Political Illusions of the Cajun Mafia

Former DA Walter Reed and son indicted Thursday | NOLA.com Page 2 of 3
http://www.nola.com/crime/index.ssf/2015/04/former_da_walter_reed.html 1/3/2016
Both Reeds were indicted on wire fraud stemming from a $29,400 payment to Steven Reed's company, Liquid Bread LLC, for catering
and bar services at a Walter Reed campaign function.
"These are services we allege were never rendered,'' Polite said.
Walter Reed was also indicted on counts he dined with religious leaders and clergy members - "Pentecostal Preachers" as the
prosecutor's press release identified them - with the purpose of those dinners to recruit or refer work to his private legal practice, Polite
alleged. The dinner was at a north shore steakhouse and cost $2,635. The steakhouse was not named.
Finally, Reed was charged with wire fraud stemming from the payments he got from St. Tammany Parish Hospital. Reed did disclose
those $30,000 annual stipends on state documents, but the indictment cites Reed for "diverting into his personal accounts funds from
St. Tammany Parish Hospital that were intended for the Office of the District Attorney for the 22nd Judicial District."
At a news conference at his office in Metairie later Thursday, Walter Reed;s attorney, Rick Simmons, asked the public to "take a step
back" and wait for the facts of the case to come out at trial.
"Even the U.S attorney today said this is not evidence of guilt," he said, holding up a copy of the indictment
[http://www.nola.com/crime/index.ssf/2015/04/read_walter_reeds_indictment_o.html#incart_river] . "My client has a presumption
of innocence . . . The indictment is merely an allegation on a piece of paper. Every piece of paper has two sides, and you'll hear our
side later on."
Simmons said while Polite tried to lump Reed with the legion of former Louisiana politicians whose misdeeds were exposed, the
indictment doesn't have anything to do with "kickback and bribery schemes" of Reed doing favors for people as a public official.
The indictment is largely about the use of campaign funds, he said. "It's important the public remember, campaign funds are not public
funds."
St. Tammany Parish President Pat Brister termed the indictment another "embarrassment'' for the parish.
"This parish has endured several scandals over the last few years brought on by old school political players. Today's indictment of our
former, long-time District Attorney is another sad example of alleged corruption and misuse of the public trust," she said in a statement
emailed to reporters Thursday. "It is my hope that this parish will suffer its last embarrassment today and that we can move past the
misgivings and abuses by people whom we entrust with public responsibilities and taxpayers' monies. We are confident that justice will
be served."
In 1984 Reed became District Attorney for the 22nd Judicial District, which covers St. Tammany and Washington parishes. During his
long tenure, Reed established a reputation as a stern prosecutor, one who pushed his staff to have at least 100 jury trials a year. In the
process, his office earned the moniker "St. Slammany" for its at-times draconian approach.
In July 2014, Reed, who will turn 69 years old in June, announced he would not seek re-election for a sixth term
[http://www.nola.com/politics/index.ssf/2014/07/with_da_walter_reed_not_runnin.html] . The announcement followed weeks of
revelations about questionable financial transactions that chiefly involved campaign money and the contract between the District
Attorney's office and St. Tammany Parish Hospital.
A joint news investigation by NOLA.com | The Times-Picayune and WVUE Fox 8 News
[http://www.nola.com/politics/index.ssf/2014/06/five_findings_about_walter_ree.html] detailed last year how Reed pocketed the
hospital money. Hospital officials said they hired Reed's office, but the then-district attorney declared the money each year as personal
income on financial disclosures filed with Louisiana's Board of Ethics. Reed also listed the money as personal income in on his tax
returns, according to his attorney.
Reed's political career had been on cruise control for years – he had not faced an opponent for re-election since 1996 – when the news
organizations reported in February 2014 that his campaign had spent almost $95,000 on companies owned by his son, Steven. Most of
that money had been spent on catering, expenditures that looked excessive given the limited role Steven Reed's companies performed
at Reed campaign events at the Castine Center in Mandeville.
Records later subpoenaed by the federal grand jury showed Steven Reed did little or no work for much of the payments. The Reed
campaign payments included $14,300 to Steven Reed for a 1-minute anti-drug video that an experienced professional producer said
likely cost no more than $750 to produce.