Louisiana man pleads guilty in Katrina fraud case

AP News
Posted: Oct 07, 2011 4:26 AM
Louisiana man pleads guilty in Katrina fraud case

A Louisiana man accused of illegally accepting more than $120,000 in financial assistance from a fund that helps Hurricane Katrina victims faces up to 10 years in prison after pleading guilty to federal charges of theft of government funds.

U.S. Attorney Jim Letten says 40-year-old Ivan Alfonso of Chalmette entered the plea Thursday before U.S. District Judge Lance M. Africk. The case involves funds from Louisiana's Road Home program.

Prosecutors say Alfonso applied for funds through the program declaring that a home in Chalmette was his primary residence when Katrina struck in 2005. But, Alfonso actually lived in New Orleans at the time of the storm.

As a result, Letten says Alfonso received $123,437 in Road Home funds to which he was not entitled. Sentencing is set for Jan. 12.