Feeds:
Posts
Comments

Archive for the ‘Ethics’ Category

Something’s not quite right over at the Louisiana Workforce Commission (LWC).

Conflicting dates of employment of an unclassified employee, the awarding of a contract to a vendor whose bid was nearly twice that of two competitors, and appearances on behalf of a state contractor at a Florida convention by a state legislator have flown under the radar until now.

Wes Hataway is Director of the Office of Workers Compensation Administration but the question is just when did he join LWC?

Department of Civil Service records and minutes of the Worker’s Compensation Advisory Council simply do not match up.

Civil Service records indicate that Hataway was hired as an unclassified Assistant Attorney General on Jan. 25, 2010 at $93,600 per year and 13 months later, on Feb. 21, 2011, moved over to LWC as an unclassified Assistant Secretary to then advisory council Chairman Chris Broadwater at an annual salary of $105,000.

Here is what we received from the Department of Civil Service:

“See information below on Wes Hataway. Let me know if you have any questions or need more information.”

Begin Date End Date Agency Job Title Annual Pay Rate
1/25/2010 2/20/2011 Office of the Attorney   General Unclassified Asst Attorney   General 90,000.04 (begin)93,600.26 (end)
2/21/2011 Present LWC-Workforce Support &   Training Unclassified Assistant   Secretary 104,998.40

And indeed, there is a paper trail that appears to support that time frame. A two-page score sheet that evaluated proposals for a fraud detection contract with LWC dated June 22, 2010, includes the signature of Hataway and identifies him as one of the four-member team that evaluated and made recommendations for the contract. It also identifies him as representing the Attorney General’s Office—six months after he was ostensibly named as legal council for the Office of Workers’ Compensation (OWC).

(To enlarge, left click on image):

PTDC0124

PTDC0125

But another document dated Jan. 28, 2010, casts doubts as to Hataway’s status at LWC.

Minutes of the Jan. 28, 2010, meeting of the Workers’ Compensation Advisory Council contain an entry on the fourth and final page which says, “Director Broadwater introduces newly hired AG attorney, Wes Hataway. Wes will serve as General Counsel, and also work on the prosecution of fraud cases.”

MinutesAdvisoryCouncilJan2810

Hataway has since replaced Broadwater as Director of OWC but he regularly consults with Broadwater on pending matters coming before him, according to court documents, according to legal documents.

Broadwater, a Republican from Hammond, was elected to the Louisiana House of Representatives in 2011 but continues to represent workers’ comp insurance companies before the Office of Workers’ Compensation, the agency he once ran.

Broadwater also appeared in a four-minute video at an SAS Institute conference in Orlando, Florida. In that video, he praised the work of the company, which won that 2010 contract with a high bid of nearly $4.3 million.  http://www.allanalytics.com/video.asp?section_id=3427&doc_id=269491#msgs

The three-year contract, which was officially approved on Oct. 7, 2010 retroactive to Aug. 31, 2010, ended last Aug. 30.

The SAS bid was nearly double the bids of IBM and Ultix, each of whom had bids of $2.2 million.

Broadwater, Vice Chairman of the House Labor and Industrial Relations Committee, said in a letter to LouisianaVoice, “My service as vice chair of the Labor & Industrial Relations Committee in no manner alters my duties or the constraints placed upon me under the Code of Governmental Ethics.”

And while claiming that he is prohibited from receiving compensation “from a source other than the legislature for performing my public duties,” he admitted in a legal deposition that he represented insurance clients before OWC and he even admitted that he discussed with Hataway the pending appointment of his former law partner and that he has discussed with Hataway on several occasions matters pending before OWC.

Broadwater also related that Hataway had sought his advice on whether or not he (Hataway) had the authority as director to issue a stay of pending cases without involving the judges to whom the cases were assigned. Broad said in his deposition that he was of the opinion that Hataway did have such power.

