Ex-lawmaker files bankruptcy petition

September 01, 2009|Associated Press

NEW ORLEANS - A former Louisiana representative convicted of corruption after federal agents found cash in his freezer has filed for Chapter 7 bankruptcy liquidation.

The bankruptcy petition filed last week by former representative William Jefferson and his wife, Andrea, says they owe between $1 million and $10 million to fewer than 50 creditors. The filing also lists their estimated assets as ranging between $1 million and $10 million.

In Chapter 7 liquidation, a debtor’s property is sold and proceeds are distributed to creditors. Some property may be exempted from the sale.

Jefferson was convicted Aug. 5 on 11 of 16 federal counts for using his influence to broker business deals in Africa. A jury in Virginia also ruled that Jefferson must forfeit roughly $470,000 in bribery receipts.

Jurors found Jefferson guilty of using his congressional office and staff to enrich himself and his family, offering and accepting hundreds of thousands of dollars in bribes to support business ventures in seven African nations.

Jefferson was convicted of bribery, racketeering, and money laundering. The verdict in US District Court in Alexandria culminated a lengthy investigation.

In 1990, Jefferson became the first black representative elected in Louisiana since Reconstruction and served as cochairman of congressional caucuses on Nigeria and African trade during tenure.

The FBI raided his Capitol Hill home in 2005 and found the $90,000 in bribe money wrapped in foil and stashed in frozen-food boxes. Prosecutors told jurors that the money was to secure the vice president of Nigeria’s help with a telecommunications venture.

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