Today the former attorney for The Municipal Police Employees' Retirement System (MPERS), Randy Zinna, was sentenced to 30 months incarceration in Federal Court for stealing more than $1,500,000 from several sources.
I have blogged about MPERS on several occasions, here and here, particularly zeroing in on some bad investments.
One of those, of course, is Olde Oaks in Bossier Parish, which the system sunk more than $15,000,000 into, yet it ended up with a net worth of just over $3,000,000. Because of mismanagement of the system, police officers across the state are having to pay an addition 2.5% of their salary into contributions. The amount that the municipalities involved must contribute has risen exponentially.
The $1.2 billion program went from fully funded to $836.3 million short of meeting future retirement obligations.
Zinna was ordered to make restitution of $501,318.11 to MPERS and $136,614.10 to Olde Oaks. He also must make restitution to the Employers’ Retirement System for East Baton Rouge in the amount of $340,392.93, as well as $546,351.82 that he had swindled from a widow.
Zinna could have received up to 20 years in prison, but the U.S. Attorney filed a report indicating that Mr. Zinna should be allowed a three-level downgrade for sentencing guideline purposes due to his cooperation with the investigation and assistance with respect to other potential violators.
That’s where it gets interesting. I wouldn’t be surprised at all if more indictments follow.
More complete articles here, here and here.