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Archive for the ‘Ethics’ Category

If there was any lingering doubt as to the political stroke of the Louisiana Sheriffs’ Association, one need only watch House Bill 218 do its imitation of Sherman’s March to the Sea.

The bill, authored by State. Rep. Katrina Jackson (D-Monroe) and which gives Louisiana’s sheriffs a 7 percent pay raise, has already sailed through the House with a convincing VOTE of 79-9 with the remaining 16 managing to skip out on the vote.

It now moves on to the Senate Judiciary B Committee where it will be rubber stamped before going to the Senate floor where it is virtually assured of a similarly overwhelming majority approval as it enjoyed in the House.

In the interest of full disclosure, it should be pointed out that neither the sheriffs’ current salaries nor the proposed increase will come from state funds. All sheriffs’ salaries come from their individual budgets but any raises must be approved by the legislature.

But that doesn’t change the fact that sheriffs are among the highest paid public officials in the state. There is not a single sheriff among the 64 parishes who does not make significantly more than the governor of the gret stet of Looziana.

LouisianaVoice painstakingly perused the latest audit reports for every sheriff in the state and found some interesting numbers that might make even the most ardent law and order advocate blanch a little.

Base salaries for sheriffs range from $105,279 for Assumption Parish Sheriff Leland Falcon to $179,227 for East Baton Rouge Parish Sheriff Sid Gautreaux but benefits can—and do—kick the bottom line up significantly.

Several small rural parishes are especially generous to their sheriffs when it comes to chipping in extras.

Take John Ballance of Bienville Parish, for example. Ballance, by the way, is a retired State Trooper drawing a pretty hefty pension from the state. His base salary is $144,904 but he gets an additional $82,607 in benefits that bump his overall pay to $227,511. Among his perks are a $14,504 expense allowance, $10,957 in insurance premiums, $41,207 in retirement contributions and—get this: $13,295 in membership dues for the sheriffs’ association. He has the third highest total in benefits in the state. Bonnie and Clyde, who met their demise in Bienville Parish back in 1934, should have made out so well.

Dusty Gates, the sheriff of Union Parish, pulls down $144,938 in base pay but gets an additional $83,652 in benefits (highest in the state), including $13,766 in sheriffs’ association membership dues (it ain’t cheap being a member of the most powerful lobbyist organization in the state).

Gerald Turlich of Plaquemines Parish comes in second in benefits with $83,530 tacked onto his $159,540 base pay—and he doesn’t even get any membership dues. His perks include $36,825 in insurance and $41,038 in retirement.

Nineteen individual sheriffs currently make $225,000 per year or more after benefits are included—and that’s before the proposed increase.

The top ten overall compensation packages, in order, are:

  • Turlich (Plaquemines): $243,070;
  • Tony Mancuso (Calcasieu): $237,080;
  • Ron Johnson (Cameron): $233,556;
  • Mike Stone (Lincoln); $232,785;
  • Craig Webre (Lafourche): $231,413;
  • Julian Whittington (Bossier): $231,100;
  • Andrew Brown (Jackson): $230,739;
  • Rodney Arbuckle (DeSoto): $230,566 (Arbuckle resigned on March 16);
  • Willy Martin (St. James): $229,951;
  • Ricky Moses (Beauregard): $229,098.

Conversely, only seven sheriffs earned less than $190,000 per year after benefits were included. They included:

  • Falcon (Assumption): $153,637;
  • Sam Craft (Vernon): $171,615;
  • Randy Smith (St. Tammany): $177,367;
  • Eddie Soileau (Evangeline): $180,766;
  • James Pohlmann (St. Bernard): $184,057;
  • Ronald Theriot (St. Martin): $188,003;
  • Toney Edwards (Catahoula): $188,751.

Base salaries are determined by the legislature, according to St. Landry Parish Sheriff Bobby Guidroz.

Twenty-four sheriffs have base salaries of $159,540. A 7 percent increase will add $11,167, boosting their base pay to $170,707 before the addition of benefits

Gautreaux’s East Baton Rouge Parish base pay of $179,277 will jump by $12,549, giving him a new base pay of $191826.

Here is a list of all the SHERIFFS’ SALARIES, including base pay and total compensation.

