Louisiana cop pleads guilty to taking payoffs from adult club owner

LAFAYETTE, La. – A Louisiana police officer pleaded guilty in federal court Monday to accepting cash payments and other improper benefits in exchange for ignoring illegal activity at a strip club for more than five years while the officer was in charge of regulating exotic dancer permits for the Carencro Police Department. The guilty plea follows an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Drug Enforcement Administration (DEA), the FBI, Louisiana State Police and the Lafayette Police Department.

Timothy Prejean, 42, of Carencro, admitted in his guilty plea before U.S. District Judge Richard T. Haik that he accepted numerous cash payments from James Panos, the former owner and manager of Desperado’s Cabaret, during the years he served as a liaison officer for the Carencro Police Department responsible for enforcing local ordinances at the establishment. Prejean also admitted he failed to investigate illegal activity, including prostitution and drug use, at Desperado’s while it was under his responsibility from 2007 until 2012. Prejean was arrested in February.

According to court documents, Prejean improperly received $10,000 in cash and other benefits from club owners James and Jennifer Panos while in performance of his regulatory duties as a law enforcement officer. Improper benefits included no cover charge to enter, free access to VIP rooms, and free drinks.

Prejean faces up to 20 years in federal prison and a $250,000 fine. His sentencing date has not yet been set.

“Timothy Prejean violated his oath of office and the public’s trust by failing to uphold the law and by taking cash payments from a corrupt business,” said U.S. Attorney for the Western District of Louisiana Stephanie A. Finley. “The people of Carencro deserve and expect more from their law enforcement officers. My office will lead the charge in investigating and bringing to justice corrupt public officials.”

James Panos, Jennifer Panos, and eight other defendants were previously charged in May 2013 with racketeering conspiracy, drug conspiracy and firearms charges resulting from an investigation into illegal activity at Desperado’s. The group pleaded guilty and was sentenced in August 2014. As part of that plea agreement the owners agreed to forfeit the Desperado’s property as well as illegal proceeds from the club’s operation.

Assistant U.S. Attorneys Myers P. Namie and Daniel J. McCoy prosecuted the case for the government.