Greg Meffert:Greed, Lies, and Corruption

ByDwayne Barnes

New Orleans

• Established May 7, 1787

• Population 360,740 (2011)

• Mayor-Council Government Structure

Players

• Greg Meffert,

• former Chief Technology Officer

• Former dot com CEO

• Well respected businessman

The Players contd.

• Mark St. Pierre

• Former CEO of Imagine Software and Veracent

• Former employee of Meffert

The Crime

• 63 count indictment

• Conspiracy

• Wire Fraud

• Bribery concerning programs receiving federal funds

• Money Laundering

• False statements to investigators

• filing false tax returns

The Crime COndt.

• Conspiracy to use position to manipulate the procurement process for tech services and provided millions of dollars in city funds to St. Pierre and his companies

• St. Pierre illegally made payoffs or kickbacks to CTO, Greg Meffert

The scheme

• Meffert persuaded the Mayor to sign an Executive order removing technology contracts form the normal bidding process

• Meffert approved over $4 Million in no-bid contracts to St. Pierre owned companies.

• Meffert also forced price contractors to serve only as a conduit for contracts received and pushed the work and funds to St. Pierre owned companies

Show Me The money

• St. Pierre paid over $860,000 form 2004-2008

• $38,000 Check

• $130,000 corporate credit card

• $7,500 Membership Dues

• $35,000 PersonalExpenses

Show me The Money condt.

• $647,000 After leaving New Orleans

Conviction

• Meffert Pled Guilty to one count of conspiracy to commit wire fraud and bribery and one count of filing a false income tax return

• Agreed to testify again Mark St. Pierre for lighter sentence.

Internal COntrols

• Control Environment

• Risk Assessment

• Control Activities

• Information and Communications

• Monitoring

Control Environment

• Sets the tone of the organization and influences how employees with in the organization go about their daily tasks.

• The integrity, ethical, and competency of leadership and employees

• Leadership philosophy and operating style

• The way management assigns authority and responsibility

• The way management organizes and develops its people

Control Activities

• specific policies and procedures that ensure management directives are carried out.

• Approvals, Authorizations

• Statutory Duties, Verifications

• Segregation of Duties

• Security of Assets, Reconciliations

Questions???