Press Releases
FORMER CATHOLIC CHARITIES EMPLOYEE AND HER SISTER INDICTED ON CONSPIRACY TO STEAL FEDERAL PROGRAM FUNDS
June 19, 2008
FOR IMMEDIATE RELEASE
MARGARE SEGURA, also known as Margare Lewis, age 42, and her sister, LOLA DAVIS, age 43, both residents of New Orleans, were charged in a two count indictment by a Federal Grand Jury for conspiracy and theft of federal program funds, announced U. S. Attorney Jim Letten.
The indictment charges both SEGURA and DAVIS with conspiracy to steal Department of Housing and Urban Development funds granted to Catholic Charities through UNITY of Greater New Orleans for the Supportive Housing Program, a program designed to assist homeless individuals with free housing and lifeskills training. Specifically, the indictment charges that SEGURA would qualify DAVIS and others as landlords of units for homeless individuals for properties that they did not own and for tenants that were not homeless and did not qualify for the Supportive Housing Program. SEGURA would have Catholic Charities of the Archdiocese of New Orleans pay DAVIS and other co-conspirators from the Supportive Housing Program grant. Upon receipt of the money from the Supportive Housing Program, SEGURA and DAVIS, and their co-conspirators would split the illegal proceeds. The indictment lists 21 overt acts of fraudulently issued checks totaling almost $35,000, endorsed and cashed by SEGURA, DAVIS, and their co-conspirators in the 2007 fiscal year. SEGURA, who was referred to as Ms. A in a Bill of Information for this conspiracy filed last week against Deborah Knighten of Harvey Louisiana, is also charged with one substantive count of theft of funds from a federally funded program in violation of Title 18, United States Code, Section 666(a)(1)(A). U.S. Attorney Jim Letten declined to comment if there were additional co-conspirators who may be charged in the future.
If convicted of the substantive count of theft, SEGURA faces a maximum term of imprisonment of not more than ten years, a fine of $250,000, and three years of supervised release following any term of imprisonment. The conspiracy count carries a maximum term of imprisonment of five years, a $250,000 fine, and three years of supervised release following any term of imprisonment.
Speaking to today’s indictment Kenneth Donohue, Inspector General, US Department of Housing & Urban Development stated:
“The allegations as outlined in this indictment are offensive to not only those individuals who are in desperate need to reestablish their lives but to the community as a whole. The on going problem with homelessness, not only in New Orleans but across our country, has been and continues to be of grave concern to the Department and to my office. To steal this money for personal gain, as it is alleged, is reprehensible given the continuing efforts of the citizens of New Orleans to fully recover from the aftermath of Hurricane Katrina.”
U. S. Attorney Letten reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
The case was investigated by agents with the Department of Housing and Urban Development-Office of Inspector General and the Federal Bureau of Investigation. The Small Business Administration - Office of Inspector General, and the Social Security Administration - Office of the Inspector General also assisted in the investigation. The case will be prosecuted by Assistant United States Attorney Emily Greenfield.
)
