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stout
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A good example of LA politics at play
This was reported in May and he still sits on the LSU board of supervisors and is chairman of the State License Board of Contractors.

Video in link explains it all better

quote:

NEW ORLEANS (WVUE) - A business owner who sits on two different state board has been sanctioned in two separate investigations surrounding insurance claims.

The Louisiana State University Board of Supervisors website describes member Lee Mallett as a ‘respected businessman’ who has created businesses ‘that support good-paying jobs and give back to the community’ -- but Mallett’s companies have been investigated twice by state agencies in relation to coverage under a state worker’s compensation program.

Mallett, who also serves as chairman of the State License Board of Contractors, owns several manufacturing and construction companies in the Lake Charles area. In 2018, his companies purchased workers compensation insurance through a state created entity, the Louisiana Worker’s Compensation Corporation. The coverage protects workers hurt on the job, as long as their company signs up for coverage and pays a premium.

The premium is based on the salary of each employee.

When applying for the worker’s compensation coverage, one of Mallett’s companies, Progressive Buildings, claimed one employee drove the equivalent of New Orleans to Atlanta every day of the week.

State records obtained by FOX 8 show the company claims it paid the woman about $18,000 in wages and then paid her another $95,000 in mileage reimbursements. That figure is key because the premium paid to the worker’s compensation corporation is based on the employee’s salary, not their other earnings and reimbursements. So in this example, 84 percent of the employee’s total earnings were not included in calculating the premium paid to the state corporation


quote:

In 2005, investigators found another Mallett company had “the same sort of inaccuracies." Initially the company had a lower worker’s compensation premium -- $8,100 -- but after an extensive audit, investigators found the correct premium should have been nearly $1.3 Million.

“He’s been caught before,” Friedman said. “So this is a continuing course of conduct -- clearly a knowing course of conduct to defraud the worker’s comp board."

According to the Worker’s Compensation Corporation, after the audit, it asked Mallett to pay the correct premium -- $1.3 Million -- but it says rather than pay the premium owed, Mallett transferred the ownership of the company to his father who then put the company in bankruptcy.


quote:

The same company claims it made nearly $200,000 in donations to employees. Those donations are also excluded from the calculation of worker’s compensation premiums. The Worker’s Compensation Corporation canceled the coverage a month after Mallett’s companies signed up for the policy. The corporation started investigating right after the companies signed up for the insurance.


Board has proven itself ‘untrustworthy, corrupt’

quote:

“Do as we say, not as we do” seems to be the appropriate motto for the Louisiana State Licensing Board for Contractors (LSLBC). Recent reports of insurance fraud and corruption are making it clear that there are problems within the Residential Contractors Board. According to a recent news story, it appears that at least one of these Contractors Board members has been caught for a second time defrauding workers comp insurance companies by reclassifying payroll to avoid paying premiums.

This is ironic considering that the millionaires that make up the board recently began trying to enforce unlawful rules designed to dominate their smaller competitors by requiring nearly every subcontractor to carry workers comp and general liability insurance. These new rules, which are not required by state law, are being enforced on everyone from cement finishers to brick layers.


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If the Contractors Board feels that insurance premiums are so high that fraud is justified among their members, why are they crushing working families with these same burdens? These insurance premiums eat up profits and add unnecessary costs to consumers.

Imagine for a moment, if you will, a board that is made up of wealthy businessmen who work to gain advantage over their smaller competitors (a board that decides who gets disciplined and who does not). And keep in mind, the only way to get on this board is to be politically connected. It’s not as though ordinary business owners are serving on this board. You have to be in the know, and be able to pay to play. As the story showed, the board member in question has donated over a million dollars to political campaigns (roughly the same amount that he supposedly swindled out of workers comp).


lipripper32413
LSU Fan
Baton Rouge
Member since Aug 2019
15 posts

re: A good example of LA politics at play
Holy shit, I met with this guy about a year ago to try and take over the insurance for all of his companies (we specifically talked workers comp for about an hour) I thought he was into some sketchy shite just trying to take advantage of the system and walked away from the opportunity
This post was edited on 8/30 at 8:47 am


JG77056
LSU Fan
Vegas baby, Vegas
Member since Sep 2010
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re: A good example of LA politics at play
Interested to see where this thread goes


fatboydave
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Fat boy land
Member since Aug 2004
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re: A good example of LA politics at play
quote:

Interested to see where this thread goes
This post was edited on 8/30 at 8:50 am


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stout
Arizona Fan
Back in God's Country
Member since Sep 2006
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re: A good example of LA politics at play
2011 DOC memo asks probation officers to refer non-violent offenders to facility run by LSU Board member, Jindal donor

quote:

The Jindal administration two years ago attempted to influence parole officers and district judges throughout the state to refer violators to a private facility operated by a major Republican campaign contributor whom Gov. Bobby Jindal subsequently appointed to the LSU Board of Supervisors.

LouisianaVoice obtained a four-page memorandum through a public records request of the Louisiana Department of Corrections (DOC) which indicates that state probation and parole officers were directed to funnel offenders into the Academy of Training Skills (ATS) in Lacassine.

ATS, owned and operated by Chester Lee Mallett of Iowa, LA. in Calcasieu Parish, is a 200-bed transitional work program ostensibly set up to provide employment and training in various industrial trades in order to return offenders to the work force. http://www.aattss.com/

On July 13, 2012, Jindal appointed Mallett to the LSU Board of Supervisors. He was previously appointed by Jindal to the State Licensing Board for Contractors in June of 2010. Mallett and companies controlled by him have contributed more than $30,000 to Jindal personally, $242,000 to the Louisiana Republican Party and $75,000 to the Republican Governors Association, of which Jindal is currently president.

