Archive for the ‘Prison’ Category

In a state drowning in consulting contracts, what’s one more?

Bobby Jindal is a lame duck governor who long ago set his sights on bigger and better things. He has abdicated every aspect of his office except the salary, free housing and state police security that go with the title. In reality, he has turned the reins of state government over to subordinates who are equally distracted in exploring their own future employment prospects.

His only concerns in almost eight years in office, besides setting himself up to run for President, have been (a) appointing generous campaign donors to positions on state boards and commissions and (b) privatizing state agencies by handing them over to political supporters.

To that end there has been a proliferation of consulting contracts during the Jindal years. The legislative auditor reported in May that there were 19,000 state contracts totaling more than $21 billion.

So as his term enters its final months and as Commissioner of Administration Kristy Nichols has less than a month before moving on to do for Ochsner Health System what she’s done for the state, what’s another $500,000?

LouisianaVoice has learned that Nichols signed off on a $497,000 contract with ComPsych Corp. and its affiliate, FMLASource, Inc. of Chicago, to administer the state’s Family and Medical Leave Act (FMLA) program. FMLA CONTRACT

It is no small irony that Nichols signed off on the contract on May 19, less than two weeks after the legislative auditor’s report of May 6 which was highly critical of the manner in which contracts are issued with little or no oversight.

The latest contract removes the responsibility for approving FMLA for state employees and hands it over to yet another private contractor.

Apparently FMLA was just one more thing the Jindal administration has determined state employees are incapable of administering—even though they have done so since the act was approved by Congress in 1993.

Because no state employees stand to lose their jobs over this latest move, the contract would seem to simply be another consulting contract doled out by the administration, obligating the state to more unnecessary expenditures.

Whether it’s farming out the Office of Risk Management, Office of Group Benefits, funding voucher and charter schools, or implementing prison or hospital privatization—it’s obvious that Jindal has been following the game plan of the American Legislative Exchange Council (ALEC) to the letter. That plan calls for privatizing virtually every facet of state government. If you don’t think the repeated cuts to higher education and health care were calculated moves toward ALEC’s goals, think again.

The contract runs from May 17, 2015 through May 16, 2016, and the state agreed to pay FMLAServices $1.45 per state employee per month up to the yearly maximum of $497,222.

Agencies for which FMLAServices will administer FMLA include the:

  • Division of Administration;
  • Department of Economic Development;
  • Department of Corrections;
  • Department of Public Safety;
  • Office of Juvenile Justice;
  • Department of Health and Hospitals;
  • Department of Children and Family Services;
  • Department of Revenue;
  • Department of Transportation and Development.

The legislative auditor’s report noted that there is really no way of accurately tracking the number or amount of state contracts. STATE CONTRACTS AUDIT REPORT

“As of November 2014, Louisiana had at least 14,693 active contracts totaling approximately $21.3 billion in CFMS. However, CFMS, which is used by OCR to track and monitor Executive Branch agency contract information, does not contain every state contract.

“Although CFMS, which is a part of the Integrated Statewide Information System (ISIS), tracks most contracts, primarily Executive Branch agencies use this system. For example, Louisiana State University obtained its own procurement tracking system within the last year, and most state regulatory boards and commissions do not use CFMS (Contract Financial Management System). As a result, there is no centralized database where legislators and other stakeholders can easily determine the actual number and dollar amount of all state contracts. Therefore, the total number and dollar amount of existing state contracts as of November 2014 could be much higher.”

The audit report also said:

  • State law (R.S. 39:1490) requires that OCR (Office of Contractual Review) adopt rules and regulations for the procurement, management, control, and disposition of all professional, personal, consulting, and social services contracts required by state agencies. According to OCR, it reviews these types of contracts for appropriateness of contract terms and language, signature authorities, evidence of funding and compliance with applicable laws, regulations, executive orders, and policies. OCR also reviews agencies’ procurement processes against competitive solicitation requirements of law. The contracting entity is responsible for justifying the need for the contract and conducting a cost-benefit analysis if required.
  • However, state law does not require that a centralized entity approve all state contracts.
  • According to the CFMS User Guide, OCR is only required to approve seven of the 20 possible contract types in CFMS. The remaining 13 types accounted for 8,068 contracts totaling approximately $6.2 billion as of November 2014. Exhibit 2 lists the 20 types of contracts in
  • CFMS and whether or not OCR is required to approve each type, including the total number and dollar amount of these contracts.
  • In fiscal year 2014, 72 agencies approved 4,599 contracts totaling more than $278 million.

