Feeds:
Posts
Comments

Archive for the ‘Elections’ Category

Poor Troy Hebert. Like his mentor, Bobby Jindal, he just can’t seem to get any traction or notice in a crowded field of candidates.

Unlike Jindal, however, instead of sending out daily email blasts from Iowa proclaiming the glass to be half full (when in reality, the glass was just dirty and needed washing), Hebert, one of 24 candidates for the U.S. Senate, is making his case in the courts.

He should be right at home there, given the number of times he was sued by agents he fired and/or harassed during his tenure as Jindal’s Commissioner of Alcohol and Tobacco Control (ATC).

Where Jindal resigned himself to the kiddie table at the Republican debates in Iowa’s debates that more resembled a bunch of hogs trying to get to the slop trough (and we all know by now that the biggest pig of all, Trump, ultimately prevailed, causing the others to squeal pretty loudly), Hebert is suing a polling firm because he was incorrectly identified as a (gasp!) Republican!

Hebert, a former Democrat while serving as a State Representative from the parishes of Vermilion and Iberia, is a declared Independent, running without party affiliation.

He doesn’t seem to be commanding the same respect as a candidate that he did as head of ATC where employees were required to stand and chirp, “Good morning, Commissioner,” when he entered the room.

So he’s claiming in his lawsuit that a May poll (not to be confused with a maypole) conducted by Southern Media and Opinion Research and its veteran pollster Bernie Pinsonat was “flawed” because it incorrectly identified him as a Republican.

He said the polling firm is incompetent at best and committing fraud at worst by “intentionally misleading respondents,” adding in a whine reminiscent of Trump himself, that “the system is definitely rigged against independent candidates” because the survey was used to keep him from participating in two candidate forums.

Pinsonat, in something of an understatement, said identifying Hebert as an Independent would not get him better numbers.

Hebert says he was not allowed to participate in a June 29 forum sponsored by the Louisiana chapter of the National Federation of Independent Businesses and the Louisiana Restaurant Association.

He was also turned away, he said, from a July 28 event put on by the Louisiana Municipal Association because he didn’t reach the required 5 percent in the Southern Media survey.

In that poll for the period of May 19-23, State Treasurer John Kennedy and “Undecided” were neck and neck at 32 percent. The only other candidate to touch double digits was U.S. Rep. Charles Boustany with 10 percent. Hebert, with 2 percent, edged out Eric Skrmetta, who got 1 percent.

At least Hebert can take some comfort in the knowledge that he did better in that poll than his former boss did in any of the polls in Iowa.

Of course he still has an outside shot of making the runoff—if he can only persuade Jindal to endorse one of the other candidates

 

Read Full Post »

quid pro quo

ˌkwid ˌprō ˈkwō/

noun

A favor or advantage granted or expected in return for something.

Unless decisive action it taken over the next few days, our theory that nothing gets done about official chicanery, shady dealings and outright corruption will have been validated at the highest levels of state government.

And lest there are those who think I’m beginning to sound like a broken record, let me assure them that I will keep pounding the keyboard as long as I am physically and mentally able to put the glare of the spotlight on them and their deeds.

At one point in 2015, someone said to me, “Once Bobby Jindal leaves office, you won’t have anything to write about.”

Not a chance.

Unfortunately, as long as politicians are intoxicated by money and power, there will be plenty to write about. And, as Johnny Mathis sang his song The Twelfth of Never, “that’s a long, long time.”

Take Kristy Nichols, for example. Someone, please. (Sorry, Henny Youngman.)

Or, just for fun, compare the strikingly similar cases of Ascension Parish President Kenny Matassa and Louisiana Attorney General Jeff Landry.

Kristy, as LouisianaVoice reported last September, jumped the Jindal ship to join Ochsner Health System as Vice President of Government and Corporate Affairs (read: lobbyist).

https://louisianavoice.com/2015/09/17/more-on-kristys-new-job-it-seems-ochsner-gets-17-6-million-for-running-chabert-hospital/

The only problem with that was that as Commissioner of Administration for Jindal, she presided over virtually every facet of state government except the legislative and judicial branches, but worked closely with those as well. State law prohibited her from lobbying the administrative and legislative branches but apparently there was nothing to prevent her from lobbying local governmental entities.

On November 5, 2015, less than two months following our story, Kimberly L. Robinson, an attorney with the Jones Walker law firm, acting on behalf of Ochsner, requested an advisory opinion on the question of whether or not Kristy could legally lobby the state.

