October Trial Date Set for La. Legislator in Insurance Fraud Case

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A federal judge set an Oct. 6 trial date for a Louisiana legislator charged with helping launder money for a woman accused of illegally selling insurance.

Sen. Derrick Shepherd, who was indicted in April, did not appear in court for the hearing before U.S. District Judge Carl Barbier. Charges against Shepherd include mail fraud and conspiracy to commit money laundering.

The Marrero Democrat allegedly deposited construction bond premiums in his bank accounts for unlicensed bond broker Gwendolyn Joseph Moyo after her accounts were seized by state regulators.

Moyo has remained in jail since a grand jury indicted her in October 2007. Barbier refused to set bond for her, saying she is a flight risk and could victimize others if set free.

“There is a great deal of evidence against Ms. Moyo in this case indicating she has committed the offenses for which she is charged,” Barbier said.

Moyo, 53, allegedly laundered roughly $2 million to conceal her illegal operation of an insurance business. She has federal convictions dating back to 1989 that barred her from running an insurance business.

Assistant U.S. Attorney Michael Magner said Moyo also “siphoned off” around $400,000 to two unnamed public officials and companies they control.

Prosecutors say a public official who is a political rival of Shepherd’s referred him to Moyo. A relative of that official also is accused of helping Moyo launder money. Neither of those public officials has been named by prosecutors or charged with wrongdoing in the case.

Shepherd finished third in a 2006 primary challenge to U.S. Rep. William Jefferson, D-La., who was indicted last year on separate bribery charges. Shepherd was elected to a second senate term last year, only days before the money laundering allegations against him publicly surfaced.

Moyo, who is representing herself even though she isn’t an attorney, made a rambling plea for Barbier to release her from custody.

“First of all, I would not run because I know I am not guilty of these charges,” she said.

Magner, however, said Moyo is a “complete stranger to the truth” who is likely to flee or commit more crimes if she is released.