The Office of Contractual Review was since been merged with the Office of State Procurement last Jan. 1.


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The combined revenues of $3.5 billion and net profits of $697 million for 2014, America’s two largest private prison companies, Corrections Corporation of America and the GEO Group clearly illustrate the profit potential in the operation of private prisons.

It’s no wonder. With 2.4 million people incarcerated in this country, America easily leads the civilized world with more than 700 of every 100,000 of its citizens kept behind bars. The Russian Federation is a distant second at 474 per 100,000 imprisoned. Canada has 118 per 100,000 of its population incarcerated. The four Scandinavian countries have the fewest number per 100,000 in prison. The numbers for them are, in order: Denmark (73), Norway (72), Sweden (67) and Finland (58).

If Louisiana were a nation, it would double the U.S. ratio. (At least we’re number one in the world at something.) Latest figures show 1,420 of every 100,000 Louisiana citizens (one of every 86 adults) is housed in a cell, giving Louisiana the distinction of having the highest rate in the world. Nearly two-thirds of those are non-violent offenders. We should be so proud. Louisiana’s rate of incarceration is three times that of Russia, nearly 10 times that of the United Kingdom, 12 times Canada’s rate, and 24 times that of Sweden.

But private prisons are not the only ones benefitting from the glut of prisoners in Louisiana. There are the prison telephone systems which charge exorbitant rates to prisoners’ families for collect calls home. The phone companies are protected by state contracts, making their operations a literal monopoly.

And then there are the privately-run prison work release, or “transitional work program” companies and that’s where the waters really get murky.

Most work release programs are supervised by parish sheriffs and some are kept in-house by the sheriffs. The one common thread is that all of them use the profits from inmate labor to underwrite other operations of the sheriffs’ departments. There have been private work release companies to spring up, operate for a while and then disappear, notably Northside Workforce in St. Tammany Parish as well as privately-run programs in Lafayette and Iberia parishes.

One such company isn’t likely to face the operational pitfalls experienced by the others, however. That is because of its connections to the top brass at the Louisiana Department of Corrections and Louisiana State Prison at Angola, connections that likely even extend into the governor’s office.

Louisiana Workforce, LLC (no connection with the Louisiana Workforce Commission) has been around for 10 years since it was founded on Feb. 4, 2005 by Paul Perkins. Both Perkins and Louisiana Workforce have been active in writing campaign checks to sheriffs, key legislators and Jindal since 2009.

It was not until 2014, however that Louisiana Workforce really burst onto the scene in a big way. Following an inmate’s escape from a Northside Workforce jobsite in St. Tammany that same year, Department of Corrections (DOC) Secretary James LeBlanc mandated that local sheriffs not be approved for outsourcing work-release programs without first going through a competitive bid process.

The only problem was, the process turned out to be not so competitive.

That’s not unusual if you take the trouble to talk to business owners who find themselves shut out of the state contract bid process. If they are completely candid, they will tell you that if a state agency prefers a given vendor, the specifications can be—and often as not, they are—written in such a manner as to eliminate all but the preferred vendor.

The practice is similar to, though not quite as blatant as, the north Louisiana parish police jury which, way back in the 1970s when I was a young reporter, decided to purchase a used bulldozer. When the advertisement for bids was published in the parish’s official journal (the local newspaper), the specifications included the serial number of the ‘dozer which quite understandably narrowed the field of eligible bidders somewhat.

It turned out that even though six private providers, along with a representative from the Beauregard Parish Sheriff’s Office, attended a pre-bid conference, Louisiana Workforce, LLC, in partnership with the Beauregard sheriff’s office, submitted the only bid.

Perkins is a former assistant warden at Louisiana State Prison at Angola who was earning $75,000 a year until his retirement in 2001. He also is a former business partner of both LeBlanc and Angola Warden Burl Cain. All that may or may not have played a part in the apparent easy manner in which Louisiana Workforce got the contract by default, but one competitor suggested that it may not have hurt.

It also may not have hurt that Perkins and Louisiana Workforce combined to pour nearly $40,000 into the political campaigns of five of the six sheriffs with whom Louisiana Workforce has contracts, or that another $15,000 was contributed to Bobby Jindal, or that thousands more to members of the legislature who sit on key committees like House Appropriations, House Criminal Justice or one of the three Senate judiciary committees.

