Federal Bureau of Investigation - New Orleans Field Division

FORMER ST. TAMMANY PARISH COUNCILMAN PLEADS GUILTY TO
FEDERAL CORRUPTION AND TAX CHARGES

NEW ORLEANS, LOUISIANA - JOSEPH ANTHONY IMPASTATO, former St. Tammany Parish Councilman, age 36, entered a plea of guilty this morning before U. S. District Judge Stanwood R. Duval, Jr., to two counts of the indictment pending against him since December, 2005, shortly after Hurricane Katrina, announced Jim Letten, United States Attorney for the Eastern District of Louisiana, along with Federal Bureau of Investigation Special Agent in Charge James Bernazzani, and Internal Revenue Service CID Special Agent in Charge Michael DePalma.

The two charges to which IMPASTATO admitted his guilt included federal bribery through the illegal solicitation and receipt of payments in connection with a Hurricane Katrina debris removal contract (Count 4), and making false statements in his 2001 federal income tax return (Count 8).

Specifically, within two weeks following Hurricane Katrina, IMPASTATO obtained an Omni-Pinnacle debris removal contract on behalf of Diane Mauberret and her son, Lee Mauberret, both of whom who resided in Lacombe, Louisiana, and both of who were constituents of defendant IMPASTATO. (At the time, IMPASTATO served as a public official on the St. Tammany Parish Council, whose district included Lacombe and parts of Mandeville.)

That debris removal contract provided for the removal of millions of cubic yards of wood debris from thousands of hurricane-downed trees in St. Tammany Parish.

The Mauberrets, through their company, Ponchartrain Chipping Yard, Inc., executed a contract with Omni-Pinnacle to remove vegetative debris at a fixed rate. Defendant IMPASTATO then solicited from the Mauberrets a portion of the revenues they would receive from the Omni-Pinnacle contract. However, the Mauberrets had initially refused to pay IMPASTATO any portion of the contract revenues.

Thereafter, as a result of cooperation provided by Lee Mauberret, the Government’s investigation captured evidence and tape-recorded conversations and meetings, in which, according to IMPASTATO’S instructions, portions of an initial $165,000 payment to Mauberret’s company from Omni-Pinnacle were planned to be routed through straw payments to a convicted co-conspirator, Joseph Mistich and a northshore attorney for the purpose of concealing IMPASTATO’S share.

Relative to the income tax false statement charge, IMPASTATO admitted that in April, 2002, he electronically filed a 2001 income tax return which falsely reported that he had received a total income of approximately $34,000, when in truth and in fact, his taxable income amounted to $52,000 representing an under-reporting of approximately $18,000. His willful failure to report this $18,000 on his tax return resulted in a material false statement to the IRS.

As a result of the plea agreement between the Government and the defendant, IMPASTATO faces a mandatory two-year federal prison term. IMPASTATO’S sentencing has been schedule for July 9, 2008 .

Previously, Joseph Mistich pled guilty to misprision of a felony in connection with this corruption scheme. Mistich is awaiting sentencing.

The investigation, which continues, is being conducted by the Federal Bureau of Investigation and the Internal Revenue Service. The prosecution is being handled by Assistant U. S. Attorneys Peter M. Thomson, Carter K. D. Guice, Jr, and Matthew Coman.

UNITED STATES ATTORNEY’S OFFICE United States Attorney Jim Letten Eastern District of Louisiana FOR IMMEDIATE RELEASE CONTACT: KATHY ENGLISH PHONE: (504) 680-3068 THURSDAY, APRIL 3, 2008

FORMER ST. TAMMANY PARISH COUNCILMAN PLEADS GUILTY TO FEDERAL CORRUPTION AND TAX CHARGES NEW ORLEANS, LOUISIANA - JOSEPH ANTHONY IMPASTATO, former St. Tammany Parish Councilman, age 36, entered a plea of guilty this morning before U. S. District Judge Stanwood R. Duval, Jr., to two counts of the indictment pending against him since December, 2005, shortly after Hurricane Katrina, announced Jim Letten, United States Attorney for the Eastern District of Louisiana, along with Federal Bureau of Investigation Special Agent in Charge James Bernazzani, and Internal Revenue Service CID Special Agent in Charge Michael DePalma. The two charges to which IMPASTATO admitted his guilt included federal bribery through the illegal solicitation and receipt of payments in connection with a Hurricane Katrina debris removal contract (Count 4), and making false statements in his 2001 federal income tax return (Count 8). Specifically, within two weeks following Hurricane Katrina, IMPASTATO obtained an Omni-Pinnacle debris removal contract on behalf of Diane Mauberret and her son, Lee Mauberret, both of whom who resided in Lacombe, Louisiana, and both of who were constituents of defendant IMPASTATO. (At the time, IMPASTATO served as a public official on the St. Tammany Parish Council, whose district included Lacombe and parts of Mandeville.) That debris removal contract provided for the removal of millions of cubic yards of wood debris from thousands of hurricane-downed trees in St. Tammany Parish. The Mauberrets, through their company, Ponchartrain Chipping Yard, Inc., executed a contract with Omni-Pinnacle to remove vegetative debris at a fixed rate. Defendant IMPASTATO then solicited from the Mauberrets a portion of the revenues they would receive from the Omni-Pinnacle contract. However, the Mauberrets had initially refused to pay IMPASTATO any portion of the contract revenues. Thereafter, as a result of cooperation provided by Lee Mauberret, the Government’s investigation captured evidence and tape-recorded conversations and meetings, in which, according to IMPASTATO’S instructions, portions of an initial $165,000 payment to Mauberret’s company from Omni-Pinnacle were planned to be routed through straw payments to a convicted co-conspirator, Joseph Mistich and a northshore attorney for the purpose of concealing IMPASTATO’S share. Relative to the income tax false statement charge, IMPASTATO admitted that in April, 2002, he electronically filed a 2001 income tax return which falsely reported that he had received a total income of approximately $34,000, when in truth and in fact, his taxable income amounted to $52,000 representing an under-reporting of approximately $18,000. His willful failure to report this $18,000 on his tax return resulted in a material false statement to the IRS. As a result of the plea agreement between the Government and the defendant, IMPASTATO faces a mandatory two-year federal prison term. IMPASTATO’S sentencing has been schedule for July 9, 2008 . Previously, Joseph Mistich pled guilty to misprision of a felony in connection with this corruption scheme. Mistich is awaiting sentencing. The investigation, which continues, is being conducted by the Federal Bureau of Investigation and the Internal Revenue Service. The prosecution is being handled by Assistant U. S. Attorneys Peter M. Thomson, Carter K. D. Guice, Jr, and Matthew Coman.