Broadwater and Hataway are friends of long standing but that does little to explain why Broadwater would introduce him to council members as a new hire a full year before Civil Service Records and the RFP evaluation and recommendation form reflect any change from his employment status at the Attorney General’s office.

Calling the conflicting dates a clerical error doesn’t fly but then again, it could be just another aspect of the current administration that defies explanation.

Read Full Post »

One probably can understand former Commissioner of Administration Paul Rainwater for not putting the kibosh on that ill-fated $194 million contract with CNSI in mid-2011. Rainwater was, after all, preoccupied at the time with Gov. Bobby Jindal’s priority project, that of privatizing the Office of Group Benefits (OGB).

You may remember the controversy surrounding the OGB privatization push. First, the state brought in Goldman Sachs to help write the specifications of the request for proposals (RFP) for the privatization scheme and then (drum roll please) Goldman Sachs was the only bidder at $6 million.

After Goldman Sachs subsequently withdrew in a dispute over the issue of indemnification, Blue Cross Blue Shield of Louisiana finally got the bid but in between all that, there was that $49,999.99 contract to Chaffe and Associates for a study that failed to produce the results sought by the administration—not to mention questions about the possibility of the existence of two Chaffe reports. https://louisianavoice.com/2011/06/20/was-leaked-chaffe-report-real-or-a-doa-misdirecton-ploy/

Then there was the little matter of Rainwater’s own confirmation hearings and that of a new OGB director before the Senate and Governmental Affairs Committee that almost certainly demanded much of Rainwater’s attention.

But the confirmation hearing for Bruce Greenstein as Secretary of Health and Hospitals by the same committee a week later should have served as a red flag and should have set off all sorts of alarms within the Jindal administration—beginning with Rainwater.

https://louisianavoice.com/2011/06/09/jindals-appointees-arrogant-bureaucrats-or-simply-a-multitude-of-misunderstood-misbehavin-miscreants/

The warnings were clear and the track record of CNSI was readily available. Apparently no one in this administration ever heard of vetting a company before awarding it the largest single contract in the state’s history.

That, it turned out, was a mistake of monumental proportions.

The details of the awarding of the contract to Greenstein’s former employer now reads like some kind of Tom Clancy espionage novel—complete with secret communications, bid-rigging, lavish entertainment of state officials, death threats, creative accounting principles, money laundering, ghost employees, payments of non-existent loans, posh homes of questionable ownership, possible tax evasion, and claims of an ancestral link between Gov. Jindal’s Indian heritage and CNSI’s Indian ownership. dt.common.streams.StreamServer

Throw in the fact that CNSI is one of the subcontractors working on the Obamacare website, and you’ve got all the makings of a real suspense story.

To say the CNSI story is complex would be to belabor the obvious which is all the more reason that Jindal and Rainwater should have taken a closer look at the qualifications of CNSI before committing to such a contract.

It turns out that every state might want to take a long, hard look at CNSI’s credentials now that the company is in position to bid on billions in new contracts with individual states that, in order to receive new grants for expanded Medicaid rolls, will be required to update outdated IT systems in order to more readily share data. Michael Volpe recently had a story that dealt with that very issue in Frontpage Mag. http://www.frontpagemag.com/2013/volpe/billionaire-swindlers-line-up-for-obamacare/

In examining CNSI, these states might wish to begin with Maryland where CNSI’s problems began as far back as 2001. In was that year that Maryland hired CNSI to develop its new web-based Main Medicaid Claims System for the processing of $1.5 billion per year in Medicaid Claims. CNSI has submitted the lower of two bids for the project. The company’s $15 million bid was exactly half the $30 million bid by the other company. Experts say the state should have known right then that the low number of bidders and the disparity between bids were red flags.

CNSI, it turned out, had zero experience in developing Medicaid claims systems. It was given 12 months to develop the system, which was finally put online in January of 2005, three years late.

