Former Mayor of Port Allen Sentenced to 40 Months in Prison

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BATON ROUGE, LA—United States AttorneyDonald J. Cazayoux, Jr., announced the results of another significant sentenceimposed in Operation Blighted Officials. Chief U.S. District Judge Brian A.Jackson sentenced DEREK A. LEWIS, age 52, of Port Allen, Louisiana, to 40months’ imprisonment, two years’ supervised release following imprisonment, andforfeiture of $18,990. LEWIS was sentenced after having pled guilty toviolating the Racketeer Influenced and Corrupt Organizations (RICO) Act basedon his corrupt activity while mayor of the City of Port Allen, Louisiana.
This matter is part of OperationBlighted Officials, an investigation utilizing undercover operations todetermine the extent and scope of public corruption involving former St.Gabriel Mayor George L. Grace, Sr. As part of the operation, individualsworking undercover for the FBI posed as businessmen (hereinafter referred to as“the Businessmen”) affiliated with a company involved in the development of aconceptual product known as the “Cifer 5000.” The Cifer 5000 was marketed as anautomated waste container cleaning system using specially designed and equippedtrucks to clean and sanitize commercial and residential waste containers. Itspotential customer pool was represented to be governmental entities, such asmunicipalities.
During his guilty plea, LEWIS admittedthat, during the period from October 2008 through June 2010, he used hisposition as mayor to take actions favorable to the Businessmen, including thepromotion of the Cifer 5000 in the city and elsewhere, in exchange for cash andother things of value totaling over $15,000. LEWIS admitted that such officialactions included (1) writing a false official letter of support which hebelieved would be used to secure millions of dollars in private investorcapital; (2) writing a false official letter of support which he believed wouldbe used to convince other public officials to contract with the Cifer 5000; (3)agreeing to propose a city ordinance favorable to the Cifer 5000 project; (4)writing an official letter of support which he believed would be provided tothe U.S. Environmental Protection Agency in connection with amulti-million-dollar grant request; (5) providing access to confidential lawenforcement information through the chief of police; and (6) guaranteeing thatthe Cifer 5000 would receive a contract with the city.
At today’s sentencing, the court and theUnited States recognized the seriousness of the criminal conduct, while alsocrediting LEWIS for having been the first and only mayor in Operation BlightedOfficials to accept responsibility, cooperate with the investigation, and pledguilty. Because of such favorable actions, the court sentenced LEWIS to asentence much less than he would otherwise have faced.
The status of the other OperationBlighted Officials defendants is:
■Johnny Johnson: In July 2010, theformer member of the Port Allen City Council pled guilty to using an interstatefacility in aid of racketeering and agreed to cooperate with authorities. ChiefJudge Jackson sentenced Johnson to two years’ probation, with a condition ofhaving to spend six months in a halfway house.■Maurice Brown: In February 2011, theformer mayor of White Castle, Louisiana, was convicted by a federal juryfollowing a two-week trial of violating RICO, engaging in honest services wireand mail fraud, and use of an interstate facility in aid of racketeering. ChiefJudge Jackson sentenced Brown to 120 months in prison.■Thomas A. Nelson, Jr.: In June 2011,the former mayor of New Roads, Louisiana, was convicted by a federal juryfollowing a two-and-a-half week trial of violating RICO, engaging in honestservices wire fraud, using an interstate facility in aid of racketeering, andmaking false statements to the FBI. Chief Judge Jackson sentenced Nelson to 132months in prison.■Frederick W. Smith: In October 2011,the chief of police for Port Allen, Louisiana, was convicted by a federal juryfollowing a two-week trial of 11 counts of violating RICO, engaging in honestservices wire and mail fraud, and using an interstate facility in aid ofracketeering. Chief Judge Jackson sentenced Smith to 90 months in prison.■George L. Grace, Sr.: In March 2012,the former mayor of St. Gabriel, Louisiana, was convicted by a federal juryfollowing a six week trial of violating RICO, engaging in honest services wireand mail fraud, bribery, obstruction of justice, making false statements, anduse of an interstate facility in aid of racketeering. U.S. District JudgeMaurice Hicks detained Grace pending his sentencing scheduled in August 2012.
This ongoing investigation is beingconducted by the Federal Bureau of Investigation and the U.S. Attorney’s Officefor the Middle District of Louisiana, with assistance from the U.S. Departmentof Housing and Urban Development, Office of Inspector General, and the U.S.Department of Homeland Security, Office of Inspector General. OperationBlighted Officials is being prosecuted by Assistant United States AttorneysCorey R. Amundson, M. Patricia Jones, and Michael J. Jefferson.