Former State Sen. Karen Carter Peterson is due to report to jail Monday to start her prison sentence. This comes after Peterson was sentenced to 22 months in jail on a federal wire fraud charge. She will report to the Federal Prison Camp in Bryan, Texas. Her attorney says she will report by noon. The facility is a minimum-security prison that holds women convicted of federal crimes.Peterson pleaded guilty to the charge back in August and has since been disbarred. WDSU was told prior to her court date that Peterson had already signed a plea deal in the wake of a federal probe that zeroed in on her campaign spending. Part of that plea included consenting to lose her law license. Peterson was officially disbarred in October after the Louisiana Supreme Court issued a disciplinary petition. She has admitted in the past that she had a gambling addiction. The federal probe resulted in charges of wire fraud, aiding and abetting, and being accused of using campaign contributions to feed her gambling addiction. The wire fraud charge carries up to 20 years in jail. Original reports: Former state Sen. Karen Carter Peterson was charged in federal court Thursday on a bill of information, which is an indication she is cooperating and will eventually plead guilty to a charge in connection with an investigation into her finances.Peterson is facing one count of wire fraud in connection with accusations of raiding her campaign fund and using the money on gambling.Peterson, a New Orleans-based Democrat, abruptly resigned from the state legislature in April.Days after her resignation, WDSU Investigates confirmed Peterson was being investigated by the federal government.According to a news release issued by the Department of Justice, Peterson is accused of having friends and associates divert campaign funds from her campaign back to her for personal use. Peterson is accused of writing checks out of her campaign fund to her friends and associates, who would then cash the checks and return most or all of the money back to her. The bill of information says Peterson used the money to pay gambling-related expenses. She is also accused of misappropriating funds while chair of a state political party. Peterson was chair of the Louisiana Democratic Party for over seven years. The bill of information claimed Peterson exploited her position by making her associates provide campaign-related services to companies operated by her associates. Her associates would then provide minimal to no work, and the funds would be paid back to her through checks or cash from the companies, according to the bill of information. If convicted, Peterson faces 20 years in prison, a fine of up to $250,000 and up to three years of supervised release. Peterson issued a statement on Twitter apologizing for her actions: “Today marks an important step in my life-long recovery as I continue to address my gambling addiction. “I sincerely apologize for the impact from my compulsive behavior resulting from this addiction.”I have made full repayment of funds used as a result of my addiction and I will continue to make amends. “Staying true to the steps of my ongoing recovery, I have been forthright, honest, and fully cooperative with the US Attorneys’ Office in their investigation.”Her lawyer, Brian Capitelli, issued the following statement to WDSU News: “This marks an important step in Ms. Peterson‘s recovery as she continues to address her gambling addiction. She is sincerely remorseful for her compulsive behavior resulting from this addiction and has made full repayment of funds used as a result of her addiction.”She has been forthright, honest, and cooperative with the U.S. Attorneys’ office in their investigation.”Peterson served as a state lawmaker for 20 years and ran the state’s Democratic Party from 2012-2019.The Louisiana Democratic Party issued the following statement: “Today, federal authorities charged Senator Karen Carter Peterson with wire fraud committed in her former capacity as the Chair of the Louisiana Democratic Party. A plea deal has been signed, and we are confident that any wrongdoings will be brought to justice. “Since Senator Peterson’s tenure as chair concluded nearly two years ago, the Louisiana Democratic Party has gone through extensive lengths to increase transparency and ensure the highest level of scrutiny in financial reporting under the leadership of new party chair, Katie Bernhardt. Among other initiatives, these efforts include: retaining the services of a nationally reputable compliance company; the transformation of internal operations for added checks and balances; increasing viewing privileges of accounting software to ensure financial oversight by numerous people; and clear monthly reporting to the party’s executive committee. In addition, LDP is in the final stages of retaining the comptrolling services of a company that has significant experience working with other democratic parties across the country. “When I ran for chair two years ago, I heard the call for a complete overhaul of the Louisiana Democratic Party loud and clear from the people of Louisiana, and that’s what we’ve done,” said Party Chair Katie Bernhardt. “Since September of 2020, we have worked tirelessly to increase transparency and transform operations to turn this into an organization that will stand the test of time. Restitution has been made on behalf of Senator Peterson, which allows us to close that chapter of the Louisiana Democratic Party as we work to restore public trust and move into a more promising future. We are proud of the progress we have made so far, and we believe we are well on our way to becoming the Democratic Party that Louisiana deserves.”Further comment will be reserved so as not to impede the investigation.”
Former State Sen. Karen Carter Peterson is due to report to jail Monday to start her prison sentence.
