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re: WAFB: Millions paid to fake bank accounts by Livingston Parish School Board, audit shows

Posted on 2/13/23 at 2:44 pm to
Posted by Ace Midnight
Between sanity and madness
Member since Dec 2006
94742 posts
Posted on 2/13/23 at 2:44 pm to
quote:

It's fun to rail on NO about corruption and point fingers but the truth is the entire state is awash with its.


As bad as N.O. is, certainly other big cities (looking at you Chicago) have had competitive eras and, perhaps Chicago even more corrupt than New Orleans over the long run.

But, absolutely NO state is as demonstrably corrupt as Louisiana. Top to bottom, left to right, white to black, school board, police jury, small town mayors, cops, firefighters, librarians, dog catchers, you name a state official and we have a candidate for "most corrupt of all time."

Louisiana is so #1, no one can name a clear #2 (maybe Illinois, but that's just due to Chicago).
Posted by jrodLSUke
Premium
Member since Jan 2011
25740 posts
Posted on 2/13/23 at 2:45 pm to
So nice to hear that our Public School System is a money laundering operation.

Hey, I know! Let's let them run Healthcare next !
Posted by imjustafatkid
Alabama
Member since Dec 2011
62597 posts
Posted on 2/13/23 at 2:51 pm to
quote:

What the hell are they buying for $2.3 million in less than a month?!


Every government, at every level, across the country, drops this kind of money every single month.

Anyone ever claiming the government needs more money is a complete moron who doesn't know what he/she's talking about. The government needs to cut spending. End of story.
Posted by 427Nova
Member since Sep 2022
1722 posts
Posted on 2/13/23 at 2:58 pm to
I think it was a reparations account - getting a jump on saving up and 10% for the Big Guy.
Posted by frequent flyer
USA
Member since Jul 2021
3382 posts
Posted on 2/13/23 at 3:02 pm to
That's kind of alarming. Livingston must have a lack of controls to prevent this kind of scam activity.

Bet they learned their lesson now.
Posted by GuidoVestieri
Baton Rouge
Member since Jun 2021
945 posts
Posted on 2/13/23 at 3:20 pm to
quote:

What the hell are they buying for $2.3 million in less than a month?!


Condoms hopefully
Posted by secondandshort
Member since Jan 2014
1085 posts
Posted on 2/13/23 at 3:33 pm to
You are incorrect on all of your post.

What I do know is LP ranks in the bottom half of teacher salaries in the state and is usually in the top score wise. Teacher shortages have made it difficult staffing schools, and especially when a teacher can go to neighboring districts and make 5-10k more.
Posted by dgnx6
Member since Feb 2006
85700 posts
Posted on 2/13/23 at 4:01 pm to
quote:

It's fun to rail on NO about corruption and point fingers but the truth is the entire state is awash with its. Black, White, Baw, etc...,,
This post was edited on 2/13 at 12:46 pm


Blacks are still committing the majority of gun violence in our state and still going around wearing masks.

Posted by dallastigers
Member since Dec 2003
9464 posts
Posted on 2/13/23 at 4:54 pm to
quote:

The Louisiana Legislative Auditor’s Office said the payments were made after the Livingston Parish School Board received emails requesting changes to electronic funds transfers for two vendors. Officials said the changes were made without school officials following procedures in place to call the vendors and verify the emails.

The audit report said that once school officials realized what happened, they contacted law enforcement.

An investigation was launched, and the Livingston Parish School Board was able to recover $1,907,894. However, school officials were not able to recover $343,967, and an insurance claim was filed.



This doesn’t seem like it was just caught be state auditors but more just reported publicly by state auditors as part of their report.

When, How, or from who did law enforcement and district get the almost $2 million back from?

If caught quick enough they might have been stop it before final clearing and disappearing, but that would mean this was known for a year. If returned that person fraudulently stole the money in first place and should be charged with something.

If FBI and multiple agencies involved to get the almost $2 million back then again why sit by and wait for auditor report.
quote:

That recovery was made possible by the excellent investigative work of the Town of Livingston police department, the FBI, and other law enforcement agencies working with our own staff.


Murphy, school board, and local police (district’s main office is in town of Livingston I guess) kept a lid on it as long as they could.

quote:

I would like to point out that at no time during the investigation was an employee of LPPS accused of any fraudulent activity. This was a matter of electronic fraud and not mismanagement of existing funds. This incident is not unlike incidents many of us have experienced with our own banking/savings accounts.


