By Robert Burns (Special to LouisianaVoice)
In 2001, I attempted to sell my home via the traditional means. My listing was with ReMax, but I wasn’t happy with the snail’s pace everything seemed to move at. It was not the fault of my agent but rather a simple reflection of the reality of traditional real estate listings in that they do not create any urgency to buy.
About five weeks into my listing, I noticed an ad in the real estate section of the paper for an upcoming real estate auction. The ad got my attention, so I called the owner of the real estate auction company. Thereafter, I attended four of his auctions before deciding that was the route I wanted to go. My auctioneer, at that time, had a 20-year stellar record of successful auctions (it’s now nearly 35 years). I was impressed by his professionalism and how the auction method could generate a firm, unconditional offer accompanied by a 10% liquidated damages deposit on a definite date and time that was within only about 30 days of executing the auction listing. I utilized his services (even keeping my ReMax agent in the mix), and I was pleased with the results. Consequently, within days of us closing, I called him and asked if I could join his company. He blew me off in saying, “Sure, but you have to get your real estate license first.” He later said he thought that was the last he’d ever hear from me, but I surprised him when I called only three weeks later indicating I’d procured the real estate license and asking what I needed to do next.
Over the next two years, he taught me everything one needs to know to be a successful real estate auctioneer. His honesty, his integrity, and his ethics are beyond reproach, and they’re reflected in his auction results. He instilled such confidence in me that I even formed my own auction company and began auctioning real estate properties myself. I enjoyed helping solve people’s problems more than anything I’ve done in my entire professional career.
As many Louisiana Voice readers are aware, Gov. Jindal’s office contacted me within months of his taking office about serving on the Louisiana Auctioneer Licensing Board (LALB). I would later learn I was contacted only because other applicants had felony convictions or other problems and were ineligible to serve. I figured I had zero chance of being selected because I never contributed a dime to Jindal’s campaign and, except for 2003 (the year he lost), I didn’t even vote for him. Nevertheless, I completed the application and figured that would be the end of it. To my bewilderment, his office called me about six weeks later congratulating me on being selected to serve on the board. I should have known something was wrong right then because it just didn’t make sense to be selected to serve on a board with no political allegiance to the governor. Nevertheless, I naively felt honored to have been selected and anxiously looked forward to improving the auction experience for Louisiana consumers.
What I didn’t know was that I would encounter rampant racism on the board and that corruption was so prevalent that I had trouble believing any board could conduct itself in such an anti-consumer, auctioneer-biased manner. I’ve written several articles already on this blog regarding what I encountered in my early days on the board, so I won’t repeat them here.
Even with all I encountered, however, I never dreamed the LALB could stoop as low as it has in the last six months. Readers may recall the post entailing 84-year-old widow LALB complainant Betty Jo Story. That case stands out as the most egregious abuse of any auction victim I’ve seen, yet LALB members found the auctioneer guilty of nothing and merely advised him to “go out in the hallway and work this out.” Instead, he proceeded straight past Ms. Story and headed back to his home in DeRidder. Thereafter, he refused to try and make things right with her, so she sued him in 36th JDC in DeRidder. On October 29, 2014, serving in a pro-se capacity (and doing so quite well I might add), she obtained a judgment of $4,102.29, which the auctioneer paid within a week.
Even more disconcerting, however, was the preferential treatment granted to Brant Thomson, son of State Sen. Francis Thompson. In that case, the LALB closed its investigation (finding no auctioneer wrongdoing), only to reopen it and find the auctioneer guilty and even file Thompson’s bond claim for him after he drafted a scathing letter to the LALB and had the presence of mind to copy to Ms. Holly Robinson, Gov. Jindal’s then-head of Boards and Commissions. That incident is covered in this post.
Another complainant, Ms. Judy Fasola, claimed she was victimized by auctioneer Ken Buhler, who happens to have Marvin Henderson as his lead cheerleader with the LALB. Henderson, a substantial contributor to Jindal campaigns, has historically exerted control over the board which, for whatever reason, is intimidated by him and his self-proclaimed (and no doubt accurately stated) ability to have members removed from the board with a mere phone call to the governor. The LALB is afraid to assist any person, and that most certainly includes Fasola, in an auction complaint when such assistance may alienate Henderson (as pursuing a bond claim entailing Buhler or any affiliate of his would).
LALB cited a number of reasons for refusing to file a bond claim for Fasola at its November 5, 2014 meeting. Thereafter, on January 13, 2015, Fasola refuted the LALB members’ November statements as being factually incorrect (a claim substantiated by prior videos). That fact notwithstanding, at its March 10, 2015 meeting, the LALB, via a prepared statement drafted by legal counsel Larry S. Bankston, but read by his associate, Jenna Linn, stated that the board has “total discretion” regarding whom it wishes to file bond claims for and whom it wishes to decline to do so. That is not a joke. That’s what Linn read from Bankston’s letter.
