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LouisianaVoice, guest columnists unite in effort to hold Louisiana Legislature accountable during special session

Posted in Contract, Contracts, Corruption, Elections, Ethics, Finances, Governor's Office, Guest Columnist, Higher Education, House, Senate, Legislature, Legislators, Politicians, Revenue, Taxes, Transparency on February 14, 2016| 35 Comments »

The time has come to stop blaming Bobby Jindal. (Yeah, I know, I probably won’t. The man simply spread too much carnage during his eight clueless years occupying one office in theory while running for another in runaway delusional fantasy.)

But now it’s a new day and the torch of ineptness has been passed to his enablers, holdover members of the Louisiana House and Senate.

Legislators convened in Baton Rouge Sunday in special session to address a $900 million budget deficit for the remainder of this fiscal year and to take steps to head off a $2 billion budgetary shortfall for the next fiscal year, which begins July 1.

They have one chance to get it right. One chance, and one only.

If their performance over the last eight years is any indication, they won’t. Here’s why:

Louisiana elected officials who have signed the Americans for Tax Reform pledge
Paul Hollis* State Representative Republican
John Alario State Senate President Republican
Jack Donahue State Senate Finance chairman Republican
Gerald Long State Senator Republican
Fred Mills State Senator Republican
Barrow Peacock State Senator Republican
John Smith State Senator Republican
Steve Carter State Representative Republican
Greg Cromer State Representative Republican
Cameron Henry State Representative Republican
Dorothy Hill State Representative Democrat
Valarie Hodges State Representative Republican
Sam Jones State Representative Democrat
Dee Richard State Representative No Party
Alan Seabaugh State Representative Republican
Scott Simon State Representative Republican
John Schroder State Representative Republican
Kirk Talbot State Representative Republican

*Paul Hollis signed the federal Americans for Tax Reform pledge when he was running for U.S. Senate. He is not listed as one of the people who signed onto the state government pledge.

These are returning legislators who swore an oath to a man who does not live in Louisiana, who has never held office. Yet, he appears to command loyalty from a handful of legislators who feel it is more important to serve his interests over those of their constituents, the ones who elected them to office. (Rep. Dee Richard of Thibodaux told LouisianaVoice last year that when he signed the pledge, he had no idea who Norquist was and had never heard of him.)

The late C.B. Forgotston called it “the lowest of a lot of low points” in Louisiana’s sorry legislative history. He said legislators, who had “already abdicated their constitutional responsibility to Bobby Jindal” were pleading with a non-resident of Louisiana “for help doing their jobs.”

Eleven state representatives—we called them “The Elastic Eleven” at the time—turned their collective backs on their constituents in particular and on the state in general in order to suck up to Norquist and to advance their own political agenda. In short, they were afraid to take a bathroom break without Norquist’s permission.

Their letter to Grover Norquist sought his blessing before they voted to pass the Student Assessment for Valuable Education, or SAVE credit program, which created money out of thin air via a higher education tax credit to cover a nonexistent student fee. https://louisianavoice.com/2015/06/08/eleven-republican-members-of-house-ways-and-means-committee-go-groveling-to-grover-norquist-for-direction/

Now, thanks to that little shell game, Louisiana’s colleges and universities teeter on the brink of unmitigated disaster. It’s not as if we were never warned: https://louisianavoice.com/2015/06/05/save-guest-columnist-wonders-if-grover-norquist-holding-compromising-videos-of-louisiana-legislators-bobby-jindal/

So why should we expect a different outcome now?

For one thing, we no longer have a delusional governor hell bent on leaving Louisiana in the broad daylight for the White House. Now we have a grownup on the fourth floor and not a gaggle of adolescent Milton Friedman theorists who refuse to acknowledge the obvious.

LouisianaVoice offers a guest column by Dayne Sherman on the threat to higher education as well as this link to Stephen Sabludowsky’s Bayou Buzz political blog: http://www.bayoubuzz.com/bb/item/1061467-jon-bel-edwards-dogged-by-kill-lsu-save-the-tigers-mentality

Dayne Sherman resides in Ponchatoula. He is the author of two novels and he blogs at http://talkaboutthesouth.com/

Below is his guest column:

Don’t blame the messenger for TOPS crisis

Similar to Rip Van Winkle, Louisiana just awoke from a long sleep. Eight years to be exact. While Jindal wrecked the state, the citizens snoozed, except for a few political watchdogs here and there howling in the night to no avail.