Perhaps it is only a coincidence that Burl Cain asked for and received a favorable ruling from the State Board of Ethics in 2012 permitting him to be compensated for providing consulting services on a part-time basis to Louisiana Workforce—and even allowing him to have a “small minority ownership” in the company. It is not known whether or not Burl Cain actually performs any consulting work or receives any monetary recompense because while he, like all administrative personnel, is required to file a financial disclosure form with the state, he is not required to fill out a complete disclosure.

Even LeBlanc in 2006 received Ethics Board approval to offer consulting services or even own an interested in an unspecified work-release program.

Perkins said that while he feels Cain would be a valuable addition to his company and even though the Ethics Board approved such an arrangement, he felt that it would be a mistake for Cain to work for him while also serving as Angola warden.

But that does not by any measure preclude the presence of Cain influence on operations at Louisiana Workforce. The Louisiana prison system over the years has indisputably become a Cain family fiefdom.

DOC has something called Prison Enterprises which, on the surface, is a good thing in that it allows prisoners to learn marketable skills while at the same time providing a source of income to help fund prison operations. But Prison Enterprises is more than simply a means to sell soybeans, corn and cotton grown on the sprawling Angola farm; it is also a means of enrichment for enterprising (forgive the pun) entrepreneurs.

DOC’s own web page touts its Transitional Work Program (formerly work release) which certain eligible offenders may enter from one to three years prior to their release, “depending on the offense of conviction.” Participants “are required to work at an approved job and, when not working, they must return to the structured environment of the assigned facility,” the web page’s description of the program says. The “assigned facility,” of course, refers to the housing provided by private companies like Louisiana Workforce.

“Probation and Parole Officers are assigned monitoring responsibilities for contract transitional work programs,” it said. Claiming that transitional work programs are successful in assisting in the transition from prison back into the work force, the web page claims that 10 to 20 percent of offenders “remain with their employer upon release.”

Additionally, the two-paragraph description says, a second program called the Rehabilitation and Workforce Development Program, allows prisoners who have become skilled craftsmen to be placed in higher paying jobs where they “are able to make wages to maintain self-sufficiency.”

But then a peculiar thing occurs when readers are instructed to “click here” to see a list of transitional work programs throughout the state. Thinking we would find other companies similar to Louisiana Workforce, we clicked and presto! We were returned to DOC’s main page.

So, with Prison Enterprises overseeing the operations of DOC’s Transitional Work Program, who do you suppose presides over Prison Enterprises?

That would be Michael Moore, who earns $128,500 per year as Prison Enterprise Director. But serving right under him is none other than Marshall Cain, one of Burl Cain’s two sons who holds the title of DOC Prison Enterprise Regional Manager at $63,500 per year. Cain’s other sun, Nathan Cain, earns $109,000 per year as Warden of Avoyelles Correctional Center. (The elder Cain pulls down $167,200 as Angola Warden.)

But the key person in all this is Seth Smith, Burl Cain’s son-in-law, who earns $150,000 per year as a DOC Confidential Assistant. That’s more than his boss, LeBlanc, who makes $136,700 as DOC Secretary. So what does a confidential assistant do for that salary? Well, for openers, he assigns which prisoners go into the Transitional Work Program for parish sheriffs and private operators like Louisiana Workforce.

And since Louisiana Workforce gets to keep 62 percent of each prisoner’s earnings, plus $5 per day for each inmate it houses, it certainly would be to the company’s benefit to receive the most skilled workers for placement in the Transitional Work Program. After all, 62 percent of say, $15 per hour for skilled labor is considerable more than 62 percent of a minimum wage job like flipping hamburgers, for example.

One employer who hired an inmate through the program, wrote in a letter to the editor of the Baton Rouge Advocate last November that the system was rigged against the inmate. He cited an example of an inmate earning $200 per week. After the 62 percent is held out, he would be left with $76 before taxes and Social Security, leaving him only about $36 for a week’s work.

Then, he said, the program runs a commissary where inmates are charged “inflated prices” for necessities such as soap, toothpaste, deodorant, etc., leaving them with “virtually nothing to start a new life.” http://theadvocate.com/news/opinion/10768344-123/letter-inmates-left-with-pittance#comments

There are two sides of this scenario, of course. There is the argument that they are in prison because they committed a crime and therefore, should not be afforded favorable treatment. The other argument is that by working at below-market wages, they are keeping honest, law-abiding people from jobs they need to support their families.

