1 00:00:03,530 --> 00:00:08,950 In this episode of American Greed, Ray Nagin rises to power as mayor of New 2 00:00:08,950 --> 00:00:11,110 Orleans on big promises of reform. 3 00:00:11,650 --> 00:00:16,730 The winds of change are blowing and they are fanning the flames of a renaissance 4 00:00:16,730 --> 00:00:17,930 in our great city. 5 00:00:18,190 --> 00:00:21,710 When he first came into office, he was a rock star. I mean, the guy who had 6 00:00:21,710 --> 00:00:24,810 crossover support, black, white, rich, poor. 7 00:00:25,010 --> 00:00:28,250 I mean, he was the guy that came into office that was supposed to. 8 00:00:28,760 --> 00:00:32,400 Change New Orleans, fix New Orleans, clean up New Orleans. Until one of the 9 00:00:32,400 --> 00:00:35,300 catastrophic storms in history changes everything. 10 00:00:35,580 --> 00:00:40,500 Katrina strikes a heavy blow to the Louisiana coast as a Category 4 storm. 11 00:00:41,020 --> 00:00:42,600 Everybody was devastated. 12 00:00:42,860 --> 00:00:44,300 We had no electricity. 13 00:00:44,580 --> 00:00:45,580 We had no running water. 14 00:00:45,740 --> 00:00:46,880 We had no food. 15 00:00:47,120 --> 00:00:51,360 This city needed a great leader, and the mayor was the logical choice. 16 00:00:51,850 --> 00:00:55,730 But as billions of dollars begin to flow in for rebuilding, Nagin's anti 17 00:00:55,730 --> 00:00:59,430 -corruption ideals seem to wash away like the floodwaters. 18 00:01:00,190 --> 00:01:04,590 And the mayor sells out the citizens of the Crescent City for little more than 19 00:01:04,590 --> 00:01:09,010 $500 ,000 in luxury trips, services, and cash. 20 00:01:09,650 --> 00:01:16,250 When his financial needs and his lifestyle definitely outpaced his 21 00:01:16,250 --> 00:01:20,450 income, he then chose an illegitimate income in those bribes and kickbacks. 22 00:01:33,480 --> 00:01:39,760 Every person is hereby ordered to immediately evacuate the city of New 23 00:01:39,960 --> 00:01:46,400 or, if no other alternative is available, to immediately move to one of 24 00:01:46,400 --> 00:01:53,060 facilities within the city that will be designated as a refuge of last resort. 25 00:01:53,680 --> 00:01:56,060 On August 28, 2005, 26 00:01:56,760 --> 00:02:01,640 Mayor C. Ray Nagin orders the first ever mandatory evacuation of New Orleans. 27 00:02:02,480 --> 00:02:05,640 as Hurricane Katrina roils in the Gulf of Mexico. 28 00:02:18,440 --> 00:02:21,780 Nearly a million residents flee the metropolitan area. 29 00:02:26,560 --> 00:02:32,250 Within two days, after the storm hits and the levees fail, 80 % of New Orleans 30 00:02:32,250 --> 00:02:37,950 is underwater, and 100 ,000 people who remain are stranded in deadly 31 00:02:38,510 --> 00:02:43,730 There are planning failures at all levels of government, as the world 32 00:02:43,730 --> 00:02:48,350 horror. Get us out of here! We want to get out of here! We need help, sir. We 33 00:02:48,350 --> 00:02:53,390 really need help. And Mayor Ray Nagin catapults into the national spotlight as 34 00:02:53,390 --> 00:02:56,930 he attempts to triage one of the country's worst ever disasters. 35 00:02:59,370 --> 00:03:04,650 But ten years after Katrina, Nagin is conspicuously absent from the national 36 00:03:04,650 --> 00:03:05,650 remembrance. 37 00:03:06,230 --> 00:03:11,050 It's kind of surreal to think that when the storm hit, he was elbow to elbow 38 00:03:11,050 --> 00:03:14,290 with the president of the United States. And everybody who wanted to leave the 39 00:03:14,290 --> 00:03:18,370 recovery, and then as we hit the 10th anniversary, he's watching in a prison 40 00:03:18,370 --> 00:03:20,150 jumpsuit from federal prison. 41 00:03:26,410 --> 00:03:30,250 Three years before Katrina hits, Clarence Ray Nagin Jr. 42 00:03:30,530 --> 00:03:33,530 is a business executive and political outsider. 43 00:03:34,470 --> 00:03:39,810 Born and raised in a working -class New Orleans family, education guides Nagin 44 00:03:39,810 --> 00:03:43,170 out of the poor wards of the city to Tuskegee University. 45 00:03:44,530 --> 00:03:49,330 He then climbs the corporate ladder, and by the early 2000s, he is a vice 46 00:03:49,330 --> 00:03:51,950 president and general manager at Cox Communications, 47 00:03:52,810 --> 00:03:55,250 earning $400 ,000 a year. 48 00:03:57,290 --> 00:04:01,650 Nagin lives with his wife and three kids in the upper middle class area of Park 49 00:04:01,650 --> 00:04:06,750 Island in a mid -century modern home known as the Ashtray House for the 50 00:04:06,750 --> 00:04:11,230 architect's use of 1 ,200 amber ashtrays along the roofline. 51 00:04:11,430 --> 00:04:13,790 And he seems to be living the American dream. 52 00:04:14,210 --> 00:04:16,649 Robert Jenkins is Nagin's attorney. 53 00:04:17,170 --> 00:04:23,310 He got a very, very astute business background, very educated man, and a 54 00:04:23,310 --> 00:04:24,310 family man. 55 00:04:24,780 --> 00:04:27,740 But apparently, Nagin wants something more. 56 00:04:28,160 --> 00:04:33,860 In 2002, with strong backing from the business community, Nagin throws his hat 57 00:04:33,860 --> 00:04:38,540 into the mayoral race, running as the anti -corruption, business -minded 58 00:04:38,540 --> 00:04:39,540 candidate. 59 00:04:40,360 --> 00:04:43,780 Salah dropped tremendously when he went to public service. He was thinking more 60 00:04:43,780 --> 00:04:47,980 about what he could do to help this city and help the citizens of this city. 61 00:04:49,870 --> 00:04:54,190 WDSU reporter Travers Mackle covers the election and watches Nagin come from 62 00:04:54,190 --> 00:04:57,530 behind to beat a slew of seasoned politicos. 63 00:04:58,010 --> 00:05:02,430 I think power is what attracted him to the position that he was already the CEO 64 00:05:02,430 --> 00:05:05,110 of a large telecommunication company. 65 00:05:05,330 --> 00:05:07,670 So I guess he looked at it as, hey, I can run a city. 66 00:05:08,010 --> 00:05:11,250 I think most people will tell you this. When he came into office, his intentions 67 00:05:11,250 --> 00:05:12,250 were good. 68 00:05:12,750 --> 00:05:14,410 Thank you. Thank you. 69 00:05:15,710 --> 00:05:17,370 I am so happy. 70 00:05:18,250 --> 00:05:24,410 To be here doing this right now, anticipation is a wonderful thing, but 71 00:05:24,410 --> 00:05:27,430 sometimes it wears you down, and I am ready. 72 00:05:27,810 --> 00:05:31,890 This is a guy who had so much promise and so much potential and so much 73 00:05:31,890 --> 00:05:37,430 and so much moxie that he seemed like he was a rising star in politics, and it 74 00:05:37,430 --> 00:05:39,010 was going to put New Orleans in the right direction. 75 00:05:39,250 --> 00:05:43,510 The winds of change are blowing, and they are fanning the flames of a 76 00:05:43,510 --> 00:05:45,230 renaissance in our great city. 77 00:05:46,400 --> 00:05:48,600 Nagin appears to start out strong. 