The Department of Justice announced that 53-year-old Katie LaRoche, a local finance manager, was charged with wire fraud for allegedly embezzling $233,363 from New Orleans Bounce Artist Big Freedia.
According to U.S. Attorney Duane A. Evans, LaRoche is a financial manager for Capital City Consulting Firm who handled bookkeeping, accounting, and other financial services for clients which included Big Freedia Enterprises LLC owned by Big Freedia.
U.S. Attorney Evans says from Feb. 5, 2015, through at least March 25, 2021, LaRoche allegedly embezzled the money from Big Freedia’s business account which she managed.
LaRoche allegedly hid the embezzlements by taking monthly withdrawals of $1,550 from her client’s business account and claiming the transactions were to pay Big Freedia’s federal taxes with the notation, “IRS Payment Past Due Bal Money Order.” The DOJ says LaRoche deposited the withdrawals into her own account.
WWL First News reached out to Big Freedia's public relations managers who released a statement from Big Freedia confirming she was the victim of the embezzlement.
"News outlets are asking me if I am victim no. 1 in the financial fraud lawsuit against former Financial Manager, Katie LaRoche. My statement is yes, I am victim no. 1. As soon as I realized that Katie was embezzling money, I terminated her engagement. While she has wreaked havoc on my finances, this is temporary. I have full faith in my current management team, as I rise above adversity. I know I’m not the first --nor will I be the last-- to have this happen. Let this be a cautionary tale to other artists: do your due diligence before trusting someone with such critical information as your finances."
If convicted, LaRoche faces up to twenty years in prison. LaRoche also faces up to three years of supervised release after her release from prison, and a fine of up to $250,000.
This is not the first time Big Freedia faced financial problems. In August 2016, she pleaded guilty to fraudulently receiving Section 8 rent payments.
According to the U.S. Department of Justice, U.S. District Judge Lance M. Africk sentenced her to three years’ probation, including 100 hours of unpaid community service. Additionally, she was ordered to pay $34,849 in restitution to the Housing Authority - New Orleans or HANO and was fined $35,000.