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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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Sorry Jindal legacy lives on in threat to accreditation of Louisiana colleges and universities for lack of funding

Posted in Budget, Corruption, Economy, Education, Ethics, Finances, Governor's Office, Higher Education, House, Senate, Legislature, Legislators, Lobbyist, Politicians, Revenue on February 12, 2016| 72 Comments »

The fecal matter is poised to strike the Westinghouse oscillating air manipulation device (the crap is about to hit the fan) and the citizens of Louisiana have no one to blame but Bobby Jindal (sorry, but I still can’t bring myself to call him governor) and the brain-dead legislators who, like so many sheep, for eight years obediently allowed him to lead the state off the fiscal cliff into the abyss.

In an LouisianaVoice exclusive, we have received a copy of a two-page letter from the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC) which, by comparison, is to Gov. John Bel Edwards’ warning Thursday as Black Sabbath is to Pat Boone. SACSCOC LETTER

The letter, dated Feb. 11 (Thursday) was addressed to Commissioner of Administration Jay Dardenne with copies to Edwards, Senate Finance Committee Chairman Sen. Eric LaFleur, House Appropriations Committee Chairman Rep. Cameron Henry, Louisiana Commissioner of Higher Education Joseph C. Rallo, Ph.D., the Louisiana institutional members of SACSCOC, and SACSCOC Board of Trustees Chairman Mark E. Keenum, Ph.D.

At least one source told LouisianaVoice that Edwards possessed the letter at the time of his televised statewide address on Thursday but chose to attempt to soften the impact of the letter’s contents as much as possible while still sending a clear message to the legislature and the citizens of Louisiana.

SACSCOC is the regional accrediting body for 800 public, private and for-profit institutions of higher education in 11 southern states, including Louisiana. It is one of seven regional accrediting bodies recognized by the U.S. Department of Education to assure quality in higher education and to serve as the gatekeeper to federal financial aid (Title IV) for students in the region (emphasis ours). http://www.sacscoc.org/

The letter was signed by SACSCOC President Belle S. Wheelan, Ph.D.

“SACSCOC has become aware of the fact that because of the lack of financial resources from the state, the institutions the commission accredits may have to cease operation prior to the end of the current semester,” she wrote. “This would mean (1) students would not be able to complete classes and, subsequently, earn no credit for courses taken this semester, potentially impacting their financial and eligibility, and (2) payroll will not be met and bills would not be paid placing employees in an untenable financial situation as well as negatively impacting the credit ratings of the institutions.”

She said federal regulations dictate that any institution suspending operations or closure in the next several months must provide SACSCOC with a plan for how students can continue at another college or university. The commission, she said, would have to approve such a plan and could send students to another state. “This would create a tremendous hardship on students who might be unable to get a job because the completion of their degree is needed or, worst case scenario, they might drop out of college all together (sic).”

She said if the schools are unable to demonstrate continued financial stability or continue to enroll students, “the board of SACSCOC would have to consider a public sanction of the institutions or a withdrawal of their accreditation. Public sanctions have a chilling effect on the enrollment of potential students and withdrawal of accreditation results in the loss of federal financial aid.”

Wheelan served as president of two institutions and as Secretary of Education for the State of Virginia. As such, she said, “I am painfully aware of the difficulty state leadership has in making budgetary decisions but the lack of state funding is putting Louisiana colleges and universities in serious risk and placing students’ academic careers in jeopardy. I know the challenges are many but I believe it is important for you to know the impact your decisions will have before you finalize your plans.”

Here is the response to the letter which Gov. Edwards gave LouisianaVoice on Friday:

“The previous administration’s choice to make the largest disinvestment in higher education in the nation over the past seven years was a choice that would inevitably lead to devastating results. It is time to turn that around. If the legislature chooses to raise no new revenue in the special session starting Sunday, universities and colleges across our state together will face more than $200 million in cuts this fiscal year—and will have to implement those cuts over the next four months. Even if the legislature chooses to raise the revenue I am proposing, higher education still faces $42 million in cuts and a $28 million TOPS funding shortage this year. This is unsustainable. I am working with our legislature to develop solutions to stabilize Louisiana’s budget this year and going forward. These responsible steps can only help us maintain accreditation for our higher education institutions, as our students deserve.”

Edwards, in his address Thursday, said that the TOPS scholarship program had suspended payments because of the state’s pending $870 million budget deficit and the looming $2 billion budget hole facing legislators for the next fiscal year which begins on July 1.

In order to awaken anyone who might have been dozing off or who were ticked off for missing Family Feud or Wheel of Fortune (one Baton Rouge TV station opted for Wheel instead of carrying the governor’s speech, choosing instead to stream the speech on its Web site), Edwards also threw in the biggest threat of all: the possible necessity of (gasp!) cancelling collegiate football in 2016.

Well, if losing TOPS didn’t do the trick, you can bet your school jersey that got the attention of Louisiana’s masses. I mean, how could we possibly survive without watching a bunch of oversized, tutored adolescents strut around on the field after pile-driving an opposing quarterback head first into the turf at Tiger Stadium to the delight of 100,000 screaming maniacs?

Why, it would be downright unamurican!