The moment Louisiana resurrected was Thursday, Feb. 11 at 4 PM. Louisiana Gov. John Bel Edwards announced TOPS payments to universities were being suspended. TOPS, college scholarships, is the most beloved socialist welfare program in Louisiana history.

Residents went from deep slumber to screaming in minutes. With college football also on the chopping block, we now know the dead can indeed rise from the grave.

It’s time to face the facts. Louisiana has an enormous structural deficit, approximately $1 billion this year, and $2 billion next fiscal year.

However, despite a Republican governor in Jindal and a Republican dominated House and Senate who created this fiscal crisis, some are incredibly, amazingly, and even ignorantly blaming the new governor—just a month in office—for these cuts.

It can’t be said enough, as everyone should realize, Jindal and the senators and representatives we elected are to blame for this fiasco. John Bel Edwards was one of those heralding voices who fought the foolishness, and he was elected to fix the mess.

Look, Edwards wants to protect TOPS and higher education. But Louisiana can’t cut its way to prosperity, nor can the state print money. The special legislative session ironically starts on Valentine’s Day, though love will not be in the air.

This budget crisis can be fixed with responsible tax increases and realistic cuts, which is all Edwards has suggested. It’s simple but will take intestinal fortitude.

The Republicans in the House, led by Taylor Barras (the figurehead Speaker) and Cameron Henry (the real Speaker), have done nothing but try to hamstring the Edwards administration in order to score political points. Sources say plans have been crafted to end the session as soon as it starts and go home with nothing accomplished as a way to cripple the new governor.

Therefore, I am calling for a new Speaker vote on the first day of the session. Remove Barras and send Henry to the kiddie table where he belongs. I don’t care which Republican takes the helm, as long as he or she is willing to work with Edwards and quit playing obstructionist games detrimental to Louisiana.

My advice for those who care about Louisiana is to go see their legislators. Look them straight in the eye and say the Washington-style politics is over. Fix the budget and protect TOPS or resign. Raise taxes, craft a responsible budget, and save the state. No more failures. No more excuses. Put Louisiana first.

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Just when you think Louisiana politics can’t get any weirder, former ATC director Troy Hebert announces for U.S. Senate

Posted in ATC, Elections, Ethics, House, Senate, Legislature, Legislators, Politicians, Senate, State Agencies, TV News on January 28, 2016| 12 Comments »

When LouisianaVoice was first contacted about Troy Hebert back in December, one of the things our anonymous source said was that the former Commissioner of Alcohol and Tobacco Control was positioning himself for a congressional run.

While everything the source told us was verified in a month-long investigation, we simply could not bring ourselves to believe that Hebert would seriously believe he could be a serious candidate for Congress.

After all, the Jeanerette native had enough baggage to justify an extra train car on any such expedition to Washington.

For openers, the veteran legislator cum ATC commissioner had, while serving as a state representative, managed to finagle a state contract for debris cleanup following hurricanes Katrina and Rita. That alone was a flagrant conflict of interest but because he was apparently close to Bobby Jindal, the State Board of Ethics chose to look the other way.

Then there is his tenure at ATC, marked by constant battles with his agents. Rumors of racism on his part persisted and he required his agents to rise and chirp, “Good morning, commissioner” whenever he entered the room. At hearings on alcohol permit revocations and other penalties, he insisted on being called “judge,” though he was merely an administrative officer.

So we discounted out of hand the report that he might make a run for a congressional seat. We assumed he was taking aim of the seat now held by U.S. Rep. Charles Boustany who has made his intentions known that he plans to seek the U.S. Senate seat being vacated by David Vitter.

Nah, we said. The source is simply wrong.

But wait.

Politics necessarily dictate sizable egos and apparently there is none bigger than Hebert’s.

And there it was, when we googled “Hebert announces for U.S. Senate.” Up popped this link: http://www.katc.com/story/31082873/troy-hebert-to-run-for-senate?clienttype=mobile

That’s the web site of Lafayette television station KATC. We clicked on the link and this story appeared on our screen:

Troy Hebert, a former state senator and former commissioner of the state Alcohol and Tobacco Control Office, says he plans to run for the U.S. Senate this fall. 

Hebert, who is from Jeanerette and lives in Baton Rouge, served in the Louisiana state Senate as a Democrat, but later switched to Independent. He was Alcohol & Tobacco Control Commissioner for the past five years and resigned at the end of December. 