78 00:05:49,060 --> 00:05:53,860 Just 11 weeks into office, he implements a sweeping operation to clean up 79 00:05:53,860 --> 00:05:58,120 bribery in the city's taxicab licensing and inspection programs. 80 00:05:59,000 --> 00:06:05,800 After 84 arrests in one day, the mayor makes national headlines as a new kind 81 00:06:05,800 --> 00:06:06,960 leader in the Crescent City. 82 00:06:07,260 --> 00:06:11,860 But Gordon Russell, who covers the story for the Times -Picayune, says once the 83 00:06:11,860 --> 00:06:14,200 media fades away, there is little payoff. 84 00:06:14,800 --> 00:06:18,220 There was kind of showmanship more than anything. They marched these people, you 85 00:06:18,220 --> 00:06:21,280 know, they kind of brought them all out for the cameras, and Frog marched them 86 00:06:21,280 --> 00:06:25,320 around in front of City Hall with handcuffs on. And one of the people was 87 00:06:25,320 --> 00:06:30,140 cousin of the mayor, so it kind of sent this message that, you know, nobody's 88 00:06:30,140 --> 00:06:31,140 above the law. 89 00:06:31,820 --> 00:06:34,840 In the end, the sweep nets not one conviction. 90 00:06:35,380 --> 00:06:39,300 But in the meantime, Nagin's approval rating shoots up 80%. 91 00:06:40,720 --> 00:06:46,220 Bill Roussel is a community organizer and political consultant who has worked 92 00:06:46,220 --> 00:06:47,500 with Nagin's administration. 93 00:06:48,280 --> 00:06:55,080 There was an effort afoot to bring about reform in 94 00:06:55,080 --> 00:07:01,600 city government. He took office with that intent, and I think for the first 95 00:07:01,600 --> 00:07:08,060 three years or so was relatively successful in getting people to 96 00:07:08,060 --> 00:07:09,580 feel good about it. 97 00:07:09,930 --> 00:07:10,930 the government. 98 00:07:11,490 --> 00:07:17,030 With popular support behind him, the mayor also decides to focus on his 99 00:07:17,030 --> 00:07:18,090 for technology. 100 00:07:18,570 --> 00:07:22,910 I think he said something like, you know, I'm used to George Jetson and this 101 00:07:22,910 --> 00:07:26,430 Fred Flintstone's world I'm living in. When he came to City Hall, everything 102 00:07:26,430 --> 00:07:30,990 ancient. He said, we got to remake this place totally and, you know, start 103 00:07:30,990 --> 00:07:36,310 putting things online and, you know, just kind of bring the city into the 104 00:07:36,310 --> 00:07:37,310 century. 105 00:07:37,320 --> 00:07:41,460 Nagin creates the city's first mayor's department of technology. 106 00:07:41,980 --> 00:07:46,900 To head it up, former assistant U .S. attorney Matt Komen says Nagin reaches 107 00:07:46,900 --> 00:07:52,260 outside the political sphere and chooses a local tech entrepreneur named Greg 108 00:07:52,260 --> 00:07:54,760 Meffert as chief technology officer. 109 00:07:55,460 --> 00:07:59,500 There was an air in the city of this would be a new day. And that was 110 00:07:59,500 --> 00:08:04,600 his platform. And that was Gregory Meffert was certainly a piece of that 111 00:08:04,600 --> 00:08:05,600 took office to. 112 00:08:05,900 --> 00:08:12,320 modernize City Hall, to be more transparent, more accountable, and to 113 00:08:12,320 --> 00:08:17,720 from those ills of corruption, fraud, waste, abuse. 114 00:08:18,520 --> 00:08:23,460 What people don't yet know is that the mayor is handing enormous power to Greg 115 00:08:23,460 --> 00:08:28,600 Mefford, and it will prove to be arguably the worst decision Ray Nagin 116 00:08:28,600 --> 00:08:33,700 makes. He had an incredible amount of influence on Nagin. Nagin obviously is a 117 00:08:33,700 --> 00:08:34,900 weak -willed individual. 118 00:08:35,360 --> 00:08:37,740 to succumb to that kind of influence. 119 00:08:38,039 --> 00:08:42,640 In my opinion, Greg Mefford was the single most corrupting influence on Ray 120 00:08:42,640 --> 00:08:43,640 Nagin. 121 00:08:43,760 --> 00:08:48,480 But even before examining the mayor's relationship with Mefford, many people 122 00:08:48,480 --> 00:08:52,140 begin to question Nagin's ability to lead the city. 123 00:08:52,720 --> 00:08:59,180 I don't think he truly understood the nature of how you make compromise, how 124 00:08:59,180 --> 00:09:03,660 build relationships, how you work toward consensus. 125 00:09:04,510 --> 00:09:08,950 in order to be able to move people together in a harmonious way. 126 00:09:09,250 --> 00:09:15,310 His inexperience as a politician, he just had trouble kind of governing, and 127 00:09:15,310 --> 00:09:18,750 was starting to become like, well, what is this guy, what's he doing? 128 00:09:19,490 --> 00:09:24,310 Where's all the bold reform taking us? Is he actually getting anything done? 129 00:09:24,910 --> 00:09:29,950 If Nagin intends to coast through the rest of his term, however, Mother Nature 130 00:09:29,950 --> 00:09:31,130 has a different plan. 131 00:09:31,910 --> 00:09:36,270 In late August 2005, Hurricane Katrina swings a hard right into the Gulf of 132 00:09:36,270 --> 00:09:39,010 Mexico, setting her course for New Orleans. 133 00:09:39,310 --> 00:09:42,370 And it seems nothing will remain the same. 134 00:09:43,810 --> 00:09:47,790 He was the status quo mayor up until Katrina hit, and that changed the game 135 00:09:47,790 --> 00:09:48,790 it changed everything. 136 00:09:48,910 --> 00:09:51,870 Next on American Greed, a city destroyed. 137 00:09:52,590 --> 00:09:57,190 Rebuilding New Orleans means big money flowing into the Big Easy, much of it 138 00:09:57,190 --> 00:09:58,890 through Ray Nagin's hands. 139 00:09:59,480 --> 00:10:02,660 A few years into his administration, he decided he was going to take the easy 140 00:10:02,660 --> 00:10:04,880 way out and take some easy money. 141 00:10:16,240 --> 00:10:18,120 It was a big storm. 142 00:10:18,400 --> 00:10:24,160 On the morning of August 29, 2005, the fury of Hurricane Katrina slams into the 143 00:10:24,160 --> 00:10:25,760 Louisiana -Mississippi border. 144 00:10:26,380 --> 00:10:31,020 In New Orleans, the first of several levees gives way, and billions of 145 00:10:31,020 --> 00:10:32,700 of water begin to flood the city. 146 00:10:33,000 --> 00:10:39,780 Thousands are stranded, hundreds dead and dying. The world watches in shock as 147 00:10:39,780 --> 00:10:44,880 days go by with no real plan of action, and all eyes are on Mayor Ray Nacon. 148 00:10:45,450 --> 00:10:51,830 The curfew will be from dusk to dawn. There will be no one allowed to move 149 00:10:51,830 --> 00:10:57,470 the city routes with the exception of security personnel. The next area that 150 00:10:57,470 --> 00:11:01,870 have been dealing with is trying to recover as many of our beloved deceased 151 00:11:01,870 --> 00:11:03,710 citizens as possible. 152 00:11:04,250 --> 00:11:06,550 It was the faith of trying to get the federal government. 153 00:11:07,120 --> 00:11:12,360 to come down and assist us quickly and not wait. And he was all over the place 154 00:11:12,360 --> 00:11:16,540 trying to do this, slept a couple hours every day trying to get the city back 155 00:11:16,540 --> 00:11:17,940 together. It was very, very difficult. 