Murphy comparing it to personal account problems and saying it’s not a mismanagement of existing funds even though it occurred due to school district EFT account changes policy not being followed is just more BS and CYA. If it wasn’t that big of a deal then why not own it when discovered and initial money recovered?

quote:

Officials said the changes were made without school officials following procedures in place to call the vendors and verify the emails.

… Lastly, as a result of this incident, LPPS has modified its procedures regarding EFT transfers to further protect our system from future electronic fraud. LPPS now requires that any change to electronic fund transfers requires written and verbal verification from the vendor.



Yeah adding written verification (assuming that’s hard copy and email isn’t considered written) solves problem of employees not following procedures in first place. A year to get statement ready for public and couldn’t even include anything on improving employee oversight on making EFT account changes or adding limits on who can make these changes. Trying hard to protect himself and whoever made the changes without calling company to verify.
This post was edited on 2/13/23 at 5:19 pm
Posted by Adam Banks
District 5
Member since Sep 2009
36394 posts
Posted on 2/13/23 at 5:18 pm to



This post was edited on 2/13/23 at 5:21 pm
Posted by secondandshort
Member since Jan 2014
1085 posts
Posted on 2/13/23 at 5:30 pm to
quote:

and not mismanagement of existing funds


I think this part is a huge deal. I don’t see it as CYA bit more-Murphy saying this isn’t one of our people stealing money but electronic fraud, phishing, etc. I believe this was public knowledge awhile back and discussed at a board meeting.
I would bet this was brought up at this time do to the tax trying to be passed and people trying to cast a bad light on the school system.
Posted by sqerty
AP
Member since May 2022
8121 posts
Posted on 2/13/23 at 5:36 pm to
LP doin' LP shenanigans. That would never happen here in Ascension.
Posted by John Casey
New Orleans
Member since Nov 2016
3716 posts
Posted on 2/13/23 at 8:34 pm to
quote:

I would bet this was brought up at this time do to the tax trying to be passed and people trying to cast a bad light on the school system.


It was likely brought up at this time because the audit report was published on the Legislative Auditor website. Report is dated December 29th and was probably submitted to Legislative Auditor not long after.

News agencies have reporters and journalists scan all reports as they are published on Legislative Auditor website, looking for findings.
Posted by Bestbank Tiger
Premium Member
Member since Jan 2005
79105 posts
Posted on 2/13/23 at 8:35 pm to
quote:

Wow. Someone was busy.


Randall Stevens. The silent silent partner. He's the guilty one, Your Honor.
Posted by nicholastiger
Member since Jan 2004
53894 posts
Posted on 2/13/23 at 8:41 pm to
2 million of a 30 million budget for building a new school is easily spent for construction
Posted by LSUAngelHere1
Watson
Member since Jan 2018
10137 posts
Posted on 2/13/23 at 9:14 pm to
quote:

Unless your last name is one of about 3 or 4 names, you had zero shot of ever getting that job.

Cox being #1
Posted by EarlyCuyler3
Appalachia
Member since Nov 2017
27290 posts
Posted on 2/14/23 at 12:47 am to
Louisiana is just amazing. What is wrong with you people?
Posted by Pechon
unperson
Member since Oct 2011
7748 posts
Posted on 2/14/23 at 1:10 am to
quote:

What the hell are they buying for $2.3 million in less than a month?!


That's not out of the question for a public school system doing a complete technology refresh the size of Livingston. As others said it's depending on the fiscal year, but large purchases likely have had a Request for Proposal which is public information. Depending on local and state regulations purchases made at a certain threshold may require a number of bids, so an RFP is sent out to solicit them.

Sure, you can fly under the radar by making smaller purchases below that RFP threshold. Still, that amount of money in that short of time should have raised some alarm bells.
Posted by nealnan
Nw Orleans
Member since Sep 2014
144 posts
Posted on 2/14/23 at 7:05 am to
Somebody should be fired. I am very familiar with a variety of AP systems, and for this to happen, there has to be a combination of incompitance, laziness or collusion. To change a remit to address or bank routing info normally takes a two tiered approval system. Somebody was in on this.
Posted by HodsonTiger13
Member since Jan 2023
737 posts
Posted on 2/14/23 at 7:25 am to
Staffing shortages due to rapid increase in population.

LP are also getting "Baton Rouge students" (in some cases, problem kids) and massive influx if illegal aliens.
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