A federal grand jury has returned two separate indictments charging three members of the State Military Department with offenses related to the obstruction of an audit of the use of federal funds for flood mitigation activities throughout Louisiana, United States Attorney Donald W. Washington announced today.(Hat tip Little Green Footballs.)Two of the individuals charged, MICHAEL C. APPE, 51, of Mandeville, Louisiana, and MICHAEL L. BROWN, 61, of St. Francisville, Louisiana, are senior employees of the Louisiana Office of Homeland Security and Emergency Preparedness. Both APPE and BROWN are charged with conspiracy to obstruct a federal audit; BROWN is additionally charged with making a false statement.
The Hazardous Mitigation Grant Program is administered by the Federal Emergency Management Agency (FEMA) and is designed to fund mitigation projects to prevent future flood losses or flood claims made upon the National Flood Insurance Program. BROWN was responsible for overall management the program in Louisiana; APPE was responsible for managing employees who perform fiscal transactions regarding these funds.
The indictment alleges that during an audit of the program being conducted by the U.S. Department of Homeland Security-Office of Inspector General, a State Military Department employee realized that $175,000 in expenditures of federal monies was improper in that the money was not used for purposes authorized by the federal program and would therefore have to be re-paid to the federal government. This employee notified APPE, who in turn directed the employee to provide false documents to the federal auditors.
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November 2004 indictments of LA Homeland Security officials for obstructing audit
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