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A litany of NOAH contractors appear before grand jury

08:59 AM CDT on Friday, August 22, 2008

Lee Zurik / Eyewitness News

A federal grand jury spent the day pouring over documents surrounding the New Orleans Affordable Homeownership program.

Video: Watch the Story

It was long day at the courthouse, as contractors started arriving around 11 a.m. and the federal grand jury didn’t wrap up until after 4 p.m.

The brother-in-law of Mayor Ray Nagin, Cedrick Smith, the fourth highest-paid contractor, did not appear at the Federal Courthouse.

Smith’s attorney, Robert Jenkins, said that he had the documents delivered to the courthouse, and Smith was not needed by the U.S. Attorney’s Office at least right now.

No documents from the City Council were delivered to the courthouse Thursday. An attorney for the Council said they were granted an extension.  The attorney is getting the documents organized.  Those documents will be delivered next week.

City officials delivered four boxes to the courthouse early labeled from Tony Faciane, who is in the Office of Recovery. After the boxes arrived, contractors began arriving. 

Most contractors remained silent on their way into the courthouse.

Contractor Alex Alugas showed his NOAH invoices, saying he's got nothing to hide. Alugas says he only gutted 2 homes, joining the program late, and if anyone did wrong they should be punished.

Earl Myers, the third highest-paid contractor, did appear and brought his documents.  I haven’t had an opportunity to talk to my client at great length, so we really don’t know where they are coming from. I’d like to find out, though,” said Richard Moore, Myers’ attorney, before he went into the courthouse.

Moore said that his client says he is innocent and he hasn’t done anything wrong, adding that the problem could be with Nagin administration’s books.

“I think that could very well be true. The city is just as much at fault as, perhaps, some of these people are. They (contractors) weren't paid on time – it’s quite a mess,” said Moore.

Myers had nothing to say as he left the courthouse.

The second highest-paid contractor, Trellis Smith, who owns a store in Canal Place together with ex-NOAH Executive Director Stacey Jackson, was also silent.       

Because the day went so long, and many contractors did not make it in front of the grand jury, many contractors were told come back to the courthouse next week.