156 00:11:18,320 --> 00:11:22,720 In this radio interview, heard around the nation five days after the storm, 157 00:11:23,220 --> 00:11:24,340 Nagin is desperate. 158 00:11:25,060 --> 00:11:28,980 I need reinforcements. I need troops, man. 159 00:11:29,260 --> 00:11:32,300 I need 500 buses. 160 00:11:32,580 --> 00:11:34,160 This is a national disaster. 161 00:11:34,830 --> 00:11:39,470 Get every doggone Greyhound bus line in the country and get their asses moving 162 00:11:39,470 --> 00:11:40,470 to New Orleans. 163 00:11:40,870 --> 00:11:46,010 That's they're taking small, man, and this is a major, major, major deal. 164 00:11:46,790 --> 00:11:49,590 And I can't emphasize it enough, man. 165 00:11:49,910 --> 00:11:51,050 This is crazy. 166 00:11:51,610 --> 00:11:54,970 The storm's aftermath leaves New Orleans in mold and ruin. 167 00:11:55,290 --> 00:11:58,950 Half a million residents are still scattered throughout 44 states. 168 00:11:59,510 --> 00:12:02,670 Rebuilding will take years and billions of dollars. 169 00:12:02,950 --> 00:12:08,000 We know that this is... It's been a hard and tough road that we've been on. 170 00:12:08,660 --> 00:12:15,000 We'd like to move faster, but the realities are this devastation is 171 00:12:15,000 --> 00:12:20,240 unprecedented and there's never been any city that has gone through this. 172 00:12:20,780 --> 00:12:26,400 Mayor Nagin vows to unite the city and rebuild stronger than ever. But Howard 173 00:12:26,400 --> 00:12:30,540 Schwartz, New Orleans Assistant Inspector General, who was with the 174 00:12:30,540 --> 00:12:32,860 corruption team at the time, believes. 175 00:12:33,500 --> 00:12:34,760 Those are empty promises. 176 00:12:35,520 --> 00:12:40,760 With said great moments make great men, the city needed a fully engaged mayor. 177 00:12:40,940 --> 00:12:44,740 The time to become fully engaged wasn't after the crisis and here's how we do 178 00:12:44,740 --> 00:12:49,220 things. He wasn't hands -on from day one. Since he wasn't hands -on, he 179 00:12:49,220 --> 00:12:54,700 prepared to handle a city on normal circumstances, let alone after this 180 00:12:54,700 --> 00:12:56,500 catastrophe. It made it even worse. 181 00:12:57,320 --> 00:13:00,860 One of Mayor Nagin's most disastrous moves after the storm. 182 00:13:01,400 --> 00:13:06,480 is to approve a city rebuilding plan by a panel of experts that seeks to turn 183 00:13:06,480 --> 00:13:11,820 several flood -prone, historically African -American areas into green 184 00:13:12,880 --> 00:13:19,300 Ray Nagin was the guy who sort of first started talking about possibly redlining 185 00:13:19,300 --> 00:13:22,820 parts of the city, and he sort of entertained that notion. 186 00:13:23,680 --> 00:13:28,580 After an immediate public outcry, reporter Gordon Russell says that Nagin 187 00:13:28,580 --> 00:13:29,640 quickly backtracks. 188 00:13:30,810 --> 00:13:34,890 Because in the midst of a broken city, where more than half the population is 189 00:13:34,890 --> 00:13:35,890 still scattered elsewhere, 190 00:13:36,610 --> 00:13:40,930 Nagin is running for re -election, and he can't afford to alienate a key 191 00:13:40,930 --> 00:13:41,930 constituency. 192 00:13:42,590 --> 00:13:46,790 There was a lot of fear at the time, among blacks especially, that they were 193 00:13:46,790 --> 00:13:51,170 being welcomed back with open arms, that maybe some parts of town were going to 194 00:13:51,170 --> 00:13:57,790 be redlined or what have you. He changed his direction somewhat and became much 195 00:13:57,790 --> 00:13:59,170 more concerned that 196 00:14:00,540 --> 00:14:06,800 African -American community have more of a voice, more of a participation in 197 00:14:06,800 --> 00:14:10,500 the activities of the city. 198 00:14:10,760 --> 00:14:17,200 And now would you please welcome the mayor of the great city of New Orleans, 199 00:14:17,360 --> 00:14:21,720 Ray Nagin. In a now infamous speech on Martin Luther King Jr. 200 00:14:21,960 --> 00:14:27,980 Day 2006, Nagin appeals to the African -American electorate while leaving 201 00:14:27,980 --> 00:14:28,980 offended. 202 00:14:29,230 --> 00:14:31,150 It's time for us to come together. 203 00:14:31,830 --> 00:14:37,810 It's time for us to rebuild a New Orleans, the one that should be a 204 00:14:37,810 --> 00:14:38,810 New Orleans. 205 00:14:39,030 --> 00:14:44,510 And I don't care what people are saying uptown or wherever they are. 206 00:14:45,130 --> 00:14:48,590 This city will be chocolate at the end of the day. 207 00:14:49,970 --> 00:14:56,630 This city will be a majority 208 00:14:56,630 --> 00:14:58,210 African -American city. 209 00:14:59,300 --> 00:15:02,140 It's the way God wants it to be. 210 00:15:02,440 --> 00:15:09,120 In a sense, it was a really key piece to galvanizing the African -American vote 211 00:15:09,120 --> 00:15:15,720 in his favor. There are people who think it was something off the wall. 212 00:15:15,940 --> 00:15:21,900 I don't know if he had intentionally planned it that way, but it certainly 213 00:15:21,900 --> 00:15:27,300 helped to galvanize the black vote for him in the 2006 election. 214 00:15:28,300 --> 00:15:31,200 Eight months after Katrina, in May 2006, 215 00:15:31,920 --> 00:15:36,420 Nagin ekes out a second -term win and is charged with leading the massive 216 00:15:36,420 --> 00:15:37,600 recovery of New Orleans. 217 00:15:37,940 --> 00:15:42,480 But within a year into his second term, as little gets accomplished, frustration 218 00:15:42,480 --> 00:15:45,220 is growing across all areas of the city. 219 00:15:45,580 --> 00:15:50,880 I think the black community, like the rest of the community, was disappointed 220 00:15:50,880 --> 00:15:51,920 the pace of the recovery. 221 00:15:52,540 --> 00:15:57,100 He was disengaged for the better part of his second term. I think... 222 00:15:57,370 --> 00:15:59,370 he realized how big the rebuilding effort was. 223 00:15:59,610 --> 00:16:04,750 A lot of people can easily make the argument that he checked out probably 224 00:16:04,750 --> 00:16:10,790 sometime around late 2006, early 2007, that he had no interest anymore in 225 00:16:10,790 --> 00:16:14,690 governing, in being the mayor, in leading the rebuilding, that he was out 226 00:16:14,690 --> 00:16:19,650 himself at that point. Next on American Greed, with his city still in ruin, the 227 00:16:19,650 --> 00:16:23,770 mayor chooses to focus not on rebuilding for everyone, but for him. 228 00:16:24,360 --> 00:16:27,020 wasn't trying to help the city move forward. 229 00:16:27,540 --> 00:16:31,720 The only time he became personally engaged was when there was something in 230 00:16:31,720 --> 00:16:34,620 for him personally or his family in the granite business. 231 00:16:48,860 --> 00:16:51,920 New Orleans, Louisiana, early 2007. 