A month later, Gov.-elect John Bel Edwards named Robinson as the new Secretary of the Department of Revenue, prompting her resignation from Jones Walker.

http://www.nola.com/politics/index.ssf/2015/12/john_bel_edwards_appoints_kimb.html

Robinson was replaced by R. Gray Sexton as counsel for Kristy.

Sexton was an obvious choice, given his years as Chief Administrator for the Louisiana Board of Ethics. His knowledge of the system was so keen that in 2007, he pulled his own end-run when he resigned and the board immediately rehired him in a new capacity which allowed him to skirt a requirement under a newly-passed ethics law that he disclose clients in his private law practice (how’s that for irony?).

http://blog.nola.com/times-picayune/2007/07/ethics_administrator_quits_the.html

But back to Kristy’s dilemma.

On December 16, Sexton submitted a request to the ethics board to withdraw the request for an advisory opinion. Then, on January 22, 2016, Sexton submitted an Application for Declaratory Opinion on behalf of Kristy. That was followed by a request to withdraw the Application for Declaratory Opinion on March 31. The board granted the request to withdraw at its April 15 meeting.

The chronology was provided to LouisianaVoice in an e-mail Tuesday (Aug. 2) from Deborah S. Grier, Executive Secretary for the Board of Ethics. Here is that email:

——– Original message ——–

From: Deborah Grier <Deborah.Grier@LA.GOV>

Date: 8/2/16 9:14 AM (GMT-06:00)

To: azspeak@cox.net

Subject: RE: Opinion on Kristy Nichols: Public Records Requests

Good morning, Mr. Aswell:

Pursuant to your public records request of July 29, 2016 regarding an opinion issued by the Board with respect to former Commission of Administration Kristy Nichols’ employment as a lobbyist by Ochsner Health System, please be advised of the following:

A request for an advisory opinion dated November 5, 2015 was submitted by Kimberly L. Robinson with the Jones Walker law firm on behalf of Ochsner Health System and Kristy Nichols.  Ms. Robinson subsequently left the private practice of law and was replaced by R. Gray Sexton as counsel for Ms. Nichols as indicated in correspondence to our office from Mr. Sexton dated December 11, 2015.  On December 16, 2015, a request to withdraw the request for an advisory opinion was submitted to our office.  The Board considered and granted the request to withdraw the request for an advisory opinion at its December 18, 2015 meeting.

 Mr. Sexton, by correspondence dated January 22, 2016, submitted to the Board an Application for Declaratory Opinion on behalf of Ms. Nichols.  A request to withdraw the Application for Declaratory Opinion was received by this office on March 31, 2016.  The Board considered and granted the request to withdraw the Application for Declaratory Opinion at its April 15, 2016 meeting.
No opinion has been rendered by the Board with respect to this issue.
Should you have any questions or need additional information, please do not hesitate to contact me.

Sincerely,
Deborah

Deborah S. Grier
Executive Secretary
Louisiana Board of Ethics

So, what does all that mean?

Could it be that Ochsner and Kristy have decided to let sleeping dogs lie? After all, if she proceeds with lobbying efforts and no one files an official complaint, then it’s no harm, no foul, right? That would certainly run true to form for Jindal’s Gold Standard of Ethics.

A quick check by LouisianaVoice, however, revealed that Kristy is not registered among any of Ochsner Health System’s 10 lobbyists. Sexton told LouisianaVoice today that Ochsner had apparently decided not to pursue the matter and it was his understanding that the company was pursuing “other plans” for Nichols. “Ochsner has a number of other lobbyists,” he said.

So if she is not a registered lobbyist, then just what is it that she does to earn her keep as Vice President of Government and Corporate Affairs?

Or was her employment simply some form of payback as we initially suggested in light of the $31 million Ochsner received in takeover of the Leonard Chabert Medical Center by Southern Regional Medical Corp. and Ochsner as part of Jindal’s haphazard state hospital privatization plan?

https://louisianavoice.com/wp-content/uploads/2015/09/terms-of-the-ochsner-deal-at-leonard-chabert-medical-center.pdf

We’d no sooner received Ms. Grier’s email on Tuesday than the Baton Rouge Advocate posted a couple of stories, also on Tuesday, that caught our eye.

The first involved a claim by Gonzales City Council candidate Wayne Lawson that Ascension Parish President Kenny Matassa and Gonzales businessman Olin Berthelot attempted to bribe him not to seek a city council seat against incumbent Neal Bourque.

