Kickback Kingpin Pleads Guilty

Anthony Penn, a 51-year-old resident of New Orleans, has pleaded guilty to conspiring to defraud the United States by accepting kickback payments in connection with a disaster cleanup contract administered by the US Army Corps of Engineers. Penn’s plea deal was accepted by US District Judge Stanwood R. Duval, Jr.

According to court documents, Penn was hired to manage the debris removal project for Company A, a local solid waste management company, after Hurricane Katrina devastated the metro area. However, Penn had a secret plan – he approached the owner of Company A and asked if he would consider hiring KCJ Enterprises as a sub-tier subcontractor. The owner of Company A accepted the recommendation and hired KCJ Enterprises to work on the project.

Penn then asked Kenneth Johnson, Sr., the owner of KCJ Enterprises, to provide him with a cut of the payments that KCJ Enterprises was receiving from Company A as a reward for steering the contract to him. Johnson agreed to the plan and began wiring funds to Penn’s bank account. In total, Penn received $222,261.55 in kickback payments from Johnson during the scheme.

Penn faces a maximum term of imprisonment of 5 years, a fine of $250,000 and 3 years of supervised release following any term of imprisonment. Sentencing is scheduled for July 10, 2013. Johnson, the owner of KCJ Enterprises, is currently awaiting trial scheduled for July 29, 2013.

The case was investigated by the Federal Bureau of Investigations and the United States Department of Defense. The case is being prosecuted by Assistant U. S. Attorney Spiro G. Latsis.

As the investigation revealed, Penn’s actions were a clear abuse of trust and a betrayal of the public’s faith in the disaster relief efforts. The Federal Bureau of Investigations and the United States Department of Defense worked tirelessly to bring Penn to justice and ensure that those responsible for such egregious crimes are held accountable.

The people of New Orleans and the nation as a whole will not tolerate such corruption and greed. We will continue to work tirelessly to root out corruption and ensure that those who seek to exploit the system for personal gain are brought to justice.

RELATED: Medicare Fraud Kingpin Sentenced to 180 Months

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