800K Suspect Spending per audit of LHBPA
Mar 26, 2013 0:05:10 GMT -5
Post by Jon on Mar 26, 2013 0:05:10 GMT -5
Legislative auditor revisits horsemen's group, finds more flagrant spending
Two former leaders and four other employees of the organization that represents Louisiana Horsemen went nuts on the association's credit cards, with more than $800,000 in suspect spending over a five-year period, according to an investigative audit released Monday morning by Louisiana Legislative Auditor Daryl Purpera's office.
Christmas parties, evening gowns, spa treatments, traffic ticket fines, lavish hotel lodging under the pretense of business trips, Carnival parade stand rentals and political fundraising for Gov. Bobby Jindal were among the expenses that Sean Alfortish, Mona Hebert Romero and others charged on Louisiana Horsemen's Benevolent and Protective Association credit cards.
Few of the charges were backed by receipts, the report said.
Much of the money was allocated from accounts dedicated under law for pension, worker's compensation and medical benefits for horsemen, the report said.
The legislative auditor's report marks the most thorough review to date of the association's allegedly profligate spending, mostly by Alfortish and Romero, from 2006 through 2010.
But it doesn't appear that Alfortish or Romero will be on the hook to repay any more than the $127,000 in restitution between them that was ordered under plea deals reached early last year.
Alfortish, the LHBPA's former president, was sentenced last year to 46 months in prison after pleading guilty to conspiring to rig a board election. Romero was sentenced to 13 months in prison for her role in the scheme, after she admitted to conspiring to commit mail fraud, wire fraud and fraud.
Alfortish admitted he created a scheme to get re-elected as the head of the horsemen's group in 2008 after his first term as president was marred by charges of financial mismanagement. The association takes a 6 percent cut of the purses at Louisiana's four racetracks.
Thanks to a raft of falsified ballots, Alfortish won re-election and a slate of his hand-picked candidates was elected to the board. Alfortish admitted using the association's medical benefits trust fund for personal expenses and settling a sexual harassment grievance for $25,000, then reimbursing himself and calling it "back pay."
Romero's sister-in-law, Cindy "Cricket" Romero, who was sentenced to three years of probation for her role in the scheme.
According to prosecutors, the group identified which members were likely not to vote, then traveled to their cities and mailed falsified ballots from those locations.
Another former employee, Tammy Broussard, also used association funds improperly, the report said. She openly cooperated with federal prosecutors and did not receive any jail time.
Among the lavish expense was a 2007 trip to Las Vegas that Mona Romero and Broussard took to a gaming conference, which Broussard said they hardly attended.
The trip cost $8,540, including $1,100 for show tickets to see the Blue Man Group, Cirque du Soleil and a "Chippendales-like show."
The pair paid a total of $3,600 for four nights in separate rooms. Broussard told authorities that they attended the conference for 10 minutes.
Another conference, in Tucson, Arizona, in 2007, found Mona Romero spending more time getting a deep tissue massage and a "clinical peel" than she did attending a racing symposium, the report found.
At a 2010 conference in Minnesota, which cost more than $17,000 for nine people, charges by Alfortish included a $1,171 dinner that featured a five-pound lobster and a $120 bottle of wine.
Alfortish also bought $16,000 worth of gas station purchases, turning in receipts for just two of the 253 charges. Romero spent about $9,000 at gas stations, with 16 of 185 purchases backed by receipts, the report said.
More than $32,000 was spent at local restaurants, with 85 percent of the purchases lacking receipts.
"Charges ranged from a low of $7.48 at Smoothie King to a high of $1,806 at Impastato's Restaurant," the report said.
Funds from the association's Medical Trust were used, possibly illegally, the report found, including $4,800 for the surveillance of an association employee.
Purpera's office also questioned how Alfortish, an attorney, could justify being paid nearly $400,000 over 3 1/2 years as worker's compensation and simulcast director for the association, while also serving as board president, a part-time magistrate judge in Kenner, and practicing as an attorney.
The report also says the association misspent $1 million in unclaimed video poker litigation settlement funds that are intended for horsemen.
Whether Alfortish, Romero or any other association employees could face additional punishment based on the report's findings is doubtful.
According to a response from the association's president, Stanley Seelig, a legal settlement with Alfortish and other employees who made questionable charges means the group can't recoup any more money from them.
With the exception of Broussard, "all defendants received full and complete releases."
As part of his plea deal in the criminal case, Alfortish was ordered to pay $105,105 in restitution to the horsemen's association. A federal judge ordered Romero to repay $21,662.
Neither Romero nor Alfortish agreed to cooperate with the legislative auditor's office in their audit.
According to a December 2011 audit, the association still owed more than $400,000 to the medical trust. Since federal investigators began probing the association, in 2008, the board has turned over. New board members say they've been working to clean up the books.
According to Seelig, the association has reimbursed the horsemen's Medical Trust the full balance of $1.1 million in misguided funds and developed a more stringent accounting system for employee charges.
In a statement, Seelig said: "Our current leadership and staff have gone to extreme measures to cooperate in every way with the Legislative Auditor in order to facilitate the audit work. Over the last two years, we instituted new policies and procedures to assure our members and the public that the HBPA is operating properly and effectively now and in the future."