Hebert said he plans to run as an Independent.

“Given the number of voters that are fed up with both parties, the large number of registered Independents and the swollen number of republican candidates, simple math shows a great opportunity for voters to elect their first truly conservative Independent United States Senator,” Hebert said. “This realization has some people in high places, with a lot to lose, already trying to keep me out the race. They think I kicked their asses before, just think what I could do as a U.S. Senator.” 

Hebert joins three other Louisiana politicians who have announced they are vying for U.S. Sen. David Vitter’s Senate seat. Vitter announced he would not seek re-election after losing the governor’s race last fall.

U.S. Rep. Charles Boustany, R-Lafayette, U.S. Rep. John Fleming, R-Minden, and state Treasurer John Kennedy, also a Republican, have said they are running.

So it’s not the House but the Senate that Hebert is running for. Seems our source was pretty much spot on with this opening line back on Dec. 18, 2015:

“I have watched all of Mr. Herbert’s actions in the last year with amazement. His latest attempts to go around the State to get name recognition for what I hear will be a Congressional run has led me from watching from the sidelines to sending you this information.”

“Herbert also has been holding town hall type meetings across the State after he announced his resignation at end of year so he can get name recognition for his run for Congress,” she said.

Okay, it’s not the House, but that and other information provided us was accurate enough for us to see that our source is up in the middle of Troy Hebert’s business—and he has no idea who it is.

Stand by folks. If you thought last fall’s governor’s race was nasty, you ain’t seen nuthin’ yet.

As C.B. would say if he were still with us: You can’t make this stuff up.

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Only three weeks in and the new administration already looks, sounds, and smells like same old business as usual

Posted in DOA, Elections, Finances, Governor's Office, Legislature, Legislators, Politicians, State Agencies on January 28, 2016| 42 Comments »

God knows, I’m no financial wizard. My bank account balance clearly illustrates that. Nor am I a political strategist qualified to critique an administration less than a month into its term of office. After all, it took three years of Bobby Jindal blunders for me to become cynical enough to launch LouisianaVoice.

Moreover, my advice is worth precisely what I charge for it: zero.

Still, there are developments in the John Bel Edwards administration that are already prompting questions and causing my spider senses to tingle a bit.

Obviously, the reappointment of Mike Edmonson as State Police Superintendent heads that list. Likewise, the reappointment of Jimmy LeBlanc over the Department of Corrections raised more than a few eyebrows given the ongoing investigation into the Louisiana State Penitentiary at Angola and the myriad of problems documented there.

But I am aware of political reality and the reality is the Louisiana Sheriffs’ Association wanted both reappointed. Edmonson because of what he can do for the sheriffs, i.e. jobs to sheriffs’ relatives; LeBlanc because of the convenient arrangement that has local jails housing state prisoners at a nice profit to the sheriffs.

Edmonson and LeBlanc aside, there are other appointments and salary structures that should raise a few eyebrows.

Take Thomas Enright, for example. Bobby Jindal’s former executive counsel, Enright repeatedly found ways to block legitimate public records requests by throwing up the “deliberative process” defense. And don’t forget, it was apparently on his advice that Jindal signed the infamous “Edmonson Amendment” in 2014 that would have given Edmonson an additional $50,000 or so in retirement. That was the last-minute amendment tacked onto an otherwise benign bill by State Sen. Neil Riser of Columbia which was ruled unconstitutional by a Baton Rouge district judge pursuant to a lawsuit filed by State Sen. Dan Claitor of Baton Rouge.

So Enright was shown the door, right?

Not exactly. While he is no longer the governor’s executive counsel and while he is no longer earning $165,000 per year, he was kept on the payroll by Edwards. Shunted off to the Department of Veterans Affairs where he will serve as executive counsel to that agency, his salary was reduced to $120,000 per year, a 27 percent cut in pay.

Meanwhile, Edwards has announced staff and cabinet appointments with combined salaries of $2.4 million.

Several months ago, when it first appeared that he had a real chance to win the governor’s race, I offered up some of that free advice I alluded to earlier.

In an email to Edwards, I offered up what I thought at the time was a bold but sensible suggestion: appoint retired executives to key cabinet positions and pay them $1 per year. I even offered up the name of the retired president of my alma mater, Louisiana Tech, Dan Reneau. I didn’t know of Dr. Reneau would accept a job, but I used his name as an example of someone with expertise who was financially secure and not political ambitious.