Problems occurred almost immediately. The company’s costs quickly grew to $25 million but even worse for the state, there were an unusually high number of rejected claims from the outset and the number of suspended claims quickly reached 300,000—a rejection rate of about 50 percent—and by June the number had grown to 647,000, representing about $310 million in back payments to medical providers. Some facilities had to close their doors because of non-payments while others had to take out loans to keep their doors open and others simply stopped seeing Medicaid patients altogether.

In 2008, South Dakota awarded CNSI a $62.7 million contract for a new Medicaid processing system. By 2010—nearly a year before Louisiana hired CNSI—work was halted on the project after costs had grown to $80 million and the system was still two to three years from completion.

A year ago, the Southeast Michigan Health Information Exchange (SEMHIE) filed suit against CNSI over a $1.8 million contract to develop a Social Security e-Disability project for SEMHIE. One of the stipulations of that contract was that any software developed for the project would become the property of SEMHIE. The lawsuit says that SEMHIE “repeatedly, both orally and in writing,” demanded delivery of the software but that CNSI has refused to turn over the software or even to communicate with SEMHIE.

SEMHIE says it had been negotiating to provide the Michigan Health Information Network (MHIN) with the software but that CNSI’s refusal to turn it over resulted in MHIN’s termination of the agreement, thereby costing SEMHIE “substantial” revenue.

The latest twist in the CNSI saga is that the State of Arkansas has, on the basis of the FBI investigation of CNSI’s contract with Louisiana, disqualified CNSI from doing business with that state.

But the really interesting details of the CNSI contract and the company’s links to former employee Greenstein, who was DHH Secretary at the time the contract was awarded, can be found in a series of interviews conducted by the FBI in Maryland FBIReportsCNSI in which two former employees, Vice President and Corporate Counsel Matthew Hoffman and Vice President of Accounting and Finance Jeffrey Weisenborne, reported bookkeeping irregularities, falsification of asset statements to bankers, the purchase of secret homes in Maine, Michigan and Washington State which were not carried on the CNSI books, non-existent loans for which the four CNSI partners received monthly payments, the hiring of CNSI partners’ family members who did no work, bid-rigging, and threats to Hoffman that he would be killed if he disclosed company misconduct. dt.common.streams.StreamServer

The Louisiana Attorney General’s office also conducted an interview with a CNSI employ who originally was a contract employee but who was subsequently hired full time by the company. The employee, identified only as Kunego, which was said to be a pseudonym, was conducted on May 10—11, 2012.

He testified that CNSI’s bid was structured so that it could “shave off” about $40 million from its bid, thus allowing the company to win the contract after which it could get the terms of the contract changed. “In many states this alone would lead to disqualification of the CNSI proposal,” he said. Additionally, he said DHH “front-loaded” the contract, meaning CNSI got money up front because “CNSI was close to being insolvent and needed this change to keep them afloat.”

Kunego said in January of 2011 he and CNSI officials were in North Dakota to prepare their pricing for the Louisiana proposal when they were told by CNSI cofounder and CEO Bishwajeet Chatterjee that the number they had to beat was under $199 million. “This indicated that CNSI officers knew ahead of time the dollar amount that they had to propose to win the contract,” he said.

“After the contract was awarded and during the protest period, Greenstein went to DC (Washington) and was picked up by CNSI officers and entertained to dinner,” the witness said.

He said that during the Greenstein confirmation hearings, CNSI Vice President of Government Affairs Creighton Carroll “was very concerned that the Senate committee would subpoena their phone records.” Carroll told Kunego that they deleted many text messages between CNSI officers and Greenstein “to avoid them being subpoenaed.” Moreover, he said Carroll used his wife’s cell phone for most of the “off channel communications” with Greenstein.

Also during the Greenstein confirmation hearings, CNSI’s lobbyist Alton Ashy was texting Greenstein in an effort to help him with his answers to questions being asked by committee members.

Kunego said that when Greenstein worked for CNSI he lived in a CNSI-owned townhome and that he “got the impression from Chatterjee that Greenstein had ownership in CNSI.” He said 80 percent of CNSI is owned by the four founders—Chatterjee, Chief Strategic Officer Adnan Ahmed, Chief Financial Officer Jaytee Kanwal, and Chief Administrative Officer Reet Singh—while the remaining 20 percent is owned by 23 different people.

