The government alleges, during Nagin’s second term
as mayor, 2006-2010, he became too close to select city contractors, ultimately
blurred clear cut lines between city business, personal business, finances and
favors. The toxic mix of what some witnesses called a pay-to-play political
climate in New Orleans post-Hurricane Katrina paved the road for millions of
dollars in city contracts to go to a handful of pre-selected companies,
specifically Three Fold Consultants, LLC and Home Solutions of America (HSOA).
The companies were linked to deposits and deals with Stone Age, LLC a granite
company in New Orleans owned and operated by the ex-Mayor and his sons, Jeremy
and Jarin Nagin. Nagin said he only bank rolled the business to help his sons
get started. “I was mainly the financier and I told them I would keep my
investment down to about $10,000 a year,” said Nagin.
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| Rodney Williams seen leaving the federal courthouse in New Orleans |
Rodney Williams, Tarek Elnaggar and Bassam Mekari
owned Three Fold Consultants, LLC. Earlier in the trial, Williams, who was the
government’s first witness, said at a meeting in January 2008, Nagin told him
he was “tapped out,” referencing the financial struggles of Stone Age, LLC, a
granite company Nagin owned with his sons, Jeremy and Jarin. “He said it sure
would be nice if he had $60, 000,” said Williams. Within hours, Williams gave
Stone Age three $20,000 checks, each written by Williams, Elnaggar and Mekari. Shortly
after the checks cleared, Three Fold Consultants became a city contractor. Nagin
said the $60, 000 was an investment in Stone Age, LLC, not a bribe. Documents
presented in court showed the sale of shares of Stone Age, LLC stock in Jan.
2008 to a company called BRT Investment. The company, however, was not
registered in Louisiana until March. “We did that as a cover-up,” said Williams.
The government showed evidence, over a two year
period, Three Fold, LLC went from earning a little more than $120,000 to $2.6
million. A healthy portion of their business was tied to city contracts. “I had
no authority on selecting them,” said Nagin. Brenda Hatfield, a former city
administrator, testified Nagin signed an executive order that stripped a
screening board of its authority to recommend or reject city contractors and
the decision became the mayor’s exclusively. Williams plead guilty to bribery
in 2010 and is awaiting sentencing.
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| Internet Photo of Frank Fradella |
Frank Fradella owned Home Solutions of America. His
company, once headquartered in Texas, relocated to New Orleans after Hurricane
Katrina. From 2007 through 2010 Fradella worked in overdrive to secure millions
of dollars in business for HSOA. A potential for a NASCAR track to come to New
Orleans caught his attention. The project would have been profitable at least
five years after the track was completed, it failed. He pursued a multi-million
dollar deal to turn an old Entergy building into a mixed-use facility of condos
and strip malls. It failed. Fradella, with the help of mayor Nagin vouching for
HSOA at a meeting with investors, was able to get a $40 million credit line for
his company. “We took them on a tour of the city and they were very impressed
with all of the work that could go on and the mayor told them we were good for
it,” said Fradella. Fradella maintains as a show of gratitude, he’d often treat
Nagin to trips or in at least one time, gave Stone Age a $50,000 check. “It was
a bribe,” said Fradella.
Nagin said Fradella and Williams lied about the
money they gave Stone Age. He minimized his contact with Fradella as an
alternative form of possible financing development in the city when government
red tape was slowing progress. Fradella sent Nagin an e-mail claiming he could
raise $250 million - $500 million. “I talked to him a lot because we had a huge
problem trying to get federal dollars to the city after Hurricane Katrina and
he was a business man who wanted to help get private dollars to the city,” said
Nagin.
When Federal Prosecutor, Matthew Cowman cross-examined Nagin,
the defendant’s tone transitioned to defiant, evasive and guarded. Nagin danced
around answers to the Coman’s questions related to everything from confirming
his signature on legal documents to personally knowing Williams, Fradella or
Mark St. Pierre, the source of many lavish vacations and other gifts Nagin
received. Collectively the gifts netted to six-figure omissions from his 2007-2010
tax records.
Cowman continues cross-examining Nagin, Friday. Judge
Ginger Berrigan said the trail should be over by early next week. Depending on
the verdict, Nagin taking the stand may turn out to be the best or the worst
decision of his life. He could spend up to 20 years in prison, if found guilty.
What do you think about Nagin taking the stand?
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