Louisiana Man Pleads Guilty in Katrina Fraud Case

A New Orleans man has pleaded guilty to a charge he fraudulently received a federal disaster loan to repair damage to his home after Hurricane Katrina struck in 2005.

Forty-eight-year-old Ronald Stimage faces a maximum sentence of 10 years in prison and a $250,000 fine following his guilty plea Friday to one count of theft of government funds.

His sentencing by U.S. District Judge Jay Zainey is set for Jan. 10.

Federal prosecutors say Stimage faxed false invoices to the Small Business Administration after it approved his loan of nearly $32,000. Prosecutors say the SBA repaid Stimage for money he falsely claimed to have spent on repairs.