The Pelican Post news website first published the report that Matassa and Berthelot had offered Lawson $1,200 and a parish job if he would withdraw from the race. The deadline to withdraw was last Friday (July 29) at noon. Lawson, after posing for a photograph with the cash, a parish job application form and candidate withdrawal forms, returned the money and documents to Berthelot’s office without completing either of the forms.

http://www.theadvocate.com/baton_rouge/news/communities/ascension/article_d9fda80a-58df-11e6-884c-d3779607197c.html

Ricky Babin, District Attorney for the 23rd Judicial District, said his office would investigate Lawson’s claims. He said the Ascension Parish Sheriff’s Office and the Louisiana Attorney General’s Office are also investigating the allegations.

The Attorney General’s Office may be in something of a quandary as it embarks on that investigation, however.

The second Baton Rouge Advocate story, by reporter Gordon Russell, conjured up the ethics complained filed against Iberia Parish Sheriff Louis Ackal.

http://www.theadvocate.com/baton_rouge/news/politics/article_6f7a7990-58e9-11e6-9cd1-a36f0eb42bbf.html

https://louisianavoice.com/wp-content/uploads/2016/03/ethics-complaint.pdf

https://louisianavoice.com/2016/03/03/between-beating-guilty-pleas-sexual-harassment-lawsuit-and-ethics-complaint-iberia-sheriff-louis-ackal-has-his-plate-full/

https://louisianavoice.com/2016/03/09/one-week-after-louisianavoice-story-feds-hand-down-three-count-indictment-of-iberia-parish-sheriff-ackal-top-deputy/

In his story, Russell said that Landry, after trailing incumbent Buddy Caldwell by two percentage points in the primary election for Attorney General last October, received the endorsement of third place finisher Geri Broussard Baloney of Garyville in St. John the Baptist Parish, who had polled 18 percent.

With her endorsement in his back pocket, Landry, a former U.S. Representative, easily won the November runoff over Caldwell (who can forget Caldwell’s concession speech?). Soon thereafter, Baloney’s daughter, Quendi Baloney, was given a $53,000-a-year job by Landry.

At the time of her hire, all would-be employees of the AG’s office were required to sign a form agreeing to background checks and were also asked, in writing, if they had any criminal record.

In her case, she did. In 1999, she was charged with 11 felony counts of credit card fraud and theft, eventually pleading guilty to three counts, according to court records from Henrico County, Virginia. She was sentenced to six years in prison, all of it suspended.

Her new job? Well, it’s in the AG’s fraud section. More irony.

But in the end, her background is of less interest, given that her conviction was 17 years ago, than the fact that she was given her job as apparent payback for her mom’s endorsement of Landry following the first primary election in October.

A spokesperson for the AG’s office, Russell wrote, did not respond to questions about whether other candidates had applied for Quendi Baloney’s job or whether Landry had hired any other convicted felons.

For her part, Quendi Baloney told The Advocate that her arrest and conviction were “devastating,” but had made her a “stronger, harder-working ethical adult…”

She forwarded to The Advocate a link to the state’s new “Ban the Box” law which prevents state agencies from asking applicants about their criminal records. That law, however, did not take effect until after she was hired.

It’s going to be more than a little interesting to see how Landry’s investigation of Matassa and Berthelot unfolds in light of the same day’s revelations about his own actions.

But we’re willing to wager that when the dust settles on the issues of Matassa, Berthelot, Nichols, Ackal (the state ethics complaint, not the federal indictment) and Baloney, we’ll still be able to say:

Nothing gets done.

Read Full Post »

Earlier this week, we posted our story about growing frustration over the fact that time after time, when official corruption and wrongdoing are exposed, nothing is done.

https://louisianavoice.com/2016/07/25/in-a-state-where-graft-and-corruption-abound-honesty-and-law-enforcement-have-taken-a-permanent-leave-of-absence/

And it isn’t just the wrongdoing or questionable activities exposed by LouisianaVoice that feeds our exasperation. It doesn’t seem to matter if it’s a member of the media or a state agency, the fact is the vast majority of the cases are quietly ignored until they go away. Ignored, that is unless it’s some hapless inner city resident caught with a couple of joints or a civil servant fudging her timesheets because her agency’s budget has been cut to the bone, forcing shortcuts on her so she can maintain an overburdened caseload.

In those cases, justice is swift and severe.

But for those in positions of power and influence, it’s quite another story.

