A Louisiana consultant allegedly diverted revenue, forged a trucking agreement and sold heavy equipment belonging to the clay mining company that had hired him, causing more than $2.5 million in losses to the business and its clients.
John B. Ohle III, 58, of Slidell was arrested July 30 after a multiyear investigation by the Louisiana Bureau of Investigation.
Authorities describe Ohle as a disbarred attorney and certified public accountant.
He was booked into the Orleans Parish Jail on felony charges including forgery, identity theft, embezzlement, theft, money laundering, bank fraud and computer fraud.
The Company’s Revenue Allegedly Went Into Accounts He Controlled
The investigation began after representatives of a private clay mining company filed a complaint about Ohle, who had been working as its contracted consultant. Louisiana investigators allege that the operation continued from January 2020 through February 2024, according to the state Attorney General’s Office. Ohle allegedly redirected revenue belonging to the company into one or more financial accounts under his control.
Investigators say Ohle misrepresented himself as an executive officer of the clay mining company and forged an exclusive trucking agreement. He allegedly used a subsidiary company he owned to deceive the mining company’s clients and facilitate the wider operation.
Ohle is also accused of selling heavy equipment owned by the clay mining company without authorization. Investigators say proceeds from those sales moved through bank accounts belonging to an associate, allegedly concealing that Ohle was the person who ultimately benefited.
The Attorney General’s Office said the alleged conduct caused more than $2.5 million in losses to the clay mining company and its clients.
Agents Say Ohle Tried to Avoid Arrest
Authorities said Ohle was informed that a warrant had been issued but refused to cooperate and attempted to evade investigators. Louisiana Bureau of Investigation agents located him at a residence in Metairie on July 30 and arrested him without incident under a warrant issued by Orleans Criminal District Court.
He was booked on charges of forgery, identity theft, theft exceeding $25,000 by embezzlement, a separate theft charge exceeding $25,000, money laundering, bank fraud and computer fraud.
The Attorney General’s Office said Ohle’s bond amount was unknown when it announced the arrest. The investigation remains active.
His Earlier Federal Conviction Is Separate From the New Case
Ohle was convicted in an unrelated federal case in 2010 of conspiracy to commit wire and tax fraud and two counts of tax evasion. The Justice Department said that case involved fraudulent tax-shelter referral fees, unreported income and millions of dollars taken from a trust client.
A federal judge sentenced Ohle to five years in prison in January 2011. The Louisiana Attorney General’s Office said his disbarment resulted from that earlier conviction.
The prior case does not establish guilt in the new Louisiana prosecution. The current charges remain allegations, and no plea or court resolution has been announced.
Vendor Ownership Should Be Checked Outside the Contract
Louisiana’s official business-filings database allows users to search for information including an entity’s status, registered agent and listed officers, directors, members or managers.
A business reviewing a new trucking company, consultant-owned vendor or other intermediary can compare those records with the ownership disclosures and conflict-of-interest statements submitted during contracting.
The company should also verify the agreement directly with an executive who did not negotiate or benefit from it. Contact information contained only in the disputed contract should not be used for that confirmation.
One Person Should Not Control the Contract, Payment and Asset Sale
The U.S. Government Accountability Office’s internal-control framework emphasizes separating incompatible responsibilities and restricting access to resources and records. Although the GAO Green Book sets standards for federal agencies, private companies and nonprofits can use the same principles as a practical fraud-control framework.
The person selecting a vendor should not be the only person able to approve the contract, enter the vendor into the accounting system, authorize payment and reconcile the receiving account.
Equipment sales should likewise require documentation identifying the asset, serial number, approved buyer, sale price and account receiving the proceeds. Someone independent of the proposed seller should confirm that the business authorized the transaction.
Accounting access logs, changed vendor details and payments sent to newly added accounts should receive periodic review. A consultant’s legitimate system access should be limited to the functions required by the engagement.