Obviously, such an appointee would have to be someone who didn’t need the money and it would be imperative that such a person would not want to use the position as a springboard to political office.

And it’s not like mine was an original idea. The precedent has been set already—many times. Perhaps the most famous dollar-a-year men are President John F. Kennedy, former Chrysler CEO Lee Iacocca and former Apple CEO Steve Jobs. https://en.wikipedia.org/wiki/One-dollar_salary

http://www.businessinsider.com/ceos-who-take-1-dollar-salary-or-less-2015-8

Others include former California Gov. Arnold Schwarzenegger, Google founders Larry Page and Sergey Brin, Oracle Chairman Larry Ellison, Hewlett Packard CEO Meg Whitman, former New York City Mayor Michael Bloomberg, Los Angeles Mayor Richard Riordan, and Facebook founder Mark Zuckerberg, to name only a few.

Some of those of course took healthy stock options in lieu of salary, but not all did. Jobs, Iacocca, Kennedy, Schwarzenegger, Bloomberg and Riordan did not. Nor does John Mackey (Whole Foods), Jack Dorsey (Twitter), David Filo (Yahoo), Jeremy Stoppelman (Yelp), Edward Lampert (Sears), or Richard Hayne (Urban Outfitters).

Obviously there are few other than Tom Benson that are in the same league with these gazillionaires and even his fortune pales in comparison to Zuckerberg’s $46 billion. But there are certainly a sufficient number adequately well off to give of their time to fill a dozen or so crucial spots in state government. Their expertise, after all, could be invaluable in addressing the state’s dire fiscal woes head-on. The absence of a political agenda on their part could only be an added plus.

Edwards’ response to my suggestion?

“I’ll think about it.”

Apparently he didn’t think too long about it. Like his predecessor, he has loaded down his administration with top-heavy salaries and has even raised the salaries of six appointees.

Joey Strickland got $134,351, a $4,351 raise over what David Lecerte was earning as Secretary of Veterans Affairs and Jay Dardenne’s salary as Commissioner of Administration is $237,500 compared to Jindal’s last commissioner Stafford Palmieri’s $204,400.

New DOTD Secretary Shawn Wilson is making $176,900, an increase of $6,900 over the previous secretary, Sherri LeBas. Former State Rep. Karen St. Germain will make $125,000 as Motor Vehicles Commissioner, compared to former commissioner Stephen Campbell’s $103,614.

Press secretary Richard Carbo is being paid $110,000. Jindal press secretary Mike Reed made $93,600 and General Counsel Matthew Block pulls down $180,000 compared to Enright’s $165,000.

Granted, the $2.4 million outlay for cabinet and staff members (so far) is not a lot when one considers a looming budget deficit of $700 million for the remainder of this fiscal year and a whopping $1.9 billion (and counting) for the next fiscal year which begins July 1.

But placing retired executives with the appropriate expertise in key positions would have been a symbolic—and productive—gesture that would have sent a positive message to voters that Edwards is serious about solving the state’s fiscal mess. Such a move would have marshaled the state’s brain trust into a united effort never before seen in this state—probably in any state. It would have said to a few good men and women who still have much to offer: “Hey, we’re all in this together. Come help us.”

Instead, it was a missed opportunity. For one who said he would “not be a business-as-usual” governor, this looks, sounds, and smells a lot like business as usual. http://www.nola.com/politics/index.ssf/2016/01/john_bel_edwards_emphasizes_un.html

I hope I’m wrong.

 

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Were New Orleans club owners pressured to contribute to Scott Angelle’s gubernatorial campaign? Source says yes

Posted in ATC, Campaign Contributions, Elections, Finances, Lobbyist, Politicians, Public Records, Transparency on January 27, 2016| 7 Comments »

Did the former director of the Louisiana Office of Alcohol and Tobacco Control strong-arm New Orleans-area night club owners to contribute to the campaign of one of the candidates for governor in last fall’s elections?

A confidential source told LouisianaVoice that club owners and businesses in Orleans and Jefferson Parish were pressured during two separate meetings prior to the Oct. 24 primary election to contribute to the gubernatorial campaign of Public Service Commissioner Scott Angelle.

There is no evidence that Angelle knew about or approved of the alleged coercion to contribute to his campaign.

