Congressman’s Sister Pleads Guilty to Defrauding Nonprofits

We previously blogged the story involving the indictment of four of Congressman William Jefferson’s relatives for acts relating to the use of nonprofit organizations to defraud people.   This is particularly sad story regarding the gutting of nonprofits and donor funds designated to assist victims of one of the worst public education systems in the nation.  Yesterday, according to a Reuters News Agency Report, Congressman Jefferson’s sister pleaded guilty to the charges:

Brenda Jefferson, 52, helped defraud several nonprofit organizations by concealing and failing to report the activities of two of her siblings, Betty Jefferson and Mose Jefferson, and her niece, Angela Coleman, according to court documents. Federal prosecutors in New Orleans recently charged the three other relatives with conspiring to steal more than $600,000 from organizations they set up to help at-risk and disadvantaged youth. Brenda Jefferson, also known as Brenda Foster, performed clerical work for the nonprofits run by her relatives. According to prosecutors, she has admitted to receiving $90,000 in payments from the organizations.

The swiftness with which the guilty plea was entered (the indictment was handed down on June 4) suggests that the proverbial “race to the courthouse” applies even amongst kinfolk.  Brenda Jefferson, facing three years in prison and a $250,000 fine, is no doubt seeking leniency.  She has probably agreed to assist prosecutors against the other defendants so we can forget about anymore happy family reunions.  Note that her status as a “clerical” assistant might have assisted her against a 4958 excise tax; but her relationship with her three relatives who apparently founded and directed the nonprofit agencies makes that an unlikely argument.  See IRC 4958(f)(1)(B), 4958(f)(4).  I wonder what the process is for including immunity from excise and penalty taxes in criminal plea deals.

dkj