Ethics board: Company must pay fine

After a confidential investigation conducted by the Louisiana Board of Ethics, the board determined that Intercoastal Redi-Mix LLC of Morgan City violated state law by providing cement products to contractors of the city, which were used on projects while Michael Loupe served as city’s public works director.

However, ethics charges against Loupe himself were dismissed.

The ethics board brought charges against Loupe and Intercoastal on July 18, 2013, to determine whether Loupe and Intercoastal violated two state laws.

Loupe has served as public works director since January 2005 and continues to serve in that position. Loupe was charged with having a “controlling interest” in Intercoastal, as defined in state law.

In the director’s position, Loupe supervises construction contracts, and reviews and authorizes payments to the contractors.

Loupe and his wife, Mary Loupe, were the original members of the business. In 2012, their sons, Joshua Loupe and Nicholas Loupe were added as members of Intercoastal. In 2012, Mary Loupe owned 100 percent of Intercoastal.

The board ordered Intercoastal to pay the state $5,000 for its violation. According to the ethic board’s consent order, Intercoastal “knowingly and of its own free will agrees that the violations are factually supported and agrees that it violated” state law.

The ethics consent order states if called to testify, Michael Loupe would state that during the summer of 2011, he contacted the city attorney and met with him and the mayor, in addition to contacting the Office of the Attorney General, for the purpose of ensuring the provision of cement products owned by his family would not create any conflicts of interest or other ethical concerns.

Southern Constructors LLC was awarded a contract with the city and acquired ready-mixed products from Intercoastal. Intercoastal provided services from May 4, 2012, to Nov. 14, 2012, and was paid $147,343.31.

Larry Doiron Inc. entered into a contract with the city to repave roads in 2012. Intercoastal sold and delivered cement products from Oct. 16 to Dec. 20 for the city project.

Doiron Inc. paid $100,052.51 to Intercoastal for services.

Both Michael Loupe and Mary Loupe were neither employees nor consultants of Intercoastal. Neither received a salary, consultant fee or member distribution during 2012 from Intercoastal.

According to board findings, Intercoastal does not currently provide goods or services to be used on city projects or to or for Southern Constructors or Doiron Inc. on any projects.

This applicable statute states that no public servant and no legal entity in which the public servant exercises control or owns an interest in excess of 25 percent, shall receive any thing of economic value for or in consideration of services rendered, or to be rendered, to or for any person during his public service unless such services are neither performed for nor compensated by any person from who such public servant would be prohibited by state law from receiving a gift.

In the spring of 2011, Loupe and immediate family members sought to establish a premixed cementing business providing services to area contractors. Article of Organization was filed with the state in June of that same year and a charter was issued forming Intercoastal Redi-Mix LLC.

According to the applicable state law, no public employee shall solicit or accept, directly or indirectly, anything of economic values as a gift or gratuity from any person or from any officer, director, agent, or employee of such person, if such public servant knows or reasonably should know that such person:

—Has or is seeking to obtain contractual or other business or financial relationships with the public servant’s agency.

—Conducts operations or activities which are regulated by the public employee’s agency.

—Has substantial economic interests which may be substantially affected by the performance or nonperformance of the public employee’s official duty.

In the future, Intercoastal agreed to request an advisory opinion from the ethics board if it would like to provide goods and services to be used in connection with a city project or contract.

In addition, Intercoastal agreed to seek the board’s opinion on providing services to or for a person that has or is seeking to have a contractual, business or financial relationship with the city.

The advisory opinion must be sought prior to the provision of goods and services.