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Archive for the ‘Public Records’ Category

…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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Gov. John Bel Edwards and the Louisiana Legislature could probably learn a thing or two about building budgetary surpluses from the St. Landry Parish Fire Protection District No. 2—except at least one St. Landry Parish citizens thinks the surplus may be the result of smoke and mirrors and a little voodoo tax millage assessment.

On the other hand, the State Ethics Board appears to be taking its cue from the Attorney General’s office in stonewalling tactics.

The district had a bank balance of more than three times its annual budget at the end of 2016, according to a state AUDIT of the its books. The audit showed nearly $8.4 million in the bank as of Dec. 31, 2016, after expenses of $2.6 million.

And a formal complaint made to the Louisiana State Board of Ethics last May against the district and its secretary-treasurer has produced only a letter of acknowledgement but no results after nine months.

Despite annual revenues of nearly $3.7 million for both 2015 and 2016, the district’s board seemingly felt it could not afford to hire a qualified employee to apply generally accepted accounting principles in recording the districts financial transactions or preparing its financial statements, the audit indicated.

“A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis,” the audit said. “we identified certain deficiencies in internal control that we consider to be material weaknesses.”

Nor did the board seem to feel it was in a position to hire additional firefighters in order to cut back on more expensive overtime pay. Board members paid themselves nearly $16,600 in 2016 and paid out $1.2 million in salaries. An additional $329,677 was paid in overtime (listed as “extra shifts and call out time”).

Auditors recommended that the board examine the following options and implement policies and procedures in order to reduce excessive payroll expenditures:

  • Establish set annual/monthly salaries for management-level positions in order to eliminate overtime paid;
  • Hire additional firefighters in order to decrease overtime pay;
  • Better utilize volunteer firefighters in an effort to minimize costs.

While Edwards and the legislature might be scratching their heads if they knew of the district’s fiscal wizardry, a closer look at a curious tax millage might clear things up.

It seems that district voters may have once approved a 17.5 mill property tax but the district somehow managed to collect two identical millages of 17.5 mills each until January 2018, when one of the assessments expired.

St. Landry Parish resident and local taxpayer Charles Jagneaux, who filed the complaint with the state ethics board, which has been basically toothless since it was gutted by Bobby Jindal in one of his first acts as governor in 2008, has a theory about that dual tax millage.

“My understanding is that the second millage was passed by calling it a renewal when in fact, it was a second identical millage,” he said. “The board attempted to put the expiring millage on the ballot (for a renewal) this year but the parish council would not let them since there was a multi-million-dollar surplus.”

The ethics complaint was filed against Johnny Ardoin, secretary-treasurer of the district’s board. Ardoin, it turns out, is also a member of the Port Barre TOWN COUNCIL, which would appear to be a case of dual office-holding, illegal under Louisiana law.

As a point of clarification from a reader who is in a position to know, dual office holding falls under (drum roll, please…) the attorney general’s office, not the ethics board so the ethics board would not address that matter,

A second, more serious ethics violation, however, seems to arise from Ardoin’s membership on the fire district board.

The Port Barre Town Council appoints two members of the fire district’s board of commissioners.

That would seem to constitute a built-in conflict of interest for Ardoin. Given his position as a member of the town council, he is in the unique position to appoint himself to the fire district’s board of commissioners.

That ethics complaint, like most complaints to the state ethics board these days, is in all likelihood, a dead-end street, particularly as it regards dual office-holding. But even in cases when ethics fines are assessed, which is seldom, they often are ignored and never collected, thanks again to Bobby Jindal and his ethics reform agenda.

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You have to give credit to Lake Charles attorney Ron Richard: he certainly knows how to milk a case for all it’s worth in order to keep the meter running.

It apparently wasn’t enough that his four SLAPP (Strategic Lawsuits Against Public Participation) against Welsh Alderman Jacob Colby Perry were tossed by the presiding judge.

And no matter that a recall petition was initiated against Perry and that POSTCARDS were mailed to Welsh residents that DEPICTED Perry and fellow board of aldermen member Andrea King as “terrorists.”

And never mind that Mayor Carolyn Louviere desires to shut down a bar that just happens to be adjacent to a business owned by her son.

Now Richard, his four LAWSUITS against Perry—filed by him on behalf of the mayor, her son, her daughter, and Police Chief Marcus Crochet—having failed the smell test of 31st Judicial District Court Judge Steve Gunnel, who not only dismissed the four lawsuits aimed at silencing Perry’s criticism of Louviere’s administration but also awarded ATTORNEY FEES of $16,000 to Perry, is now challenging another RECALL PETITION, this one against his client, her honor the mayor.

