A Former Director of Inspection and Code Enforcement in a Louisiana City Pleads Guilty to Using an Interstate Facility with Intent to Carry on Unlawful Activity and Tax Fraud
A Former Director of Inspection and Code Enforcement in a Louisiana City Pleads Guilty to Using an Interstate Facility with Intent to Carry on Unlawful Activity and Tax Fraud
Louisiana – The U.S. Attorney’s Office announced today that James Mohamad, 52, of Kenner, Louisiana pleaded guilty to conspiracy to use an interstate facility with intent to carry on unlawful activity (Title 18, United States Code, Sections 371 and 1952(a)(3)) and filing false tax returns (Title 26, United States Code, Section 7206(1)).
According to court documents, Mohamad, the former Director of the City of Kenner’s Department of Inspection and Code Enforcement, paid a bribe to Brian Medus, the Assistant Chief Mechanical Inspector for the City of New Orleans’ Safety and Permits Department, in exchange for the issuance of fraudulent permits for Mohamad’s HVAC jobs. Throughout the conspiracy, Mohamad paid approximately $93,000 to Medus and others to further the bribery scheme. Mohamad also filed false individual tax returns, omitting significant amounts of income, resulting in an understated amount of income tax due.
Mohamad faces a maximum sentence of five (5) years in prison, a fine of up to $250,000, up to three years of supervised release following any term of imprisonment, and a mandatory $100 special assessment fee for the conspiracy charge. Mohamad faces a maximum sentence of three (3) years in prison, a fine of up to $250,000, up to one year of supervised release following any term of imprisonment, and a mandatory $100 special assessment fee for tax fraud. Mohamad is scheduled to be sentenced on July 13, 2022.
Brian Medus, a co-defendant, pleaded guilty to the conspiracy charge and is scheduled to be sentenced on May 18, 2022.
The Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigations, and the City of New Orleans/Office of Inspector General all looked into the case. The Louisiana State Licensing Board for Contractors also provided assistance. The case is being prosecuted by Assistant United States Attorney Tracey N. Knight.
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