FEDERAL GRAND JURY RETURNS 59 COUNT INDICTMENT AGAINST FORMER ATTORNEY

NEW ORLEANS, LOUISIANA - JAMES G. PERDIGAO, age 45, a resident of New Orleans, Louisiana was charged in a 59 count indictment by a Federal Grand Jury for mail fraud, bank fraud, tax evasion, filing false tax returns, money laundering, and transportation of stolen funds, announced U. S. Attorney Jim Letten, Rodney Clarke, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division, and James Bernazzani, Jr., Special Agent in Charge, Federal Bureau of Investigation.

PERDIGAO, a former partner at the law firm of Adams and Reese, provided legal services to companies in Louisiana's gambling industry. The indictment charges him with stealing checks belonging to Adams & Reese and depositing those checks into accounts controlled by PERDIGAO. Further, the indictment charges PERDIGAO with stealing a tax refund check payable to Horseshoe Entertainment, which was being acquired by Harrah's in the amount of $485,000. Once these checks were deposited, they became available for withdrawal and thus exposed the banks, such as Bank One (now Chase) to the risk of civil liability and financial loss.

The indictment also charges that he concocted a fraudulent billing scheme whereby he would submit phony invoices to his clients including Pinnacle Entertainment, Inc. and Boomtown, causing them to remit millions of dollars in fraudulent payments.

According to the indictment, during a one-week period in October of 2004, PERDIGAO wired nearly $20,000,000 to a Swiss bank account that he controlled in Zurich, Switzerland. Additionally, the indictment charges PERDIGAO with tax evasion and filing false tax returns, for the tax calendar years 2000 through 2004. The tax due and owing by PERDIGAO exceeds approximately $4,500,000 as indicated in the indictment. The indictment and prosecution of individuals who intentionally conceal income and evade taxes is a vital element in maintaining the public confidence in our tax system. Income from all sources, legal and illegal is taxable.

The indictment further alleges that by failing to report substantial taxable income and utilizing fraudulent losses on these tax returns, PERDIGAO qualified himself for the earned income tax credit. The earned income tax credit is a refundable federal income tax credit for low-income, working individuals and families.

If convicted, PERDIGAO faces a maximum term of imprisonment of 1023 years. He also faces substantial fines and criminal forfeiture including $30 million dollars money laundering forfeiture if convicted.

The case was investigated by the Internal Revenue Service and the Federal Bureau of Investigation.

U. S. Attorney Jim Letten reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.

The case is being prosecuted by Assistant U. S. Attorneys James Mann, Salvador Perricone, and Jon Maestri.