Unfortunately due to the still "secret affidavit" seizure and Utah attorney suggested intimidation of the witness who, as discovered after trial in the old seized computers, feared losing benefits and being convicted of a crime if he admitted income while receiving benefits, most data below never saw the light of day in the Federal courtroom trail of Gail.
Government File No: 6-04-00353-2 (comments in caps)
Report of: SA Shannon Goodwin - Baton Rouge, LA Field Off. - Department Of Health & Human Serv.
GOVERT. NARRATIVE OF THE INVESTIGATION
Background
On May 8, 2004, Mary Beth Chumley, Executive Director for the Council for the Advancement of Social Services Education (CASSE), a non-profit organization located in Shreveport, Louisiana alleged to the United States Attorney for the Middle District of Louisiana that her employee, Gail Dignam and her husband Michael Dignam, were embezzling federal grant monies from CASSE via shell businesses, forged contracts, and services not rendered.
BETH CHUMLEY WAS ACCUSED BY STATE OF STEALING ALONG WITH DAN RICHEY $700,000. A YEAR FOR THREE YEARS. GAIL WAS TASKED BY THE GOVERNOR TO OVERSEE GETTING THE MONEY BACK FROM HER. SHE LIED ABOUT WORK NOT DONE BY GAIL DIGNAM'S HUSBAND'S COMPANY AND TOOK THE REMAINING 50% OF HIS CONTRACT, WHICH SHE KNEW HE HAD DONE THE WORK FOR, AND GAVE IT TO HER SON. GAIL HAS AFFIDAVITS TO THE FACT THAT THE WORK WAS DONE AND BETH CHUMLEY DECIDED TO ATTACK GAIL WHEN GAIL WOULD NOT AGREE TO CHARGING THE CONTRACTORS A FEE FROM THE GRANTS SHE ADMINISTERED (EMAILS DOCUMENTING THIS FOUND IN COMPUTERS RETURNED AFTER TRIAL TO THE DEFENSE)
Investigation revealed that in June of 2000, Gail and Michael Dignam were indicted in federal court in the Middle District of Georgia for a scheme to defraud Gail Dignam's employer, Pilot International, a charitable organization benefitting the brain-injured. The Dignam's incorporated a business out-of-state called Charitable Tournaments International (CTI), and forged documents regarding services performed, as well as checks payable to David Cox, Gail Dignam's son. In an interview with Federal Bureau of Investigation Special Agent Dennis 0. Williams on 11120196, Cox stated that he never provided services or received any payment from CTI. Contrarily, in an interview withthe FBI on 11/4/96, Gail Dignam told SA Kevin J. Comiskey that Cox did summer work for CTI and she deposited his checks in her bank account since she was supporting him. Subsequently, Michael Dignam entered into a plea agreement and the charges against Gail Dignam were dropped. Michael Dignam received probation and was ordered to pay$20,000.00 in restitution to Pilot based on the checks written to David Cox. Theindictment was discovered when Michael Dignam wrote checks for his restitution from one of his bank accounts receiving CASSE deposits.
THE DIGNAMS DID NOT INCORPORATE CTI IT WAS OWNED BY THE DIGNAM'S CHIRPRACTOR WHO REPRESENTED TO THEM HE HAD DONE TOURNAMENTS IN THE PAST. THIS PERSON ONLY SHOWED A DOCUMENT HE SIGNED NOT THE DIGNAMS SIGNED WHICH SHOWED OWNER SHIP WAS NOT IN THE DIGNAM'S NAME. MR. DIGNAM WORKED FOR FIVE MONTHS EVERY DAY SETTING UP AND RUNNING A PHONE ROOM AND CONTACTING 1,000 DRIVING RANGES AND CONTRACTING FOR NETS FOR 200 OF THEM. HE THEN, ALONG WITH GAIL'S SON, BUILT THE NETS AND SHIPPED THEM TO ALL THE DRIVING RANGES. FOR THIS HE TOOK A 20,000 DOLLAR INCOME OVER FIVE MONTHS BUT ELECTED TO PLACE THE MONEY IN HIS SON'S NAME AS HE WAS RECOVERING FROM LIVER TRANSPLANT SURGERY AND HIS INSURANCE WAS MAXED OUT SO HE PREFERRED NOT TO TAKE AN INCOME IN HIS NAME BUT TO TRANSFER HIS EARNINGS TO HIS SON WHO HELPED IN THE PROJECT WITHOUT PAY.
Investigation further revealed that CASSE contracts were established by Gail Dignam with entities such as MySkye, Pro-Marketing Resort Consultants, and Friends 4 Teens, which were businesses incorporated in Utah by Michael and Gail Dignam, respectively. CASSE funds were indeed deposited into accounts controlled by the Dignams, and forged contracts and correspondence were also identified. Handwriting exemplars were taken from Gail Dignam on October 6, 2006 after CASSE contract signatures by Phil Thomas, Becky Camp, and Gary Ellsworth were identified respectively as forged. As a result, ($203,288.59) or 32% of the CASSE grant funds went into Dignam controlled accounts.
