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Jun 04 2007 12:00am EDT

Frozen Assets Lead to Indictment for Louisiana Congressman

Bourbon Street in New Orleans might not be in its usual raucous mood tonight.

A federal grand jury in Alexandria, Virginia, indicted Representative William Jefferson, a Democrat from Louisiana, on charges including racketeering, bribery, wire fraud, money-laundering, obstruction of justice, conspiracy and violations of the Foreign Corrupt Practices Act.

The indictment follows nearly two years of criminal investigation into Jefferson's involvement with illegal business deals in Nigeria and other African nations. Two of his associates have already pleaded guilty and received lesser sentences in exchange for helping prosecutors in their case against Jefferson.

In May of 2006, the Feds opened the freezer in Jefferson's Capitol Hill office to find $90,000 in cash, which was wrapped in aluminum foil and stuffed inside frozen food containers.

Voters in Louisiana, where a colorful history of political corruption thrives, were largely unfazed by the revelation. Jefferson, who is the state's first black congressman since Reconstruction, was re-elected for his eighth term in December.

Jefferson is accused of taking at least $400,000 from iGate, a Louisville-based high tech firm, in exchange for using his influence to secure contracts for it in the U.S. and several African countries. The F.B.I. videotaped him taking $100,000 and saying he needed more to give Nigerian vice president Atikua Abubakar to "motivate" him into a deal. Abubakar denied Jefferson's claim. Vernon L. Jackson, the president of iGate, is serving a seven-year sentence after pleading guilty to bribing Jefferson.

Jefferson has maintained his innocence throughout the ordeal. Many members of Congress questioned the legality of the raid on Jefferson's office, which was the first of its kind.

Jefferson can legally continue to serve as Louisiana's congressman while under indictment. If he is found guilty, however, he will face the possibility of spending his remaining days in prison.

Whether or not Louisianans write him into their ballots after that remains to be seen.

by Megan Barnett


Laura Rich is a co-founder of Recessionwire, which provides news, advice, perspective and humor about the recession and the recovery.

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