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Metro Council member Cleve Dunn Jr. was indicted Wednesday on multiple felony counts, including bribery and public contract fraud, in a Baton Rouge corruption probe that prosecutors say could lead to more charges as a grand jury continues its investigation.

According to an arrest warrant, Dunn allegedly used his position on the Metro Council to help steer a $50,000 Capital Area Transit System contract to Supreme Solutions, a consulting firm he had previously owned.

Investigators say he collected more than 90% of the contract’s proceeds through his own company, Core Group LLC, while concealing his involvement from bus system officials and the public.

“Evidence discovered … disclosed that Dunn abused his elected position of power and participated in a scheme to defraud the Capital Area Transit System,” wrote ����h Bureau of Investigation agent Phillip Vitter.

In total, Dunn was indicted on nine counts: Public bribery, conspiracy to commit public bribery, conspiracy to commit theft over $25,000, theft of $25,000, money laundering, conspiracy to commit money laundering, public contract fraud, prohibited splitting of profits and malfeasance in office.

Dunn’s indictment follows charges earlier this month against former CATS Chief Administrative Officer Pearlina Thomas and contractors Jarian “Jay” Colar, Terral “TJ” Jackson and Erica Jackson following from an investigation that dates back to 2022.

Attorney General Liz Murrill’s office said it expects additional indictments as the grand jury continues its investigation into alleged misuse of public funds at the parish transit agency.

Dunn did not respond to requests for comment on Wednesday.

The alleged ‘kickback’ scheme

Prosecutors allege that Dunn was at the forefront of a scheme to funnel a CATS contract to Colar via his company, Supreme Solutions.

According to Dunn’s arrest warrant, the council member introduced Colar to then-CATS CAO Thomas at a Baton Rouge restaurant. Shortly after, Colar was awarded the contract.

But at the time, state records show that the company was not registered to Colar but instead to Dunn and his wife. Business filings were not amended to make Colar the registered owner until weeks after the CATS contract began.

Agents say Colar told investigators the ownership transfer from Dunn to him was done for “optics.”

As Supreme Solutions began receiving payments for the contract, those payments were deposited into the company’s bank account, and then checks were written to Core Group, which is registered to Dunn, investigators say.

In one instance, a large cash sum was given from Supreme Solutions to Dunn, according to arrest documents.

In total, Dunn received “nearly $45,000 (over 90%) of the funds CATS paid to Supreme Solutions.

“Dunn subsequently profited from the contract to Supreme Solutions through kickbacks received from Jarian Colar, the purported owner of Supreme Solutions,” prosecutors said.

Taking office in 2021, Dunn participated in several transactions that appropriated city-parish funds to CATS, authorities say, and he was aware that his oversight as a council member made it illegal for him to receive money from the agency.

‘Disturbing’ allegations

Following his indictment, authorities issued an arrest warrant for Dunn.

At the time of publishing, Dunn had yet to be arrested.

Multiple council members in Washington, D.C. said Dunn was in the nation’s capital for the Washington Mardi Gras celebrations.

Murrill’s office declined to comment when asked whether they planned to arrest Dunn in D.C. and extradite him to Baton Rouge or wait for his return before taking him into custody.

From D.C., Metro Council Mayor Pro Tempore Brandon Noel released a statement after hearing of Dunn’s indictment.

“I am saddened to hear this news. I will not pass judgment on a colleague prior to him having his day in court,” Noel said. “I have faith in our justice system to uncover the facts and root out the truth, whatever that may be. Should wrongdoing be found, I feel that all involved certainly should be held accountable.”

Mayor-President Sid Edwards also released a statement following Wednesday’s indictment. Edwards said he was limited in what he could say about the allegations against Dunn and noted he was entitled to due process.

“What I can say is that since taking office, my administration has been contacted by multiple investigative agencies, and we have cooperated fully with requests from those authorities,” Edwards said.

The mayor was quick to clarify that the events in question took place before he was in office.

“These allegations are especially disturbing at a time when we are working to conduct government with integrity and respect for taxpayers’ dollars,” he said. “I believe that anyone suspected of or charged with misusing taxpayer dollars or other resources should be investigated and prosecuted to the fullest extent of the law.”

More to come

Murrill’s investigation was prompted by an FBI request for assistance regarding allegations that public officials had accepted bribes and misused their positions.

Court documents state that the FBI interviewed Thomas and Colar as early as 2022 about possible fraud at the bus agency.

As the FBI began investigating Supreme Solutions and interviewing Colar, they later found that Dunn still had control over the company’s finances. When they first reached out to Colar about interviewing him, agents say he opened up a new bank account for the company just hours later.

“Financial records indicate that Colar opened a new Supreme bank account on or about September 21, 2022, at 16:58,” agents wrote in Dunn’s arrest warrant. “On the same day, at approximately 11:58 AM, the agents contacted Colar for the first time and informed him of their interest in interviewing him.”

In a statement following Dunn’s indictment on Wednesday, Murrill’s office said they expect more people to be implicated.

“We expect additional indictments based upon this ongoing grand jury investigation,” said spokesperson Lester Duhé.

Like Dunn, Colar also faces nine charges, while Thomas faces 11 in total. Husband and wife TJ Jackson and Erica Jackson, whose company The Broad Innovative Marketing Firm also received a CATS contract around the same time as Colar, each face a single count of theft of $25,000 or more and a single count of conspiracy to commit theft of $25,000 or more.

Of the charges filed against Dunn, the most serious carry penalties of up to 20 years in prison and a fine of up to $50,000.