a wire fraud scheme.

 

U.S. District Judge Kurt D. Engelhardt sentenced KELLY to 12 months and one day of imprisonment, to be followed by three years of supervised release after his release from prison. KELLY was also ordered to pay restitution to his victims.

 

According to court documents, from 2011 through 2014, KELLY operated a tax sale investment business with investor monies. During this time, KELLY defrauded his investors by diverting their investment funds for his own personal use and benefit. As part of the scheme to defraud, KELLY used investor monies to pay off personal loans and to purchase real estate properties in New Orleans that he titled in separate corporate entities he controlled.

 

Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigations Division, in investigating this matter. Assistant United States Attorneys Richard R. Pickens, II, Andre J. Lagarde, and Hayden M. Brockett were in charge of the prosecution.

Topic(s): 
Financial Fraud
Updated June 22, 2017