But lost in both those arguments is the windfall profits reaped by the private vendors who are fortunate enough to have an inside track to the decision-makers at DOC and the sheriffs who run their own prisons.

Perkins and his company, Louisiana Workforce, LLC, have combined to contribute to five of the sheriffs with whom his company has contracts:

  • East Baton Rouge Sheriff Sid Gautreaux: $15,000;
  • Livingston Parish Sheriff Jason Ard: $4,500;
  • Iberia Parish Sheriff Louis Ackal: $7,000;
  • Terrebonne Parish Sheriff Jerry Larpenter: $4,340;
  • West Feliciana Parish Sheriff Austin Daniel: $6,850.

But the combined $37,690 to those five sheriffs doesn’t end there; he and his company have also contributed $15,000 to Jindal and thousands more to members of key legislative committees.

Small wonder.

An article in the New Orleans Advocate on Oct. 13, 2014, noted among other things that with Louisiana Workforce’s acquisition of the Phelps Correction Center in DeRidder, the company had about 1,200 inmates working in its work-release program. At an average of say, 62 percent of an average of only $10 per hour, plus another $5 per day for housing each inmate, Louisiana Workforce would receive nearly $17 million a year. At an average of $12 per hour, the paper said, the income would approach $20 million annually. http://www.theneworleansadvocate.com/features/music/10477753-171/work-release-operator-with-ties-to

It’s a system open for abuse with only minimal oversight. On Sunday, Associated Press moved a story in which inmates at a privately-run Nashville, TN., jail operated by Corrections Corporation of America, the largest private prison operation in the U.S., say they worked without pay to build commemorative games, bird houses, dog beds, and plaques which prison officials then sold online and at a flea market. http://www.msn.com/en-us/news/crime/inmates-say-they-worked-for-free-for-jail-officials/ar-BBlNdCG?ocid=iehp

To back up their claim, two of the prisoners said they concealed their names and the number of the Tennessee statute that makes it illegal for prison officials to profit off inmate labor beneath pieces of wood nailed to the backs of the items.

In 2010, the Louisiana Office of Inspector General (OIG) issued a report that said Louisiana Workforce employees forged or altered several dozen employer work-release forms and inmate authorization forms upon learning that DOC was going to make a site visit to its East Baton Rouge Parish facility. One employee, an assistant warden, admitted to forging at least 26 such forms and the OIG report said that higher-ups at Louisiana Workforce knew of the actions.

LeBlanc, in his response to the report, said that DOC had “no jurisdiction” to discipline the Louisiana Workforce staff, in effect saying that Louisiana Workforce is left to discipline itself.

And in 2013, the Legislative Auditor’s Office issued a report that challenged the use of inmate labor by then-Terrebonne Parish Sheriff Vernon Bourgeois to renovate a building used by Louisiana Workforce’s program. The audit said the cost of that labor was about $350,000 and the auditor’s office said the use of free inmate labor for the project may have been in violation of the Louisiana Constitution

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“I’ll meet you over at confession on Saturday, if you want.”

—Public Service Commission Chairman Eric Skrmetta, to Louisiana Conference of Catholic Bishops Associate Director Robert Tasman, apparently implying that Tasman was being untruthful in his testimony that the conference desired a reduction of rates charged inmates for telephone calls.

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At long last we have only three more days of those annoying—as in wanting to throw a brick through that expensive flat screen—TV campaign ads in which a leering U.S. Rep. Bill Cassidy and a weary appearing incumbent U.S. Sen. Mary Landrieu trade insults, barbs and outright lies about each other.

But there is another race to be decided Saturday that has flown under the radar of all but the residents in Public Service Commission (PSC) District 1, which encompasses all or parts of Orleans, Jefferson, Ascension, St. Bernard, Plaquemine, St. Charles, and the Florida parishes of Livingston, Tangipahoa, Washington, St. Helena and St. Tammany.

Even in those parishes, the tawdry Landrieu-Cassidy contest to determine the least undesirable candidate has overshadowed the runoff between PSC Chairman Eric Skrmetta and challenger Forest Bradley Wright, both Republicans.

