Attorney: Housing authority prosecutions uncertain

No determination has been made as to what criminal action may be taken in regard to the nearly $700,000 in improper pay and bonuses reportedly received by several former and current Morgan City Housing Authority employees based on a State Legislative Auditor’s report, Housing Authority Attorney Robert Duffy said this morning.
The Morgan City Housing Authority Board will meet at 5 p.m. Thursday. The board is to discuss two resolutions approved at the Dec. 18 meeting, Duffy said. Those previously approved resolutions include one to move forward with the Legislative State Audit recommendations for the Morgan City Housing Authority and a resolution to allow Duffy, Interim Director Clarence Robinson and Board Chairman Victory Ho to approach the district attorney and the U.S. Attorney for the determination and resolution of any criminal violations.
Duffy has been authorized to proceed on the matters and has tried to do so ever since the Dec. 18 meeting, he said.
According to a state Legislative Auditor’s report released in December 2014, the Morgan City Housing Authority paid almost $700,000 in improper bonuses and wages between 2007 and 2014, with most of that money paid to three office workers and the former executive director.
Duffy has spoken to federal prosecuting authorities who said, after receiving the audit, the matter is still under investigation and they are not prepared to meet with Duffy, he said. Duffy was expecting a phone call back from Assistant District Attorney Anthony Saleme to determine whether he will meet with Duffy based on discussion with federal prosecutors, he said. As this morning, Duffy said he had not been given the opportunity to sit down with either federal or district prosecutors, he said.
Saleme was in court this morning, according to his office. The Office of U.S. Attorney for the Western District of Louisiana was contacted for comment, but did not respond as of this morning.
“It does appear, whoever makes a move, that both of these parties will proceed forward to prosecution. It appears that it will only be one,” Duffy said. Federal and district prosecutors are discussing amongst themselves which one could potentially prosecute the case, and apparently have not decided what action to take and which entity would take action, Duffy said.
“I can assure you that the feds will not be meeting with us or telling us they’re going to do any time soon,” Duffy said. “It appears that the federal government plays its cards real close and won’t commit to anything or advise me what they’re going to do.” It is extremely rare that both federal and district prosecutors would pursue criminal action in the same case, Duffy said.
In December 2014, Legislative Auditor Daryl Purpera said the housing authority “improperly paid” employees $566,544 in bonuses between November 2007 and March 2013 based on a reward policy that was altered by Tori Johnson, the authority’s housing manager. Johnson is no longer employed by the housing authority.
The auditor’s report said another $130,418 was improperly paid by the housing authority to three employees as raises in excess of Civil Service guidelines. The improper raises were paid in six separate increases between May 2009 and June 2014. Some employees received a 20 percent salary increase in a five-month period in 2009, according to the investigative audit.
As of this morning, Housing Authority accounting technician Diana Pace and housing manager Sandra Greene are still employed by Morgan City Housing Authority as classified state Civil Service employees, Duffy said.
Pace received $137,661 in improper rewards and $47,965 in excess pay, according to the state Legislative Auditor. Greene received $165,405 in improper rewards and $61,756 in excess wages, the auditor stated.
Johnson, a former housing manager who handled all Civil Service matters, received a total of $100,041 in improper rewards, according to the audit report.
Former Executive Director Charles Spann received $111,657 in improper bonuses, the report stated. His first award was issued Nov. 21, 2007, and is included in the total because Spann was not a Civil Service employee, and thus, was not allowed to receive the bonus at all, the report said.
Five full-time maintenance employees, not named in the audit, received a total of $41,802. Fourteen part-time maintenance employees, also not named, received a total of $9,978. The improper pay was ended June 18, 2014, a year after Spann resigned, the report said.
Thursday’s Morgan City Housing Authority meeting agenda also includes discussion on the hiring of an executive director and a resolution to continue an inter-agency agreement with the Berwick Housing Authority to be able to keep Berwick Housing Authority Executive Director Clarence Robinson Jr. on as interim director for the Morgan City Housing Authority while the authority searches for a new executive director, Duffy said.
The board will also discuss determining what the necessary job qualifications are for an executive director in order to be able to advertise for the position of a new executive director, Duffy said.
Duffy has samples of what other housing authorities provide for qualification requirements for executive director positions in regard to experience, education and other requirements, he said. No federally-mandated minimum requirements exist for the position of housing authority executive director, Duffy said.
Other new business on the agenda includes the following.
—A resolution to approve the lease agreement between Morgan City Housing Authority and St. Mary Community Action Agency.
—A resolution to approve a contractor for renovation in Brownell Homes and Jacquet Homes with 2013 and 2014 CFP funds.
—A resolution to approve to adopt the Internal Revenue Service mileage rate for 2015 for the Morgan City Housing Authority.
—A resolution to approve the Louisiana Compliance Questionnaire for audit service as of and for the year ending Sept. 30, 2014, for the Morgan City Housing Authority.