Only in Louisiana would a sheriff under federal indictment for beating defenseless prisoners and turning vicious dogs on them and who even threatened a federal prosecutor have the gall to petition the courts to give him his gun back. (Well, perhaps Maricopa County, Arizona, Sheriff Joe Arpaio would be so brazen, but we digress.)

http://addictinginfo.org/2016/07/20/violent-sheriff-who-threatened-federal-prosecutor-wants-gun-back-because-hes-scared-video/

Nowhere is Louisiana’s chronic case of legal periodontitis more evident than with the state’s “gold standard of ethics” presented to us way back in 1984. Because of his gutting state ethics laws, the Louisiana Ethics Commissions by all appearances is unable to collect more than $1 million in fines and penalties it has assessed against 248 political candidates. These candidates run the gamut—from sheriffs to current and former legislators and a member of the Board of Elementary and secondary Education.

Thank you, Bobby Jindal.

Jindal’s ethics reform was of such a high “gold standard” that it removed all enforcement powers of the Ethics Board and handed those duties to an administrative judge appointed by the governor—in this case, Jindal. The reform had the effect of making ethics enforcement just another political animal controlled by the governor in the same fashion as the Office of Inspector General, neither of which now have any real powers.

Ten of the 11 Ethics Board members immediately resigned in protest.

Perhaps it was only coincidence, but just 10 days after taking office—and before Jindal introduced his ethics reform bill—he was himself hit with a $2,500 ethics fine after failing to report that the Republican Party of Louisiana spent $118,265 on direct mail to promote his successful 2007 candidacy.

http://www.nola.com/news/index.ssf/2008/01/jindal_to_pay_ethics_fine.html

Jindal spokesperson at the time, Melissa Sellers, said Jindal would pay the fine to avoid a public hearing. The only trouble was, she said his campaign would pay the fine, an ethics violation in itself. Ethics Commission regulations prohibit the use of campaign funds for personal expenses, including ethics fines.

Political consultant Elliott Stonecipher of Shreveport remembers the backroom dealings in drafting the ethics reform of 2008. “By way of my pro bono consulting for the old Ethics Board, I knew details of what House Speaker Jim Tucker (R-Terrytown), Rep. (later Senator) Rick Gallot (D-Ruston), Sen. Bob Kostelka (R-Monroe), Jindal’s Executive Counsel Jimmy Faircloth, Chief of Staff Timmy Teepell, and Ann Wise were concocting,” he would later write.

The new laws bestowed upon Wise, an unclassified employee serving at the pleasure of the governor, the responsibility of selecting administrative law judges who would hear and rule on future ethics cases. “She was, in fact, working with Tucker, Gallot, Kostelka, and one Jindal insider identified her as one of the first people Tucker brought aboard their operation,” Stonecipher said. “At the time all of this was going on, Bobby refused to meet with Hank Perret, Chairman of the Ethics Board, with whom I was working. Under pressure, Jindal finally agreed to a half-hour meeting but would not meet without Teepell there and (Jindal) ultimately used the thirty minutes to command the discussion—never allowing it to approach what Hank was there to tell him,” he said.

“The top players and designers (Tucker, Gallot, and Kostelka) had (at the time discussions were ongoing) active and serious ethics charges against them winding through the system,” Stonecipher said (emphasis added). “Tucker had two charges and Gallot had seven. When the smoke cleared after the new laws took effect, each of them beat the rap in all cases.” Stonecipher said the top political reporters in Louisiana were informed all those details. “None of them ever wrote a story,” he said. “My articles which went to them were never acknowledged.”

http://www.nola.com/politics/index.ssf/2009/09/rep_rick_gallots_ethics_charge.html

http://www.thegramblinite.com/news/view.php/396049/Appeals-court-upholds-Gallot-ruling

So Gallot, Chairman of the House and Governmental Affairs Committee and a key Jindal ally in pushing for changes in the state’s ethics laws, was the subject of seven conflict-of-interest charges involving his legal representation of a company in business dealings with Grambling State University and the University of Louisiana System Board of Supervisors on which his mother was simultaneously serving.

Ethics Board Chairman at that time Frank Simoneaux of Baton Rouge (he was not re-appointed by Jindal when his term expired) called the Gallot case the first real test of state ethics laws since the Jindal reforms went into effect.

Another case pending at the time was that of Lafourche Parish Sheriff Craig Webre. He was charged with a conflict of interest because he was part-owner of Smart Start of Louisiana. He was accused of using his office for financial gain by selling ignition interlock devices to drivers convicted of driving while intoxicated.