So, it seems to boil down to the apparent belief that a recall against an alderman who seeks answers to budgetary questions is fine and dandy but to suggest a recall against the mayor who draws up that city budget constitutes a technical foul.

It’s all a sordid little mess punctuated by what appear to be excessive expenses of the police department, ($818,000 for nine months, form June 2016 through February 2017—for a town of 3,200 living, breathing souls), 18 police cars (again, for a town of 3,200), removal of Perry from the town’s Facebook page, and a mayor’s son (one of the four plaintiffs in lawsuits against Perry) who has a less than stellar past of his own.

Basically, with all that is going on there, it doesn’t really appear to be a town where most people would care to call home these days. That’s no dig on all the decent, minding-their-own-business residents living there, but a sorry commentary on the town’s leadership—if one wishes to be overly generous in calling it that.

Meanwhile, Richard manages to keep the meter running as the legal fees continue to mount for Madam Mayor. Of course, it has to be the client’s decision to retain him to pursue these objectives. He’s just a lawyer who ostensibly takes direction from his client. But often times, a client’s decision on a course of action is predicated upon the attorney’s advice, so in trying to determine who is actually calling the shots, we may just have the age-old chicken or egg question.

Still, it’s enough to make one wonder who is paying those legal bills: the client or the city?

Perhaps that’s another question for Mr. Perry to ask.

If he can get an answer, that is.

Anyone? Bueller? Bueller? Anyone?

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Jimmy Buffett sang about clichés and we hear them every day:

  1. Life’s not fair. We learn that quickly in our lives.
  2. Those who make the gold make the rules: a subsection of Number 1.
  3. What’s good for the goose is good for the gander. Well, not necessarily.

Here’s another one: Get over it. That’s what those with the gold would tell us.

What’s the point of all this?

Well, for starters, the average salary for state classified (Civil Service) employees in Louisiana was $44,737 per year in 2017. After four years of virtually no growth, the 2017 average salary represented a 6.3 percent increase over the four years of 2010 through 2013 (2.1 percent per year), when the averages were, in order, $42,187, $42,208, $41,864, and $42,140.

If you followed those figures closely, you saw that the average salary for classified employees actually decreased by $47 from 2010 to 2013.

Contrast that with the average salary for unclassified (appointive) employees. Those average salaries increased by $1,565 (2.5 percent) from $61,861 in 2010 to $63,426 in 2013 and were $65,357 in 2017, a difference of $20,620 over their classified counterparts.

Okay, it’s somewhat understandable that unclassified employees would make 46 percent more than their counterparts. They are, for the most part, in managerial positions, after all.

For the most part. But it’s important to keep in mind that these appointees are there only as long as the governor. Generally, a new administration brings in its own personnel to replace those of the previous governor.

Unclassified employees are generally along for the ride and they’re basically temporary employees who come into an agency knowing little of its workings or its personnel. Others are just political hacks who were awarded jobs for supporting the right candidate. The classified, or civil service employees, the ones who do the actual work of keeping the state running, are career employees there for the long haul.

Article X, Paragraph 9 of the Louisiana State Constitution lays out some specific prohibitions for classified employees:

Prohibitions Against Political Activities:

(A)”No…employee in the classified service shall participate or engage in political activity; make or solicit contributions for any political party, faction, or candidate; or take active part in the management of the affairs of a political party, faction, candidate, or any political campaign…”

(C) “As used in this Part, ‘political activity’ means an effort to support or oppose the election of a candidate for political office or to support a particular political party in an election.”

These restrictions were put in place to protect classified employees from pressure from political bosses to ante up campaign contributions or to campaign for a particular candidate. But they also placed limits on other outside activity.

But, no matter how closely you study the Constitution, Civil Service, or Ethics Commission rules, you will not see any reference to activity restrictions on unclassified employees

So, why are the rules that govern ethics and conflicts of interest for classified employees different than for unclassified employees? Why is there an uneven playing field?

Take, for example, the case of Andrew Tuozzolo. He’s the Chief of Staff for Rebekah Gee, Secretary of the Louisiana Department of Health (LDH).

Tuozzolo, who was hired on Feb. 1, 2016, and who earns $105,000 per year, is the manager of WIN PARTNERS, LLC, of New Orleans, a political consulting firm.

By its very name and function, Win Partners necessarily involves its manager in political activity such as supporting candidates, soliciting contributions and taking part in the management of affairs for political candidates.

And it’s perfectly legal—because he’s unclassified.

