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4 Indicted In City Corruption Probe

POSTED: 12:24 pm CDT June 16, 2005
UPDATED: 1:57 pm CDT June 20, 2005

Indictments were announced Thursday against four people associated with the administration of former Mayor Marc Morial.

Indicted are restaurateur Stan "Pampy" Barre, 60; former city property management director Kerry DeCay, 45; Reginald Walker, 57, owner of Moss Creek Development Inc.; and Julius Lips Jr., 49, who operated Jay Lips Door and Glass Co.

The four are accused of contract fraud in business dealings with Milwaukee-based Johnson Controls Inc. The contracts were supposed to pay for themselves in energy savings for the city -- with Johnson replacing outdated equipment in city-owned buildings -- but instead, the city actually paid $3.2 annually toward the debt using capital improvement funds from bond issues.

The indictment says that just prior to or in October 2000, the four men devised a scheme whereby the city would overpay Johnson Controls and they would get the excess money.

DeCay is charged with conspiracy to commit mail fraud, multiple counts of mail fraud, money laundering, extortion and one count of obstruction of justice.

Barre, a subcontractor to Johnson Controls, is charged with conspiracy to commit mail fraud, multiple counts of mail fraud, money laundering and obstruction of justice.

Walker, also a subcontractor to Johnson Controls, is charged with conspiracy to commit mail fraud, multiple counts of mail fraud, money laundering and obstruction of justice.

Lips is charged with mail fraud and lying to the FBI.

In one instance, the indictment alleges that while Barre was being paid by Johnson Controls to help manage its subcontractors, he was being paid hundreds of thousands of dollars by one of them -- Moss Creek. Barre would then allegedly share the money he received from Moss Creek with DeCay and a Johnson Controls project manager.

If convicted, DeCay faces a maximum 210 years in prison, Barre and Walker each face a maximum 130 years in prison and Lips faces a maximum 15 years in prison.


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