Posted on 09/01/2009 4:32:37 PM PDT by SwinneySwitch
A Florida contractor hired by the Housing Authority of New Orleans to oversee its finances embezzled more than $900,000 during the past three years, according to charges filed Monday by the U.S. attorney's office.
Separate public records show that during the same time period the fiscal manager, Elias Castellanos, 43, bought a $1.6 million mansion in Davie, Fla., just north of Miami, and five late-model cars -- including a Lamborghini Gallardo worth more than $200,000, a Ferrari F430, a Porsche 911 and two Mercedes-Benzes.
Federal prosecutors charged Castellanos with one count of embezzlement Monday through a bill of information, indicating that a plea agreement is likely soon to follow. U.S. Attorney Jim Letten's office didn't provide details of the alleged scam, but charged that Castellanos pocketed $900,927 while serving as HANO's chief financial officer.
Federal prosecutors also said they would seek to recover $876,917 if they can prove the charges against Castellanos. The bill of information states that the government will try to seize property Castellanos purchased with the money.
Florida public records show he bought the 6,000-square-foot home in 2008 and the five cars between January 2008 and April 2009.
The felony charge against Castellanos comes on the heels of Friday's news that the head of HANO's rental voucher programs, Dwayne Muhammad, was using a Section 8 voucher to pay his own rent, even as he received a $100,000 government salary. And just before Castellanos left HANO in June, the FBI and HUD's inspector general descended on the authority's offices after three employees were accused of stealing hundreds of thousands of dollars in a separate accounting ruse.
Although Letten's office declined to elaborate on how Castellanos' alleged scheme worked, a separate audit report filed in January by the U.S. Department of Housing and Urban Development's inspector general details...
(Excerpt) Read more at nola.com ...
What further evidence do we need that we need to bring back firing squads. Volunteers only.
“bought a $1.6 million mansion in Davie, Fla., just north of Miami, and five late-model cars — including a Lamborghini Gallardo worth more than $200,000, a Ferrari F430, a Porsche 911 and two Mercedes-Benzes.”
Reminds me of Richard Pryor in Superman III.
That’s well in excess of the $900K he’s accused of taking. I wonder how long he had been milking HANO - and what other clients he plundered in similar fashion.
Embezzling? Heck, he probably thought he was entitled to it.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.