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A handful of distinguished retired journalists (and me) meets once a month at a Baton Rouge Piccadilly Cafeteria (I told you we were retired) to solve the ills of the state, nation, and the world. Occasionally, we even delve into local Baton Rouge politics.

One of those, Ed Pratt, with whom I had the pleasure of working at the old Baton Rouge State-Times back in the ‘70s, is an occasional attendant but because he is still gainfully employed (unlike the rest of the over-the-hill-gang), he doesn’t join us each month.

But several months ago, at a lunch he did show up. The subject that day was the future of the Taylor Opportunity Program for Students (TOPS) and the legislature’s failure to adequately address the looming fiscal cliff that will see about a billion dollars fall off the books with the expiration of a temporary sales tax.

On March 9, Pratt, who still does a regular op-ed column for the Baton Rouge Advocate, WROTE a piece that accurately illustrated the direct connection between the continued funding of TOPS and the return on investment of apartment developers and restaurant owners, investments that exist in the immediate orbit of the state’s institutions of higher learning.

And while Pratt’s analysis singled out the spurt in apartment, condo, and restaurant development, primarily in the immediate proximity of LSU, other colleges and universities have also witnessed similar private investment, particularly in student housing.

Those investments could be in peril if the legislature continues to shirk its responsibility in setting the state on firm fiscal footing.

Take my alma mater, Louisiana Tech, for example, and Grambling State University, just five miles from Tech. There has been an explosion of housing construction around those two campuses. And because Tech has embarked on an ambitious program of student recruitment to bump its enrollment to something like 20,000 or so over the next few years, construction workers have been particularly busy in Ruston. (The enrollment at Tech when I was there was something like 4,000. But they had rotary dial pay phones, Cokes in 61/2-ounce glass bottles, manual typewriters, carbon paper, and 8 p.m. weeknight curfews for female students back then, too.)

But the way they’ve gone about with their student housing construction at Tech is quite creative and is being emulated by every other campus in the state, according to Ruston political consultant Dr. Gary Stokley, a retired Tech professor.

The Tech Alumni Foundation approaches alumni and other supporters with an “investment opportunity” that, as long as TOPS is maintained, is virtually risk-free. (And no, it’s not a Ponzi or pyramid scheme.)

Tech, despite having torn down some of its dormitories, is growing and with an increase in enrollment, students need housing. And, of course, students would prefer a home environment with private baths and kitchens as opposed to dormitories with a community bath and no kitchen.

By working with the school’s foundation, which actually negotiates the construction contracts, investors enjoy a generous tax write-off, plus they will own a percentage of the apartments or condos. The school takes care of filling the housing units and collecting the rent and is also responsible for the maintenance of the buildings. The dollars generated by student rent pays off the debt. The advantage to the school is that it is relieved of the burden of having to go through the State Bond Commission to obtain funding for the construction. The alumnus or supporter who ponies up the money does nothing but sit back and reap the rewards of his investment.

If you have the funds to sink into the project, it’s a win-win proposition.

“Tech is one of the first schools to come up with this method of financing construction of student housing,” said Stokley. “Other schools have since replicated that method.

“Tech and Grambling have a tremendous impact on the economy of Ruston and Lincoln Parish as do others schools on their communities,” he said.

“A four-year student at Tech has an economic value of a million dollars on Ruston,” he said, “so the retention of students is critical. If TOPS craters, enrollment will drop and these apartments will sit empty.

“It’s a domino effect. If TOPS is cut or eliminated, it affects not only students’ families, but the ripple effect impacts colleges and the community as well.” Stokley said it was not unrealistic to envision some universities actually shutting down or converting from public to private schools with even higher tuitions—which could further reduce enrollment.

There are already all those extra fees that students voted to impose on themselves—before tuition began rising so sharply seven or eight years ago. “At Tech, we have the $62 million Davison Center that students voted to pay a portion of by assessing themselves fees totaling $8 million,” Stokley said. “That’s an added fee tacked onto already rising tuition. If TOPS is cut, that’s money that will have to be made up by students’ parents or by students taking out student loans. If that happens, the money for private apartments and condos just won’t be in the budget.”