232 00:16:52,880 --> 00:16:57,720 About 18 months after Hurricane Katrina and the ensuing floods devastate the Big 233 00:16:57,720 --> 00:17:02,420 Easy, there is a growing discontent in the city about the slow pace of 234 00:17:03,020 --> 00:17:07,920 And most of the blame lands squarely on the shoulders of Mayor Ray Nagin. 235 00:17:09,859 --> 00:17:15,160 There was a sort of wretched anger about him having sort of the city's 236 00:17:15,160 --> 00:17:18,880 collective feeling that he had been sort of mailing it in during... 237 00:17:20,119 --> 00:17:22,339 a time when we needed a real leader. 238 00:17:22,880 --> 00:17:27,900 Around the same time, New Orleans investigative journalist Gordon Russell 239 00:17:27,900 --> 00:17:32,360 digging into a story about Mayor Nagin's partial ownership of a granite company 240 00:17:32,360 --> 00:17:36,280 called StoneAge that was recently started by his two sons. 241 00:17:36,860 --> 00:17:42,480 We were hearing that he was spending more time at this business and like a 242 00:17:42,480 --> 00:17:46,740 bit of time, and it seems incredible that you would have a mayor who's... 243 00:17:47,320 --> 00:17:51,980 faced with this incredible task of rebuilding the city after this amazing 244 00:17:51,980 --> 00:17:56,620 disaster, and he's, you know, running a granite business. 245 00:17:57,100 --> 00:17:59,900 But on the other hand, a lot of people needed countertops. 246 00:18:00,180 --> 00:18:05,660 So that was strange, and we started looking into that a little bit more and 247 00:18:05,660 --> 00:18:11,420 got a few tips here and there, and then that led us to the Home Depot. 248 00:18:12,400 --> 00:18:17,570 Russell learns that after Katrina, Home Depot was anxious to open a new store in 249 00:18:17,570 --> 00:18:19,630 the Central City neighborhood of New Orleans. 250 00:18:19,970 --> 00:18:25,130 Kind of a tough neighborhood plagued with some violence, a lot of poverty. 251 00:18:26,110 --> 00:18:30,150 This is the Superdome over on this side of you over here. 252 00:18:30,910 --> 00:18:37,230 You can see a lot of abandoned lots and kind of blighted housing around us. And 253 00:18:37,230 --> 00:18:38,910 then this is the Home Depot over here. 254 00:18:39,170 --> 00:18:43,670 The company wants to purchase several streets from the city in order to build 255 00:18:43,670 --> 00:18:45,590 the store and parking lot there. 256 00:18:45,790 --> 00:18:49,230 And the city appraises the land at $850 ,000. 257 00:18:49,970 --> 00:18:54,690 Local community groups are also working with the city council to require Home 258 00:18:54,690 --> 00:18:58,410 Depot to hire a certain percentage of workers from the immediate area. 259 00:18:58,970 --> 00:19:00,830 at a higher than normal wage. 260 00:19:01,270 --> 00:19:04,270 And for the company, this is an obstacle. 261 00:19:04,510 --> 00:19:09,510 That is, until Ray Nagin sees a business opportunity, according to former U .S. 262 00:19:09,510 --> 00:19:10,670 Attorney Matt Komen. 263 00:19:11,470 --> 00:19:16,470 Ray Nagin involved himself and actually left a voicemail for the CEO of Home 264 00:19:16,470 --> 00:19:20,430 Depot offering his assistance with the community group. 265 00:19:20,890 --> 00:19:25,910 At some point soon thereafter, Ray Nagin sent his chief economic development 266 00:19:25,910 --> 00:19:31,530 officer to a meeting at the city council and instructed her to tell both the 267 00:19:31,530 --> 00:19:35,030 community group as well as Home Depot that he would not support the community 268 00:19:35,030 --> 00:19:39,270 group's efforts anymore and he wanted the project to go forward without any 269 00:19:39,270 --> 00:19:41,570 agreement between Home Depot and the neighborhood group. 270 00:19:42,570 --> 00:19:48,670 And so, here in an overwhelmingly poor African -American community, the mayor 271 00:19:48,670 --> 00:19:53,610 his so -called Chocolate City is accused of selling out those very citizens he 272 00:19:53,610 --> 00:19:54,630 promised to fight for. 273 00:19:55,290 --> 00:20:00,810 About two weeks later, Stone Age lands a contract with Home Depot to be the 274 00:20:00,810 --> 00:20:04,890 exclusive granite countertop installer for several of their stores. 275 00:20:05,450 --> 00:20:08,770 They were obviously doing a lot of business at the time because everybody 276 00:20:08,770 --> 00:20:11,490 new homes, countertops included. 277 00:20:12,270 --> 00:20:17,110 Nagin also agrees to sell Home Depot the city land for a significantly reduced 278 00:20:17,110 --> 00:20:18,110 price. 279 00:20:18,770 --> 00:20:23,470 At first, Ray Nagin wanted the city to receive the full appraised value. At 280 00:20:23,470 --> 00:20:29,670 point, we can only surmise, at some point, light bulb went off, and Ray 281 00:20:29,670 --> 00:20:34,650 said, at the same time he began to pursue Home Depot for his family -owned 282 00:20:34,650 --> 00:20:37,390 Age business, he then changed his mind. 283 00:20:37,630 --> 00:20:39,750 He had a change of heart. 284 00:20:40,110 --> 00:20:42,730 and agreed to that lower price of $100 ,000. 285 00:20:43,870 --> 00:20:49,030 After securing the contract, Nagin sends emails to Home Depot executives about 286 00:20:49,030 --> 00:20:50,750 giving StoneAge more business. 287 00:20:51,430 --> 00:20:54,630 When he felt they weren't getting enough work from their deal, he would 288 00:20:54,630 --> 00:20:58,630 complain, and he would send them a note saying, you know, it would say, from the 289 00:20:58,630 --> 00:21:02,770 mayor of New Orleans. It didn't say, from Ray Nagin, this guy who owns the 290 00:21:02,770 --> 00:21:03,770 business. 291 00:21:04,640 --> 00:21:07,300 So he was definitely trading on the fact that he was the mayor. 292 00:21:07,580 --> 00:21:13,860 He wanted and expected to receive approximately 10 to 20 jobs, countertop 293 00:21:13,860 --> 00:21:15,940 installation jobs, per week from Home Depot. 294 00:21:16,160 --> 00:21:21,340 That would equate to approximately total $1 million per year in gross revenues. 295 00:21:21,560 --> 00:21:28,200 And his efforts to leverage and pressure them, he believed, would be a huge 296 00:21:28,200 --> 00:21:29,200 windfall. 297 00:21:29,470 --> 00:21:35,190 StoneAge ultimately does about $170 ,000 in business before Home Depot ends the 298 00:21:35,190 --> 00:21:39,310 contract because of poor performance and customer complaints. 299 00:21:39,810 --> 00:21:44,250 And that's when authorities say Ray Nagin goes looking for another illegal 300 00:21:44,250 --> 00:21:45,250 revenue stream. 301 00:21:45,810 --> 00:21:50,810 Next on American Greed, investigators begin to uncover the shocking extent of 302 00:21:50,810 --> 00:21:52,010 corruption at City Hall. 303 00:21:52,670 --> 00:21:55,770 Like going to strip clubs and paying for it with your city credit card. Like 304 00:21:55,770 --> 00:21:59,050 having this yacht and inviting people and strippers out on it. 305 00:22:13,260 --> 00:22:18,400 In 2008, the New Orleans Office of the Inspector General starts investigating 306 00:22:18,400 --> 00:22:24,000 the mayor's Office of Technology and its contract for a problematic citywide 307 00:22:24,000 --> 00:22:25,900 system of crime cameras. 