FEMA employees sentenced in kickback scheme

Two Federal Emergency Management Administration (FEMA) officials working in the New Orleans region following Hurricane Katrina were sentenced in federal court to 21 months imprisonment and fined $20,000 each in a bribery-kickback scheme.

Andrew Rose and Loyd Holliman, both residents of Colorado, were FEMA Disaster Assistance employees charged with managing the FEMA LB Landry base camp located in New Orleans, La., and were public officials in their capacity as employees of FEMA.

Both defendants were arrested by special agents of the FBI and Department of Homeland Security’s Office of Inspector General in January of 2006 following an undercover investigation which began after both Rose and Holliman approached a Louisiana businessman under contract for $1 million in food services, demanding that the businessman illegally kick back to them an initial payment of $20,000 and weekly payments of $5,000 as payment for the contract.

After the Louisiana businessman reported the matter to federal authorities, an intensive two-month undercover investigation utilizing electronic surveillance captured both Rose and Holliman demanding bribes and receiving $20,000 in cash from the cooperating businessman. The two defendants were placed under arrest by FBI and Department of Homeland Security’s Office of the Inspector General special agents.

“I want to recognize and thank the courageous Louisiana businessman who wasted no time in reporting the illegal and corrupt conduct of these two government representatives to federal authorities, which resulted in the successful conclusion of this important corruption case,” said U.S. Attorney Jim Letten.

This matter was investigated by special agents of the FBI and agents of the Department of Homeland Security’s Office of the Inspector General. This case was prosecuted by Assistant U.S. Attorneys James R. Mann and Salvador Perricone.