U.S. Attorney Kenneth A. Polite announced that CLARK JAMES PELLEGRIN, JR., age 41, of New Orleans, was sentenced today after previously pleading guilty to a one count Bill of Information charging him with wire fraud in connection with a fraudulent debt collection scheme.
U.S. District Judge Ivan L.R. Lemelle sentenced PELLEGRIN to 21 months home confinement and 5 years probation. In addition, PELLEGRIN was ordered to pay restitution in the amount of $243,980.15.
According to court documents, PELLEGRIN, engaged in a multi-year scheme involving creditors on whose behalf he collected overdue debts from debtors. PELLEGRIN negotiated with debtors even though he had no authority to negotiate and made collections from debtors on behalf of 23 different creditors in the approximate amount of $243,980, which funds he converted to his own use, instead of paying the creditors.
U.S. Attorney Polite praised the work of the United States Postal Inspection Service. Assistant U.S. Attorney Patrice Harris Sullivan was in charge of the prosecution.