The h attorney general says as a grand jury continues to investigate corruption tied to Baton Rouge’s public transit system — led to felony charges against Metro for allegedly taking bribes and secretly profiting from taxpayer funds.
Dunn was indicted by a special grand jury on nine counts, including bribery, public contract fraud, money laundering, theft and a slew of conspiracy charges.
In an arrest warrant issued for Dunn, investigators say the councilman used his political position to help steer a $50,000 Capital Area Transit System contract to a consulting firm he secretly controlled. He then collected nearly all of the contract’s proceeds through his own company while concealing his involvement from transit officials and the public, agents say.
“Dunn was aware that his oversight authority of operating funds provided to CATS prohibited his ability to lawfully receive public funds from CATS,” prosecutors wrote.
Dunn, who did not immediately respond to a request for comment, was added to an indictment that already charged four others.
On Jan. 14, former CATS Chief Administrative Officer Pearlina Thomas and contractor Jarian “Jay” Colar were indicted with theft, conspiracy and misuse of public funds. Last week, the same grand jury added Terral “TJ” Jackson and Erica Jackson to the charges of theft and conspiracy.
Colar’s company, Supreme Solutions, was awarded a contract for $50,000 in 2021 to “explore new streams of revenue” for CATS. Prosecutors accuse Dunn of steering that contract to Colar, with whom he had a close personal relationship, and then receiving a major portion of those funds.
“Agents learned Dunn had received nearly $45,000 (over 90%) of the funds issued from CATS to Supreme Solutions,” investigators wrote.
As previously reported by h, in Dunn’s arrest warrant, h Bureau of Investigation agents say Dunn originally started Supreme Solutions and only turned it over to Colar after the CATS contract was in effect.
“Dunn subsequently profited from the contract to Supreme Solutions through kickbacks received from Jarian Colar,” prosecutors said.
According to multiple arrest documents, Attorney General Liz Murrill’s investigation sprang from a probe by FBI into “allegations of public officials who allegedly accepted bribes and misused their positions.”
Colar was interviewed by agents about the alleged conspiracy more than three years ago, and agents found that he did not have full control of Supreme’s finances. When Colar became aware of a possible investigation into the company, he opened a new bank account for the business.
“Financial records also 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.”
Agents say Colar told investigators the ownership transfer from Dunn to him was done for “optics.”
After Dunn’s indictment was read on Wednesday, lead prosecutor Alex Calenda told the courtroom a warrant had been issued for his arrest.
In a statement following Dunn’s indictment, 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.