308 00:22:26,260 --> 00:22:29,500 Through that investigation that was conducted by our inspections and 309 00:22:29,500 --> 00:22:35,820 staff, they noticed some discrepancies on the vendors, the quality of the 310 00:22:35,820 --> 00:22:40,420 cameras, what was being put out, and there were just a lot of 311 00:22:41,020 --> 00:22:45,500 The contract is overseen by New Orleans Chief Technology Officer Greg Mefford, 312 00:22:45,580 --> 00:22:51,700 who was handpicked by Mayor Ray Nagin as soon as he took office in 2002, and who 313 00:22:51,700 --> 00:22:54,660 subsequently buys a home next door to the mayor. 314 00:22:55,180 --> 00:23:01,540 He became one of the mayor's most trusted aides, and eventually, by the 315 00:23:01,540 --> 00:23:06,520 Katrina... He was kind of calling himself deputy mayor, which was a title 316 00:23:06,520 --> 00:23:10,400 own making, I think. But he was as powerful a guy in the city government as 317 00:23:10,400 --> 00:23:11,700 there was outside of the mayor. 318 00:23:11,980 --> 00:23:16,800 I mean, these two were, for better or worse, they were the dynamic duo. I 319 00:23:16,800 --> 00:23:19,720 these were the guys who came in and said, you know what? We're going to 320 00:23:19,720 --> 00:23:21,420 City Hall. We're going to up technology. 321 00:23:21,860 --> 00:23:27,620 And Greg Meffert, almost from the start, it has now been proven without to 322 00:23:27,620 --> 00:23:28,620 enrich himself. 323 00:23:29,060 --> 00:23:30,960 Two months after Katrina hit. 324 00:23:31,420 --> 00:23:35,960 Nagin had signed an executive order giving Meffert free reign to hand out 325 00:23:35,960 --> 00:23:39,180 technology contracts with no bidding required. 326 00:23:39,900 --> 00:23:44,240 He literally gave the mayor's office of technology a license to steal. 327 00:23:44,500 --> 00:23:48,440 He signed an executive order for them to award contracts, I'm talking millions 328 00:23:48,440 --> 00:23:52,680 of dollars in contracts, without a competitive bidding process, without 329 00:23:52,680 --> 00:23:57,120 of approval, without a review period. And that's when the money started coming 330 00:23:57,120 --> 00:24:02,840 in. Post -Katrina, Mefford awards several huge no -bid contracts, 331 00:24:02,840 --> 00:24:07,980 crime cameras, to his friend, a private tech entrepreneur named Marc St. 332 00:24:08,180 --> 00:24:12,260 Pierre. And with that, Marc St. Pierre became a millionaire. 333 00:24:12,920 --> 00:24:17,500 In turn, Marc St. Pierre, at the same time, was paying Gregory Mefford 334 00:24:17,500 --> 00:24:22,320 of thousands of dollars in bribes and kickbacks for his favorable treatment at 335 00:24:22,320 --> 00:24:23,320 City Hall. 336 00:24:23,760 --> 00:24:28,460 After the Inspector General's office issues a scathing report on Mefford and 337 00:24:28,560 --> 00:24:33,180 Pierre's crime camera deal, it sparks an investigation involving the U .S. 338 00:24:33,180 --> 00:24:35,120 Attorney's Office and the FBI. 339 00:24:36,500 --> 00:24:40,700 Investigators learn that St. Pierre provides a credit card for Mefford's 340 00:24:40,700 --> 00:24:44,840 unfettered use, and Mefford appears to have no problem using it. 341 00:24:45,220 --> 00:24:49,880 Gregor Mefford charged approximately $133 ,000 in trips. 342 00:24:50,380 --> 00:24:56,560 purchases and other items. He was definitely living a life beyond his 343 00:24:56,560 --> 00:24:57,559 public servant. 344 00:24:57,560 --> 00:25:02,320 Craig Mefford had a card. The company paid it off. The company was being paid 345 00:25:02,320 --> 00:25:06,000 the city of New Orleans. So we, the taxpayers, were paying for his 346 00:25:06,760 --> 00:25:11,580 According to Inspector General Investigator Eduardo Hernandez, 347 00:25:11,580 --> 00:25:16,140 lifestyle includes holding staff meetings at a local strip club and 348 00:25:16,140 --> 00:25:17,940 a yacht called the Silicon Bayou. 349 00:25:18,419 --> 00:25:19,540 owned by Mark St. 350 00:25:19,780 --> 00:25:20,780 Pierre's company. 351 00:25:21,360 --> 00:25:24,400 The things that would occur on the boat, they would have their normal meeting, 352 00:25:24,460 --> 00:25:28,020 but they would also have strippers come onto the boat. They would play poker. 353 00:25:28,340 --> 00:25:34,520 The boat was also used at various times by other employees for someone's 354 00:25:34,520 --> 00:25:35,319 birthday party. 355 00:25:35,320 --> 00:25:39,380 It almost seemed like it was the mayor of technology's office for their own 356 00:25:39,380 --> 00:25:41,500 personal use for whatever they'd like to do. 357 00:25:42,270 --> 00:25:47,490 Greg Meffert leaves the mayor's office of technology in 2006 and promptly 358 00:25:47,490 --> 00:25:52,290 receiving hundreds of thousands of dollars in so -called consulting fees 359 00:25:52,290 --> 00:25:53,530 his pal, St. Pierre. 360 00:25:54,480 --> 00:26:01,040 Gregory Meffert then collected approximately $647 ,000 in a series of 361 00:26:01,040 --> 00:26:03,960 that Mark St. Pierre wrote to him, and Gregory Meffert funneled through a 362 00:26:03,960 --> 00:26:08,780 different company. So in all, it was approximately $900 ,000 that Mark St. 363 00:26:08,840 --> 00:26:12,600 Pierre bribed and kicked back to Gregory Meffert over the term of their 364 00:26:12,600 --> 00:26:13,740 nefarious conduct. 365 00:26:14,680 --> 00:26:15,980 In November 2009, 366 00:26:16,860 --> 00:26:21,020 Meffert and St. Pierre are charged with conspiracy, bribery, and money 367 00:26:21,020 --> 00:26:23,660 laundering in a 63 -count indictment. 368 00:26:25,000 --> 00:26:29,820 As the charges are made public, the big question is, what is Ray Nagin's 369 00:26:29,820 --> 00:26:30,820 involvement? 370 00:26:30,980 --> 00:26:35,840 There are reports that Nagin accepted several lavish family vacations, as well 371 00:26:35,840 --> 00:26:41,220 as cell phones, lawn care, and other services paid for by Marc St. Pierre. 372 00:26:41,520 --> 00:26:43,440 But for now, no proof. 373 00:26:44,340 --> 00:26:48,100 Ray Nagin did some things when they were in office that called him. It called a 374 00:26:48,100 --> 00:26:49,100 lot of things into question. 375 00:26:49,440 --> 00:26:54,420 City vendors were paying for Ray Nagin to go on vacations. Ray Nagin claimed, I 376 00:26:54,420 --> 00:26:57,580 didn't know the city vendors were paying for me to go on vacation. 377 00:26:58,040 --> 00:26:59,580 Greg Meffert set this up. 378 00:26:59,800 --> 00:27:06,340 Some of the records that were produced did show that Ray Nagin had some 379 00:27:06,340 --> 00:27:11,060 involvement. But at that point, we did not know the extent of that involvement. 380 00:27:11,560 --> 00:27:12,980 An American Greed returns. 