Combined with the threat to TOPS, banks are lobbying Congress to cap the amounts of government student loans which could place additional financial hardships on students.

With federal student loans, the interest rate is fixed and often lower than private loans which can have variable interest rates of more than 18 percent. Plus, with federal loans, students are not required to begin repayment until they graduate, leave school or change their enrollment status to less than half time. Private loans require payments while still enrolled.

For other advantages of federal over private loans, click HERE.

If you are a parent with a kid enrolled in a Louisiana public university who is on TOPS, you may wish to turn your attention from March Madness long enough to give your House and Senate members a call to suggest that they take time away from campaign fund raising long enough to do the job they were elected to do.

Better yet, here are the links to the HOUSE and SENATE. Scroll down and click on the name of your members to get their email addresses to contact them that way.

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A lawsuit making its way through U.S. District Court in Lafayette alleges that a female employee, Jordan Carter, was dismissed from her job at Swiftships, LLC in Morgan City because she was pregnant and management did not want to grant her maternity leave.

The lawsuit, which also says Carter was promoted prior to her pregnancy but never received a promised increase in pay that was supposed to go along with the promotion, carries far more significance that your normal discrimination lawsuit, however.

Between fiscal year 2007 through 2016, Swiftships held seven federal CONTRACTS totaling $386 million. Those included $103.4 million in contracts with the U.S. NAVY for non-nuclear ship repair. The duration of those contracts ran from Sept. 22, 2014, through March 20, 2018.

Carter was employed by Swiftships for nearly 21 months, from April 22, 2013, to Jan. 9, 2015.

Prior to her termination, she was demoted. She said her supervisor told her she was demoted because of her pregnancy.

One witness told Smith that she was aware of two other pregnant women who were terminated by Swiftships prior to giving birth.

Federal contracting regulations strictly prohibit employee discrimination in any form.

  • Last April 24, Swiftships was awarded a $27.4 million modification to a previously-awarded contract “for the accomplishment of continuous lifecycle support for the Iraqi Navy.” The shipbuilding firm is providing TECHNICAL EXPERTISE in preventative and planned maintenance, repairs and platform overhaul support services for Iraqi patrol boats, offshore vessels, and defender boats. Work under the contract, which was scheduled for completion this month, was performed on Umm Qasr Naval Base, Iraq.
  • In October 2015, the U.S. Navy EXTENDED Swiftship’s contract to operate and upgrade a repair facility for Iraqi patrol boats built in Morgan City. The one-year extension was worth almost $11 million for Swiftships.
  • Swiftships has delivered almost 300 vessels through Foreign Military Sales, (FMS) the preferred method for selling defense systems abroad.

Under FMS, the Department of Defense procures defense articles and services for the foreign customer using the same acquisition process used to procure for its own military needs.

Recent policy changes in the U.S. Government’s Federal Acquisition Regulations have opened the door to foreign governments, allowing them to participate in FMS procurement negotiations. In general, the government-to-government purchase agreements tend to ensure standardization with U.S. forces; provide contract administrative services that may not be available through the private sector; and help lower unit costs by consolidating purchases for FMS customers with those of DoD. DCS allows the foreign customer more direct involvement during the contract negotiation phase; may allow firm-fixed pricing and may be better suited to fulfilling non-standard requirements.

The President designates countries and international organizations eligible to participate in the FMS program. The Department of State makes recommendations and approves individual programs on a case-by-case basis. Currently, around 160 countries are eligible to participate in FMS.

The Carter lawsuit is not the first litigation in which Swiftships was named as a defendant.

  • In 2015, Swiftships found LIABLE for $2.1 million in unpaid fees owed to MTU America, plus more than $400,000 in legal fees.
  • Last month, Swiftships, with annual revenues of $50 million, was found liable for $689,000 plus legal interest and legal fees for BREACH OF CONTRACT.
  • In June 2015,Valerie Landreneau, a female employee of Swiftships’ Morgan City facilities, filed suit in state district court against Swiftships after claiming that a former co-worker attacked her after learning about her SEXUAL HARASSMENT complaints against him.

If Carter or Landreneau should prevail in either or both of their harassment lawsuits, an adverse decision could result in the cancellation of hundreds of millions of federal contracts currently held by Swiftships.