Given this public statement, perhaps it would be appropriate that consumers refrain from using the services of auctioneers. The rationale is simple. If a primary source of consumer protection is the auctioneer bond, and the LALB is now publicly asserting that it can cherry pick whom it will file bond claims for, that leaves consumers at the whim of political connections affiliated with the board. When combined with the board’s demonstrated history of filing a claim for a politically connected alleged victim like Brant Thompson but declining to do so when it may alienate political powerhouse auctioneer Henderson, why should any consumer have faith and confidence in an auctioneer? It’s time to face reality. Though there are exceptions, the auction industry is corrupt and the board designed to protect consumers is even more corrupt.
I conclude by providing a webpage of Fasola’s three-meeting ordeal, complete with links for documents and video coverage. Additionally, I provide this webpage of video highlights of the March 10, 2015 LALB meeting. Linn rudely cut off my public comment when I referenced “FBI investigations,” so I provide an off-site assessment of why she likely recoiled when I uttered those words.
I have no idea if the next governor will do anything to clean up the mass of corruption, nepotism, and cronyism that exists on the LALB. If he doesn’t, I would recommend a continued boycott of auctioneer services. To do otherwise would be an injustice to the many clients and bidders I fought so hard to ensure access to experienced honest, open, and transparent auctions.
More evidence that I live in a Banana Republic that began with the election of,Jindal as governor. I can only hope that the populace are not stupid enough to elect someone who will continue in this vein. I.e. Vitter or Angelle. If they do it may be time to move to Havana
I agree with you, NOLA, on our present situation, and all I’m seeking is ANY candidate who is willing to take a close, hard look at many of these boards and commissions and abolish those which aren’t doing their jobs of protecting the public and are instead serving as de facto trade unions (in an alleged “right to work” state). ANY candidate which articulates a sincere willingness to do that is going to get my vote (and that of many of my friends and colleagues who are in disbelief at the auctioneer board) irrespective of party affiliation. I just find it incredible that the board, on 11/5/14, itemizes off all the reasons it won’t file a bond claim for Fasola then, when she refutes every single one of those reasons as being factually INCORRECT, they change their tune on 3/10/15 and say, “None of what you reference is relevant!” Let me provide the direct link to the video wherein readers can watch Ms. Linn read Larry Bankston’s letter into the record where he says that Ms. Fasola’s points are “irrelevant” but also, toward the end of his letter, indicates the LALB has sole discretion regarding whom it may wish to file a bond claim: https://youtu.be/4BGvAfV38iU.
Interestingly enough, in the preceding video, Bankston says, “It is my legal opinion that neither the executive director nor the attorney for the board has the authority to file a bond claim. That is reserved to the board.” Mr. Bankston provided no explanation as to how bond claims were filed for David Swift and Brant Thompson WITHOUT ANY APPROVAL BY THE BOARD. Apparently, he was implicitly pointing the finger of blame at Sandy Edmonds (executive director who has previously been cited by the Inspector General’s Office for payroll fraud) and Anna Dow (attorney) for overstepping their authority
A good analogy would be two horses which managed to get out of the barn and are now roaming free. Ms. Fasola was on her horse when they closed the gate and hit her horse in the nose. The horse got upset and reared up and threw Ms. Fasola down to the ground hard, so she’s understandably upset at the closing of the gate before her horse could get out.
That’s why I provide these videos!! People would never believe it without proof of people said these things. Here’s the video link for me explaining Ms. Linn abruptly cutting me off when I referenced “FBI investigations” and why she likely did so: https://youtu.be/p4ORbEbo9D0.
Hopefully, things will get better (can’t get much worse) in early 2016 upon some new governor occupying the governor’s mansion.
We have no choice but to elect John Bel Edwards. Vitter is as corrupt as they come, and makes Jindal look like an amateur!
He’s right. If this board has discretion on who it helps and doesn’t, we have to exercise our discretion on whether we hire an auctioneer or bid at an auction. As for me, I’m not until I see something has been done to fix this type of stuff.
Great article Bob. There is lots of housecleaning to do when lil booby leaves the mansion.
Bankston as attorney tells us all we need to know. He’s concerned with nobody but Bankston and would be challenged to spell consumer. Also, Jindal could care less about this board. He appointed someone not even supporting him and lets them hire a Democrat with extensive past problems as their attorney. That certainly wouldn’t happen with any board he thought was important.
Agree totally! Just like when Bankston was a state senator and took money to protect video poker operators, he’s going to side with those writing his checks which, in this case, are auctioneers. Shouldn’t surprise anyone that Sen. Thompson’s son was taken care of. Investigation was probably reopened at Bankston’s direction. Thompson is a Democrat, so it’s no surprise that Mr. Bankston, as the son of one of the most prominent Democrats of the 20th century, Jesse Bankston, would not hesitate to go to bat for a current Democratic state senator’s son. As for the Fasola woman, she’s pretty much out in the cold. She’s wasting her time to think she’ll get a fair shake with these crooks.
The sad thing about this is, this type of going on is in every state department.
As for me the only person that has stood up to the Lil Hitler is our State Treasurer Kennedy! He has my vote
Perhaps auction off the auction board? Sounds like it’s corrupt enough to attract a decent bid from New Jersey.
Inspector General should have been all over the favoritism to Thompson. Oh, I forgot. More Jindal cronies. What a joke he turned out to be!