New Orleans businessman charged in Katrina kickback scheme

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by Associated Press

wwltv.com

Posted on January 26, 2013 at 7:24 PM

<p>NEW ORLEANS (AP) -- Two businessmen have been charged with engaging in a kickback scheme involving a Hurricane Katrina debris removal contract administered by the Army Corps of Engineers.</p>

 
   <p>A one-count indictment Thursday charges 51-year-old Anthony Penn, of New Orleans, and 52-year-old Kenneth Johnson Sr., of Atlanta, with conspiring to defraud the federal government.</p>
 
   <p>Federal prosecutors say an unidentified solid waste management company hired Penn to help manage a debris removal project in New Orleans after the 2005 storm.</p>
 
   <p>Penn allegedly convinced the company's owner to hire Johnson's company as a subcontractor and then asked Johnson for a cut of the payments as a reward for steering him work.</p>
 
   <p>Prosecutors say Johnson paid Penn more than $222,000 in kickbacks. Each faces a maximum of five years in prison if convicted of the charge.</p>

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