The Attorney General report quoted Kunego as saying Jindal has “an India to India ancestor-driven background and network of connectors that brought CNSI and Jindal together” (a characterization the governor’s office labeled as “insulting”) and that “Jindal’s public persona does not jive (sic) with what is going on at DHH.” LDOJ Interview Report on CNSI from 051412

Finally, we have to raise a couple of other questions here about the sequence of events that don’t exactly shine the best light on the Jindal administration.

Was the timing of the personnel change in the Division of Administration (DOA) coincidental or was it somehow tied to the pending investigation?

Rainwater was brought over to the governor’s office on Oct. 15, 2012, to serve as Jindal’s Chief of Staff and has not been heard from since while Deputy Chief of Staff Kristy Nichols left the governor’s office to move across the street to the Claiborne Building to take over Rainwater’s former duties.

In January, the FBI served a subpoena on DOA for all records pertaining to the CNSI bid and contract, including the RFP. And while Jindal certainly knew of the subpoena (and if he did not know, Nichols should be run off by a mean, biting dog for not informing her boss), the subpoena did not become public knowledge until early March. Once the news broke, Jindal acted with all deliberate speed (and yes, that’s sarcasm) to announce the termination of the contract, saying his administration would “not tolerate corruption.”

A week after that, Greenstein announced his resignation, but incredibly, was allowed to remain on the job for another month.

So, did the administration initiate the personnel change at DOA in October in anticipation of the FBI and Attorney General investigations and the subpoena that would come down in three months?

Why did the administration try to keep a lid on the news of the subpoena for some two months and cancel the CNSI contract only when the subpoena’s existence became public knowledge?

And most important: why was Greenstein allowed to remain on the job for a full month after news of the subpoena and the cancellation of the CNSI contract?

Something here just doesn’t pass the smell test.

Read Full Post »

From time to time at LouisianaVoice, someone will ask us how we get the information we use for our stories.

The answer is quite simple, really.

Instead of listening to what elected officials, political appointees and attorneys are saying, we listen to what they’re not saying.

And then we find out where the appropriate public records are and we go get them, sometimes finding it necessary to take legal action to obtain what rightfully belongs to the citizens of Louisiana. Our driving obsession is that public records are not the exclusive domain of whomever happens to be holding office at any given time.

The public’s right to know should be uppermost in any government—unless that government or a particular politician or bureaucrat has something to hide and we feel that having something to hide is the only reason for not releasing public records, deliberative process be damned.

And so, we choose to ask one more question. We know the politicians, bureaucrats and lawyers are going to put the best possible spin on any issue, so we must ask one more question and if we’re not satisfied with the answer, there are always the public records.

That’s the beautiful thing about a democracy; there’s always a paper trail when the politicians and their lawyers quit talking—or when they talk and we hear what they don’t say loud and clear.

And so it was when Baton Rouge attorney Mary Olive Pierson fired off that six-page letter to State Treasurer John Kennedy in which she chose to attack Kennedy for his political aspirations as much as to defend her client, State Sen. Yvonne Dorsey (D-Baton Rouge), that we listened.

Dorsey, in 2007, pushed through the legislature a $300,000 appropriation for the Colomb Foundation in Lafayette which Kennedy in July of this year listed as one of three dozen non-government organizations (NGOs) that owed the state some $4.5 million for non-compliance in reporting on how their grant money was spent.

The Colomb Foundation received its funding to design and build a community center in Lafayette Parish.

The Colomb Foundation is run by Sterling Colomb who is married to Sen. Dorsey.

Pierson, however, went for Kennedy’s jugular when she dropped her bombshell in her letter: Dorsey and Colomb were not married until 2010, three years after the issuance of the grant, she said.

It was one of those “aha” moments that attorneys love. A “gotcha,” as it were, the implication being that there could be no conflict if Dorsey was not married to Colomb at the time.

