US: State Senator pleads guilty to money laundering

A contrite State Senator Derrick Shepherd, D-Marrero, pled guilty to a single charge of conspiracy to commit money laundering and agreed to cooperate with the investigation in federal court Friday.

The Desert Storm veteran, whose law license was suspended by the Louisiana Supreme Court in August, also apologized to his family, constituents and to the city’s Black children who looked up to him and resigned from his post as a state legislator.

“I acknowledge my fault and my role and responsibility in the indictment that I received,” Shepherd,39, said. “I do want to apologize, first and foremost, to the Court and the Bar. I apologize to my family, I apologize to my father in particular.

“I had never committed a crime until now, and I took pride in that,” he added. “I also apologize to the citizens of my district. I did tender my resignation today but I want the citizens to know that in no way did I abuse my position that they elected me to. This was a private matter, what I did wrong.

“I also wanted to apologize to the children, especially the young Black kids who always tell me they look up to me. I apologize and I want you to know that you have to do the right thing at all times. When you do wrong even one time, for one split second, it will cost you. And it cost me, it cost me my political career, my legal career and my military career. ...That’s the price I have to pay.”

Shepherd’s plea and resignation came just six days after embattled U.S. Congressman William Jefferson, D-Louisiana, captured 25 percent of the votes in the October 4 primary despite being indicted by the federal govern-
ment. At one point, Sen. Shepherd pondered running for Congressman Jefferson’s 2nd District seat.

The U.S. Attorney’s Office has agreed not to pursue other charges against Shepherd as part of the deal. Sentencing will take place on January 21. U.S. Attorney Jim Letten said Friday that his office decided not to pursue mail fraud charges against Shepherd “because we believe that the money-laundering conspiracy count, because it was predicated on mail fraud, addressed all of his conduct sufficiently.

“I think it’s Shepherd faces a maximum of 20 years in prison, $250,000 in fines and three years of probation, although his sentence could be reduced by U.S. District Judge Carl Barbier if he honors his pledge to cooperate fully with federal investigators. “If we decide it’s substantial enough, we then go to the sentencing court and notify the sentencing court that the cooperation has been substantial and if that happens, we then ask for in some cases, leniency,” said U.S. Attorney Jim Letten.

Letten added that a number of other factors could influence the length of Shepherd’s sentence, including the amount of money involved in the case.

Sen. Shepherd was indicted by the U.S. Attorney’s Office on April 10, 2008 for a long list of charges that included money laundering. He responded to that indictment by releasing a statement to the press that said, “I am deeply disappointed and saddened by the indictment against me that has been secured by the federal government. I have never knowingly or maliciously violated any law—parish, state or federal—and I am absolutely not guilty of any criminal offenses.”

Last November, he challenged the testimony of the FBI that he laundered about $141,000, insisting he has “never committed a crime” and that it seemed the FBI wanted him to testify against any elected official they had randomly decided to target.

“This abuse of authority must end,” Shepherd said. “I say enough is enough.”

Shepherd, who defiantly told reporters months ago that he told the Feds “Hell no!” when they asked him if he had any knowledge of public graft committed by a list of elected officials that included state Rep. Karen Carter Peterson, New Orleans Mayor Ray Nagin and Congressman William Jefferson, was less abrasive in taking responsibility for his actions Friday.

“I plead guilty because I did wrong and I apologize for my actions,” he told U.S. District Judge Carl Barbier.

“He yielded to temptation and greed,” Shepherd lawyer John Reed told the judge.

With his mother and his attorneys at his side Friday morning, Sen. Shepherd arrived in federal court early, responding to a request from reporters for comment by simply saying “Trust God.”

After the hearing, Shepherd asked the media to respect his privacy. “I’m a private citizen now, I’m not an elected official any more,” he said. “I thank my family for standing with me, I thank my attorney. I thank the government for doing their job. I thank most of you for your prayers. I know a lot of people have talked to me throughout the course of this and said they were praying for me. I appreciate you and I ask that you keep praying for me because this too shall pass and God is not through with me yet. Thank you, God bless and I’m sorry.”

The Louisiana Legislative Black Caucus issued a statement Friday afternoon regarding Shepherd’s guilty plea that read, “The members of the LLBC are saddened by Senator Derrick Shepherd’s proceedings in court today. Our prayers are with Senator Shepherd, his family and his constituents.”

The U.S. Attorney’s Office accused Shepherd of conspiring with Gwendolyn Joseph Moyo to launder $141,000 in checks written to her companies whose accounts had been frozen by the insurance department.

U.S. Attorney’s Office says Shepherd admitted that he laundered illegal proceeds for co-defendant Gwendolyn Moyo, who received premiums for bogus construction bonds and handed over those premiums to Shepherd, who subsequently deposited the premiums into his law firm’s bank accounts. Shepherd then reportedly gave a portion of the laundered money back to Moyo and to several associates of Moyo, while retaining a portion of the premiums for himself. Shepherd admitted to the Feds last week that he created false bills and time records to conceal his actual role in the laundering scheme.

Another of Shepherd’s co-defendants, James Zoucha, 67, of Oceanside, Calif., struck a plea deal with prosecutors in September and also agreed to cooperate with the U.S. Attorney’s Office.

It is not clear how Shepherd’s plea agreement might affect Congressman William Jefferson and his sister, New Orleans Assessor Betty Jefferson, both of whom are listed as unidentified co-conspirators in the April 10, 2008 indictment against Shepherd.

Gwendolyn Moyo is scheduled to go to trial on Tuesday, October 14, 2008.

Letten said Friday’s plea by Shepherd doesn’t change its handling of its case against Moyo or have any ramifications for that case. “I think it is important to say that while (Shepherd) has pledged his cooperation, while this is certainly important, because his co-defendant is scheduled to go to trial Tuesday, it is critical to recognize that this in no way implicates anything other than Sen. Shepherd’s guilt,” Letten said. “That co-defendant, Gwendolyn Moyo, is presumed innocent unless and until proven guilty beyond a reasonable doubt.”

Shepherd was released on bond until his Jan. 21 sentencing.

Source: The Louisiana Weekly