381 00:27:13,320 --> 00:27:15,440 So far, Mayor Nagin is safe. 382 00:27:15,800 --> 00:27:19,380 But not for long. After they went after Greg Maverick, they had their fight set 383 00:27:19,380 --> 00:27:20,560 on Ray Dagan. 384 00:27:21,820 --> 00:27:27,000 See how New Orleans' music scene has bounced back after Katrina's devastation 385 00:27:27,000 --> 00:27:29,700 AmericanGreed .CNBCPrime .com. 386 00:27:31,180 --> 00:27:32,180 Feeling greedy? 387 00:27:32,600 --> 00:27:35,520 Want more than your share of behind -the -scenes dirt? 388 00:27:36,100 --> 00:27:39,160 Follow us at AmericanGreedTV on Twitter. 389 00:27:39,480 --> 00:27:40,520 We'll be right back. 390 00:27:51,300 --> 00:27:57,400 In 2010, five years after Hurricane Katrina, Mayor Ray Nagin's second and 391 00:27:57,400 --> 00:28:01,880 term comes to an end. He has a dismal 24 % approval rating. 392 00:28:02,280 --> 00:28:08,020 The fact of the matter is, is you have a city as large as New Orleans, and you 393 00:28:08,020 --> 00:28:12,500 have everybody pulling you, we should have the street lights here first, we 394 00:28:12,500 --> 00:28:15,800 should have our electricity here first, we should have the water purification 395 00:28:15,800 --> 00:28:20,560 here. And decisions have to be made. You can't cater to everybody all the time. 396 00:28:20,600 --> 00:28:24,160 So some people are going to get upset if you don't do it the way they want it 397 00:28:24,160 --> 00:28:29,640 done. It seems for Nagin and his wife, Salitha, his last days in public office 398 00:28:29,640 --> 00:28:31,100 can't come soon enough. 399 00:28:31,380 --> 00:28:34,120 She is ready to go, and I am too. 400 00:28:34,940 --> 00:28:40,060 I have been beaten on for almost four years, but that takes a toll. 401 00:28:40,800 --> 00:28:43,640 Nagin moves with his family to Frisco, Texas. 402 00:28:44,140 --> 00:28:48,260 and begins collecting big consulting fees from some of the same vendors he 403 00:28:48,260 --> 00:28:50,140 awarded city contracts to as mayor. 404 00:28:50,440 --> 00:28:54,880 But if he thinks he's going to move on and leave New Orleans behind, he's very 405 00:28:54,880 --> 00:28:55,880 wrong. 406 00:28:56,080 --> 00:29:01,340 You might start a case with some low officials. You might start a case with 407 00:29:01,340 --> 00:29:06,520 contractors, with non -appointed or elected officials. But the purpose, the 408 00:29:06,520 --> 00:29:10,920 intent, is to get to the highest official. In this case, the highest 409 00:29:10,920 --> 00:29:12,000 was Nagin. 410 00:29:12,520 --> 00:29:17,640 Ray Nagin's former technology chief and closest advisor, Greg Meffert, is 411 00:29:17,640 --> 00:29:19,480 already under indictment for corruption. 412 00:29:20,340 --> 00:29:24,060 Accused of accepting hundreds of thousands of dollars in bribes and 413 00:29:24,060 --> 00:29:27,960 from city contractor Mark St. Pierre, who was also charged. 414 00:29:28,520 --> 00:29:32,680 Meffert has one card to play that might get him less jail time. 415 00:29:32,900 --> 00:29:36,000 And that is what he knows about Nagin. 416 00:29:36,880 --> 00:29:41,480 Faith to say, in 2010, when Greg Meffert got indicted, 417 00:29:42,200 --> 00:29:45,080 It was probably the beginning of the end for Ray Nagin. It was when everything 418 00:29:45,080 --> 00:29:48,880 started to go downhill and started picking up steam pretty fast. 419 00:29:49,680 --> 00:29:54,220 Medford agrees to fully cooperate with the U .S. Attorney's Office and the FBI. 420 00:29:55,580 --> 00:29:59,540 Medford made a deal, as a lot of people do, believing he could help himself, 421 00:29:59,680 --> 00:30:02,320 help himself with his sentence, to reduce his sentence. That's why people 422 00:30:02,320 --> 00:30:03,320 cooperate. 423 00:30:03,640 --> 00:30:08,500 But in the federal system, there is no guarantee that they will benefit, they 424 00:30:08,500 --> 00:30:09,660 will profit, they will... 425 00:30:10,320 --> 00:30:13,920 get a lesser sentence. The only one that knows what that sentence is going to be 426 00:30:13,920 --> 00:30:14,920 is the federal judge. 427 00:30:15,580 --> 00:30:19,700 Nagin's former ally pulls back the curtain on his time at City Hall with 428 00:30:19,700 --> 00:30:24,560 mayor and says that Ray Nagin accepted bribes from vendors looking for city 429 00:30:24,560 --> 00:30:25,560 contracts. 430 00:30:26,180 --> 00:30:30,660 He fleshed out the interactions that they had, the conversations that they 431 00:30:30,760 --> 00:30:34,480 the trips that Nagin took, the money that he took. 432 00:30:35,949 --> 00:30:40,650 Prosecutors say that when Nagin went from making $400 ,000 a year in the 433 00:30:40,650 --> 00:30:47,110 sector to $130 ,000 as mayor, he and his family never changed their lifestyle. 434 00:30:47,410 --> 00:30:50,530 And Nagin had to supplement his income to keep up. 435 00:30:51,170 --> 00:30:57,890 They continued to eat at the finest restaurants in town, to buy relatively 436 00:30:57,890 --> 00:31:01,410 expensive clothes, have other expenses that we all have. 437 00:31:02,460 --> 00:31:06,540 tuition, house payment, and all those other items, which was his choice. 438 00:31:07,380 --> 00:31:11,960 The choice he did not have legally to make was to go on the take. And that's 439 00:31:11,960 --> 00:31:13,340 what he did to make up the difference. 440 00:31:14,360 --> 00:31:18,880 In addition to several lavish family trips, cell phones, and lawn care 441 00:31:18,880 --> 00:31:24,020 paid for by St. Pierre, the government charges that Nagin then used his son's 442 00:31:24,020 --> 00:31:27,200 granite business, Stone Age, as a conduit of corruption. 443 00:31:27,920 --> 00:31:31,900 Several years earlier, after a deal he arranged with Home Depot fell through, 444 00:31:32,500 --> 00:31:37,300 Nagin, being the company's sole financier, needs to bring in more 445 00:31:37,720 --> 00:31:42,660 That's when prosecutor Matt Komen says he turns to Rodney Williams, owner of a 446 00:31:42,660 --> 00:31:46,760 local engineering firm who had been trying to get into the city contractor 447 00:31:46,760 --> 00:31:49,340 to get work during the post -Katrina recovery. 448 00:31:49,900 --> 00:31:55,940 Specifically, Ray Nagin asked for a total of $60 ,000 in January of 2008 449 00:31:55,940 --> 00:31:56,940 Rodney Williams. 450 00:31:57,710 --> 00:32:03,630 And at that same time, Ray Nagin promised and guaranteed to Rodney 451 00:32:03,830 --> 00:32:06,550 quote, I will take care of you at City Hall. 452 00:32:06,870 --> 00:32:11,530 And in fact, Rodney Williams and his two partners wrote personal checks on the 453 00:32:11,530 --> 00:32:14,050 same date, January 31st, 2008. 454 00:32:14,310 --> 00:32:16,970 $20 ,000, $20 ,000, $20 ,000. 455 00:32:17,550 --> 00:32:21,990 Delivered those. Those were deposited in Ray Nagin's company named Stone Age 456 00:32:21,990 --> 00:32:22,990 LLC. 457 00:32:23,340 --> 00:32:25,620 And Ray Nagin, in turn, signed contract after contract. 