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Businessman Who Testified Against Ex-Mayor Nagin Gets 1 Year

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In this Jan. 27, 2014, file photo, former New Orleans Mayor Ray Nagin arrives at the Hale Boggs Federal Building in New Orleans. (AP Photo/Jonathan Bachman, File)

In this Jan. 27, 2014, file photo, former New Orleans Mayor Ray Nagin arrives at the Hale Boggs Federal Building in New Orleans. (AP Photo/Jonathan Bachman)

KEVIN McGILL, Associated Press

NEW ORLEANS (AP) — A businessman who specialized in disaster recovery and bribed former New Orleans mayor Ray Nagin with more than $150,000 in cash and gifts to steer work his way after Hurricane Katrina was sentenced Wednesday to a year in prison.

Frank Fradella pleaded guilty in 2012 to conspiracy to commit bribery in Nagin’s corruption case, and he pleaded guilty in a separate securities fraud matter involving a Dallas company.

Fradella’s testimony was key to getting convictions in 14 of the 20 counts Nagin was found guilty of, prosecutors said.

Defense attorney Randall Smith and Assistant U.S. Attorney Richard Pickens stood on either side of Fradella and urged leniency from the judge.

“I’ve yet to run into a cooperator who was as helpful as Mr. Fradella,” Pickens said.

Nagin is serving a 10-year sentence for bribery, fraud and money laundering that spanned his two terms as mayor from 2002-2010, including a period of chaos and slow recovery from catastrophic flooding after Hurricane Katrina in 2005.

In addition to prison time, Fradella was fined $10,000. His attorney Randall Smith said Fradella is bankrupt and the scandal resulting from his Texas business dealings and the Nagin bribery would follow him for the rest of his life.

“I have no excuse for my actions,” Fradella, 59, told U.S. District Judge Susie Morgan. A handful of his friends and family were in the mostly empty courtroom.

Fradella’s testimony spanned two days during Nagin’s February 2014 trial. He testified he arranged to get $50,000 to Nagin when the mayor said he needed money to support a family home improvement business called Stone Age. Fradella also said he paid Nagin off with free granite for the business and prosecutors also outlined tens of thousands of dollars in other payments from Fradella to Nagin.

Fradella’s securities fraud case stemmed from his time as CEO of Home Solutions of America Inc., a firm that specialized in recovery from natural disasters. Prosecutors said he filed false reports about the corporation’s revenue, misleading government watchdogs and investors.

Since the trial ended, Rodney Williams, another city vendor who pleaded guilty in the case and testified against Nagin, was sentenced to a year and a day. Greg Meffert, the city technology chief under Nagin, was sentenced to 2 1/2 years for his role in City Hall corruption.

Prosecutors have argued strongly for low sentences for those who cooperated in the case against Nagin but the court record also showed Fradella has his detractors. Filed Tuesday was a note, hand-scrawled on a financial statement, urging a harsh sentence. “As an investor who was cheated out of $52,279.51 from my retirement account, I can only hope Frank Fradella is sentenced harshly for what he did to me and others,” the note said.

Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Activism

Oakland Post: Week of December 25 – 31, 2024

The printed Weekly Edition of the Oakland Post: Week of December 25 – 31, 2024

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Alameda County

Last City Council Meeting of the Year Ends on Sour Note with Big Budget Cuts

In a five to one vote, with Councilmembers Carroll Fife and Janani Ramachandran excused, the council passed a plan aimed at balancing the $130 million deficit the city is facing. Noel Gallo voted against the plan, previously citing concerns over public safety cuts, while Nikki Fortunato-Bas, Treva Reid, Rebecca Kaplan, Kevin Jenkins, and Dan Kalb voted in agreement with the plan.

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Oakland City Council voted on a plan to balance the $130 million deficit at their last regular meeting of 2024. The plan reduces police spending by $25 million, temporarily closes two fire stations, and guts the cultural arts programs. iStock photo.
Oakland City Council voted on a plan to balance the $130 million deficit at their last regular meeting of 2024. The plan reduces police spending by $25 million, temporarily closes two fire stations, and guts the cultural arts programs. iStock photo.

By Magaly Muñoz

In the last lengthy Tuesday meeting of the Oakland City Council for 2024, residents expressed strong opposition to the much needed budget cuts before a change in leadership was finalized with the certification of election results.