Sure enough, Internet news pages predictably latched onto the football hook in covering Louisiana’s fiscal implosion. http://www.msn.com/en-au/sport/golf/lsu-football-in-danger/vp-BBpqNEV

http://sports.yahoo.com/blogs/ncaaf-dr-saturday/louisiana-budget-crisis-could-threaten-lsu-football-183232215.html

At least we now know what’s really important in this state (like we didn’t before?). Certainly it’s not the deplorable condition of the academic buildings falling down around LSU students that Bob Mann has been documenting in recent weeks on his outstanding blog post Something Like the Truth. http://bobmannblog.com/2016/01/24/sinking-flagship-a-new-look-at-lsus-middleton-library/

http://bobmannblog.com/2016/01/20/the-disgraceful-windows-of-lsus-hatcher-and-johnston-halls/

http://bobmannblog.com/2016/01/15/lsu-librarys-decay-is-symbolic-of-louisianas-misplaced-priorities/

http://bobmannblog.com/2016/01/29/mired-in-mediocrity-has-louisiana-higher-education-lost-the-battle/

But hey, who ever paid admission to watch a physics professor teach—other than students faced with ever-rising tuition costs?

And just how is all this legislators’ and Bobby Jindal’s fault?

The explosion of corporate tax breaks that were handed out during his administration, for openers.

Generous corporate tax incentives bleed revenue from state treasury, provide little other than political bragging rights

And there is the excellent series on corporate tax breaks published by the Baton Rouge Advocate: http://blogs.theadvocate.com/specialreports/

Along with the handouts to his corporate friends and supporters, Jindal also cut higher education more than any other state, another issue covered in depth albeit somewhat belatedly by The Advocate. State support to colleges and universities was cut by 55 percent during Jindal’s eight years with cuts having to be made up by painful tuition increases.

http://blueprintlouisiana.org/index.cfm/newsroom/detail/618

LSU President F. King (I would absolutely change my name—or drop the initial) Alexander fired the first real warning shot across the legislature’s bow last April with he revealed he had already drawn up plans for financial exigency (bankruptcy) as yet another higher education budget cut loomed.

It worked, in a fashion. The legislature responded by passing a phantom tuition increase offset by a phantom tax credit which was supposed to fix the problem (who bought into that?), but only after consulting with the god of No New Taxes, Grover Norquist. Norquist has never held public office but yet he mysteriously controls the puppet strings of legislators and congressmen as if holding the sword of Damocles over their collective heads with his idiotic “No New Taxes” pledge. Did the Republicans learn anything from George H.W. Bush’s infamous “Read my lips: no new taxes” promise in his 1988 nomination acceptance speech? Apparently not.

And therein lies the real problem. Why in hell did our legislators, led by a delusional man who would be president if only he could break the 1 percent barrier in the Iowa polls, answer to someone like Norquist and not the citizens of this state? That question needs to be addressed repeatedly to every legislator who went along with that shell game last year. “Mr. Legislator: why did you acquiesce to Grover Norquist like some pathetic, starving little puppy begging for table scraps?”

“For years, Louisiana’s colleges have stabilized funding with tuition and fee increases to offset declining direct support from the state,” said Public Affairs Research Council (PAR) President Robert Travis Scott when shown the letter by LouisianaVoice. “But we’ve reached the limits of those tactical maneuvers. Now we need a strategy to provide long-term financial stability for higher education while also getting a streamlined and accountable educational product in return,” he said.

State Rep. J. Rogers Pope (R-Denham Springs), a member of the House Education Committee, said the letter “makes you want to throw up.” He said the message in the letter is “devastating to all parents and students as well as our colleges. I don’t see that the legislative body will permit that to happen.”

Pope, a former school principal and retired Superintendent of Livingston Parish Schools, said he hoped that the legislature and Edwards can “forget partisan politics and work together to get us out of this deep hole dug by the previous administration. Losing accreditation is a major blow to the state’s financial and workforce capabilities.”

Another source said the situation “is dire” and that was why football was mentioned by Edwards in Thursday’s address. “If we lose accreditation, it’s all over regardless of how much money TAF (the Tiger Athletic Foundation, which helps support LSU athletics) has.”

The source, who asked not to be identified said, “This is the beginning of the multi-institutional collapse of historic proportions I’ve been predicting for years.”

As I have said here before, if you, the citizens of this state, choose to sit idly by and not question the actions, motives and obligations of legislators to lobbyists and corporate contributors, then you have become as much of the problem as Jindal and the legislators.

It’s up to you to hold your elected official accountable. If you don’t, if you can’t pull yourself away from football or Wheel of Fortune or Bachelor long enough to learn what your elected officials are doing, then stop whining.

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Notable Quotables (in their own words)

Posted in Finances, Governor's Office, Notable Quotables on January 28, 2016| 1 Comment »

“Louisiana is an example to the rest of the country that diversity is a source of strength–not division. That is why I am confident that regardless of party, we can band together to rebuild Louisiana. I was not a business-as-usual candidate, and I will not be a business-as-usual governor. I can’t do it alone. Now is the time for full participation.”

—John Bel Edwards, in his inauguration speech on Jan. 11, 2016, as Louisiana’s new governor.

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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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