The memorandum, from Barry Matheny, Assistant Director of Probation and Parole, to his boss, Probation and Parole Director Gerald Starks, was dated Oct. 3, 2011, and noted that DOC had amended its policy to include probation violators as eligible for the program. Forwarded to parole and probation officers throughout the state, it directed them to “get with your respective judges at your earliest convenience to make them aware of this alternative program.”

Matheny further said, “I would ask that you look at all technical violators…and see if (you) can get some offenders into this program.”

What followed was an outline of the ATS program which essentially was an endorsement of Mallett’s facility which does not accept state or federal funding but rather charges a housing fee to the residents, many of whom are said to work for Mallett’s construction companies.

ATS’s website says that salaries residents receive from job placements by ATS are kept in special accounts in residents’ names. Several former residents, however, have told LouisianaVoice that upon their release from the program, they actually owe ATS money. They said ATS “forgives” any outstanding rent balances owed. But when those who work for Mallett’s companies have to use their salaries to pay Mallett for lodging at ATS, Mallett is basically getting free labor in exchange for the lodging.







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70
Kafka
USA Fan
I am the moral conscience of TD
Member since Jul 2007
100757 posts

re: A good example of LA politics at play
So you think mallett should get the hammer?


stout
Arizona Fan
Back in God's Country
Member since Sep 2006
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re: A good example of LA politics at play
quote:

Interested to see where this thread goes




It won't go anywhere. I am just sharing links from sources but won't share any personal opinions one way or the other because he is very litigious.


RougeDawg
Louisiana Tech Fan
Member since Jul 2016
1314 posts

re: A good example of LA politics at play
quote:

State License Board of Contractors


Absolutely useless.


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JG77056
LSU Fan
Vegas baby, Vegas
Member since Sep 2010
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 Online 

re: A good example of LA politics at play
Understandable. My uncle is on the board with him.


stout
Arizona Fan
Back in God's Country
Member since Sep 2006
140286 posts

re: A good example of LA politics at play
quote:

So you think mallett should get the hammer?





Never said that.

I think the LSLBC has pushed several changes that put small operations at risk or completely out of business which does not protect the public (which is their mission statement) but rather limits their competition.

Texas does it correctly. As a state, they leave it up to local municipalities as to how they want people to be licensed and bonded/insured and their reason for doing so is "not to impeded commerce"

LA has done the opposite
This post was edited on 8/30 at 8:57 am


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70
stout
Arizona Fan
Back in God's Country
Member since Sep 2006
140286 posts

re: A good example of LA politics at play
Which board? LSU or LSLBC


lipripper32413
LSU Fan
Baton Rouge
Member since Aug 2019
15 posts

re: A good example of LA politics at play
When I met with him, one of the typical billboard attorneys called and he stopped to talk to him for a few minutes


JG77056
LSU Fan
Vegas baby, Vegas
Member since Sep 2010
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 Online 

re: A good example of LA politics at play
LSLBC


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UpToPar
USA Fan
Baton Rouge
Member since Sep 2008
18292 posts

re: A good example of LA politics at play
quote:

State records obtained by FOX 8 show the company claims it paid the woman about $18,000 in wages and then paid her another $95,000 in mileage reimbursements.


Man, she sure does have to travel a lot for an $18K per year job.


teke184
LSU Fan
Zachary, LA
Member since Jan 2007
38169 posts
 Online 

re: A good example of LA politics at play
He got Gordon on the line?


lipripper32413
LSU Fan
Baton Rouge
Member since Aug 2019
15 posts

re: A good example of LA politics at play
Not Gordon, but I'm sure you could figure it out


teke184
LSU Fan
Zachary, LA
Member since Jan 2007
38169 posts
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re: A good example of LA politics at play
One call, that’s all?


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RATeamWannabe
Kansas Fan
Baton Rouge
Member since Sep 2009
23753 posts

re: A good example of LA politics at play
Stop by the stream this weekend


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stout
Arizona Fan
Back in God's Country
Member since Sep 2006
140286 posts

re: A good example of LA politics at play
quote:

Man, she sure does have to travel a lot for an $18K per year job.




She was probably shopping for more billboard locations

LINK

quote:

“Have you seen or heard about the billboards along I-10, in southwest Louisiana?”

“I’ve heard,” Donelon said, pursing his lips disapprovingly.

“What’s the story there? Any idea?” I asked.

“Those were put up by a political activist with deep pockets, and anger issues,” the Commissioner said. “I ruled against him on an appeal of a workmen’s compensation insurance case, involving $1.3 million that was owed and unpaid to LWCC. An audit showed employees were paid minimum wage, but reimbursed for excessive amounts of vehicle mileage – $95-100-thousand a year. It did not pass the smell test.”



Image: https://i1.wp.com/www.bayoubrief.com/wp-content/uploads/2019/08/07A82F73-07DE-443D-855F-320FB440FE10.jpeg?resize=1068%2C481&ssl=1


upgrayedd
Lamar Fan
Lifting at Tobin's house
Member since Mar 2013
96997 posts
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re: A good example of LA politics at play
When people ask why LA is so far behind the rest of the country, you can show them this


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