It’s interesting to note that neither Webre nor Gallot denied the facts laid out in the charges. Instead, each invoking a statute of limitations in claiming that the board had only one year to file the charges while ethics board attorneys said the time limit for prescription was two years.

In November 2009, a panel of three administrative judges dismissed the charges against Webre.

So, to recap:

  • Jindal’s campaign paid his fine for him.
  • Webre was exonerated.
  • Kostelka, Tucker and Gallot all “beat the rap.”

Tucker was chosen Speaker of the House during Jindal’s first term.

And Gallot?

Well, he went on to be elected to the State Senate and on Tuesday (July 26), he was unanimously chosen by the University of Louisiana System as the new President of Grambling State University. To be fair, though, at least his mother no longer sits on the board.

http://www.theadvocate.com/baton_rouge/news/education/article_d8c82986-5350-11e6-b653-a7be43e9ff0c.html

Gallot even found the time to write an op-ed in the Baton Rouge Advocate in which he addressed his close relationship to the state’s movers and shakers and outlined his plans for Grambling. Oddly, he never got around to discussing ethics in his column.

http://www.theadvocate.com/baton_rouge/opinion/article_24c4f454-55a4-11e6-8f90-93862ea22176.html

For now, Louisiana appears to be stuck with a real albatross: A State Ethics Board that is powerless to collect more than $1 million ethics fines from those 248 candidates, some of them dating as far back as 25 years. The amount represents an average fine of $4,252 per candidate, though of that 248, there were 20 who had fines in excess of $10,000. Of that 20, six had fines of $20,000 or more; four were on the books for $30,000 or more and one was for $41,440.

Of the $1,054,487 in fines assess since 1991, only $57,665, or a scant 5 percent, has been paid, records show.

Court records show that in the majority of cases, fines assessed prior to 2015 that have gone unpaid have resulted in the filing of lawsuits by the Board of Ethics and in many of those cases, judgments against the individuals have resulted.

To be fair, the recipient of that $41,440 levy, James Fahrenholtz, has paid nearly half ($19,342) of his fine. That’s not to say Fahrenholtz, a former member of the Orleans Parish School Board doesn’t have other problems. In an unrelated matter, he was arrested in April 2015 for theft of a lobbyist’s iPad tablet.

Besides Fahrenyholtz, those owing $10,000 or more include:

  • Donald Pryor, former candidate for Orleans Parish Registrar (paid $1,757 to date);
  • Albert Donovan, former legal counsel to Gov. Edwin Edwards and a candidate for Secretary of State: $31,000 (paid $5,453 so far);
  • Gary Wainright, former candidate for Orleans Parish District Attorney: $30,200 (paid nothing on assessment);
  • Percy Marchand, former candidate for State Representative: $26,660 (paid nothing to date);
  • Thomas Robichaux, candidate for Orleans Parish School Board: $20,060 (paid $800);
  • James Perry, candidate for State Representative: $18,060 (paid nothing);
  • Edward Scott, candidate for U.S. Representative: $17,380 (paid nothing);
  • Robert Murray, candidate for State Representative: $17,080 (paid $160);
  • Jason Wesley, candidate for East Baton Rouge Parish Metro Council: $16,000 (paid nothing);
  • Isaiah Marshall, candidate for East Baton Rouge Parish Metro Council; $14,600 (paid $1,240);
  • Patrick Tovrea, candidate for Jefferson Parish School Board: $14,220 (paid nothing);
  • Joel Miller, candidate for Washington Parish Sheriff: $12,360 (paid nothing);
  • Melva Vallery, office unknown: $12,000 (paid nothing);
  • Marvin Frazier, candidate for Sabine Parish Sheriff: $11,800 (paid $4,031);
  • Myron Lee, candidate for State Representative: $10,900 (paid nothing);
  • Sandra Hester, candidate for Orleans Parish School Board: $10,660 (paid nothing);
  • Remic Darden, office unknown: $10,600 (paid $350);
  • Thelma Brown, candidate for East Baton Rouge Parish Metro Council: $10,000 (paid nothing);
  • Ali Moghimi, candidate for Monroe Mayor: $10,000 (paid nothing).