But it is an election of which voters in District 1 should certainly be aware.

In the November 4 primary, Wright polled 99,515 votes (38.44 percent) to Skrmetta’s 95,742 (36.98 percent), with Republican Allen Leone playing the spoiler role with 63,622 votes (24.58 percent) to force Saturday’s showdown.

For this race, LouisianaVoice has chosen to take a closer look at Skrmetta, by resurrecting a video of his bizarre, and certainly unwarranted behavior two years ago during the testimony before the PSC of a spokesman for the Louisiana Conference of Catholic Bishops.

A smug Skrmetta displayed unprecedented contempt for Robert Tasman who, through frequent interruptions and challenges from the chairman, attempted to read a statement on behalf of the conference which called upon the PSC to reduce exorbitant telephone rates for prison inmates.

Skrmetta claimed that he was told by an archbishop for the church that the church’s position was simply that rates not be increased. The exchange between Skrmetta and Tasman escalated to Skrmetta’s suggesting that Tasman should attend confession, presumably for attempting to mislead the commission. http://joule-energy.us5.list-manage.com/track/click?u=c2265593d29be2a1d4f35bf12&id=9bacfdbffc&e=25b6a2fa99

Skrmetta’s rude behavior got so bad at one point that it provoked a challenge by fellow PSC member Foster Campbell who admonished the chairman, suggesting that he keep quiet until Tasman completed his testimony.

That only served to spark a heated verbal exchange between Campbell and Skrmetta.

The commission eventually worked out a compromise that even Skrmetta voted for. Regulators agreed to cut the rates by 25 percent for prisoner calls to family, clergy, and government officials. http://theadvocate.com/home/4666375-125/psc-rolls-back-prison-phone

So, what moved Skrmetta to such passion that he would challenge the veracity of an official of the Catholic Church?

Well, for openers, try $29,500.

That’s how much he has received in campaign contributions since 2009 from six companies and executives of two of the companies that provide inmate telephone services. Two of those, Securus Technologies of Dallas, and City TeleCoin Co. of Bossier City, combined to contribute $12,000 to Skrmetta’s campaign in separate contributions in December of 2013, nine months after the companies were cited by the PSC for charging extra fees in violation of the amended rates of December of 2012.

Global Connections of America of Norcross, Georgia, which contributed $5,000, was also in violation but was not cited.


Other inmate telephone service companies that contributed to Skrmetta included:

  • Network Communications of Longview, Texas ($5,000);
  • William Pope, President of Network Communications ($2,500);
  • Gerald Juneau and his wife, Rosalyn, owners of City TeleCoin ($5,000 each);
  • ATN, Inc. of St. Mary, Georgia ($2,500);
  • Ally Telecom Group of Metairie ($2,500).

Taking campaign contributions from regulated industries, while posing the obvious risk of conflicts of interest and even influence-buying, is not at all unusual. Utilities and trucking companies which are regulated by the PSC contributed to commission members just as insurance-related companies contributed to campaigns for Louisiana Insurance Commissioner in a practice some equate to little more than not-so-subtle bribery.

Skrmetta, however, has taken the practice to art form status; he has received substantially more campaign money from regulated industries than any other member of the PSC.

In all, he has received a whopping $482,800 in individual contributions of $500 or more from regulated industries, attorneys and PSC contractors just since 2009. That was a year after he was first elected to the PSC. Only two campaign contributions totaling $1,200 are listed on his campaign reports prior to 2009.

Scores of representatives of Entergy contributed at least $30,800 since 2009 and the New Orleans law firm Stone-Pigman and several of its attorneys chipped in another $29,750—$17,000 on the same day that Skrmetta made the motion during a PSC meeting to approve an additional $220,000 in consultant fees and expenses for the firm’s defense of litigation filed against the commission by Occidental Chemical Corp.

Skrmetta, it should be noted, opposed the ban on fundraisers within 72-hours of PSC meetings—understandable in hindsight. A 72-hour ban be damned; he took the money on the same day of the commission’s meeting and its approval of the amendment which bumped the law firm’s contract up to $468,000 in fees and $39,600 in expenses.

Wright, Skrmetta’s opponent in Saturday’s runoff election was critical of Skrmetta’s taking the contributions from Stone-Pigman on the same day as the PSC meeting—and on the same day as the contract amendment.

