FBI Checking Into Corruption in New Orleans Government

The FBI and other federal agencies are conducting a widespread investigation into allegations of corruption in New Orleans city government, a prosecutor announced Wednesday.

The statement by U.S. Atty. Jim Letten was the first indication of federal involvement in a crackdown on corruption that Mayor Ray Nagin announced in July, two months after taking office.

At least 87 arrest warrants have been issued alleging malfeasance, bribery and fraud involving the licensing of taxis and routine private vehicle inspections.

A city engineer was accused Wednesday of extorting about $20,000 from an electrical contractor engaged in business with the city.

Federal prosecutors charged Wallace Schief, 49, of LaPlace with extortion in interstate commerce, alleging an electrical contractor paid him about $20,000 in kickbacks. Until his resignation Tuesday, Schief was chief engineer of the city’s property management department.

Schief could not be reached for comment; a recording said his telephone was out of order.

Assistant U.S. Atty. Jan Mann said the city had paid the contractor, G&M; Electric Co., $6,000 in inflated billings. The company was not charged but Mann said an investigation was continuing.

The agent in charge of the FBI’s New Orleans office, Kenneth Kaiser, said he had met with Nagin before the mayor took office in May and discussed Nagin’s concerns about corruption.

“We’ve been investigating corruption allegations for some time,” Kaiser said.