New Orleans businessman pleads in Katrina case - KNOE 8 News; KNOE-TV; |

New Orleans businessman pleads in Katrina case

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NEW ORLEANS, La., (KNOE 8 News) - A New Orleans-area businessman has admitted to receiving at least $32,500 in kickbacks related to a debris pickup contract after Hurricane Katrina.

51-year-old Anthony Penn pleaded guilty to one count of conspiracy to defraud the United States as part of a plea deal. He will be sentenced July 10.

Penn was indicted in January with participating in a kickback scheme with another businessman 52-year-old Kenneth Johnson. The government said Johnson paid Penn more than $220,000 in kickbacks after Penn helped Johnson land part of the massive debris-removal subcontracts after the storm.

Johnston, who has said he's innocent, is set for trial July 29.

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