Carter is represented by attorney J. Arthur Smith of Baton Rouge who has also claimed (though not in the lawsuit itself) that he has been informed that Swiftships “raids employees’ 401K accounts in order to remain afloat (no pun intended) but has failed to repay the money. Smith says a witness has informed him that Swiftships employees have had their 401K funds “borrowed” and used “to run the company,” and that “many of the employees did not get their money reimbursed as promised.”

Federal law also prohibits companies from raiding employee retirement and/or insurance funds.

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Why would DeSoto Parish Sheriff Rodney Arbuckle abruptly resign less than midway through his fifth consecutive term in office?

Arbuckle, who stepped down, effective today (Friday, March 16), attributed his decision, which he said has been a year in the making, to HEALTH PROBLEMS being encountered by one of his grandchildren.

But could there have other overriding factors that prompted his decision? Possibly. There are several prior and ongoing questions involving the DeSoto Parish Sheriff’s Office which, taken together or separately, could have nudged him out the door prematurely.

The first, going back about four years to an investigative audit REPORT by the Legislative Auditor’s Office in Baton Rouge revealed a major issue involving a former deputy sheriff whose private company ran half-a-million dollars’ worth of private background checks through Arbuckle’s office.

The company, Lagniappe and Castillo Research and Investigations, ran 41,574 background checks through the sheriff’s office during the 11-month period between April 1, 2012, and February 28, 2013, the audit report said. That’s 41,574 background checks in a parish that has a population of only 27,000.

Lagniappe and Castillo charged its customers $12 for each background report but paid the sheriff’s office only $3 per report. That represents a profit of more than $372,000 on income of more than $498,000—and sheriff’s office employees actually ran the checks. Robert Jackson Davidson, who retired as chief investigator for the sheriff’s office in May 2013, is listed as 50 percent owner of the company by the Louisiana Secretary of State’s corporate filings.

And then there is the more recent problem of LACE. That’s an anacronym for Local Agency Compensation Enforcement whereby the district attorney’s office pays the salaries of law enforcement officers to beef up traffic patrol for the parish. LACE has been hit with similar problems in State Police Troops B and D when it was learned that troopers were reporting hours worked on LACE detail that were not actually worked.

In the case for DeSoto Parish, it was sheriff’s deputies who fudged the numbers on their timesheets and three of Arbuckle’s deputies have already left under a cloud.

A new investigative audit by the Legislative Auditor’s Office has been ongoing for some time now and that report is also expected to be highly critical of the LACE program and possibly other areas of operation.

Legislative Auditor Daryl Purpera told LouisianaVoice on Thursday that he did not know just when that report would be released. The auditor’s office traditionally sends the head of the agency being audited a management letter in advance of the public release of the report in order to give management a chance to respond in writing. That response is usually included in the release of the audit report. There was no word from Purpera’s office as to whether or not that management letter had been sent to Arbuckle.

A check by LouisianaVoice of about 600 LACE tickets handed out by sheriff’s deputies revealed that not a single LACE ticket was issued to a resident of DeSoto Parish. Every single recipient checked was from other parishes or even from out of state.

Of course, I-49 cuts through DeSoto Parish which would explain at least a high number of out-of-parish motorists’ receiving tickets—but 100 percent would seem somewhat improbable.

Reports by local critics of Arbuckle cite him for purchasing vehicles for the sheriff’s office without going through the public bid process. But sheriffs offices are on a state vendor list that exempts many such purchases from public bid. But on those not exempt, critics claim there is mischief afoot in the way Arbuckle goes about his purchases.

Then there is Arbuckle’s annual budget which reflects revenues of $12.3 million, which is nearly double the $4.9 million of next-door neighbor Sabine Parish, which has a population of 24,200—only a little fewer than DeSoto.

But it’s the office expenditures that are the real eye-openers. Arbuckle’s office had expenditures of nearly $14.1 million for the fiscal year ending June 30, 2017. That is $3.3 million more than the $10.8 million spent by the sheriff’s office in Natchitoches Parish, which has a population of 40,000—and a university. It also is more near three times the $5 million spent by the Sabine Parish Sheriff for the same year.

