Trump freezes HUD funding for indicted New Orleans mayor
The article reports that President Donald Trump has suspended New Orleans Mayor LaToya Cantrell and former police officer Jeffrey Vappie from participating in funding procurement processes related to the Department of Housing and Urban Progress (HUD). this action follows their recent indictment by the Justice Department on charges including wire fraud, making false statements, and obstruction of justice. The indictments stem from a prolonged effort to defraud New Orleans residents and the police department, as well as attempts to cover up a romantic relationship between Cantrell and Vappie, who was formerly part of her protective detail.
Cantrell, the frist sitting New orleans mayor to be criminally indicted, had appointed Vappie to the housing Authority of New Orleans board despite the conflict of interest. HUD’s deputy enforcement director notified both individuals that their suspensions aim to protect public interest and prevent further harm to the government. Even though HUD is suspending Cantrell and Vappie,the city’s HUD funding remains unaffected and Cantrell can appoint others to manage HUD-related funding processes.
Separately, Trump expressed frustration over violent crime in New Orleans and hinted at deploying military forces to help address the city’s crime issues, praising Governor Jeff Landry’s desire for federal assistance.
Trump freezes HUD funding for indicted New Orleans mayor
EXCLUSIVE — President Donald Trump is suspending New Orleans Mayor LaToya Cantrell and former New Orleans Police Department officer Jeffrey Vappie from the Department of Housing and Urban Development’s funding procurement process weeks after the pair were indicted on fraud and obstruction of justice charges.
The Justice Department indicted Cantrell and Vappie on Aug. 15 over what the federal government referred to as “years-long” effort to defraud New Orleans residents and the city’s police department and cover up a romantic relationship the two developed while Vappie served as a member of Cantrell’s protective detail.
DOJ charged Cantrell with six counts of wire fraud, two counts of making false statements before a grand jury, and one count of obstruction of justice. Vappie was also charged with 12 counts of wire fraud and one count of making a false statement to the FBI.
Brian Murray, the deputy director of HUD’s Departmental Enforcement Center, on Wednesday provided notice of the suspensions, copies of which were reviewed by the Washington Examiner, to both defendants and New Orleans Councilman Jean-Paul Morrell.
“The Department of Housing and Urban Development hereby notifies you of your immediate suspension from participation in procurement and nonprocurement transactions as a participant or principal with HUD and throughout the Executive Branch of the Federal Government,” Murray wrote. “I have determined that your immediate suspension is necessary to protect the public interest. The Information’s allegations evidence the Government faces a serious and immediate risk of harm if you are permitted to continue doing business with it.”
Cantrell, the first mayor of New Orleans to face a criminal indictment while in office, appointed Vappie to serve on the Board of Commissioners of the Housing Authority of New Orleans, which HUD partially funds, while he was still serving on her protective detail. Months later, local reporting uncovered the extent of Cantrell and Vappie’s alleged romantic relationship, and he would eventually resign his position with HANO in the spring of 2023.
One senior HUD official told the Washington Examiner that Wednesday’s action was meant to target Cantrell and Vappie specifically, not the city of New Orleans.
“Theoretically, [Cantrell] could appoint somebody,” to take part in the HUD procurement process in her stead, that official noted. “But we would obviously look into that. It’s a move against her, not against the city, because she’s a corrupt leader.”
The official clarified that the federal government is not actively clawing back HUD funds previously awarded to Cantrell, as it currently “isn’t clear on the indictment which funds were part of the wire fraud.”
“It’s not clear if it’s federal, if it’s state, what those funds are,” that person continued. “But moving forward, she’s 100% recused. She cannot touch this funding anymore.”
Cantrell and Vappie have 30 days to contest the suspension, though Murray notes that “contesting a suspension does not stay the suspension.”
Earlier on Wednesday, Trump raged against New Orleans over its alleged violent crime problem, suggesting to reporters gathered for his Oval Office meeting with Polish President Karol Nawrocki that he may deploy the military to the city.
HUD THREATENS FUNDING FOR PUBLIC HOUSING AUTHORITIES SHIELDING ILLEGAL IMMIGRANTS
“We’re making a determination now, do we go to Chicago, or … do we go to a place like New Orleans, where we have a great governor, Jeff Landry [(R)], who wants us to come in and straighten out a very nice section of this country that’s become quite, you know, quite tough, quite bad,” he said.
“So we’re going to be going to maybe Louisiana, and you have New Orleans, which has a crime problem. We’ll straighten that out in about two weeks. It’ll take us two weeks, easier than D.C.,” Trump concluded.
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