Other notable personalities hit with ethics fines and the amounts paid on their fine include:

  • State Rep. John Bagneris: $4,680 (nothing paid);
  • Livingston Parish Council Chairman Ricky Goff: $1,760 (nothing paid);
  • State Rep. Michael Jackson: $2,000 (nothing paid);
  • Former U.S. Rep. Vance McAllister: $1,260 (nothing paid);
  • Former Plaquemines Parish Sheriff Ernest Wooton: $2,000 (nothing paid);
  • Board of Elementary and Secondary Education member Kyra Orange Jones: $2,500 (nothing paid).

Here is a complete list of UNPAID fines assessed by the Board of Ethics

In January, the Ethics Board staff drafted an opinion on former Commission of Administration Kristy Nichols and her job as a lobbyist for Ochsner Health System which typically, was not adopted by the full board.

http://www.theadvocate.com/baton_rouge/news/politics/article_22f710cd-dda5-5b79-9545-db933add8f6e.html

That opinion said state law would prohibit Nichols from advising Ochsner on any matter involving the Division of Administration (DOA) until October 2017. It also said she could not deal with legislators who handle the state budget (and that should include all 105 representatives and 39 senators because they all must vote on the state budget.

http://www.ethics.la.gov/AgendaAttachments/27389/PublicAgendaAttachment.pdf

Rather than making a definitive decision, which was—and is—its responsibility, the Louisiana Board of Ethics boldly postponed action—at the request of Ochsner—until February.

Well, February has come and gone and the Ethics Board has yet to post anything online and we are now back to our original lament: Nothing gets done.

 

Read Full Post »

When it comes to financial shell games and political flim-flam, it seems that the two have a lot in common, oftentimes including the same personality mixes whose names keep cropping up. Sometimes those names can materialize like a deadly vapor in proceedings separated by a couple of decades. And somehow, those years and events mysteriously converge to affect the lives of thousands—or millions—of people.

It was in late 1990 that the late John Hays, the cantankerous publisher of the weekly Morning Paper in Ruston began writing stories that raised questions about Towers Financial Corp. and its chairman, one Steven Hoffenberg.

At first, his stories attracted little interest. On paper, as the sportswriters would say, it was a mismatch. Hays, described by NEW YORK TIMES in an April 1993 story as “a hard-drinking, chain-smoking, cowboy-booted newspaper publisher” was pitted against Hoffenberg, who briefly ran The New York Post, eventually taken over by Rupert Murdoch. Hoffenberg owned two jets, a yacht, limousines, mansions, and a Fifth Avenue office. Hays drove an old van well past its prime. It quickly shaped up as an epic battle between a small-town publisher operating on a shoestring and a sophisticated New Yorker who had, it seemed, more money than God.

But investors were getting nervous in the late 1980s and early 1990s. Some of them called Hays who had a penchant for taking on phony investment schemes. Hays, as was his wont, began making calls that piqued the interest of Securities and Exchange Commission investigators as well as state regulators. He had worked with these same regulators in other scams, so he had the credentials necessary to make them sit up and pay attention whenever he called.

Hays even managed to attract the attention of major newspapers like the WASHINGTON POST

Hoffenberg had all the right political connections. He was a business ally of former Texas Gov. John Connally and with a former co-chairman of the Republican National Committee. Other friends in high places included Victoria Reggie, daughter of powerful Crowley Judge Edmund Reggie and the future wife of Sen. Edward Kennedy, New York City Mayor Mario Cuomo, and Mickey Kantor, President Bill Clinton’s trade representative. Heavy hitters, one and all.

Some of his connections, however, tended to hang back in the murky shadows of a darker side of society. https://porkinspolicyreview.com/tag/steven-hoffenberg/

http://gawker.com/501354/exposed-the-leon-black-jeffrey-epstein-connection

http://www.mediaite.com/online/vanity-fair-editor-reportedly-removed-underage-girls-allegations-about-jeffrey-epstein-from-2003-story/

When a Shreveport brokerage firm started peddling high-yielding notes for Towers in 1990, Hays said he immediately wondered “if some fellow up in New York has such a good deal, what would inspire him to come down here to northern Louisiana and make the local people rich?”

He started making calls and writing stories—stories that obviously did not sit well with Hoffenberg.

If Hays was suspicious of Hoffenberg, the feeling was more than mutual. “He’s not a credible person,” Hoffenberg said of Hays. “He runs a newspaper that is full of lies. I have never heard from anybody that John Hays was somebody we should take seriously. I mean, he gives his newspaper away; he throws it on people’s driveways.” Twenty-five years later, one could close his eyes and almost hear Donald Trump talking about another candidate or some reporter covering his campaign.