Advantage, Dorsey.

But wait.

There was something in Pierson’s declaration about their marriage date that was not said—like how long had they known each other or how long had they been in a relationship? Could Dorsey have used her position to funnel $300,000 in state funds to her future husband?

We listened but all we could hear was crickets chirping. So, we embarked on a little paper chase that took only a few minutes and a couple of clicks of a computer mouse. And what do you suppose we found?

On Jan. 5, 2007, one Sterling Colomb contributed $1,000 to the campaign of Sen. Yvonne Dorsey, according to records obtained from the Louisiana Ethics Commission. And while the $300,000 grant to the Colomb Foundation was indeed approved three years before their marriage, the campaign contribution from her future husband came approximately four months before the opening of the 2007 legislative session during which the grant to his foundation was approved—a little more than three years prior to their marriage.

Aha.

Your move, counsellor.

Read Full Post »

When last we left Ray Griffin, that Republican State Central Committee member who purportedly doubles as a political pundit, he was lamenting the fact that 5th Congressional District candidate Vance McAllister, a “wealthy, self-funding political novice,” was (gasp) using his own money to bankroll his campaign against Bobby Jindal-anointed State Sen. Neil Riser.

That’s right. McAllister’s biggest sin, according to Griffin, was using his own money for political campaign purposes.

Strangely enough, Griffin, whom we still question as the real author of that post on The Hayride, managed to skirt entirely the issue of using political campaign funds for personal uses.

Well, call us nitpickers, but we at LouisianaVoice choose not to look the other way on such matters. In our perverted, warped minds, we look upon private use of campaign funds as a bit more egregious than spending one’s personal funds for political campaigns.

And apparently state campaign finance laws agree with us.

Louisiana Revised Statute 18:1505.2 (I) says it quite succinctly: “Campaign funds may not be used for any personal use unrelated to a political campaign or the holding of public office.”

Further down, in R.S. 18:1505.2 (J) 1(1), the law says it again, in a slightly different way: “…contributions received by a candidate or a political committee may be expended for any lawful purpose, but such funds shall not be used, loaned, or pledged by any person for any personal use unrelated to a political campaign, the holding of a public office, or party position (emphasis ours).

That should be clear enough.

But wait. Apparently it was not quite so clear for Riser.

From January through December of 2012, Riser made 12 monthly payments of $678.20 to Ford Credit in Dallas. The notation on the expenditure was “Truck Note.”

That represents a total of $8,138.84 he spent from his campaign funds in 2012 on his personal vehicle.

And it would be quite a stretch to claim he was using the vehicle for campaign purposes. The most recent election was in October of 2011—and he was unopposed for re-election.

Perhaps he was campaigning already for Congress. If he was, it would make him, Jindal and Rodney Alexander all liars; they claim there was no collusion in Alexander’s sudden “retirement” in favor of a $130,000-a-year job as head of the Louisiana Office of Veterans’ Affairs—a development that conveniently opened the door for Riser.

There were some other questionable “campaign” expenditures as well.

During 2012, Riser made 11 payments to T.A. Roberts Oil in Grayson for “fuel for campaign.” Those 11 fuel purchases totaled $6,656.86, or $605.17 per payment. Either he has a huge gas tank on that truck, or he was running a tab at Roberts Oil.

Riser also made two payments of $502.86 each ($1,005.72 total) on June 1 and Dec. 5 to Farm Bureau Insurance for insurance coverage on his truck

So, in 2012, Riser spent a grand total of $15,801.42 from his campaign funds on his personal vehicle.

But, hey, you ain’t seen nothin’ yet.

Riser, who like his mentor Jindal, actively courts the religious right as the beacon of all things pure and righteous (he made numerous $25 contributions to protestant churches all over his district), is apparently almost as generous with OPM (other people’s money) when it comes to hiring staff members.