So, just what did Arbuckle spend all that money on? For starters, the bulk of that $15.2 million, $11.2 million to be exact, went for salaries. It would appear that Arbuckle hired deputies almost indiscriminately. Arbuckle himself was the second-highest-paid sheriff in the state (only the Beauregard Parish sheriff made more).

His department’s salary figures compare with salary expenditures of $3.7 million for Sabine and $7.9 million for Natchitoches.

Even more telling is a comparison of the year-end fund balances for the three sheriffs’ offices. Sabine Parish ended the fiscal year with a fund balance of $7.5 million and Natchitoches Parish had a fund balance of $8.2 million. Arbuckle’s DeSoto Parish Sheriff’s Office, however, finished the fiscal year with a whopping fund balance of $52.2 million.

Arbuckle apparently need not concern himself with the state law that a sheriff is responsible for any operating deficit at the end of his term of office.

DeSoto’s embarrassment of riches was due in large part to the Haynesville Shale and a couple of major facilities—eight energy companies, International Paper, and SWEPCO—in the parish which accounted for $256.5 in assessments and $3.5 million in property taxes (4.73 percent of total assessed valuation). Both figures would appear to be extremely low.

Arbuckle also is a principal in no fewer than six corporate entities, three of which are for-profit companies. One is a fence construction company and a second is a real estate development firm. The third, and possibly the most significant, is an outfit called Dirt Road Rentals, which rents or leases equipment to oil and gas field companies.

The company was chartered in July 2013, just about the time the Haynesville Shale boom kicked off. With so much activity taking place with the Haynesville Shale, it would seem to be a golden opportunity for a sheriff who, if he chose to do so, could lean on the oil and gas field companies to lease equipment from him lest their trucks get pulled over for traffic offenses.

Which could explain the need for all those extra deputies.

But a sheriff would never stoop to such tactics.

Would he?

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…And we thought that Attorney General Jeff Landry was a horn-tooting self-promoter, who loved to tout his prosecutorial “accomplishments” while conveniently ignoring more blatant wrongdoing.

Turns out Landry should be watching State Inspector General Stephen B. Street and taking notes on how to fool all the people all the time—or at least make a pretty decent effort at doing so.

Street has just released his 29-page 2017 ANNUAL REPORT and network television must already be poring over it as the possible basis for a weekly series on crime fighting. Or maybe a sitcom. Either way, with all the tax breaks for movie and television production being given away by the state, the show is certain to be profitable while making Street a star in the process.

Eleven photographs are included in the annual report and Street’s smiling face is included in every single one. Here’s what one observer said of the photos: “…only one other staff member, an investigator, gets in one. Boy he must have done something really special to merit being the single staff member to be picked to be in a picture with the boss in the annual report. I am sure this did wonders for office morale.

“Street couldn’t even see the way clear to have a group picture of the whole staff in what only can be considered his annual report? I guess he couldn’t get the, as described very limited, 14 staff members in the same room to have one taken (probably has a shortage of meeting space also).”

Street, who undoubtedly wears a large red “S” on his chest, chronicles how his office beat back efforts by legislators in 2012 and 2016 to shut his office down for ineffectiveness—although his office, like most other agencies, has endured appropriations cutbacks.

Of those efforts to shut him down, Street, somewhat smugly philosophizes: “The 2016 OIG funding fight in Louisiana was simply the latest reminder of what comes with the territory in the Inspector General business. If you do the job aggressively – and we have — folks will come after you. It’s absolutely guaranteed. It was also a great reminder that the public is overwhelmingly supportive of Inspectors General, and we should never forget this.”

So, let’s review just how he has done his job “aggressively” to see who it prompted to “come after” him.

Street’s office, in response to a November 2016 public records request from LouisianaVoice, provided a list of FUNDS RECOVERED totaling more than $5.3 million since July 1, 2013, for which he claimed credit. No one on that list who might “come after” street—just low-hanging fruit. Easy pickings don’t often “go after” anyone.

Of course, the recovery of funds is quite different from orders of restitution, which was what each of these cases was. An order of restitution means little if there are no funds to be recovered.