Incorporation papers for Win Partners were filed with the Secretary of State on Aug. 18, 2010, and the firm began receiving fees almost immediately. Since Sept. 1, 2010, only two weeks after it was incorporated, Win Partners, and to a much lesser extent, Tuozzolo personally, have combined to receive $1.95 million in fees from candidates and political action committees.

Some of those candidates included State Reps. Walt Leger, Austin Badon; State Sens. Karen Carter Peterson, Butch Gautreaux, and Jean Paul Morrell; New Orleans City Council members Joseph Giarrusso and Helena Moreno, New Orleans Mayor Mitch Landrieu, and at least one statewide candidate (Buddy Caldwell).

Since his hire by Gee on Feb. 1, 2016, Win Partners has slowed somewhat in activity but that can be attributed mainly to the fact that the only major elections were for New Orleans municipal offices.

Since beginning his employment with LDH, Win Partners has collected $36,900 in fees for working in the campaigns of Moreno, Giarrusso, and Leger.

Without even taking into consideration the question of when he would have time to devote to a political consulting company, the work itself is enough of a conflict of interest to get a classified employee fired.

And then there’s the matter of Dr. Harold D. Brandt who, from April 7, 2016 to Sept. 2, 2017, served as the Medical Vendor Administrator for LDH. Brand’s salary was $156.25 per hour which, based on a 40-hour week, comes to $6,250 per week, or $312,500 for a 50-week year, allowing a couple of weeks for vacation.

Begin Date End Date Agency Job Title Biweekly Pay Rate
9/2/17 Present Resignation
4/7/16 9/1/17 LDH-Medical Vendor Admin Physician IV $156.25/hour (4/7/16 to 9/1/17)

 

The only problem with Brandt’s serving as the Medical Vendor Administrator for LDH is that he also is on the STAFF of Baton Rouge Clinic.

Since April 7, 2016, Dr. Brandt’s date of employment, Baton Rouge Clinic has received more than $83,000 in PAYMENTS from LDH.

If, as the LDH Medical Vendor Administrator, Dr. Brandt’s duties included approval of vendor payments to Baton Rouge Clinic, that would place him in a position of a potential ethics violation, unclassified or no, but only if he owned greater than a 25 percent share of Baton Rouge Clinic.

The wording of the ethics laws says if an employee owns greater than 25 percent of a business, that enterprise is prohibited from doing business with the employee’s agency. Dr. Brandt likely does not hold a 25 percent interest in Baton Rouge Clinic but he certainly has a financial stake in its serving as a vendor for the state.

That 25 percent interest certainly didn’t come into play with one classified employee a few years back. A state vendor sent her, unsolicited, a baked ham for Christmas. It was delivered to her office unbeknownst to her. She was fined $250 by the Ethics Commission.

That’s because classified employees are prohibited from accepting anything of value (other than a meal, to be eaten at the time it is given) from vendors.

But unclassified employees running a political consulting firm on the side or monitoring payments to a clinic where he is employed apparently are okay.

So, there’s no point in even discussing legislators who purchase season tickets for LSU and Saints football and Pelicans games, leasing luxury cars, or who even pay personal income taxes from campaign funds—all prohibited on paper but certainly not enforced.

Is a level playing field really too much to ask?

At the end of the day, ethics violators are as thick as thieves but it’s just the low hanging fruit that the Ethics Commission, the OIG and the Attorney General’s offices go after—like a kid in a candy store. The tough cases they avoid like the plague. If they would only think outside the box, there’re plenty of fish in the sea for them to go after if they’d just take the tiger by the tail.

(How many clichés did you count in that last paragraph?)

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Before the recent spate of sexual harassment claims in Hollywood, New York and Washington, D.C., there was a lawsuit filed by a female attorney for the Louisiana Department of Health against the agency’s general counsel.

That lawsuit, filed in June 2014 by Bethany Gauthreaux, a $42,500 per year attorney for LDH, against LDH and its $100,000-per-year Attorney Supervisor Weldon Hill, was quietly settled in May 2017.

The matter was settled for only $40,000—far less than it probably should have been, given the circumstances of the treatment undergone by Gauthreaux, according to a former associate who said Gauthreaux told her at the time that she just wanted the entire matter to be over and done.

SETTLEMENT

Even then, that might have been end of it all had not Hill and Executive Counsel Stephen Russo continued the intimidation and humiliation of Gauthreaux after she complained about Hill—to his supervisor and to LDH Human Resources—treatment that continued until her eventual resignation in May 2015.

