New Orleans, La. — An audit report by Louisiana's legislative auditor says former Jefferson Parish Councilman Byron Lee may have violated state law.
It involves votes Lee cast relating to a Jefferson Parish non-profit health corporation while he was still on the parish council.
It is the second biting audit done on the Jefferson Community Healthcare Centers.
"This entity is a not-for-profit entity that received parish funding," said Council Chairman Chris Roberts.
Roberts said he is not shocked that the auditors found serious problems.
"There was some speculation that some improprieties were going on with the health clinic," he said.
Besides finding that over $200,000 in clinic funds were improperly transferred to the former chief financial officer's personal bank account, the report also slams Lee.
It said former clinic CEO Carol Smith authorized a $1,000 political donation for Lee's campaign. It also said Lee may have violated state law by voting on 10 resolutions, and one ordinance benefiting the clinic while his sister, brother, and nephew were employed by the clinic in various capacities.
"That's something that he's got to answer to. I would suspect that we all should be up to speed on what the ethics laws are, state laws that are required of us," said Roberts.
Lee did not return our calls about the audit. But in his response included in the audit report, he says he did not know that the campaign contribution came from the clinic, nor that his relatives were working for the clinic.
Lee's attorney referred us to the written responses in the audit.
"Byron Lee submits that, if he violated state ethics rules by voting on matters that impacted members of his family, he did not do so knowingly, or intentionally," the audit response reads, in part.
Lee also said in the response that he did not receive any portion of the money his relatives earned from the clinic.
Also, a company owned by state Rep. Girod Jackson (D-Harvey) is also mentioned in the report.
Auditors found that the former chief executive officer improperly invoiced clinic medical services to Jackson's company, Diversified Ventures, which already had a post-Katrina contract with parish government. That, the auditors said, resulted in the company getting improper payments from the parish.
"There are questions with regards to payments and that's something that is going to need to be investigated further," Roberts said.
Jefferson Parish officials said new internal controls that have been put in place in parish government should help prevent such abuse in the future.
"We've added an internal auditor, we've added an ethics and compliance officer, in addition to that we have an [inspector general] that's coming on in January," said Roberts.
The audit also criticizes local attorney Clarence Roby. It said the clinic paid $146,635 to the law firm Roby owns, but Roby could not provide full documentation. Also, the audit report said after reviewing Roby's records he may have violated state law regarding attorney rules for conduct. The auditors said Roby did not maintain the clinic's prepaid retainer fees in a trust account, nor did he provide periodic accounting of the use of the retainer fees as state law requires.
When contacted, Roby said he was limited in what he could say about the audit.
"I think it's more appropriate that you speak to the client because I don't want to violate any attorney-client privilege," Roby stated.
Calls to the current management staff were not returned.
Marrero branch of the clinic