This comes after Peterson was sentenced to 22 months in jail on a federal wire fraud charge.
She will report to the Federal Prison Camp in Bryan, Texas. Her attorney says she will report by noon.
The facility is a minimum-security prison that holds women convicted of federal crimes.
Peterson pleaded guilty to the charge back in August and has since been disbarred.
WDSU was told prior to her court date that Peterson had already signed a plea deal in the wake of a federal probe that zeroed in on her campaign spending. Part of that plea included consenting to lose her law license.
Peterson was officially disbarred in October after the Louisiana Supreme Court issued a disciplinary petition.
She has admitted in the past that she had a gambling addiction.
The federal probe resulted in charges of wire fraud, aiding and abetting, and being accused of using campaign contributions to feed her gambling addiction.
The wire fraud charge carries up to 20 years in jail.
Original reports:
Former state Sen. Karen Carter Peterson was charged in federal court Thursday on a bill of information, which is an indication she is cooperating and will eventually plead guilty to a charge in connection with an investigation into her finances.
Peterson is facing one count of wire fraud in connection with accusations of raiding her campaign fund and using the money on gambling.
Peterson, a New Orleans-based Democrat, abruptly resigned from the state legislature in April.
Days after her resignation, WDSU Investigates confirmed Peterson was being investigated by the federal government.
According to a news release issued by the Department of Justice, Peterson is accused of having friends and associates divert campaign funds from her campaign back to her for personal use.
Peterson is accused of writing checks out of her campaign fund to her friends and associates, who would then cash the checks and return most or all of the money back to her.
The bill of information says Peterson used the money to pay gambling-related expenses.
She is also accused of misappropriating funds while chair of a state political party.
Peterson was chair of the Louisiana Democratic Party for over seven years.
The bill of information claimed Peterson exploited her position by making her associates provide campaign-related services to companies operated by her associates.
Her associates would then provide minimal to no work, and the funds would be paid back to her through checks or cash from the companies, according to the bill of information.
If convicted, Peterson faces 20 years in prison, a fine of up to $250,000 and up to three years of supervised release.
Peterson issued a statement on Twitter apologizing for her actions:
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“Today marks an important step in my life-long recovery as I continue to address my gambling addiction.
“I sincerely apologize for the impact from my compulsive behavior resulting from this addiction.
“I have made full repayment of funds used as a result of my addiction and I will continue to make amends.
“Staying true to the steps of my ongoing recovery, I have been forthright, honest, and fully cooperative with the US Attorneys’ Office in their investigation.”
Her lawyer, Brian Capitelli, issued the following statement to WDSU News:
“This marks an important step in Ms. Peterson‘s recovery as she continues to address her gambling addiction. She is sincerely remorseful for her compulsive behavior resulting from this addiction and has made full repayment of funds used as a result of her addiction.
“She has been forthright, honest, and cooperative with the U.S. Attorneys’ office in their investigation.”
Peterson served as a state lawmaker for 20 years and ran the state’s Democratic Party from 2012-2019.
The Louisiana Democratic Party issued the following statement:
“Today, federal authorities charged Senator Karen Carter Peterson with wire fraud committed in her former capacity as the Chair of the Louisiana Democratic Party. A plea deal has been signed, and we are confident that any wrongdoings will be brought to justice.
“Since Senator Peterson’s tenure as chair concluded nearly two years ago, the Louisiana Democratic Party has gone through extensive lengths to increase transparency and ensure the highest level of scrutiny in financial reporting under the leadership of new party chair, Katie Bernhardt. Among other initiatives, these efforts include: retaining the services of a nationally reputable compliance company; the transformation of internal operations for added checks and balances; increasing viewing privileges of accounting software to ensure financial oversight by numerous people; and clear monthly reporting to the party’s executive committee. In addition, LDP is in the final stages of retaining the comptrolling services of a company that has significant experience working with other democratic parties across the country.
“When I ran for chair two years ago, I heard the call for a complete overhaul of the Louisiana Democratic Party loud and clear from the people of Louisiana, and that’s what we’ve done,” said Party Chair Katie Bernhardt. “Since September of 2020, we have worked tirelessly to increase transparency and transform operations to turn this into an organization that will stand the test of time. Restitution has been made on behalf of Senator Peterson, which allows us to close that chapter of the Louisiana Democratic Party as we work to restore public trust and move into a more promising future. We are proud of the progress we have made so far, and we believe we are well on our way to becoming the Democratic Party that Louisiana deserves.
“Further comment will be reserved so as not to impede the investigation.”
(Except for the headline, this story has not been edited by PostX News and is published from a syndicated feed.)