Ten businesses or individuals subsequently contributed more than $30,500 to Angelle’s campaign, all of which was given prior to the primary election in which Angelle finished third to eventual winner John Bel Edwards and U.S. Sen. David Vitter.

Why would club owners be asked to contribute to Angelle? One possible explanation might be that ATC Director Troy Hebert thought Angelle’s election represented his best chance for reappointment. Hebert resigned on Jan. 10, the day before John Bel Edwards became governor.

None of the 10 contributed to either of the other three candidates for governor though seven of them also contributed more than $19,000 to John Young’s unsuccessful campaign for lieutenant governor, campaign records show.

John Young’s brother, attorney Chris Young, represents numerous New Orleans clubs and bars in proceedings before the ATC. Chris Young also serves as a lobbyist for the Beer Industry League of Louisiana. Their sister, Judy Pontin, serves as ATC’s $71,000-per-year “executive management officer” in ATC’s New Orleans office.

The timing of Operation Trick or Treat, a joint sting operation conducted by ATC and Louisiana State Police, also raises the question of whether there may have been a pattern of selective investigations of French Quarter strip clubs, particularly in New Orleans, last September and October.

Eighteen clubs in Orleans and Jefferson Parish were subjected to the investigation. Seventeen of the 18 did not contribute to Angelle. Only Larry Flynt’s Hustler Club among those that contributed was among those clubs visited in Operation Trick or Treat, according to a list obtained from ATC by LouisianaVoice. No violations were found there.

In all, nine clubs were found in violation of infractions of underage alcohol sales, drug use and/or prostitution.

Were club owners who contributed to Angelle and/or Young deliberately passed over during the joint LSP-ATC operation? Or were they just lucky?

Did the undercover investigation just happen to coincide with the run-up to the 2015 election for governor and lieutenant governor? Were those clubs who had their liquor licenses pulled targeted for their failure to follow through with political contributions? And did the license revocations help eliminate French Quarter competition for favored clubs?

A source close to the events contacted LouisianaVoice by email several weeks ago. Writing under an assumed name, the source said that prior to the Oct. 24 primary election, Hebert held private meetings with several club owners “to shake down the businesses” for contributions to Angelle’s campaign fund. She said the meetings were held “on top of Oceana Restaurant on Conti and in Metairie on Veterans Highway at Cajun Canyons Restaurant” (Cajun Cannon), run by former Saints quarterback Bobby Hebert (no relation to Troy Hebert). It wasn’t immediately clear if she meant the rooftop of the Oceana or on the top floor of the restaurant.

Bobby Hebert’s Cajun Cannon Restaurant & Bar is located at 4101 Veterans Memorial Blvd., but nowhere in the Secretary of State’s corporate records is Hebert listed as an officer of that or any other corporate entity in Orleans or Jefferson Parish.

Instead, the trade name Bobby Hebert’s Cajun Cannon is listed at 5828 Marcia Ave. in New Orleans—the same address as several other corporations.

Oceana Restaurant is located at 739 Conti Street, the same address as Oceana Enterprises, LLC. Wassek N. Badr is listed as both the registered agent and the only officer of Oceana Enterprises.

And this is where it gets really confusing.

The name Badr, or Bader, crops up in several other corporate filings in New Orleans, all with the same 5828 Marcia Ave. address as Bobby Hebert’s Cajun Cannon nightclub.

Others with Wassek Badr’s name listed as officer include Cajun Estates of 5828 Marcia, Cajun Conti, LLC, and Cajun Cuisine, LLC, both of 739 Conti (same address as Oceana Restaurant), and MRW Orleans, LLC (Mohamad Wassek Bader and Rami Wassek Badr), 5828 Marcia.

Moe Wassek Badr is listed as the agent and only officer of Cajun Maple, LLC, of 5828 Marcia while Mohamad “Moe” Badr is given as agent and only officer of Olde Creole Palace, LLC. And Rami Badr is listed as agent and only officer of Cajun Broad, LLC, both located at 5828 Marcia.

Additionally, Morton Bader is named as agent for Cajun Estates.

Amer Bader is listed in corporate records as a member of Wasek Badr, LLC, and it is Amer Bader who has said that he exchanged text messages with Hebert in which he accused Hebert of extorting sexual favors from a woman experiencing licensing problems with ATC. https://louisianavoice.com/2016/01/26/fbi-said-investigating-troy-hebert-for-using-office-to-extort-sex-from-woman-in-exchange-for-fixing-licensing-problems/

Campaign finance reports filed by Angelle would seem to indicate the meetings at Oceana and Cajun Cannon were likely held on or around Sept. 16 and Oct. 12, 2015, since all the contributions to Angelle were on those two dates.

