NEW ORLEANS (AP) — A New Orleans city councilman has pleaded guilty to plotting to misuse federal money intended to help a nonprofit organization after 2005's Hurricane Katrina and divert some of it to one of his political campaigns.

Sixty-three-year-old Jon Johnson faces up to five years in prison and a $250,000 fine. He said Wednesday he would resign from his council seat.

In a statement, Johnson says he agreed to plead guilty that he used Federal Emergency Management Agency money for his 2007 Senate campaign and filed a false statement on an SBA loan.

Johnson was involved in city politics for three decades.

He pleaded guilty to conspiracy to commit theft of government funds and to submit false documents. Federal prosecutors are trying to sort out how much Johnson stole, saying it was thousands of dollars.

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One thought on “New Orleans Official Pleads Guilty in Katrina Fraud

  1. loycetate on said:

    I suspect this is the first of many that took advantage of Katrina money. I want to know if the levi’s have been replaced and the city made whole. Has the legislature passed the bills required to return the state back to what it was if not better? I hope the government spends as much time and effort on those that defrauded the government as those areas that need funds and development. The attorney fees spent going after abusers should go towards repairing and rebuilding schools and houses for uninsured as well. OBAMA 2012

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