(Oh, just as a heads-up, keep that Trump comparison in mind. He’ll come up later in this story.)

Hoffenberg was correct in that last statement. Hays did indeed toss about 25,000 free copies a week in the driveways of Lincoln, Union, Bienville, and Jackson parishes.

But Hays also became a national clearinghouse for information between state regulatory agencies. He was credited by Arkansas authorities as providing information to them that allowed them to keep Hoffenberg and Towers Financial Corp. out of that state.

But not all states. Hays began making calls to regulators and learned that Towers was selling notes in states where it had failed to meet registration requirements. Enter the feds. More stories followed.

So, who won the war of words?

Well, Hoffenberg eventually entered a guilty plea to running a $475 million Ponzi scheme, the largest on record until Bernie Madoff dwarfed Hoffenberg’s financial chicanery. In 1997, Hoffenberg was sentenced to 20 years in federal prison for defrauding thousands of investors. http://www.nytimes.com/1997/03/08/business/hoffenberg-gets-20-year-sentence-in-fraud-case.html

His nemesis who he said “runs a newspaper that is full of lies” and a man he said he never heard “from anybody that John Hays was somebody we should take seriously,” was nominated for the Pulitzer Prize.

Someone once said never start a fight with someone who buys ink by the barrel and newsprint by the boxcar. Apparently Hoffenberg wasn’t listening.

The Hoffenberg/Towers Investment saga was the subject of a lengthy abstract by Gene Murray, Ph.D., assistant professor in the Department of Mass Communication at Grambling State University. http://list.msu.edu/cgi-bin/wa?A3=ind9710a&L=AEJMC&E=7BIT&P=1328897&B=–&T=TEXT%2FPLAIN;%20charset=US-ASCII

But let’s fast forward to 2016. John Hays has been dead for a year now, the Morning Paper stopped publication several months before his death when his cancer weakened him to the point he could no longer peddle his ads or chase down a good story.

Hoffenberg couldn’t get out of jail in 1996 because, he said, he was so broke he couldn’t post the $100,000 bail. http://www.nydailynews.com/archives/money/sec-hoffenberg-pay-stay-jail-article-1.730715

Twenty years later, however, he is back in the money—and he wanted everyone to know it. It’s almost enough to make you wonder if he may have had a few dollars stashed safely offshore all that time.

The man who couldn’t make $100,000 bail a couple of decades ago has recently pledged $50 million to his super PAC set up to coordinate a marketing campaign in support of Donald Trump. http://www.washingtonexaminer.com/ponzi-schemer-steven-hoffenberg-pledges-50-million-to-help-trump/article/2593931

Hoffenberg, who professes to be a born-again Christian (funny how prison can do that; just ask Chuck Colson), is also in the business of marketing something called the Christ Credit Card to more than 700,000 registered Christian churches through Towers Financial.

http://whaminc.us/investor-questions-wham-answers

In addition to pledging $50 million of his own money to his super PAC, he also says he intends for his PAC to raise more than $1 billion in support of Trump. http://www.politico.com/story/2016/06/convicted-ponzi-schemer-ill-conduct-50-million-marketing-campaign-for-trump-224350

http://www.washingtonexaminer.com/trump-super-pac-predicts-raising-1-billion/article/2592210

So much for Trump’s claim that he is financing his own campaign—or for Hoffenberg’s earlier claims of poverty.

The announcement by Hoffenberg was the first time he has explained why he founded the Get Our Jobs Back, Inc. PAC back in April. He is listed as treasurer and custodian of records by the Federal Election Commission. http://docquery.fec.gov/cgi-bin/forms/C00616078/1070515/

Could this be déjà vu all over again? Can you imagine someone like Hoffenberg having the ear of a President Trump?

We have only a few random observations to make about this latest development, this unholy alliance between two high-rolling carnival hucksters of dubious trustworthiness:

  • Watch closely how he raises that much campaign cash.
  • Does his credit card scheme figure in the mix?
  • Old habits sometimes can be hard to break.
  • Where is John Hays when we really need him?

Read Full Post »

During the Bobby Jindal years in Louisiana, it was well documented that seats on prestigious boards and commissions were the rewards for generous campaign contributions.

Seats on the LSU Board of Supervisors, the Board of Supervisors of the University of Louisiana System, the Louisiana Stadium and Exposition District (Superdome), or various levee boards came at a price and those who wanted the seats ponied up. http://www.nola.com/politics/index.ssf/2013/11/bobby_jindals_political_appoin.html

Even the job of monitoring Louisiana’s hundreds of boards and commissions went to the director of the Committee to Re-Elect Bobby for an eight-month period from mid-October, 2012 to June 28, 2013, thus insuring that board appointees would do the bidding of the governor.

