Business

A former New Orleans inspector who was indicted in a fraud scheme and linked to Mayor LaToya Cantrell has had his trial date set. Randy Farrell will go to trial on Oct. 20, 2025. The trial will be before Judge. Jay Zainey. Farrell is facing charges of conspiracy to commit wire fraud, conspiracy to commit honest services, fraud, wire fraud, and honest services fraud. According to the indictment, Farrell is accused of bribing Public Official 1, believed to be Mayor LaToya Cantrell, in exchange for a city employee being fired after that employee uncovered an alleged kickback scheme through the Department of Safety and Permits. According to the indictment, Farrell’s company, IECi, conducted a majority of the city’s third-party inspections.Farrell is accused of using unlicensed electricians to perform the work and then having IECI inspect and approve the work at the properties under the ruse that licensed electricians had done the work. When a Department of Safety and Permits employee uncovered the scheme, Farrell and a businessman, which sources tell WDSU is Fouad Zeton, are accused of asking Mayor Cantrell to fire the employee. Text messages between Farrell and Zeton show that a steak dinner was set up between them and the mayor to discuss getting the employee fired. The dinner cost over $800, and Farrell paid for it, according to the indictment. The indictment says that Farrell obtained New Orleans Saints and National Championship football tickets for Public Official 1, believed to be Cantrell, and her family in exchange for getting rid of the employee who is listed in the federal indictment as Employee 1. Sources tell WDSU that Chief Administrative Officer Gilbert Montano is implicated as Public Official 2 in connection with the tickets allegedly received for the bribe. According to our sources, Montano on Dec. 6, 2019, met with Zeton and a photo was taken with them together. That same day, Farrell bought four tickets to the Saints game, which Zeton then allegedly gave to Montano to use with his family at the game. Those tickets were paid for by Farrell and a total of $1,160 came from his Chase bank account, according to the indictment. The indictment goes on to say that Montano also requested tickets to the National Championship Game on Jan. 6, 2020, to which Zeton replied, “consider it done.”Montano is accused of then following up with Zeton on the status of those tickets, saying he would get them to him.The indictment states that those tickets cost $3,169 and were paid for by Farrell and allegedly given to Montano. WDSU reached out to Montano who said he was “confused and shocked” by the implication. According to Montano, he has never been contacted by anyone about the indictment, and has never met Randy Farrell. Montano said his goal has been to always make things better and is disappointed by how his role and title has been implicated in the scheme. Montano said he has always tried to be honest. It is important to note that Montano is not charged with any crimes or been accused of any crimes. After the Saints tickets were purchased Farrell is accused of sending a text to Zeton saying, “Just get to get her out, and we will be Kings with Safety and Permits.” On Aug. 22, 2019, Farrell received a text from Zeton showing that the employee was no longer employed. Farrell is accused of replying, “THE ***** IS GONE!!!!!” Zeton is then accused of texting Cantrell, saying, “You are a person of your word, thank you so much for handling safety and permits problem.” According to the indictment, a supervisor refused to fire the employee who uncovered Farrell’s scheme. The indictment implicates the mayor, saying she forced the supervisor to terminate the employee. It is important to note that Cantrell has not been indicted at this time but could face charges, according to WDSU sources.Farrell’s attorney issued the following statement regarding the indictment: “Last year Mr. Farrell took responsibility for IRS problems occurring nearly 10 years ago by means of a plea bargain with the Government, unrelated to the present charges. As a part of the plea bargain with the Government, Mr. Farrell met with Federal authorities to answer questions about the City of New Orleans’ Department of Public Safety. Mr. Farrell provided documentation of his payment for a birthday luncheon for the cooperating witness (Businessman #1) and his two nephews at which Public Official #1 was an invited guest of the businessman. The prosecutor now is improperly utilizing this information against Mr. Farrell, alleging it was a bribe. Mr. Farrell did nothing more than complain to city leaders about the dysfunction of the department of Safety and permits, a right he and all citizens have under the First Amendment. Allegations of bribery of Public Officials #1, for a luncheon and utilization of Saints tickets are too close to the political system. The Indictment sensationalizes statements, taken out of context, primarily made by the cooperating witness (Businessman #1) who was a fundraiser and supporter of Public Official #1 and, unfortunately, who had access to Mr. Farrell’s credit card. Contrary to allegation in the Indictment, Mr. Farrell is not a public official of the State or the City. Mr. Farrell and IECI deny the allegations in the government’s indictment and look forward to defending themselves in Court.” Eddie Castaing, Mayor Cantrell’s attorney, said she has no comment. The City of New Orleans issued the following statement: “Out of respect for the courts and the legal process, the City of New Orleans will reserve comment on this matter until its full conclusion.”This is not the first time Farrell has faced federal charges. WDSU Investigates learned that Farrell is facing charges including forgery and conspiracy in Jefferson Parish. He also pled guilty in 2021 to federal tax charges. Who is Randy Farrell? Farrell is an independent inspector who has worked in New Orleans and Jefferson Parish for years.His job is to check out properties to make sure everything meets code and regulations.The charges Farrell is facing in Jefferson Parish involve work at a home, according to sources.In 2021, federal records show he pleaded guilty to tax fraud. He admitted to underreporting his income. The FBI and U.S. attorney have been looking into the relationship between Cantrell and Farrell for weeks for allegations that the mayor possibly benefited by helping Farrell do work for the city.The mayor has said little about the ongoing federal investigation and has dodged questions and interview requests for weeks. This comes after her former security guard, Jeffrey Vappie, was indicted in July. He is accused of falsifying his timecard and for allegedly lying to the feds about a romantic relationship with the mayor.Cantrell has declined to speak on the issue.”We are all bringing information to the table to try and paint a picture of how the fraud happened,” said Kim Chatelain, the inspector general in Jefferson Parish.”What the public fails to understand is that everyone comes at this with their own interest – so the FBI wants to get the guy and prosecute them, the inspector general wants to make sure it stops happening in Jefferson Parish, and we’re out to prevent the harm,” Chatelain said. She says regardless of what happens with the federal probe in New Orleans and with the mayor, the district attorney in Jefferson Parish acted properly by charging Farrell.”It’s very good the DA takes contractor fraud seriously. These building laws are out there to make sure that houses and structures are built to code,” Chatelain said.Farrell’s lawyer, in court records, said his client in no way should be charged with any crimes in this Jefferson Parish case.”Mr. Farrell was asked to perform an inspection. Mr. Farrell had no financial interest in the construction contract and his usual fee of a couple hundred dollars for the inspection has never been paid by the contractor or homeowner,” Farrell’s lawyer said, according to court records. Vappie’s lawyers say he is not guilty, and they will prove it.