Two contributions of $5,000 each were made on Sept. 16 by Hospitality Consultants and Magnolia Enterprises, records show, and Caire Hotel & Restaurant Supply gave $500 on that same date.

On Oct. 12, Quarter Holdings and ITMC Enterprises contributed $5,000 each to Angelle’s campaign, Bourbon Heat and Promenade Entertainment gave $2,500 each, and HDV No. 1, SB Entertainment, and CATS 701 each gave $1,666.66.

Here are those contributors to Angelle and the dates of their contributions:

  • Hospitality Consultants: $5,000 on Sept. 16, 2015;
  • Magnolia Enterprises, Inc.: $5,000 on Sept. 16;
  • Caire Hotel & Restaurant Supply, Inc.: $500 on Sept. 16;
  • Quarter Holdings: $5,000 on Oct. 12;
  • JTMC Enterprises: $5,000 on Oct. 12;
  • Bourbon Heat: $2,500 on Oct. 12;
  • Promenade Entertainment, LLC: $2,500 on Oct. 12;
  • HDV No. 1, LLC: $1,666.67 on Oct. 12;
  • SB Entertainment, Inc.: $1,666.67 on Oct. 12;
  • CATS 701 Bourbon, LLC: $1,666.66 on Oct. 12

Here are the seven who also contributed more than $19,000 to John Young’s unsuccessful campaign for lieutenant governor, according to campaign reports obtained from the State Board of Ethics:

  • Quarter Holdings, LLC: $5,000 on Dec. 29, 2014;
  • Magnolia Enterprises, Inc.: $3,000 on Feb. 26, 2015 and $1,000 on April 29, 2015;
  • SB Entertainment, Inc.: $1,666.67 on Aug. 21;
  • CATS 701 Bourbon, LLC: $1,666.67 on Aug. 24;
  • HDV No. 1, LLC: $1,666.66 on Aug. 24;
  • JTMC Enterprises, LLC: $834 on Aug. 24;
  • Bourbon Heat, LLC: $2,500 on Aug. 28, 2014 and $2,500 on Aug. 26, 2015.

Besides those businesses, also conspicuously absent from the list of clubs investigated by the joint ATC/LSP sting operation was Rick’s Cabaret. Rick’s bills itself on its web site as “New Orleans’ finest gentlemen’s experience.” Located at 315 Bourbon Street, it is within three blocks of all nine strip clubs which had their licenses suspended. Because of its proximity to the other clubs, it would stand to gain financially from business lost by the penalized establishments because of their inability to sell alcoholic beverages.

Robert Watters, owner of Rick’s Cabaret, is said to be friends with both Troy Hebert and State Police Superintendent Mike Edmonson.

The corporate records on the businesses are equally confusing.

Magnolia Enterprises and Quarter Holdings, LLC, share the same agent, Marcus Giusti, and at least one officer, Kishore V. Motwani. Additionally, Aaron K. Motwani is an officer in Magnolia Enterprises. Kishore Motwani also is an officer for Quarter Holdings, Inc. All three share the same Canal Street mailing address.

Neither CATS 701 Bourbon, which runs Cat’s Meow Club at that address, nor HDV No. 1, which operates Larry Flynt’s Hustler Club, list any officers on the Secretary of State’s corporate web site, but they list the same Reno, Nevada address as their domicile. Along with SB Entertainment, they give Durand, Michigan, as their mailing address and SB Entertainment lists two corporate officers, both in Reno.

Bourbon Heat, LLC lists Huey Farrell as its agent and Angelo and Regina Farrell as officers while Jude Marullo is both agent and officer for Promenade Entertainment, LLC. Likewise, Warren Reuther, Jr., is agent and the only officer listed for Hospitality Consultants.

Pat O’Brien is listed as manager of Pat O’Brien Developments, LLC while only agents and no officers are given for JTMC Enterprises, LLC and Caire Hotel & Restaurant Supply, Inc.

Attempts to reach spokesmen for the businesses who contributed to Angelle to determine if they were pressured to give to his campaign were unsuccessful.

