Eyewitness News has confirmed that a federal investigation into possible criminal wrongdoing at Mandeville city hall is underway.

WWL-TV

Mandeville Mayor Eddie Price

The news comes one day after the release of a legislative auditor’s report that showed possible violations of state law concerning the city’s financial irregularities uncovered in the state audit. The findings could lead to criminal charges at the highest levels of Mandeville’s city government.

Legislative auditor Dan Daigle confirmed he gave federal investigators the boxes of files and documents he used to prepare his report.

“We responded on April 1, 2008 to a federal grand jury subpoena and we have turned over records to the federal grand jury in compliance with that subpoena,” he said.

The report took aim at questionable spending practices by Mandeville Mayor Eddie Price and other city officials. It showed Price may have improperly accepted gifts -- including golf outings and hunting trips - from people who do business with the city.  The report also indicated he used his city credit card for nearly $9,000 in personal charges    including: $566 during a July 2004 trip to Nevada and northern California, $260 for food and gas in Augusta, Georgia in April 2006, $632 for meals and hotels back in northern California in September 2006, and nearly $3,000 during a cruise to Mexico in February 2007.

“I think it caught the entire council off guard,” said City Councilwoman Tribly Lenfant.

Lenfant said that Thursday night the council is expected to consider a resolution putting stricter controls on the use of city-issued credit cards.

“The council will take every action necessary to help restore the confidence and the trust that the citizens are entitled to within this city,” she said.

In light of the revelations in the legislative audit report, many in Mandeville are now calling for Price to step down. City Council members said they don't have the power to make that happen, but they see a lot of momentum in that direction.

“I think the audit is the beginning of a process and we have to see where that process takes us,” said Lenfant.

“If the allegations in the auditor's report are true it would seem to state a prima facia case of theft under state law and clearly violations of the code of governmental ethics,” said Loyola law professor Dane Ciolino.  

The Mandeville City Council would also like to see tighter controls on the use of city-owned vehicles and an annual internal audit of all city finances.     

Price said calls for him to step down are ill-advised.