Woman Sentenced in Orleans Schools Insurance Contract Case

April 17, 2009

Lillian Smith Haydel, who pleaded guilty to paying kickbacks for insurance contracts to a former New Orleans school official, has been sentenced to five years probation.

Haydel, an aunt of former New Orleans Mayor Marc Morial, also will serve four months of home detention and pay $20,000 in restitution to the Orleans Parish School Board.

Federal officials have brought charges against 27 people in their investigation of the Orleans Parish school system. All 27 have pleaded guilty or been convicted by a jury. Assistant U.S. Attorney Carter K.D. Guice Jr. says Haydel’s cooperation resulted in at least two convictions.

Haydel’s husband, Glenn Haydel, a consultant, served time in federal prison for bilking the New Orleans transit system out of $540,000 during Morial’s administration.

Morial, who is now head of the National Urban League, has not been accused of wrongdoing.

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