NEW ORLEANS — Four days after the Orleans Parish Sheriff's Office announced the first arrest in an ongoing investigation stemming from an internal financial review, Sheriff Susan Hutson revealed another former employee is now in custody in connection with a scheme to defraud the agency and the public of more than $90,000.
Labrina Carey Lackey, 57, was booked into the Orleans Justice Center on the following felony charges:
- Theft over $25,000
- Monetary Instrument Abuse
- Obstruction of Justice
- Injuring Public Records
- Filing False Public Records
- Malfeasance in Office
- Public Contract Fraud
The charges stem from an investigation into a scheme devised by Lackey to misappropriate funds from the OPSO Inmate Trust Fund.
"These actions are reprehensible and do not reflect the values of the Orleans Parish Sheriff’s Office," said Sheriff Susan Hutson. “The public places its trust in us, and it is our duty to uphold that trust by taking decisive action against anyone who undermines our mission. We will continue to work diligently to ensure that public funds are managed responsibly and transparently.”
Sheriff Hutson called a press conference last Friday to address the results of an in-depth financial review that allegedly found several Orleans Parish Sheriff's Office personnel involved in schemes to defraud the agency and the public.
"Following a comprehensive financial review led by our new Chief Financial Officer Bianka Brown, we uncovered separate schemes to defraud this agency," said Sheriff Hutson during her opening statements on Friday. "Schemes that resulted in the arrest of one former employee."
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The OPSO discussed two cases, the first involving former OPSO Grant's Department employee Kenneth Aaron Lawson, who was arrested on Friday morning and faces multiple felony charges, including theft, bank fraud and public contract fraud.
Lawson is accused of creating a fictitious business to misappropriate more than $75,000 in federal grant funds for his personal use.
In a separate action, the OPSO identified the misappropriation of $90,000 from the OPSO Inmate Trust Fund that deals with formerly incarcerated individuals.
Those individuals involved, once arrested, will face multiple felony charges, including theft of more than $25,000, monetary instrument abuse, obstruction of justice, injuring and filing false public records, malfeasance in office and public contract fraud.
"These findings are part of ongoing efforts to clean up historical misconduct in this agency since I came into this office in 2022."
"These actions are reprehensible and stand in direct opposition to the values of the Orleans Parish Sheriff's Office," Hutson added.
Hutson was joined at the OPSO administration building on Friday by Major Silas Phipps, Jr., Director of OPSO’s Compliance & Accountability Bureau, and CFO Brown.
Following the press conference, the OPSO released a comprehensive list of key actions the department is taking to improve internal controls and fight against financial discrepancies and fraud.
Those actions include:
- Cashless System Implementation: We have established clear guidelines and processes for handling financial transactions by implementing a cashless system at both the acceptance and release windows for residents. Multiple kiosk machines have been installed to allow residents and their family members to add funds directly for commissary purposes.
- Partnership with Banking Institutions: We have partnered with our banking partners to arrange for armored car services that will clear the kiosk machines, eliminating the manual process of counting cash in the back office and ensuring more secure handling of funds.
- Updated Authorization and Verification Procedures: Internal authorization levels have been revised to include additional documentation requirements for verification and reconciliation. These changes are designed to minimize the risk of fraud and ensure that all transactions are properly reviewed by multiple appropriate parties.
- Segregation of Duties: To further mitigate fraud risks, we have strengthened our segregation of duties by assigning different aspects of financial transactions to multiple employees. This ensures no single individual has full control over any part of the process, which reduces the potential for fraudulent activity.
- Future Technology Integration: In the coming weeks, we will be issuing a Request for Proposal (RFP) for a comprehensive Financial Database that will fully automate several key processes and allow for integration between multiple systems, further enhancing operational efficiency and security.
- Insurance Coverage: Our Commercial Crime Insurance will provide reimbursement to any former jail residents directly impacted by malicious activity, ensuring that those affected are promptly compensated.
According to OPSO, the investigations into the grants department and inmate account theft are ongoing.
"As Sheriff, I have made it my mission to rebuild public trust by implementing meaningful reforms, modernizing our systems, and fostering a culture of accountability," Hutson stated. "By taking decisive action against misconduct, we are steering this agency into a new era – one that reflects the highest standards of integrity and service."
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