New Orleans Businessman Charged with Wire Fraud
Metairie Resident Accused of Defrauding Investors in Tax Sale Business
Grimy Times has learned that John F. Kelly III, 57, of Metairie, has been charged with wire fraud in connection with a tax sale investment business he operated between 2011 and 2014.
According to court documents, Kelly defrauded his investors by diverting their investment funds for his personal use and benefit, using the money to pay off personal loans and purchase real estate properties in New Orleans.
As part of his scheme, Kelly used investor monies to purchase properties that he titled in separate corporate entities he controlled. This allowed him to keep the properties in his own name, while avoiding detection from his investors.
The maximum penalty for wire fraud is 20 years imprisonment and/or a fine of $250,000, or the greater of twice the gross gain to the defendant or twice the gross loss to the victim.
U.S. Attorney Kenneth A. Polite reiterated that the Bill of Information is merely a charge, and that the guilt of the defendant must be proven beyond a reasonable doubt.
Polite 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 are in charge of the prosecution.
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Key Facts
- State: Louisiana
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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