$4.2 Million in Illegal Spending Identified by State Inspector General’s Office

BATON ROUGE — During the past two years, the Office of Inspector General has identified $4.2 million in state funds that were illegally spent, according to a report from the Inspector General’s office. The report listed the following completed cases:

7/13/2010 – LP GAS COMMISSION: Investigation revealed that Randy Hayden, through his company, Creative Communications, submitted false documents to support $52,280 he billed the state LP Gas Commission for producing annual safety seminars.

7/22/2010 – STATE LOSES FUNDS ON UNUSED AIRFARE: Investigation revealed that state agencies allowed at least $229,853 in unused airline tickets to expire. The total loss was probably much higher, but could not be calculated fully due to missing records at the state’s travel agency at the time. Using the monthly average loss, the projected total loss climbs to an estimated $362,000.

10/20/2010 – GUILTY PLEA TO MAIL FRAUD FOR OVERBILLING PRISON SYSTEM: Investigation revealed that Eugene Fletcher overbilled the Louisiana Department of Corrections for fertilizer. A federal indictment placed the overbilling at more than $200,000. Although he has pleaded guilty to mail fraud, the precise amount of overbilling awaits determination by the court. Mr. Fletcher faces up to 20 years in prison and up to $250,000 in fines.

10/25/2010 – JEFFERSON PARISH PULBIC SCHOOL SYSTEM: Investigation found over $400,000 of overtime had been paid to four employees.  Each received overtime in excess of 25% of the annual salaries which was prohibited by JPPSS policy.

10/27/2010 – LSU HEALTH SCIENCES CENTER EMPLOYEES ARRESTED: Investigation found that two LSU Health Sciences Center employees in New Orleans, Thomas Bradley and Amelia Martin, stole $4,000 of LSU’s pipe fittings and sold them for scrap. Both have been arrested for felony theft.

12/6/2010 – INMATE WORK RELEASE PROGRAM FORGERIES: Investigation revealed that certain employees of Louisiana Workforce, an inmate work release program, altered dates and forged signatures on Employer’s Work Release Agreements, which are required by the Department of Corrections whenever a state inmate participates in a privately managed work release program.

1/31/11 – TOWN OF ARCADIA EMPLOYEE ARRESTED FOR EMBEZZLEMENT: Investigation uncovered embezzlement of $33,000 in water and sewer fee payments to town. The town’s water and sewer clerk has been arrested and awaits prosecution for this loss of fees to the Town of Arcadia.

2/2/2011 – LAWYER GUILTY OF MAIL FRAUD: Investigation revealed that Baton Rouge Attorney Randy Zinna stole nearly $1.6 million from a police retirement system, a city-parish retirement system, and an 83 year old widow. He pleaded guilty to mail fraud and awaits sentencing. He faces up to 20 years in prison, $2 million in fines, and victim restitution of $1,573,521.

2/17/2011 – MURPHY PAINTER/LOUISIANA OFFICE OF ALCOHOL AND TOBACCO CONTROL: Investigation revealed that Murphy Painter, former Commissioner of ATC, mis-used his public office to engage in widespread illegal use of confidential law enforcement databases.

2/24/2011 – SOUTHERN UNIVERSITY PROFESSOR AND I.T. DIRECTOR INDICTED: Investigation revealed that two Southern University of Baton Rouge employees, Professor Parviz Razi, and Information Technology Director Thomas Woodall, concocted a scheme to defraud the  university of $157,366 through fraudulent invoices from fictitious companies. A federal grand jury in Baton Rouge indicted the two men for money laundering, mail fraud, and theft of federal program funds.

3/16/2011 – MIRACLE PLACE CHURCH AND RICKY SINCLAIR: Investigation revealed Ricky Sinclair, the head of Miracle Place Church in Baker, submitted false information to state and federal agencies to access more than $750,608 in public funds in connection with Hurricane Katrina, Hurricane Gustav, All The Way House substance abuse facility, and Caring To Love Ministries.