458 00:32:26,080 --> 00:32:32,000 Rodney Williams went from averaging about $100 ,000 a year in city work to 459 00:32:32,000 --> 00:32:35,400 a million dollars a year after he paid the bribe that Ray Nagin asked for. 460 00:32:36,320 --> 00:32:41,040 Nagin's defense attorney says that the mayor is simply a legal partial owner of 461 00:32:41,040 --> 00:32:45,560 StoneAge and that he did not know Rodney Williams had given money as a so 462 00:32:45,560 --> 00:32:47,420 -called investment in the company. 463 00:32:48,010 --> 00:32:50,930 He did nothing wrong. He did nothing illegal. He did nothing improper. 464 00:32:51,430 --> 00:32:53,970 Rodney tried to get close to the mayor by going through the funds. 465 00:32:54,170 --> 00:32:55,830 So he had no idea about that. 466 00:32:56,730 --> 00:32:59,610 Stoney stands with a total separate entity. 467 00:33:00,370 --> 00:33:04,790 But prosecutor Matt Komen says that after going through Rodney Williams' 468 00:33:05,170 --> 00:33:07,710 Nagin had set out to take in even more. 469 00:33:08,090 --> 00:33:13,470 This time from Frank Fradella, CEO of the construction firm Home Solutions of 470 00:33:13,470 --> 00:33:18,860 America. who was trying to set up a huge deal to turn a defunct smokestack power 471 00:33:18,860 --> 00:33:21,940 plant in New Orleans into a mixed -use development. 472 00:33:22,420 --> 00:33:29,160 His value with other individuals were his connections with City Hall, namely 473 00:33:29,160 --> 00:33:35,060 Nagin. Could he get things approved by City Hall? Those things are very 474 00:33:35,060 --> 00:33:38,500 important when it comes to financing large projects, so that's what Frank 475 00:33:38,500 --> 00:33:42,840 Fadella wanted to basically sell, and Ray Nagin was available. 476 00:33:43,240 --> 00:33:48,180 He was for sale, and he asked for that $100 ,000 from Frank Fridella. 477 00:33:49,160 --> 00:33:54,200 In order to conceal the payment, Komen says Fridella brings in an associate 478 00:33:54,200 --> 00:33:59,120 New Jersey to transfer $50 ,000 from his daughter's trust account to the Stone 479 00:33:59,120 --> 00:34:00,119 Age Company. 480 00:34:00,120 --> 00:34:05,260 In addition to the $50 ,000, prosecutors say Fridella shipped another $52 ,000 481 00:34:05,260 --> 00:34:10,520 worth of free granite to Stone Age. But Robert Jenkins says Fridella cannot be 482 00:34:10,520 --> 00:34:11,520 trusted. 483 00:34:11,889 --> 00:34:15,949 Frank Fidella is a kind man, and you can see that throughout his history, that 484 00:34:15,949 --> 00:34:19,909 he is a kind man. He has convictions throughout other jurisdictions. 485 00:34:20,510 --> 00:34:25,270 And at the time when he had to say that, he was already caught. And he was what? 486 00:34:25,290 --> 00:34:29,650 About to be sentenced in Texas. So the deal's worked out that, hey, we'll hold 487 00:34:29,650 --> 00:34:31,790 up your sentencing if you cooperate in Louisiana. 488 00:34:32,210 --> 00:34:35,929 So what do you think he's going to do? He's going to say whatever is necessary 489 00:34:35,929 --> 00:34:37,090 to help him. 490 00:34:37,799 --> 00:34:42,820 Next on American Greed, the feds may have trapped a bunch of rats, but are 491 00:34:42,820 --> 00:34:43,820 telling the truth? 492 00:34:43,940 --> 00:34:47,040 It became a big finger -pointing thing, and in the end they were all pointing 493 00:34:47,040 --> 00:34:48,060 the finger at Ray Nagin. 494 00:35:01,100 --> 00:35:07,080 In January 2013, former Mayor Ray Nagin, who has been out of office and living 495 00:35:07,080 --> 00:35:11,460 in Texas for three years, was charged with 21 counts of corruption. 496 00:35:12,080 --> 00:35:16,540 Almost a year later, his trial opens at the federal courthouse in New Orleans. 497 00:35:17,880 --> 00:35:20,860 WDSU reporter Travers Mackle covers the case. 498 00:35:22,080 --> 00:35:26,080 So the trial was arguably the biggest trial in the history of New Orleans. We 499 00:35:26,080 --> 00:35:31,780 have... A long history of public corruption in government in Louisiana. 500 00:35:31,780 --> 00:35:33,760 was a lot of anticipation for the trial. 501 00:35:33,980 --> 00:35:37,200 I mean, everybody wanted to know what was going on. 502 00:35:37,740 --> 00:35:42,220 At trial, the government lays out a detailed case of corruption spanning 503 00:35:42,220 --> 00:35:47,100 years, bolstered by their star witnesses Greg Meffert, Rodney Williams, and 504 00:35:47,100 --> 00:35:48,100 Frank Fradella. 505 00:35:48,280 --> 00:35:53,660 But his defense attorney, Robert Jenkins, insists that Nagin is innocent 506 00:35:53,660 --> 00:35:54,660 charges. 507 00:35:54,810 --> 00:35:56,930 The main defense was that these guys were lying. 508 00:35:57,390 --> 00:36:02,490 They were receiving a benefit for their testimony. He didn't do any of these 509 00:36:02,490 --> 00:36:05,290 actions. When you go back and you look at Fridella, you can look at what he got 510 00:36:05,290 --> 00:36:07,950 out of it. He had convictions in other states. 511 00:36:08,210 --> 00:36:11,990 You go look at Meffert, what he got, his first sentence, and then what he got 512 00:36:11,990 --> 00:36:15,230 the reduction on when he cooperated with the government. 513 00:36:15,450 --> 00:36:20,150 So they all got something, they gained something, and when that happens, of 514 00:36:20,150 --> 00:36:22,290 course you have to be suspect of their testimony. 515 00:36:23,180 --> 00:36:28,220 The defense argues that Ray Nagin did not accept bribes, that he did 516 00:36:28,220 --> 00:36:30,600 in the good faith of rebuilding New Orleans. 517 00:36:31,340 --> 00:36:33,900 Nagin takes the stand to defend himself. 518 00:36:34,560 --> 00:36:40,740 It appears that he thought he could charm his way through testimony and 519 00:36:40,740 --> 00:36:45,080 get one juror to side with him and get a hung jury or maybe charm them all. And 520 00:36:45,080 --> 00:36:48,200 they'd say, you know what? Look at this guy. Charismatic, charming, smart, had 521 00:36:48,200 --> 00:36:50,840 everything. No way he could have done this. Not guilty. 522 00:36:51,760 --> 00:36:55,500 But in the end, it's up to the jury to decide who they believe. 523 00:36:56,760 --> 00:37:02,980 On February 12, 2014, after an eight -day trial and six hours of 524 00:37:03,160 --> 00:37:09,720 they find Nagan guilty on 20 of 21 counts, including conspiracy, bribery, 525 00:37:09,720 --> 00:37:14,360 fraud, conspiracy to commit money laundering, and filing false tax 526 00:37:15,100 --> 00:37:17,160 When the verdict came down, he looked stunned. 527 00:37:17,400 --> 00:37:19,780 I mean, he looked, I don't think he was prepared. 528 00:37:20,330 --> 00:37:21,790 at all for a guilty verdict. 529 00:37:22,830 --> 00:37:27,650 Nagin becomes the first ever mayor of New Orleans to be convicted on federal 530 00:37:27,650 --> 00:37:28,650 corruption charges. 531 00:37:29,510 --> 00:37:30,630 Well, we were devastated. 