“The issue is integrity, which is undermined when a public service commissioner takes a cut off the top from the contracts they authorize in the form of campaign contributions,” he said. “We pay the price from these bad dealings, not only in dollars but also in the erosion of trust that happens all too frequently when elected leaders put themselves and their own power before the interest of the public.”

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The good people of Alabama need not fear the corruptive influence of former Gov. Donald Siegelman. Women and children may emerge from hiding, confident they are now safe and no longer must be protected from his treachery.

Siegelman is securely incarcerated at Oakdale’s federal lockup, the same facility that once housed another former governor—Louisiana’s very own Edwin W. Edwards—and from all accounts Sweet Home Alabama is the better for his prolonged absence.

The man, after all, took a $500,000 contribution from a member of the state board for hospital oversight, one Richard Scrushy, CEO of HealthSouth.

But wait. The half-million bucks didn’t go to Siegelman, after all. The money was contributed by Scrushy instead to help underwrite a campaign to convince the voters of Alabama to vote in favor of a state lottery, the proceeds of which would provide funds for Alabama youth to attend state colleges for free.

The referendum was controversial in that owners of the Indian casinos next door in Mississippi were somewhat skittish about Alabamans spending their gambling money at home to fund, of all things, education—not to mention that free college sounds a bit socialistic.

Suddenly, major players entered the picture—players like Karl Rove and notorious lobbyist Jack Abramoff, who would soon face his own legal problems. No matter. Abramoff led the fight, pouring money into the campaign to oppose the referendum which ultimately lost.

And what did Scrushy get in return? Siegelman reappointed him to the Certificates of Need Review Board where he had been serving without pay for the previous 12 years.

The prosecution of Siegelman has been heavily criticized by legal experts and columnists across the nation. https://madmimi.com/p/940b05?fe=1&pact=23974859063

Even the award-winning CBS news magazine 60 Minutes weighed in on the issue. http://www.cbsnews.com/news/did-ex-alabama-governor-get-a-raw-deal/

Siegelman, a Democrat with Jewish and Catholic roots, had won every state office in Alabama by 1998, including attorney general and lieutenant governor. In 2002, having already served one term as governor, he was heavily favored to win election over incumbent Gov. Bob Riley, the man who had defeated him four years earlier. But then the state’s top Republican operative, Bill Canary, contacted the nation’s top Republican operative, Rove, and the Justice Department’s investigation of Siegelman—led by Canary’s wife, U.S. Attorney Leura Canary—was launched.

With rumors swirling about alleged wrongdoing, Siegelman suddenly found himself in a tight race with Riley. On election night, Siegelman went to bed after having been declared the winner only to awake the next morning with Riley claiming victory.

Overnight, an unexpected redistribution of gubernatorial votes in Baldwin County, which includes the city of Daphne and part of Mobile Bay, reduced Siegelman’s total votes by 3,000, giving Republican Riley the governorship. Republican Attorney General Bill Pryor denied a recount of the paper ballots. No votes for any of the other offices being contested were changed. (Can you say hanging chads?)

And who was running Riley’s re-election campaign? That would be Bill Canary, husband of federal prosecutor Leura Canary. Well, no conflict of interest there.

Canary’s first efforts, carried out by assistant U.S. Attorney Alice Martin, were unsuccessful. Federal District Judge U.W. Clemon threw out the indictment for lack of evidence, saying the prosecution “was completely without legal merit” and “the most unfounded criminal case over which I presided in my entire judicial career.”

Canary was successful on her second try, however, obtaining a conviction on one of the 23 counts on which Siegelman was indicted. Presiding over that trial was Federal Judge Mark Fuller, who omitted a key legal requirement when giving the jury its instructions before it retired to deliberate: the need for an explicit promise of understanding in accepting the $500,000 from Scrushy.

Fuller, an appointee of President George W. Bush, would later have his own legal problems as well. In August of this year, he was arrested for beating his wife in an Atlanta hotel room http://www.al.com/news/index.ssf/2014/09/federal_judge_mark_fuller_a_ti.html but unlike Siegelman, was able to get the record expunged. http://crooksandliars.com/2014/09/don-siegelman-trial-judge-weasels-out

So what has all this to with the price of eggs in Louisiana?

Well, we just thought it would be interesting to compare the single transgression that got Siegelman a ticket to Oakdale with certain activities in Louisiana—and to ask somewhat rhetorically why no investigative agency is taking a closer look at some of the tactics of Gov. Bobby Jindal.