“We have no information regarding amounts collected by those office and we receive none of the funds,” said OIG General Counsel Joseph Lotwick in a letter to LouisianaVoice.

In the case of Deborah Loper, for example, most of the million dollars ordered repaid had long since disappeared into slot machines at area casinos so any real chance of restitution is, for all intents and purposes, non-existent. Still, Street listed that as a recovery of funds.

The LouisianaVoice request was made pursuant to Street’s claim for an accounting of public funds recovery stemming from OIG investigations.

Moreover, what Street’s office did not say, the difficulty of actually collecting notwithstanding, is that the OIG’s role in many of the above investigations was secondary to the U.S. Attorney’s role and restitution payments, if any, are made through either U.S. Probation or, in the case of the state’s being the lead prosecutor, to Louisiana Probation and Parole.

Nor did Street happen to mention the investigations by his office that either blew up in his face or simply did not occur. Even though most, if not all, actually occurred prior to 2017, they’re still worth mentioning:

  • The Murphy Painter fiasco, orchestrated by Bobby Jindal and Steve Waguespack, which resulted in the federal criminal trial of Painter who was cleared of all charges and the state had to pony up his legal fees of $474,000;
  • The illegal raid on the home and offices of Corey DelaHoussaye under the mistaken assumption (Street’s an attorney: attorneys should never “assume”) that DelaHoussaye was contracted to the Governor’s Office of Homeland Security and Emergency Preparedness (GOHSEP) when in fact, he was contracted to the Livingston Parish Council where he had no jurisdiction (embarrassing). DelaHoussaye was subsequently exonerated of all charges.
  • Likewise, it was Street’s office that investigated and found no wrongdoing in the case of two assistant district attorneys in CADDO PARISHwho applied for a grant to obtain eight automatic M-16 rifles from the Department of Defense’s Law Enforcement Support Office (LESO). The two claimed on their application that they, as part of a Special Investigations Section (SIS), “routinely participate in high-risk surveillance and arrests (sic) activities with the Shreveport Police and Caddo Sheriff.” Persons interviewed from both agencies, however, refuted the claim that SIS employees took part in such operations.
  • Street also failed to follow through on an investigation into widespread abuses by the Louisiana State Board of Dentistry. The board, with the aid of its investigator who employed questionable methods, was imposing excessively high fines against dentists for relative minor infractions and even bankrupted one dentist who blew the whistle on faulty jaw implants developed by a dentist at the LSU School of Dentistry.
  • Retired State Trooper Leon “Bucky” Millet said he filed a formal complaint on February 19 with Street’s office against the four State Troopers who drove the state vehicle to San Diego last October but never received an acknowledgement from Street. “I know he received because I sent the complaint by certified return receipt mail,” Millet said. Of course, it turned out that what Street’s office could not or would not do, the Baton Rouge Advocate’s Jim Mustian, New Orleans TV investigative reporter Lee Zurik and LouisianaVoice did—and we know the outcome of that.
  • Street said there was nothing to investigate when a gravity drainage district in Calcasieu Parish refused to pay contractor Billy Broussard a million dollars for work he did in dredging canals after hurricanes in 2005 and 2006. Broussard performed the work he was asked to do and the district refused to pay him, yet Street said there was nothing to investigate.
  • And he’s done nothing toward investigating possible human trafficking in the baby adoption racket in Louisiana, despite the persistent efforts of Craig Mills to get both Street and Landry involved in the investigation.

Of course, in listing the successful prosecutions (again, low-hanging fruit—people who are a lock not to “go after” him), Street is careful to see to it that his office is cited in all 10 reports—even if he had to insert the recognition himself, which he does in eight of the cases. Five of the reports were actually press releases from the U.S. Attorney’s office but Street piggy-backed them in his annual report.

But perhaps the best indicator of the effectiveness of Street’s office turns up in the report on 2017 travel expenses for his office.

That report shows that the office spent only $57.13 for in-state travel to conferences and just $509.11 on instate field travel (investigations).

But the office spent $2,564.46 on out-of-state travel to conventions and conferences.

Of 376 complaints received in 2017, OIG opened 60 investigations. The 2016 numbers showed 42 investigations opened on 401 complaints.

 

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