Moved to Storage Room

The former associate who asked that she not be identified because she still works for the state—but in a different agency now—said Gauthreaux was moved from her eighth-floor office to a converted storage room on the fifth floor. She was not provided a telephone in her new location nor was she allowed to take her computer with her. Two other female employees were also moved from eighth to fifth floor but both took their computers with them to their new offices.

Meanwhile, Hill and the two attorneys over him who protected him, continued to receive pay increases.

“I would go into the restroom and find Bethany crying,” the former associate said. “I asked her what was wrong and she said, ‘Weldon Hill won’t stop.’”

Hill, Gauthreaux’s lawsuit said, would ask her highly personal questions following the birth of her child, questions about how it felt to pump breast milk. He also would position himself behind her chair and press his body against hers as he monitored her computer screen, sometimes, placing his hand on hers on the computer mouse, the petition said.

DEPOSITION OF GAUTHREAUX

DEPOSITION OF HILL

DEPOSITION OF RUSSO

The former associate said that in addition to Gauthreaux, there were at least four other women who were intimidated, harassed, and mistreated by Hill and Russo, who, as Hill’s direct supervisor and the department’s hiring authority, appeared to be protecting Hill. “They totally ostracized Bethany after she complained to Russo,” she said. “She finally said she couldn’t take it anymore and quit.”

‘Women have nothing to say’

“Weldon does not listen to women,” she said. “He said women ‘have nothing to say.’ He listens to every third word women say. Those who stood up to him paid a price,” she said. “I stood up to him once and he filed a complaint against me to Russo.”

She said another female employee who complained about Hill was given a “Needs Improvement” letter for something that had occurred two years before.

She said that Hill also performed outside legal work on state time. “That’s payroll fraud,” she said. Asked by LouisianaVoice if that could be proven, she said, “Only by checking his state computer.”

And while Gauthreaux preceded the “Me Too” movement, the work environment at LDH apparently remains hostile for female employees.

Gauthreaux, for example, never received a promotion to Attorney 2 in her two years at LDH and received one pay increase of $1,638 per year, Hill saw his pay increase by $5,720 per year, one of those raises coming only a couple of months after Gauthreaux’s lawsuit was filed and another beginning on Jan. 1 this year, which brought his annual salary to $99,800.

During that same period, Russo saw his salary increase by $7,930, to $138,500 per year.

Triumvirate Cronies

Kathleen Callaghan, a former supervisory attorney for LDH who is now retired, is also familiar with the triumvirate of Hill, Russo and $140,300-per-year LDH General Counsel 3 Kimberly Humbles.

“They’re all cronies who pal around together,” Callaghan said. “They retaliated against Bethany, they retaliated against me and they retaliated against other female employees. Weldon Hill is a typical predator who ingratiates himself with Russo and Humbles and they in turn protect him.”

She said she was told by higher ups that Gauthreaux wasn’t strong enough. “I said, ‘Are you kidding me? She took on the whole bunch and she prevailed.’ Nobody else in a supervisory position would stand up for her. She had to stand up for herself. Hill should have been put on administrative leave immediately when that suit was filed,” she said. “He should be gone.”

Callaghan said she once was accused of being AWOL by the same supervisor who had approved her two-week vacation. “My vacation started just a couple of days before Bethany’s lawsuit was filed, so they thought I’d ducked out. In reality, my vacation had been approved in advance but for whatever reason, they never checked that until I pointed it out to them,” she said. “And they’re supposed to be lawyers.”

Timing Bathroom Breaks

She said Hill keeps tabs on when subordinates leave their desks and how long they’re gone. “If he has time to do that, he isn’t busy enough,” Callaghan said. “He needs something to keep him busy besides keeping track of how long people spend in the bathroom. He is a Third-Party Administrator, which is just filing liens. He generates letters, something a clerical could do. He needs to be transferred to federal court where he can keep busy doing what he should be doing.”

Asked by LouisianaVoice why LDH Secretary Dr. Rebekah Gee hasn’t taken action to keep LDH from further liability exposure, Callaghan said, “I don’t think Dr. Gee is even aware of the lawsuit. I think they kept a lid on it and she doesn’t even know about it.”

She said former LDH Secretary Kathy Kliebert once was informed of similar problems. “Her response was we should all go on retreat together. I’m sorry, but that’s not a solution,” she said, indicating that someone with authority needs to step in and clean up LDH’s legal department.

At some time, the message must sink in that just because you’re in a supervisory capacity, you cannot, must not, attack, subvert, or destroy a person’s dignity and self-respect.

 

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