During 2012, he paid $13,550 to Annette McGuffee of Columbia ($5,250), Mason Dupree of Baton Rouge ($6,000), and Nicholas Walts of Columbia ($2,300) for “campaign work” even though there was no campaign in 2012 and Riser had won re-election unopposed the year before.

So now, we’re up to $29,351.42 in questionable expenditures from Riser’s campaign funds—in 2012 alone. And yes, there’s more.

How many of us would love to have a slush fund to dip into to pay for roof repairs? Well, Riser did so on two occasions in 2012. In March, he paid Home Hardware in Columbia $72.45 and in August he paid David Wilson Construction of Columbia $250. Both expenditures ($322.45 total) were listed as “Roof Repair.”

How about a couple of meals in the House Dining Hall totaling $538.46?

And $100 for membership in the American Legislative Exchange Council (ALEC);

Of course, we can’t overlook those purchases from the Louisiana Senate: Shirts ($49.18), Windbreaker ($36.16), Umbrella ($26), Shirts ($47.60), T-shirt and lanyard ($15.09), lapel pins ($31.05), and $34 to the Louisiana Capital Foundation for “Ornaments”—all purchases ostensibly for “campaign purposes.”

Grand total: $30,551.41.

Now, let’s hit the high spots for the years 2009-2011:

  • Kwik Mart, Columbia—20 payments totaling $3,228.95 for fuel;
  • Mason Dupree—seven payments totaling $3,500 for “Campaign Work.” (Remember, he was unopposed in 2011.);
  • LSU Ticket Office—$2,000 for athletic tickets;
  • Riser & Son Funeral Home (Riser’s business) in Columbia—$1,013.67 reimbursement for purchase of an I-Pad (WHAT?!!);
  • William R. Hulsey, CPA, of Monroe—$370 for professional fees (probably trying to figure a way to take a business deduction on that I-Pad);
  • White Ford Co., Winnsboro—$678.20 for lease on vehicle;
  • Farm Bureau Insurance Co.—$670.10 for vehicle insurance;
  • Louisiana State Senate—$646.50 for Senate plates;
  • Louisiana State Senate—$183.33 for Senate china;
  • Louisiana State Senate—$187 for luncheon;
  • Louisiana State Senate—$337.14 for flags;
  • Louisiana State Senate—$147.60 for shirts and parade throws;
  • Louisiana State Senate—$101.90 for shirts;
  • Louisiana State Senate—$62.24 for a Senate jacket;
  • Louisiana State Senate—$108.10 for flags;
  • Louisiana State Senate—$26.32 for Senate pad folios;
  • Louisiana State Senate—$25.45 for shirts;
  • Louisiana State Senate—$18.50 for a watch;
  • Louisiana House Dining Hall—$91.41 for meal;
  • National Rifle Association—$125 for membership dues;
  • American Legislative Exchange Council—$100 for membership dues;
  • T.A. Roberts Oil, Grayson—three payments totaling $1,140.38 for fuel;
  • State of Louisiana—three payments totaling $740 for rent of Pentagon Barracks Apartment;
  • Ruston Flying Service—$100 for trip (we didn’t know you could taxi down the runway for $100);
  • Wal-Mart—$76.62 for a router;
  • Johnny’s Pizza—$30.72 donation (donation?);

So now we’re looking at a minimum of $46,000 in expenditures from Neil Riser’s campaign funds from 2009 through 2012—mostly in 2012, well after he was returned to office in 2011 with no opposition—that probably warrant a closer look by the Louisiana Board of Ethics.

Discounting the payments he made for “campaign work” to various individuals, there remains some $25,600 which should be counted as income. That amount includes truck payments, insurance, fuel, the router, roof repairs, LSU football tickets and of course, that I-Pad.

We have to wonder if Riser 1) claimed mileage on his income taxes and 2) if he reported the $25,600 as income. If the answers are yes to the first and no to the second, the IRS might suddenly take an interest and request a conference to go over his return.

And Neil Riser is asking voters in the 5th District to send him to Washington this Saturday so that he can join all the other Tea partiers in reining in all that wasteful governmental spending.

