Louisiana Voice

Federal law prohibits tax-exempt organizations from donating money to a political campaign or endorsing a candidate verbally or in writing.

So how is it that Gov. Bobby Jindal’s campaign accepted contributions totaling $11,000 from the medical trust fund of the Louisiana Horsemen’s Benevolent and Protective Association (LHBPA), whose former top two officers are currently under a 29-count federal indictment?

The association, created by the Louisiana Legislature in 1993, is considered as a non-profit, public body that receives funding from proceeds derived from slot machines at racing facilities, pari-mutuel horse racing, off-track wagering, and video draw poker.

The funds are used to negotiate contracts for horsemen relative to purses, hospitalization, medical benefits, and other matters of concern to horse trainers, jockeys, and owners.

The association is charged with bookkeeping at Louisiana’s four racetracks and pays out purses, retaining 6 percent of the cut, or about $5 million per year, for pension, workers’ compensation, and medical funds. Following Hurricane Katrina, LHBPA also contributed money to horse owners and trainers to help them to deal with losses and medical costs.

A state audit by the Legislative Auditor’s office was released earlier this week that revealed that 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 audit report said the association may have violated state law by borrowing from its medical trust while spending $760,000 on political lobbying and $11,000 in contributions to the Jindal campaign fund.

LHBPA also set up its own workers’ compensation insurance firm and domiciled it in the Cayman Islands.

The questionable expenditures surfaced because of internal fights, led by members Stanley Seelig and Arthur Morrell. Seelig is president of the association’s board of directors and Morrell, a state representative for 23 years and father of current State Sen. J.P. Morrell, is first vice-president.

Both men fought the practices of former board president Sean Alfortish and former executive director Mona Romero. Both Alfortish and Romero have 29-count indictments pending against them in connection with alleged attempts to rig elections to the board. Their trial has been scheduled for Sept. 6.

Alfortish, an attorney who was paid $116,000 per year to serve as director of the association’s workers’ compensation and simulcasting operations, and Romero both refused to meeting with state auditors who said LHBPA also paid nearly $347,000 from its medical and pension trust funds to three law firms without a contract “or evidence of work performed.”

A spokesman for Jindal’s campaign headquarters, when asked why the governor would accept contributions from a non-profit against federal prohibitions of such practices, professed to know nothing about the $11,000 contribution but promised to look into the matter and get back to us.

That was on Monday.

We’re still waiting for the phone to ring.