Former Morial Cronies to be Arraigned - WAFB 9 News Baton Rouge, Louisiana News, Weather, Sports

Former Morial Cronies to be Arraigned

NEW ORLEANS (AP) - A businessman close to ex-New Orleans mayor Marc Morial and the city's former top property manager face an arraignment hearing as part of an ongoing federal probe into municipal corruption.

Businessman and restaurateur Stan "Pampy" Barre was charged with taking tens of thousands of dollars in kickbacks from a city subcontractor, then sharing the money with Kerry De Cay, the director of property management under Morial. Morial, now head of the New York City-based National Urban League, was not named in the indictment. However, his administration, which ran the city from 1994 to 2002, has been under federal investigation for several years over its contracting practices.

Other businessmen close to Morial are known to have received subpoenas, but the recent charges are the first major indictments in the continuing investigation. The indictments center around a $65,000,000 contract to upgrade chillers, boilers, lights and other energy-related fixtures in city buidlings. De Cay oversaw the contract with Johnson Controls Incorporated of Milwaukee; Barre was hired as a subcontractor.

Federal officials say Barre did little or no work for Johnson, though he was paid thousands by them. They say Reginald Walker, another Johnson subcontractor, funneled $546,000 to Barre, who then shared the money with De Cay and a Johnson official. Walker was indicted; the Johnson official was not.

A fourth person indicted and facing arraignment this afternoon is Julius Lips Junior, who provided a custom-made glass table for De Cay. The arraignment is scheduled for 2 p.m. before U.S. Magistrate Judge Louis Moore Junior.

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