Current New Orleans Mayor Mitch Landrieu, who won election in 2010 when term limits kept Nagin out of the race, said the charges mark "a sad day for the city of New Orleans."
In the 2006 mayoral race, Nagin beat then Lt. Gov. Landrieu, scion of a prominent Louisiana political family.
"Today's indictment of former Mayor Ray Nagin alleges serious violations of the public's trust," Landrieu said in a prepared statement. "Public corruption cannot and will not be tolerated."
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