Take, for example, the case of Richard Blossman, Jr., of Lacombe and his Central Progressive Bank.

Blossman, while CEO of Central Progressive, “gave” each of his 11 board members a $5,000 bonus. The reality is (to borrow a favorite Jindal phrase), however, none of the $5,000 bonus payments ever went to the board members, according to Raphael Goyeneche, president of the New Orleans Metropolitan Crime Commission. Instead, immediately after the bonuses were “announced” by Blossman, 11 individual checks of $5,000 each were sent to Jindal’s 2007 campaign in the names of the individual—and oblivious—board members.

“The defendant (Blossman) well knew the ‘bonus’ was to funnel illegal political contributions and was not a bonus, as he caused to be inscribed in the board minutes,” prosecutors said in June of 2012.

“That is a felony,” Goyeneche added.

This revelation came on the heels of word from the Louisiana Board of Ethics in May of 2012 that Jindal received $40,000 in campaign contributions from landfill company River Birch, Inc. of Metairie when the company formed six “straw man entities” to launder illegal donations to Jindal.

So, did Jindal’s campaign return the $95,000 in ill-gotten gains?

Well….no. “We accept every contribution in good faith and in accordance with the law,” said Timmy Teepell, who ran Jindal’s 2007 campaign. Asked if Blossman received anything in exchange for his contributions, Teepell sniffed, “Absolutely not. Everyone who donates to our campaign gets the same thing and that is good government.”

Wow. Perhaps Earl Long was correct when he once said, One of these days, the folks in Louisiana will get good government “and they ain’t gonna like it.”

Jindal’s campaign and his Believe in Louisiana organization also accepted $158,500 in contributions from Iowa, LA., businessman Lee Mallet, his family members and several of his companies. Jindal then appointed Mallett, a college dropout, to the LSU Board of Supervisors and also had the Department of Corrections issue a directive to state parole and probation officers to funnel offenders into Mallett’s halfway house in Lacassine.


No quid pro quo there, right?

Mallett and his son were major contributors to other Republican candidates and the National Republican Party as well.

Carl Shetler of Lake Charles also received an appointment from Jindal—to the University of Louisiana System Board of Supervisors—after contributing $42,000 to Jindal’s campaign. Shetler, a Lake Charles car dealer, some years before had singlehandedly gotten McNeese State University placed on athletic probation by the NCAA when it was learned that he’d paid money to McNeese basketball players.

In fact, Jindal’s campaign received $1.8 million in contributions from people he has appointed to state boards and commissions, some of whom delivered their checks only days or weeks after their appointments, according to Nola.com. Virtually the entire memberships of the Louisiana Stadium and Exposition District (Superdome Commission) and the LSU Board of Supervisors are comprised of major contributors to Jindal political campaigns.

In 2008, Jindal accepted $30,000 from Florida attorney Scott Rothstein, his law firm and his wife. Rothstein was later disbarred after his conviction for running the largest ($1.4 billion) Ponzi scheme in Florida history.

Jindal also accepted $10,000 from Affiliated Computer Services (ACS) and later gave ACS employee Jan Cassidy, sister-in-law of Congressman Bill Cassidy, a state job with the Division of Administration.

Jindal took $11,000 from the medical trust fund of the Louisiana Horsemen’s Benevolent and Protective Association (LHBPA). The LHBPA board president, Sean Alfortish, was subsequently sentenced to 46 months in prison for conspiring to rig the elections of the association and then helping himself to money controlled by the association.

The association also was accused of paying $347,000 from its medical and pension trust funds to three law firms without a contract or evidence of work performed. A state audit said LHBPA improperly raided more than $1 million from its medical trust account while funneling money into political lobbying and travel to the Cayman Islands, Aruba, Costa Rica and Los Cabos, Mexico.

The association, created by the Louisiana Legislature in 1993, is considered a non-profit public body and as such is prohibited from contributing to political campaigns.

And then there is Tony Rudy.

Rudy once headed up an influence-peddling organization called the Alexander Strategy Group and through that firm, he pulled in tens of thousands of dollars in the 2004 and 2005 election cycles on behalf of Jindal from such donors as UPS, Eli Lilly, Bellsouth, R.J. Reynolds, Microsoft, Fannie Mae, Koch Industries, DuPont, AstraZeneca (a biopharmaceutical company), the National Auto Dealers Association, the Property Casualty Insurers Association, the American Bankers Association, and Amgen (biotechnology and pharmaceutical company).

