Louisiana Insurance Consultant Charged With Double Dipping – Denies Conflict of Interest

Between 2006 and 2010, the timespan reflected in the charges, Fontenot, as a hired consultant, advised the parish committee on myriad health, accident, life and dental insurance policies. During that time, he made recommendations involving Cigna, Coventry Health Care of Louisiana, Humana, Peoples Health and United Healthcare, five companies with which he allegedly had separate business agreements, according to the charges.

Jefferson Parish paid Fontenot & Associates $93,600 between 2006 and 2010, records show.

The charges also state that Fontenot accepted payments from Coventry, Humana, Peoples Health and Sun Life Financial, a company with a parish contract in 2006 and 2007, according to parish records. The Ethics Board charges do not say how much Fontenot made from the companies.

The state Ethics Board has charged a health insurance consultant with accepting payments from insurance providers while counseling Jefferson Parish‘s Insurance Advisory Committee about their products during former Parish President Aaron Broussard‘s administratio

Scott Fontenot of Fontenot & Associates faces 21 counts of violating the state ethics code. Three of the charges allege Fontenot made recommendations on insurance policies to Broussard’s chief administrator, Tim Whitmer. Other records show Fontenot did business with an associate of Whitmer’s insurance agency, Lagniappe Industries, which sits at the center of the scandal that dismantled Broussard’s administration last year.

Fontenot’s attorney, Jenny Jackson, said the Ethics Board’s allegations are unfounded because Fontenot is not a public official and didn’t make the ultimate decisions about which firms were hired to provide policies to parish employees.

“There’s absolutely no conflict of interest,” she said.

But Kathleen Allen, an attorney with the Ethics Administration, said Fontenot’s work for the parish fit the description of a public employee, making him accountable to state ethics laws.

Fontenot faces civil penalties as much as $10,000 per charge plus repayment of up to 150 percent the value of any “ill-gotten gains,” Allen said. He was charged May 19. The charges will be considered by the state Administrative Law Division. It has scheduled a telephone conference July 7.

Between 2006 and 2010, the timespan reflected in the charges, Fontenot, as a hired consultant, advised the parish committee on myriad health, accident, life and dental insurance policies. During that time, he made recommendations involving Cigna, Coventry Health Care of Louisiana, Humana, Peoples Health and United Healthcare, five companies with which he allegedly had separate business agreements, according to the charges.

Jefferson Parish paid Fontenot & Associates $93,600 between 2006 and 2010, records show.

The charges also state that Fontenot accepted payments from Coventry, Humana, Peoples Health and Sun Life Financial, a company with a parish contract in 2006 and 2007, according to parish records. The Ethics Board charges do not say how much Fontenot made from the companies.

Jefferson Parish currently has active contracts with Cigna, Coventry, Humana and Peoples Health, records show. United Healthcare provided health insurance to parish employees in 2009 and 2010.

The policies are paid for by a combination of government and employee contributions.

At Fontenot’s request, Interim Parish President Steve Theriot canceled his parish contract in March 2010 after disclosures that Fontenot split commissions with the late Maurice “Hippo” Katz, an associate of Lagniappe Industries, for work with the parish clerk of court’s office. E-mails in Whitmer’s parish account from late 2008 show Fontenot discussing a commission with former Parish President Tim Coulon, another Lagniappe associate.

Lagniappe was doing insurance work for at least half a dozen parish contractors while Whitmer and Broussard were Jefferson’s top two executives. Broussard also admitted to doing legal work for Lagniappe in 2009 while serving as parish president.

The scandal forced Whitmer and Broussard out of office in January 2010.

The Ethics Board has since charged Whitmer and Broussard with myriad ethics violations. Whitmer’s attorney, Dane Ciolino, said Tuesday a settlement is being negotiated.