Wonder why Ray Griffin didn’t mention this in his column about campaign finance?

Read Full Post »

For a man who has received more than $20 million in contributions to his various political campaigns, perhaps a half-million or so in questionable contributions shouldn’t raise too many eyebrows. After all, that’s less than 2.5 percent of the total.

Still, for the man who set himself up as the beacon of all that’s pure and pristine, the one who established the “gold standard” of governmental ethics, the one who loves to boast (only in out-of-state speaking engagements, of course) of “the most transparent” administration in the state’s history, anything less than clean campaign money should be unacceptable.

Alas, such is simply not the case.

Even his mother, a state civil service employee, got into the act in open violation of civil service regulations, but more about that later.

We have written at various times of many of the contributions which appear to be directly related to appointments to state boards and commissions. Donald “Boysie” Bollinger was appointed last March to the State Police Commission and Aubrey Temple of Deridder was appointed in July of 2008 to the Coastal Protection and Restoration Financing Corp.

Together, the two men and their businesses and family members have combined to give Jindal’s campaigns at least $95,000 and three of their business associates, Red McCombs ($15,000), Corbin Robertson ($5,000) and James Weaver ($1,000) formed a partnership to purchase water from the Toledo Bend Reservoir on the Louisiana-Texas border for re-sale in Texas. That attempt, at first supported by Jindal, failed when the Sabine River Authority reversed itself and killed the deal at least for the time being.

Temple, meanwhile, was paid $400,000 by the Coushatta Tribe back in 2001 for undisclosed services but he was never able to give an accounting for how the money was used. Also involved with the Coushatta Tribe was Alexandria attorney Jimmy Faircloth, who chipped in another $23,000 to various Jindal campaigns and has since reaped more than $1 million in legal fees for defending the state in various legal proceedings, most of which saw the state end up on the losing end of key court decisions.

Faircloth, while serving as legal counsel for the Coushattas, advised the tribe to sink $30 million in a formerly bankrupt Israeli technology firm call MainNet for whom his brother Brandon was subsequently employed as vice president for sales. The investment, to no one’s surprise except perhaps Faircloth, proved to be a financial bust for the tribe.

This is the same tribe, with Faircloth as legal counsel, that Paid disgraced lobbyist Jack Abramoff $32 million to help promote and protect their gambling interests but who provided little in return for his fee.

Another Abramoff associate, former House Majority Leader Tom DeLay, also contributed $5,000 to Jindal. DeLay was convicted of scheming to influence Texas state elections with corporate money but a federal appeals court overturned that conviction last month.

There was the $55,000 in laundered money the Jindal campaign received in 2007. Richard Blossman, Jr., president of Central Progressive Bank of Lacombe in St. Tammany Parish, issued $5,000 “bonuses” to each of 11 board members but instead of giving them the money, 11 contributions of $5,000 each were funneled into the Jindal campaign in the names of the board members—without their knowledge or permission. Regulators subsequently took over the bank and Blossman was sentenced to 33 months in federal prison for bank fraud.

Jindal has refused to return the money.

The State Board of Ethics also said River Birch, Inc., of Jefferson Parish formed six “straw man entities” through which it laundered $40,000 in illegal donations to Jindal.

Again, Jindal kept the money.

The governor accepted $158,500 in contributions from Lee Mallett and a host of his companies in Iowa, LA., and Lacassine and in return, Jindal appointed Mallett to the LSU Board of Supervisors—even though Mallett attended McNeese State University only briefly and received no degree. Jindal also had the Department of Corrections issue a directive to state parole and probation officers to funnel offenders into Mallett’s halfway house in Lacassine.

Jindal appointed Carl Shetler of Lake Charles to the University of Louisiana System Board of Supervisors in July of 2008 after Shetler, his family and businesses contributed $42,000 to Jindal. Shetler’s biggest claim to fame came when he managed to get McNeese placed on athletic probation by the NCAA after it was learned that he paid money to McNeese basketball players. Now he helps preside over the very school that he placed in jeopardy. So much for that “gold standard” of governmental ethics.