In a five to one vote, with Councilmembers Carroll Fife and Janani Ramachandran excused, the council passed a plan aimed at balancing the $130 million deficit the city is facing. Noel Gallo voted against the plan, previously citing concerns over public safety cuts, while Nikki Fortunato-Bas, Treva Reid, Rebecca Kaplan, Kevin Jenkins, and Dan Kalb voted in agreement with the plan.

Oakland police and fire departments, the ambassador program, and city arts and culture will all see significant cuts over the course of two phases.

Phase 1 will eliminate two police academies, brown out two fire stations, eliminate the ambassador program, and reduce police overtime by nearly $25 million. These, with several other cuts across departments, aim to save the city $60 million. In addition, the council simultaneously approved to transfer restricted funds into its general purpose fund, amounting to over $40 million.

Phase 2 includes additional fire station brownouts and the elimination of 91 jobs, aiming to recover almost $16 million in order to balance the rest of the budget.

Several organizations and residents spoke out at the meeting in hopes of swaying the council to not make cuts to their programs.

East Oakland Senior Center volunteers and members, and homeless advocates, filled the plaza just outside of City Hall with rallies to show their disapproval of the new budget plan. Senior residents told the council to “remember that you’ll get old too” and that disturbing their resources will only bring problems for an already struggling community.

While city staff announced that there would not be complete cuts to senior center facilities, there would be significant reductions to staff and possibly inter-program services down the line.

Exiting council member and interim mayor Bas told the public that she is still hopeful that the one-time $125 million Coliseum sale deal will proceed in the near future so that the city would not have to continue with drastic cuts. The deal was intended to save the city for fiscal year 2024-25, but a hold up at the county level has paused any progress and therefore millions of dollars in funds Oakland desperately needs.

The Coliseum sale has been a contentious one. Residents and city leaders were originally against using the deal as a way to balance the budget, citing doubts about the sellers, the African American Sports and Entertainment Group’s (AASEG), ability to complete the deal. Council members Reid, Ramachandran, and Gallo have called several emergency meetings to understand where the first installments of the sale are, with little to no answers.

Bas added that as the new Alameda County Supervisor for D5, a position she starts in a few weeks, she will do everything in her power to push the Coliseum sale along.

The city is also considering a sales tax measure to put on the special election ballot on April 15, 2025, which will also serve as an election to fill the now vacant D2 and mayor positions. The tax increase would raise approximately $29 million annually for Oakland, allowing the city to gain much-needed revenue for the next two-year budget.

The council will discuss the possible sales tax measure on January 9.

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Activism

Protesters Gather in Oakland, Other City Halls, to Halt Encampment Sweeps

The coordinated protests on Tuesday in San Francisco, Oakland, Vallejo, Fresno, Los Angeles and Seattle, were hosted by Poor Magazine and Wood Street Commons, calling on cities to halt the sweeps and focus instead on building more housing.

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The California Poor People’s Campaign’s Victoria King erected encampments for unhoused Oaklanders. Victoria King and her committee erected these emergency tents to symbolize the needs of unhoused Oaklanders. Photos by Post Staff.
The California Poor People’s Campaign’s Victoria King erected encampments for unhoused Oaklanders. Victoria King and her committee erected these emergency tents to symbolize the needs of unhoused Oaklanders. Photos by Post Staff.

By Post Staff

Houseless rights advocates gathered in Oakland, San Francisco, Los Angeles, and other city halls across California and Washington state this week protesting increased sweeps that followed a U.S. Supreme Court decision over the summer.

The coordinated protests on Tuesday in San Francisco, Oakland, Vallejo, Fresno, Los Angeles and Seattle, were hosted by Poor Magazine and Wood Street Commons, calling on cities to halt the sweeps and focus instead on building more housing.

“What we’re dealing with right now is a way to criminalize people who are dealing with poverty, who are not able to afford rent,” said rights advocate Junebug Kealoh, outside San Francisco City Hall.

“When someone is constantly swept, they are just shuffled and things get taken — it’s hard to stay on top of anything,” said Kealoh.

Local houseless advocates include Victoria King, who is a member of the coordinating committee of the California Poor People’s Campaign. She and Dr. Monica Cross co-chair the Laney Poor People’s Campaign.

The demonstrations came after a June Supreme Court ruling expanded local governments’ authority to fine and jail people for sleeping outside, even if no shelter is available. Gov. Gavin Newsom in California followed up with an order directing state agencies to crack down on encampments and urging local governments to do the same.

FresnoBerkeley and a host of other cities implemented new rules, making it easier for local governments to clear sidewalk camps. In other cities, such as San Francisco, officials more aggressively enforced anti-camping laws already on the books.

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