AFTER SEIZING THE DIGNAM'S COMPUTERS THE PHIL THOMAS SUBPOENA WAS CANCELLED AT THE LAST MINUTE AS THE PROSECUTION DISCOVERED FROM THE DEFENSES STRATEGY IN THOSE COMPUTERS, THAT PHIL THOMAS (WORKING WITH DON PETERSON) TOLD STATE INVESTIGATORS THAT HE GAVE PERMISSION TO GAIL DIGNAM TO SIGN HIS NAME TO HELP EXPEDITE HIS PAYCHECKS AND THE RUNNING OF THE COMPANY FOR WHICH HE WAS AN OFFICER. (AFFIDAVIT OF SAME WAS OBTAINED AFTER TRIAL WHEN THE DETAILS OF THIS EXCULPATORY EVIDENCE WAS DISCOVERED AFTER TRIAL BUT NOT DEFENDED AS GAIL'S ATTORNEY HAD NO ACCESS TO THE WITNESS AFTER THE SEIZURE CAUSING THIS WITNESS NOT TO APPEAR)
Meanwhile, in April 2004, Gail Dignam was appointed Director of the Louisiana Governor's Program on Abstinence (GPA) by then Governor Kathleen Blanco.
DETAILS OF INVESTIGATION
On July 15, 2009 the Louisiana Legislative Auditors (LLA) issued a compliance audit report on the GPA. Findings included services not rendered, financial transactions with bank accounts associatedwith GPA Director Gail Dignam and her son David Cox, and contractual agreements with organizations affiliated with Gail Dignam.
"CLEARING THE CONSCIENCE" AFFIDAVIT FROM DON PETERSON CORRECTED THE CLAIMED "SECRET" CREATION OF THESE ACCOUNTS AS FALSE AS STATED IN THE INDICTMENT AND AFFIDAVITS FROM PHIL THOMAS OBTAINED AFTER TRIAL SHOWED THAT BETH CHUMLEY WOULD NOT PAY THE DIGNAMS FOR WORK PRODUCT THAT ACTUALLY COMPLETED BUT WHICH BETH CHUMLEY ON THE STAND LIED ABOUT BEING COMPLETED.
Investigation revealed that the Don Peterson signature on a contract effective July 18, 2004 between the GPA and Don Peterson for July l, 2004 through June 30, 2005 for $18,000.00 was neither Don Peterson's signature, nor his authorized signature. In addition, invoices submitted pursuant to that contract for the months July 2004-December 2004 were neither submitted, provided, or authorized by Peterson. Peterson advised that he did not work for the GPA until Gail Dignam approached him at Christmas in 2004.
ALL A PATENT LIE AS IN THE SEIZED COMPUTERS THE DIGNAMS DISCOVERED AN EMAIL FROM DON PETERSON ASKING GAIL TO SIGN OR HAVE SOMEONE IN HER OFFICE SIGN HIS NAME TO CORRECT THE TAX AND FEDERAL BENEFITS PROBLEM HE HAD BY HAVING GAIL'S SON'S 1,500 DOLLARS A MONTH IN HIS NAME INSTEAD OF HIS COMPANY'S NAME. THIS APPEARS TO HAVE BEEN INTIMIDATION BY THE PROSECUTION OF THE LONE WITNESS AGAINST GAIL DIGNAM TO COVER UP DON PETERSON;S AFFIDAVIT OF THE TRUTH WHICH WAS WITNESSED AS "VOLUNTARY AND NOT UNDER DURESS" BY A HIGHLY RESPECTED APPEALATE ATTORNEY WHO WAS THERE WHEN DON PETERSON COMPOSED HIS AFFIDAVIT WHICH WAS SIGNED THE NEXT DAY IN FRONT OF A NOTORY VINDICATING GAIL OF THE ABOVE FALSE CHARGES.
Further investigation revealed that on January 11, 2005, Donna Hardin opened a Don Peterson dba Friends 4 Teens bank account # 92000209 at the Community Bank in Shreveport, Louisiana at the direction of Gail Dignam with an opening deposit of $5,100.00. Of the $5,100.00 dollars used to open the account, $4,500.00 (88%) were deposits of Louisiana Treasury checks issued for invoices submitted under the Don Peterson contract for July/Aug/Sep 2004 . Hardin was directed to open the account in her name, as well as under a Power of Attorney for Don Peterson at the direction of Gail Dignam. Also on January 11, 2005, Hardin wrote check# 501 in the amount of $1,200.00 to Gail Dignam's son David Cox. In January 2005, Gail Dignam's son David Cox received 86% of the check disbursements from the Community Account where GPA funds for the Don Peterson contract were deposited.
AS STATED IN THE DON PETERSON AFFIDAVIT THIS WAS FOR WORK DAVID COX DID AND AS WAS GAIL'S JOB SHE ONLY TOLD ALL HER CONTRACTORS TO OPEN ACCOUNTS TO SEPARATE THEIR PERSONAL FUNDS FROM THEIR BUSINESS ACCOUNTS. DON LIED ABOUT KNOWING OF THE ACCOUNT BUT IN AN EARLIER STATE AUDIT INTERVIEW IN 2008 ADMITED DAVID COX WAS WORKING SINCE 2003 WITH HIM AND THAT THEY BOTH SHARED THE ACCOUNT TOGETHER AS NEEDED BEFORE GAIL DIGNAM ACCEPTED THE POSITION OF GPA DIRECTOR AFTER WHICH SHE TOOK HERSELF OFF THE ACCOUNT.
Investigation also revealed that on January 21, 2005 the Payment Management Office stamped received a Don Peterson GPA invoice for services in October 2004 in the amount of $1,500.00 dollars. