East Baton Rouge Metro Councilmember Cleve Dunn was indicted Wednesday morning on multiple felony charges tied to an ongoing corruption investigation involving the Capital Area Transit System, marking a significant escalation in a case that has steadily widened over the past several weeks.
A grand jury in the 19th Judicial District Court returned indictments charging Dunn, who represents Metro Council District 6, with two counts each of bribery and money laundering, along with public contract fraud, illegal split commission of commodities, and malfeasance in office. He also faces multiple counts of conspiracy connected to the alleged scheme.
The indictment follows earlier arrests and charges brought against former CATS Chief Administrative Officer Pearlina Thomas and contractors Jarion Jay Colar, Terral TJ Jackson Jr., and Erica Jackson. Prosecutors have previously described Dunn as an unindicted co-conspirator referred to as “C.D.” in earlier court filings — a designation now formally tied to him through Wednesday’s indictment.
At the center of the case is Supreme Solutions LLC, a company prosecutors say was awarded a $50,000 contract by CATS for work investigators have been unable to substantiate. According to arrest documents, at least $33,000 of that money was later converted into checks made out to “C.G.” Multiple sources have identified “C.G.” as Core Group LLC, a company registered to Dunn.
Records show that Dunn and his wife previously owned Supreme Solutions. Dunn founded the company in 2017 and later appointed his wife, Stacey Posey Dunn, as its registered agent, using her maiden name in official filings. The Supreme Solutions contract in question was awarded in July 2021, with Colar becoming the company’s registered agent roughly a month later.
Investigators allege the contract was approved without following proper procurement procedures and that work submitted under the agreement was fraudulent. According to arrest warrants, portions of the material were copied from a report written by a transportation expert in Canada.
The broader investigation also includes allegations that public funds were improperly used to influence a CATS millage election. According to arrest documents from May 2021, Thomas sent text messages stating she had authority to change a public relations vendor on a CATS contract, allowing her to add Broad Innovation Marketing Firm to the list of approved contractors.
Broad Innovation Marketing Firm, operated by Terral and Erica Jackson, was awarded a contract in August 2021 related to a COVID-19 Mitigation Research Grant focused on contactless payment systems. However, court records say statements allegedly made by the Jacksons indicate the money was instead used to “galvanize the public to vote for the upcoming CATS millage.”
According to prosecutors, Thomas later admitted she intentionally avoided using the word “millage” in the contract because she knew doing so would be illegal. Invoices totaling more than $49,000 were approved under the agreement.
Minutes from a September 2021 CATS board meeting show that Terral “TJ” Jackson was performing public relations work for the agency during the same period. Both Terral and Erica Jackson were indicted on January 21 on additional charges of theft of $25,000 or more and conspiracy to commit theft, and were booked into the East Baton Rouge Parish Prison that night.
The investigation is being led by Attorney General Liz Murrill and is part of a wider probe into alleged corruption in East Baton Rouge Parish government. Last month, Baton Rouge developer Bradley Brown was charged with multiple financial crimes, including money laundering and falsifying public records, after receiving $6 million in federal funds for a housing development in Scotlandville.
Court records from that case show text messages between Brown and Dunn discussing payments and returns on investment prior to Dunn voting to award Brown funding for the “Housing for Heroes” project. Dunn has previously said the relationship was not a business partnership, describing the transaction instead as a bridge loan.
Former East Baton Rouge Parish School Board member & Dunn’s 2020 Metro Council District 6 opponent Dawn Chanet Collins reacted to the indictment in a brief statement, saying, “This is so unfortunate for the residents of Metro Council 6.”
The Bayou Progressive reached out to Dunn directly for comment Wednesday. At the time of publication, he had not responded.
Dunn remains in office pending further court proceedings.