N.O. councilman to plead guilty in post-Katrina fraud

A New Orleans City Councilman says he will plead guilty to a federal criminal charge involving the misuse of federal money intended to help a nonprofit organization after Hurricane Katrina. In a statement released by his attorney today, Jon Johnson says he made the decision after meeting with federal officials. He also says he will resign from the council. Johnson’s statement came moments after a court filing emerged showing that he would be charged with conspiracy to commit theft of government funds and to submit false documents. The 63-year-old Johnson is accused of diverting money intended for the Ninth Ward Housing Development Corp. for personal use, including expenses for his failed 2007 campaign for a seat in the Louisiana Senate. The documents say Johnson controlled the finances of the housing development group, which obtained Federal Emergency Management Agency grants for house gutting and mold remediation after the August 2005 storm and resulting flood. Prosecutors say Johnson misused FEMA funds between 2006 and 2008.