July 1, 2011—CHAD DOYLE, WARD 5 OAKDALE CITY MARSHAL—Investigation revealed that Mr. Doyle used his position to buy equipment for a person outside his Office; and, separately, used funds intended to pay court ordered garnishments to pay his office’s operating expenses. The misappropriated money totaled $405. Marshal Doyle was arrested for felony theft and malfeasance, and has since resigned.

July 6, 2011—DAVID MCLAUGHLIN, CENTRAL COMMUNITY SCHOOLS—Investigation revealed that Mr. McLaughlin, Technology Coordinator for the Central School System in East Baton Rouge Parish, circumvented public bid law on five equipment purchases. Purchases totaling $111,776 were induced by the false quotes. Mr. McLaughlin was arrested for filing false public records, a felony.

July 19, 2011—REVEREND JOHN PIERRE, LIVING WITNESS CHURCH OF GOD IN CHRIST—Investigation revealed that Rev. Pierre, acting on behalf of Living Witness Church of God in Christ in New Orleans, misspent and misappropriated funds from the Louisiana Department of Health and Hospitals, and the Louisiana Disaster Recovery Foundation, a private, non-profit corporation. Rev. Pierre wasted, misappropriated, avoided taxes on, and fraudulently attempted to receive a total of $472,462.

July 19, 2011—MAYOR CHARLES MARTIN, SPRINGFIELD, and POLICE CHIEF JAMES JONES, BOTH OF SPRINGFIELD—Investigation revealed that the Mayor and Police Chief attempted to conceal the DWI arrest of a driver who tested at more than double the legal limit for intoxication. The Mayor and Police Chief were arrested for obstruction of justice, malfeasance, and injuring public records.

July 20, 2011—CHRISTY STAPELTON, OAKDALE CLERK OF COURT—Investigation revealed Ms. Stapelton had used her position to steal $80,000 from the Oakdale City Court in Allen Parish. She has pleaded guilty to felony theft, been sentenced, and agreed to make restitution of the full $80,000.

July 26, 2011—GAY DAWSON & DEBBIE KERN, DELGADO COMMUNITY COLLEGE—Investigation revealed that Gay Dawson, an instructor at Delgado’s School of Allied Health in New Orleans, received contracts and accepted a total of $6,000 compensation to teach six classes that she did not teach. She did so with the approval of her supervisor, Ms. Kern, who initiated the contracts.

September 30, 2011—WALLACE “GENE” FLETCHER, DEPT. OF CORRECTIONS CONTRACTOR—A joint investigation with the FBI revealed that Mr. Fletcher overbilled the Department of Corrections for fertilizer sold to prison farms. Mr. Fletcher subsequently pleaded guilty to mail fraud, was sentenced to six months in prison and ordered to pay restitution of $247,000.

December 1, 2011—JONETTA BENNETT, GOVERNOR’S OFFICE OF SAFE AND DRUG FREE SCHOOLS AND COMMUNITIES—Investigation revealed that Ms. Bennett, a Program Manager, obtained an $8,000 bribe to corruptly influence a grant payment of $13,130. The U.S. Attorney charged her with Bribery Concerning Federal Program Funds. She pleaded guilty and awaits sentencing.

December 1, 2011—EUGENIA WILLIAMS, HOUSING ASSISTANCE RECIPIENT—Investigation revealed that Ms. Williams submitted false income verification forms to the East Baton Rouge Housing Authority to fraudulently obtain $8,321 in housing assistance. OIG worked the case with the HUD Inspector General, at its request. Ms. Williams was arrested for Forgery and Felony Theft.

December 8, 2011—PHILLIP SHAFFER, ENERGY STAR REBATE RECIPIENT—Investigation revealed Mr. Shaffer submitted fictitious invoices to get $5,800 in rebates to which he was not entitled from the federal Energy Star Rebate Program. That program was administered in Louisiana by the state Department of Natural Resources. Mr. Shaffer was arrested for Computer Fraud and Theft, both felonies.

December 21, 2011—KAYLA AYMOND, STATE BOARD OF MASSAGE THERAPY—Investigation revealed that Ms. Aymond, the board’s former executive director, either misspent, or failed to account for spending, public funds totaling $201,200. This was the second time the Inspector General had found Ms. Aymond had misused public funds, the first occasion having been in 1998.