NU Online News Service, July 17, 3:24 p.m. EDT

A former deputy insurance commissioner in Louisiana has pleaded guilty to two bribery schemes—one with an insurance agent and another with a venture capitalist affiliated with the insurance agent.

Unknown to Richard L. Chambers Sr. was the fact that the agent and venture capitalist were undercover special agents with the Federal Bureau of Investigation, says U.S. Attorney General Donald J. Cazayoux Jr. in Baton Rouge, La.

Cazayoux says Chambers has pleaded guilty to using an interstate facility in aid of racketeering, as well as forfeiture.

Chambers, 67, has admitted to using his position to steer business from municipalities to an undercover FBI agent posing as insurance agent in exchange for 40 percent of the commissions earned on the business. This scheme netted Chambers $5,500.

The second scheme involved Chamber providing a letter of support to what he thought was a venture capitalist for the "Cifer 5000"—a fictitious automated waste container cleaning system thought up by the FBI, says Cazayoux. In exchange for the letter, Chambers received two payments totaling $5,000.

Both schemes took place in 2009.

The conviction is the result of "Operation Blighted Officials," which has also led to the guilty pleas or jury convictions of four former Louisiana mayors, a chief of police, and a city council member.

Chambers will be sentenced in November. He faces up to five years in prison, a $250,000 fine, and forfeiture of all proceeds from the bribes.

Special Reports /

Former Louisiana Insurance Official Pleads Guilty to Racketeering

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