Metairie executive charged with defrauding investors - FOX 8 WVUE New Orleans News, Weather, Sports, Social

Metairie executive charged with defrauding investors

Federal prosecutors: Metairie man faces fraud charges (source: Flickr) Federal prosecutors: Metairie man faces fraud charges (source: Flickr)
NEW ORLEANS, LA (WVUE) -


U.S. Attorney Kenneth A. Polite announced that John F. Kelly III, age 57, of Metairie, was charged today in a one-count Bill of Information with wire fraud.

According to court documents, from 2011 through 2014, Kelly operated a tax sale investment business with investor monies. During this time period, prosecutors say Kelly defrauded his investors by diverting their investment funds for his personal use and benefit. As part of the scheme to defraud, Kelly used investor monies to pay off personal loans and to purchase real estate properties in New Orleans that he titled in separate corporate entities he controlled.

The maximum penalty for wire fraud is twenty years imprisonment and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim.  The maximum penalty for failing to pay over taxes is five years imprisonment and/or a fine of $250,000. 

U.S. Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.

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