Broussard launches insurance deal inquiry

Jefferson Parish President Aaron Broussard said he launched an inquiry Thursday into his top aide's insurance business with the parish-owned West Jefferson Medical Center.

Chief administrative officer Tim Whitmer is under scrutiny after the disclosure that his company, Lagniappe Industries, is making a commission from supplemental insurance plans that are sold to the public hospital's employees.

Broussard said he asked Parish Attorney Tom Wilkinson to compile all applicable laws and regulations that govern parish employees' business relationships with the parish's two public hospitals, then determine whether Whitmer violated any law.

"I'm asking Tom to flesh out all those things, and let's get it on the table," Broussard said.

In addition, Whitmer has written to the state Ethics Board asking for a ruling about doing business as a public employee with the hospital.

Broussard met with Whitmer and Wilkinson on Thursday and said he notified the Parish Council of his decision.

"A full and complete investigation by the Ethics Board is certainly a step in the right direction," Councilman John Young said.

The council, by law, is the governing authority for both East Jefferson General Hospital and West Jefferson Medical Center. The seven-member panel is partly responsible for appointing each hospital's board of directors. Broussard said he also appoints a member to each board but doesn't vote on any hospital resolutions they pass to the council.

"I have no such role to play with the hospitals," he said.

Broussard said Whitmer will remain at his post at least until Wilkinson delivers a report. He wouldn't speculate about what action he might take should it be shown that Whitmer violated any law.

Whitmer co-owns Lagniappe Industries with his wife, Dawn.

In his letter to the Ethics Board, Whitmer argues that he works for Broussard, who he said has no authority over the hospitals. He wrote that he agreed in 2006 to partner with former Parish President Tim Coulon to share all future commissions from insurance policies. Coulon then partnered with Wally Pontiff Sr. of B&A Insurance, whom the hospital board selected in 2007 as the broker of record.

Neither Lagniappe Industries, Whitmer nor Coulon appeared on the council documents that ratified the hospital's choice of Pontiff.

Whitmer told the Ethics Board that he didn't use his status as a parish employee to land the business.

"Neither my wife nor I lobbied any hospital board member or any member of the Jefferson Parish Council, the governing body of the hospital district," he wrote.

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Richard Rainey can be reached at rrainey@timespicayune.com or 504.883.7052.