Jindal also accepted $2,500 from Hospital Corp. of America (HCA) which paid a record settlement of $2 billion to settle the largest Medicare fraud case in U.S. history. The founder and CEO of HCA was Rick Scott, later elected governor of Florida, for whom Jindal campaign extensively.

Speaking of Florida and records, Fort Lauderdale attorney Scott Rothstein was disbarred and sentenced to prison for running the largest ($1.4 billion) Ponzi scheme in the state’s history but not before he, his wife, his law firm and three of his corporations contributed $30,000 at a 2008 Jindal fundraiser hosted by Rothstein.

Most news media found the $10,000 contributed by Rothstein and his law firm but missed his wife’s and the corporation contributions that totaled an additional $20,000. Jindal announced that he would refund the money to a victims’ fund but instead, gave the $30,000 to the Baton Rouge Food Bank.

Jindal also took $10,000 from Affiliated Computer Services (ACS) and later gave ACS employee Jan Cassidy, sister-in-law of Congressman Bill Cassidy, a state job with the Division of Administration. ACS, meanwhile, has come under investigation by the Securities and Exchange Commission for certain accounting practices.

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

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

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

Saving the best for last

All these were sufficiently questionable to tarnish the “Mr. Clean” image Jindal has attempted to burnish throughout his administration but the most blatant display of arrogance and complete disdain for campaign laws has to be three individual contributions in 2003 that totaled a mere $5,000—from Jindal’s mother.

So what’s wrong with a relative contributing to his campaign? Several family members, after all, gave to the campaign as do family members of many other candidates.

Well, nothing…except that his mother, Raj Jindal, is a classified state employee, according to Civil Service records, an IT Director 3 with the Louisiana Workforce Commission, formerly the State Department of Labor. She earns $118,000 per year and has been working for the state for 38 years, certainly long enough to know the prohibition against state classified employees being active in political campaigns. State employees, after all, are routinely sent periodic reminders of civil service regulations governing political activity.

Records provided by the State Ethics Commission campaign finance reports indicate that Raj Jindal contributed $3,000 on April 23, 2003, to son Bobby. Nine days later, on May 2, she contributed another $500 and on June 17, she chipped in an additional $1,500, bringing her total contributions to the $5,000 maximum allowable by law—for non-civil service employees.

Article X, Part I, Paragraph 9 of the Louisiana State Constitution says:

“Section 9.(A) Party Membership; Elections. No member of a civil service commission and no officer or employee in the classified service shall participate or engage in political activity; be a candidate for nomination or election to public office except to seek election as the classified state employee serving on the State Civil Service Commission; or be a member of any national, state, or local committee of a political party or faction; make or solicit contributions for any political party, faction, or candidate (emphasis ours); or take active part in the management of the affairs of a political party, faction, candidate, or any political campaign, except to exercise his right as a citizen to express his opinion privately, to serve as a commissioner or official watcher at the polls, and to cast his vote as he desires.

“(B) Contributions. No person shall solicit contributions for political purposes from any classified employee or official (emphasis ours) or use or attempt to use his position in the state or city service to punish or coerce the political action of a classified employee.”

One veteran political observer said that unless Jindal solicited the contribution, all liability lies with the governor’s mother for the rules violation.

But Jindal is a big boy, as evidenced by his advice earlier this year to his fellow Republicans to put on their “big boy pants.” He has to accept the responsibility for allowing his mother to flaunt state civil service rules not once, not twice, but three times. And yes, she also should be held accountable for her violation of rules that apply to every other state civil service employee.

Now the only question remaining is what will the Civil Service Commission do about the governor’s mother violating state campaign regulations governing political activity by Civil Service employees?

Our best advice is: don’t hold your breath waiting for disciplinary action.

The rules obviously do not apply to this governor.

Read Full Post »

« Newer Posts - Older Posts »