 

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LSTA legal counsel outmaneuvered by retired state trooper who trumped his case in support of political contributions

Posted in Campaign Contributions, Commissions, Corruption, Elections, Ethics, Lobbyist, Politicians, Public Records, State Police, Transparency on January 17, 2016| 33 Comments »

When Louisiana State Troopers Association (LSTA) legal counsel Floyd Falcon defended political contributions in the 2015 gubernatorial campaign by LSTA, he cited a 1992 legal precedent which he said permitted the activity.

Apparently he had not counted on being outmaneuvered by a retired state trooper who was perfectly able to do his own legal research to counter Falcon’s argument at last week’s hearing before the State Police Commission.

Several retired state troopers, represented by spokesman Scott Perry, a retired captain with 26 years’ experience with LSP, appeared before the commission on Thursday (Jan. 14) to voice objections to the funneling of LSTA funds through its executive director David Young.

Perry was joined by retired Lt. Leon Millet who said more than $45,000 in political contributions were made without the knowledge or consent of the LSTA membership and that the action appeared to be a violation of the state constitution and State Police Commission regulations.

Perry, on Friday, followed his Thursday verbal request for an investigation with a written request. “Please accept this correspondence as a formal request pursuant to State Police Commission Rule ‘Chapter 16, Investigations,’” he wrote. Perry asked that the commission “investigate the allegation of Prohibited Political Active, 14.2 (A) (1), 14.2 (A) (4), 14.2 (A) (8), in regards to political endorsements and contributions.

“This request is made specifically against classified members of the Office of State Police acting in their capacity as elected officers of the Louisiana State Troopers Association.”

Following Perry’s address to the commission on Thursday, Falcon told the commission it had no authority to investigate LSTA because it is a private organization not subject to oversight by the commission.

Commission members agreed but pointed out that it is empowered to investigate illegal or questionable activity by individual state troopers. The commission is the equivalent of the Louisiana Civil Service Commission which serves the dual purpose of protecting the rights of state employees and investigating illegal or improper activities by state employees.

Falcon cited the 1992 case of Cannatella vs. the New Orleans Department of Civil Service. In that case, the Fourth Circuit Court of Appeal overturned a 30-day suspension handed down to police Sgt. Ronald Cannatella for violation of a city civil service rule prohibiting political activity. http://scholar.google.com/scholar_case?case=718580336782666189&q=cannatella+v.+department+of+civil+service&hl=en&as_sdt=8000006&as_vis=1

Cannatella was president of the Police Association of New Orleans (PANO) in January 1990 when PANO decided to endorse a candidate for mayor. PANO had polled its membership beforehand and Cannatella subsequently appeared at a public forum to announce the endorsement. The appellate court noted that Cannatella believed he was acting “pursuant to what he believed was a function of his position as the president of PANO.”

The court said that while the prohibition against political activity is “exclusively limited to commissioners and classified civil service employees and officers,” the prohibition “does not extend to a labor organization such as PANO, or its spokesperson, merely because its members are classified civil service employees.”

No sooner was Falcon finished citing the Cannatella case than Perry, who now works as an investigator for the Office of Inspector General, was on his feet. Perry presented a copy of a 2001 ruling by a three judge panel of the Fifth Circuit Court of Appeal. The ruling he held, while not a legal precedent, nevertheless differed significantly with the Cannatella case and was identical to the circumstances of the LSTA action.

In the case of Kenner Police Department vs. Kenner Municipal Fire & Police Civil Service Board, five officers who signed off on a contribution check in their capacity as members of the executive board of the city police association were fired.

In the opinion written by Judge Clarence McManus, the Fifth Circuit said that while Cannatella held that members of PANO had the right to endorse a candidate without exposing the members to penalties under the civil service laws, “…Cannatella is not controlling or binding on this court, as counsel for appellants seems to suggest.”

It said Cannatella is distinguishable because it involved a different statute governed by a different provision of the constitution. “In this case the appellants are indeed classified civil service employees. Therefore, the prohibition against political activity clearly applies to them,” the decision said. But, the court noted, the officers claimed they did not individually make any campaign contributions, but rather PACK did. (PACK is an acronym for Police Association for the City of Kenner.)