Alexander Strategy Group was one of Washington’s premier lobbying operations before it was shut down in January of 2006 after its ties to DeLay and Abramoff, became known.

Rudy, a former aide to DeLay, worked for Abramoff before joining Alexander Strategy Group. Rudy’s wife also ran a political consulting firm that received $50,000 in exchange for services Rudy performed while working for DeLay. Delay was indicted in 2005 on money-laundering charges. Abramoff pleaded guilty in early January of 2006 to fraud and conspiracy charges.

One of Abramoff’s clients was the Chitimacha Indian Tribe of Louisiana that contributed at least $1,000 to Jindal who since has claimed to have given that money to charity.

Abramoff also received $32 million from the Coushatta Tribe of Louisiana to help promote and protect their gambling interests. The legal counsel for the Coushattas was one Jimmy Faircloth who once served as Jindal’s executive counsel and who has pulled in well over $1 million in representing Jindal in lost causes in various courts in Louisiana. Faircloth advised the tribe to sink $30 million in a formerly bankrupt Israeli technology firm for whom his brother Brandon was subsequently employed as vice president for sales.

And most recently, courtesy of Manuel Torres of the New Orleans Times-Picayune and Lee Zurik of WVUE-TV in New Orleans, we have learned that Jindal has spent more than $152,000 of state campaign funds on trips that bear a suspicious resemblance to federal campaign activity. http://www.nola.com/politics/index.ssf/2014/11/louisiana_gov_bobby_jindals_tr.html

State Ethics Administrator Kathleen Allen said the state’s campaign finance law grants considerable latitude as to how money may be spent but that the law prohibits the expenditure of funds on the office of president or vice president of the U.S. and Congress, presidential electors and party offices.

“When I read these provisions together, the conclusion is that you are a candidate for a state race and the money you raise can be used only for (a state) campaign or for exercise of that office,” Allen told Torres and Zurik.

There are other activities of the Jindal administration which have little to do with campaign contributions or appointments but which are nonetheless are questionable as to their motives:

  • Efforts to enhance State Police Superintendent Mike Edmonson’s retirement by as much as $55,000 per year. Because of our story, that unconstitutional attempt by our governor and his allies in the State Senate and the Department of Public Safety was thwarted.
  • Major pay increases given unclassified employees in the Jindal administration at the same time rank and file state employees have been denied raises for five years.
  • Generous tax incentives, exemptions and other favorable treatment given corporations that are costing the state some $3 billion per year even as repeal of the Stelly plan has cost the state $300 million per year.
  • Widespread abuses by the State Board of Dentistry and the Louisiana Auctioneer Licensing Board.
  • Bruce Greenstein’s initial refusal in testimony before a Senate committee to name the winner of a $200 million contract with the Department of Health and Hospitals and his eventual admission that the contract went to his former employer—testimony that eventually led to his indictment on nine counts of perjury.
  • Attempts by the Department of Education to enter into a data sharing agreement whereby sensitive personal information on students in the state’s public schools would be made available to a company controlled by Rupert Murdoch, head of Fox News.
  • Funding sources for Jindal’s political organization Believe in Louisiana—sources who have received major concessions and political appointments from the Jindal administration.
  • The real reason for the firing and indictment of former head of the Office of Alcohol and Tobacco Control (ATC) Murphy Painter: Painter’s refusal to crater to demands from the governor’s office that favored New Orleans Saints owner Tom Benson, a major contributor to Jindal’s political campaigns (Painter was subsequently acquitted of all charges and the state was forced to pay his legal expenses of some $300,000).
  • Efforts by Jindal to force retirees out of the Group Benefits health program with irresponsibly unaffordable increases in co-pays and deductibles, a story that eventually prompted hearings by the House Appropriations Committee.
  • The subsequent revelation that a document cited by DOA and the Office of Group Benefits (OGB) representative as the basis for the health benefits changes in reality said just the opposite of what was testified to.

And while all this goes on unabated in Louisiana, the former governor of Alabama, who did nothing more than accept a contribution to fund a referendum to benefit education, remains in Oakdale, victim of a prosecution with far more questions about the participants and their surreptitious activities than answers.


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