Former Deputy Insurance Commissioner sentenced for racketeering
POSTED: Saturday, August 17, 2013 - 3:00pm
UPDATED: Saturday, August 17, 2013 - 3:10pm
BATON ROUGE, LA — Another public official has been sentenced in Operation Blighted Officials.
Richard Chambers Sr., 68, of LaPlace, has been sentenced to 30 months imprisonment, 1 year of supervised release following imprisonment, a fine of $10,500, and forfeiture of $11,341.
The defendant was sentenced after having pled guilty to racketeering based on his corrupt activity while Deputy Commissioner for the Louisiana Department of Insurance.
Today’s sentence results from the defendant’s involvement in two corrupt schemes in 2009 and 2010 while serving as Deputy Commissioner for the Louisiana Department of Insurance. In the first scheme, the defendant used his official position to steer insurance business from municipalities and other entities to an insurance agent in exchange for a split of the commissions. The defendant created the scheme and estimated that it would generate between $200,000 and $4,000,000 in commissions. In the second scheme, the defendant took $5,000 in cash bribes to use his official position to fraudulently secure $500,000 in private investor funding for a conceptual trash can cleaning product.
Acting U.S. Attorney Green stated: “This office, together with our federal, state, and local partners, will continue to aggressively pursue corrupt public officials who line their own pockets at the expense of the public trust. Such corruption undermines the dedicated and honest work performed by the vast majority of our public servants and will not be tolerated. Today’s sentence reflects the seriousness of public corruption, while also appropriately crediting a defendant who accepts responsibility and substantially cooperates with the investigation.”