The court said the appellants’ assertion that the contribution and endorsement were actions taken by PACK and not the fire appellants individually “is simply untenable. As for the contention that being members of a labor union exempts them from any and all responsibility under the civil service laws, we find this argument unpersuasive. To allow the appellants to do indirectly through the union or an association that which they cannot do directly as classified civil service employees will permit them to circumvent the statute’s prohibition.” (Emphasis ours)

The civil service board held that the campaign contribution check “was personal action taken by the officers individually, and not an action of the association,” said the appellate court in upholding their termination.  http://caselaw.findlaw.com/la-court-of-appeal/1285153.html

LouisianaVoice broke the story of the LSTA contributions on December 9. https://louisianavoice.com/2015/12/09/more-than-45000-in-campaign-cash-is-funneled-through-executive-director-by-louisiana-state-troopers-association/

In the LSTA case, Young acknowledged that he made the contributions in his name and was subsequently reimbursed by the organization.

In a statement that would seem to conflict with LSTA’s own legal counsel’s argument, Young said there were questions about the ability of state employees making political contributions. “So in order to avoid any of that,” he told the Advocate, “if I make a contribution as a non-state employee, there could never be a question later that a state employee made a contribution.”

Except there now are questions. Commission Vice Chairman W. Lloyd Grafton of Ruston observed that it “almost makes me think there was something suspect here because of the check writing. Why wouldn’t the association have made the contribution? It looks like someone was trying to circumvent something.”

Prior to that date, on Dec. 4, LouisianaVoice broke another story that State Police Superintendent Mike Edmonson attempted to prevail upon the LSTA board to write a letter to then Gov.-elect John Bel Edwards endorsing Edmonson for reappointment to lead state police for another four years.

On Nov. 30, the board voted unanimously not to write the letter. Edwards subsequently reappointed Edmonson anyway, largely on the strength of the endorsement of the Louisiana Sheriffs’ Association and the Louisiana Police Chiefs’ Association.

Edmonson twice denied that he had requested the LSTA board’s endorsement but LSTA Interim President Stephen LaFargue confirmed to LouisianaVoice, also on two separate occasions, that Edmonson asked him about the prospects of LSTA sending a letter to Edwards asking that Edmonson be reappointed.

“Col. Edmonson attended the board meeting and he told me he was going to apply for reappointment,” LaFargue said. “He then asked about the possibility of the LSTA board writing a letter of endorsement. I told him I didn’t know, that it would have to be taken up by the board.” Because of questions raised by LouisianaVoice, the board subsequently agreed unanimously not to write the letter to Edwards.

A meeting summary of a Troop I (Lafayette) affiliate meeting noted that LaFargue also “took responsibility” for the LSTA’s endorsement of Edwards in the Nov. 21 runoff election against U.S. Sen. David Vitter. Edwards defeated Vitter by a 60-40 percentage point margin.

Edwards also was one of several candidates who received contributions from LTSA. Edwards spokesman Richard Carbo told the Baton Rouge Advocate last Thursday that the governor had no knowledge that Young was reimbursed by LSTA and that Edwards would return the $8,000 received from LSTA through Young “if the contributions were made improperly.” http://theadvocate.com/news/14574305-124/head-of-state-police-group-says-nothing-wrong-with-his-political-donations-gov-edwards-said-he-will

Louisiana State Police Commission Chapter 14 to which Perry referred specifically says that no member of State Police shall:

  • Participate or engage in political activity, including, but not limited to, any effort to support or oppose the election of a candidate for political office or support or oppose a particular political party in an election;
  • Make or solicit contributions for any political purpose, party, faction, or candidate;
  • Directly or indirectly, pay or promise to pay any assessment, subscription, or contribution for any political party, faction or candidate, nor solicit or take part in soliciting any such assessment, subscription or contribution, and no person shall solicit any such assessment, subscription or contribution of any classified employee in the State Police Service.

http://laspc.dps.louisiana.gov/laspc.nsf/c4b8169248104d4286256ead0069b9bd/582526be4d41dca786256ea000667ce2?OpenDocument

So in the end, we have:

  • State police officers who comprise the LSTA board making a political endorsement in direct contravention of rules and regulations.
  • The Superintendent of State Police leaning on the LSTA board in an effort to get the board to send the new governor a letter endorsing him for reappointment.
  • The executive board of the LSTA, comprised of state police officers under the jurisdiction of the State Police Commission making the decision to make more than $45,000 in political contributions—contributions that were laundered through its non-state employee executive director—by the director’s own admission, and without bothering to poll its membership for approval.

All three of which were in violation of State Police Commission regulations.

Any questions?

 

 

 

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