That, apparently, is the way politics work just about everywhere.

In Florida, a large enough campaign contribution can even buy justice—or stymie justice, as the case may be.

Pam Bondi, attorney general in the Sunshine State (talk about a misnomer), solicited—and received—a $25,000 contribution from the Donald Trump Foundation and once the check cleared, she promptly dropped her office’s investigation of Trump University, conveniently citing insufficient grounds to proceed. http://finance.yahoo.com/news/florida-ag-asked-trump-donation-075016133.html

And in Bossier City, less than $20,000 in campaign contributions has smoothed the way for the transfer of the city’s water and sewer department to a private Baton Rouge firm—at a first-year cost of more than $1 million to the city, and the loss of about 40 jobs in the department.

http://www.ksla.com/story/32159296/public-private-partnership-in-bossier-city-threatens-dozens-of-jobs

http://www.ktbs.com/story/32163755/bossier-city-council-considers-privatizing-water-sewer-operations

Word has been filtering down to LouisianaVoice for some time now that Caddo Parish is the new New Orleans in terms of political corruption. Apparently elected officials across the Red River have been paying attention to both Caddo Parish and to Bobby Jindal’s love of privatization as well as his thirst for campaign contributions.

The city council voted unanimously Tuesday (June 6) afternoon to approve the PUBLIC PRIVATE PARTNERSHIP AGREEMENT with Manchac Consulting Group out of Baton Rouge.

Typical of the seemingly growing penchant of public officials for operating out of earshot of the public, more than 100 employees of the Water and Sewer Department have been told nothing over the last several months of negotiations. City officials have refused to provide information to workers even though an organizational chart proposed by Manchac reflects half the current staffing in some departments.

On Tuesday, the vote was 7-0 to approve a five-year contract with Manchac Consulting to oversee the city water and sewer treatment plants, distribution lines and daily operations at a first-year cost of a little more than $1 million the first year, including $120,000 upon city officials’ signing the contract.

Campaign finance reports show that at-large council member David Montgomery received $2500 from Manchac, $2500 from its CEO Justin Haydel, $2500 from Atakapa Construction Group, which includes Haydel and Manchac President Kenneth Ferachi as officers, $2500 from Manchac Senior Project Manager Christopher LaCroix, and $999 from Ferachi—a total of $10,999.

Council member Scott Irwin received $500 each ($2000 total) from Atakapa, Ferachi, Haydel and Manchac Consulting Group.

Bossier City Mayor Lorenz “Lo” Walker received $6,644 total, including $2500 from Manchac Consulting, $3,144 from Haydel (including $2,144 in an in-kind contribution for a fundraising dinner in Baton Rouge), and $1000 from Atakapa Construction.

An Associated Press story pointed out that the Trump family foundation contribution, received by a political group supporting Bondi’s re-election, was received on September 17, 2013 and was in “apparent violation” of rules regulating political activities by charities.

But hey, what’s a little obstacle like a federal law when you’re trying to buy your way out of trouble? It was The Donald himself, after all, who is on record as saying he expects and receives favors from politicians to whom he gives money.

The commitment to pay Manchac more than $1 million over the next 12 months may be completely above-board—we hope so, anyway—but taken in context with the way city officials kept their own employees in the dark even as the mayor and two council members took contributions from the prospective vendor, it just doesn’t look good. And, as they say: perception is everything.

Public employees, after all, are prohibited—as they should be—from accepting anything of monetary value from vendors or contractors. So why should elected officials be held to a completely different (read: double) standard of ethical behavior?

Before we leave this topic, it should be pointed out that politicians will only do what they can get away with. If the voters lower the bar, then our public officials will respond accordingly. Only if we demand accountability, will officials be accountable. A compliant legislature not held accountable by voters allowed Jindal to rape this state for eight years. Likewise, our failure to insist on statesmanship instead of demagoguery, decorum instead of buffoonery, serious discussion of the issues instead of meaningless rhetoric, sanity instead of hysteria, has created candidates like Donald Trump.

If we consistently look the other say and say that’s just the way it is, that’s the way it will always be.

And we will have no one to blame but ourselves.

We will have done it to ourselves.

 

Read Full Post »

« Newer Posts - Older Posts »