.http://www.nola.com/crime/index.ssf/2013/03/legislative_auditor_revisits_h.html
Two former leaders and four other employees of the organization that represents Louisiana Horsemen went nuts on the association's credit cards, with more than $800,000 in suspect spending over a five-year period, according to an investigative audit released Monday morning by Louisiana Legislative Auditor Daryl Purpera's office.
Christmas parties, evening gowns, spa treatments, traffic ticket fines, lavish hotel lodging under the pretense of business trips, Carnival parade stand rentals and political fundraising for Gov. Bobby Jindal were among the expenses that Sean Alfortish, Mona Hebert Romero and others charged on Louisiana Horsemen's Benevolent and Protective Association credit cards.
Few of the charges were backed by receipts, the report said.
Much of the money was allocated from accounts dedicated under law for pension, worker's compensation and medical benefits for horsemen, the report said.
The legislative auditor's report marks the most thorough review to date of the association's allegedly profligate spending, mostly by Alfortish and Romero, from 2006 through 2010.
But it doesn't appear that Alfortish or Romero will be on the hook to repay any more than the $127,000 in restitution between them that was ordered under plea deals reached early last year.
Alfortish, the LHBPA's former president, was sentenced last year to 46 months in prison after pleading guilty to conspiring to rig a board election. Romero was sentenced to 13 months in prison for her role in the scheme, after she admitted to conspiring to commit mail fraud, wire fraud and fraud.
Alfortish admitted he created a scheme to get re-elected as the head of the horsemen's group in 2008 after his first term as president was marred by charges of financial mismanagement. The association takes a 6 percent cut of the purses at Louisiana's four racetracks.
Thanks to a raft of falsified ballots, Alfortish won re-election and a slate of his hand-picked candidates was elected to the board. Alfortish admitted using the association's medical benefits trust fund for personal expenses and settling a sexual harassment grievance for $25,000, then reimbursing himself and calling it "back pay."
Romero's sister-in-law, Cindy "Cricket" Romero, who was sentenced to three years of probation for her role in the scheme.
According to prosecutors, the group identified which members were likely not to vote, then traveled to their cities and mailed falsified ballots from those locations.
Another former employee, Tammy Broussard, also used association funds improperly, the report said. She openly cooperated with federal prosecutors and did not receive any jail time.
Among the lavish expense was a 2007 trip to Las Vegas that Mona Romero and Broussard took to a gaming conference, which Broussard said they hardly attended.
The trip cost $8,540, including $1,100 for show tickets to see the Blue Man Group, Cirque du Soleil and a "Chippendales-like show."
The pair paid a total of $3,600 for four nights in separate rooms. Broussard told authorities that they attended the conference for 10 minutes.
Another conference, in Tucson, Arizona, in 2007, found Mona Romero spending more time getting a deep tissue massage and a "clinical peel" than she did attending a racing symposium, the report found.
At a 2010 conference in Minnesota, which cost more than $17,000 for nine people, charges by Alfortish included a $1,171 dinner that featured a five-pound lobster and a $120 bottle of wine.
Alfortish also bought $16,000 worth of gas station purchases, turning in receipts for just two of the 253 charges. Romero spent about $9,000 at gas stations, with 16 of 185 purchases backed by receipts, the report said.
More than $32,000 was spent at local restaurants, with 85 percent of the purchases lacking receipts.
"Charges ranged from a low of $7.48 at Smoothie King to a high of $1,806 at Impastato's Restaurant," the report said.
Funds from the association's Medical Trust were used, possibly illegally, the report found, including $4,800 for the surveillance of an association employee.
Purpera's office also questioned how Alfortish, an attorney, could justify being paid nearly $400,000 over 3 1/2 years as worker's compensation and simulcast director for the association, while also serving as board president, a part-time magistrate judge in Kenner, and practicing as an attorney.
The report also says the association misspent $1 million in unclaimed video poker litigation settlement funds that are intended for horsemen.
Whether Alfortish, Romero or any other association employees could face additional punishment based on the report's findings is doubtful.
According to a response from the association's president, Stanley Seelig, a legal settlement with Alfortish and other employees who made questionable charges means the group can't recoup any more money from them.
With the exception of Broussard, "all defendants received full and complete releases."
As part of his plea deal in the criminal case, Alfortish was ordered to pay $105,105 in restitution to the horsemen's association. A federal judge ordered Romero to repay $21,662.
Neither Romero nor Alfortish agreed to cooperate with the legislative auditor's office in their audit.
According to a December 2011 audit, the association still owed more than $400,000 to the medical trust. Since federal investigators began probing the association, in 2008, the board has turned over. New board members say they've been working to clean up the books.
According to Seelig, the association has reimbursed the horsemen's Medical Trust the full balance of $1.1 million in misguided funds and developed a more stringent accounting system for employee charges.
In a statement, Seelig said: "Our current leadership and staff have gone to extreme measures to cooperate in every way with the Legislative Auditor in order to facilitate the audit work. Over the last two years, we instituted new policies and procedures to assure our members and the public that the HBPA is operating properly and effectively now and in the future."
.http://www.nola.com/crime/index.ssf/2013/03/legislative_auditor_revisits_h.html