532 00:37:30,870 --> 00:37:34,370 We didn't think that they would come back to be guilty on the testimony of a 533 00:37:34,370 --> 00:37:39,810 convicted felon, Frank Fadella, Greg Meffert. Nobody came into the trial 534 00:37:39,810 --> 00:37:42,730 Mr. Nagin that had what we call clean hands. 535 00:37:42,950 --> 00:37:44,530 All these people had something to gain. 536 00:37:45,600 --> 00:37:50,140 After testifying against Nagin, Greg Meffert receives a reduced two -and -a 537 00:37:50,140 --> 00:37:51,140 -half -year sentence. 538 00:37:51,560 --> 00:37:54,820 Rodney Williams and Frank Fadella both get one -year sentences. 539 00:37:55,520 --> 00:38:01,160 And Mark St. Pierre's 17 -year sentence is later reduced to five years after he 540 00:38:01,160 --> 00:38:02,340 also agrees to cooperate. 541 00:38:03,640 --> 00:38:08,420 Five months later, it's Ray Nagin's turn to learn his fate as he enters the 542 00:38:08,420 --> 00:38:09,920 federal courthouse once again. 543 00:38:10,480 --> 00:38:11,640 Still maintain your innocence? 544 00:38:11,920 --> 00:38:12,920 Absolutely. 545 00:38:13,900 --> 00:38:16,920 Negan is facing 15 to 20 years. 546 00:38:17,440 --> 00:38:22,180 Judge Helen Berrigan decides to go below the recommended guidelines and 547 00:38:22,180 --> 00:38:25,160 sentences him to 10 years at a federal prison camp. 548 00:38:25,880 --> 00:38:30,880 In this, his only post -conviction interview, done just after the 549 00:38:30,880 --> 00:38:35,200 with WDSU reporter Travers Mackle, Negan appears unchanged. 550 00:38:36,300 --> 00:38:39,900 So 10 years in prison, what was going through your mind when the judge read 551 00:38:39,900 --> 00:38:40,900 in court today? 552 00:38:41,260 --> 00:38:46,480 Well, you know, all of this is pretty surreal to me. You know, I still 553 00:38:46,480 --> 00:38:48,640 my innocence. We're going to appeal this thing. 554 00:38:49,140 --> 00:38:51,880 And, you know, it's just something that's very difficult. 555 00:38:52,460 --> 00:38:57,820 The former mayor says the prosecution presented a false case against him. The 556 00:38:57,820 --> 00:38:59,660 prosecutors were fairly magical. 557 00:39:00,760 --> 00:39:04,920 their ability to take something that supposedly happened and paint it as 558 00:39:04,920 --> 00:39:06,820 reality, when it really didn't happen. 559 00:39:07,220 --> 00:39:12,140 I was not aware of any of that stuff. I was not involved in any kind of bribes. 560 00:39:12,600 --> 00:39:15,360 And I think my testimony laid that out. 561 00:39:15,600 --> 00:39:20,580 When asked what happened to Ray Nagin, the former mayor says that he crossed 562 00:39:20,580 --> 00:39:22,960 wrong people, though he doesn't name them. 563 00:39:23,260 --> 00:39:24,880 In my opinion, I've been targeted. 564 00:39:25,240 --> 00:39:27,580 I've been smeared, tarnished. 565 00:39:28,360 --> 00:39:30,100 And for some reason... 566 00:39:30,320 --> 00:39:35,140 Some of the stances that I took after Katrina didn't sit well with some very 567 00:39:35,140 --> 00:39:37,680 powerful people. So now I'm paying a price for that. 568 00:39:37,940 --> 00:39:42,560 Attorney Robert Jenkins says Nagin's statements harken back to his infamous 569 00:39:42,560 --> 00:39:43,920 Chocolate City speech. 570 00:39:44,480 --> 00:39:50,720 There was a movement basically to, I guess, recapture the city and move 571 00:39:50,720 --> 00:39:53,360 into certain areas and make place for green space. 572 00:39:53,620 --> 00:39:56,980 And he wasn't going to do that. So he fought that. He fought to bring 573 00:39:56,980 --> 00:39:59,360 back. And that may have made him a total hero. 574 00:40:00,140 --> 00:40:05,380 But lead prosecutor Matt Komen says the evidence is what convicted Ray Nagin, 575 00:40:05,420 --> 00:40:08,140 and there are no other conspiracies at work. 576 00:40:08,920 --> 00:40:14,520 Many times the mayor, when he was ever questioned, would typically, one, deny 577 00:40:14,520 --> 00:40:19,560 any knowledge, obviously deny any culpability or responsibility for his 578 00:40:19,560 --> 00:40:26,320 actions, and then thirdly would offer up some abstract motivation by unknown 579 00:40:26,320 --> 00:40:31,300 forces. He did so in a book. He did so in that interview. He actually made 580 00:40:31,300 --> 00:40:33,160 reference to that during his trial testimony. 581 00:40:33,580 --> 00:40:37,960 But to date, as we sit here, I'm still waiting to hear exactly what he's 582 00:40:37,960 --> 00:40:38,960 about. 583 00:40:39,260 --> 00:40:45,140 I think that's what a lot of people still hate him for, is that he seems 584 00:40:45,140 --> 00:40:46,140 arrogant. 585 00:40:47,330 --> 00:40:52,550 He maintains the facade of I'm being targeted, and he never says, well, look, 586 00:40:52,710 --> 00:40:56,850 maybe I made some, at least maybe I made some errors in judgment, or, you know, 587 00:40:56,870 --> 00:41:00,450 I shouldn't have done this. I didn't think I was doing something crooked, but 588 00:41:00,450 --> 00:41:04,990 maybe I shouldn't have been doing a deal with Home Depot. Whatever, just tell us 589 00:41:04,990 --> 00:41:09,710 something. And I think people don't forgive him for not, like, I feel like 590 00:41:09,710 --> 00:41:13,710 came out and gave a really heartfelt, abject apology, people might not even. 591 00:41:14,270 --> 00:41:18,770 need to see him go to prison, but they feel like this guy still hasn't learned. 592 00:41:21,350 --> 00:41:24,810 Now the city of New Orleans is finally gaining some traction. 593 00:41:25,530 --> 00:41:30,690 Some call it a renaissance, while others see continuing injustices and social 594 00:41:30,690 --> 00:41:32,990 issues that faced most major cities. 595 00:41:33,950 --> 00:41:37,950 And while the soul of the Crescent City may have been badly hurt by the tragedy 596 00:41:37,950 --> 00:41:40,610 of Katrina, its essence survives. 597 00:41:42,000 --> 00:41:46,700 We've still got some of the greatest people in the world. We still have the 598 00:41:46,700 --> 00:41:47,700 food in the country. 599 00:41:47,940 --> 00:41:53,640 Our music is continuing to innovate and reach new heights. 600 00:41:54,480 --> 00:41:59,840 So at the end of the day, beating a city like New Orleans is still a pretty good 601 00:41:59,840 --> 00:42:00,840 decent job. 602 00:42:02,800 --> 00:42:08,510 And authorities believe there is a real focus on making sure Those who succumb 603 00:42:08,510 --> 00:42:11,610 to corruption are ultimately held accountable. 604 00:42:12,250 --> 00:42:17,170 Whenever your elected or appointed public official takes money, becomes 605 00:42:17,390 --> 00:42:20,490 it is always a bad situation. It's never good. 606 00:42:21,130 --> 00:42:26,210 But in this case, under these circumstances, after Katrina, it was 607 00:42:26,210 --> 00:42:30,770 what Negan did. The city needed someone to be a true leader. 608 00:42:31,570 --> 00:42:32,790 And he let everybody down.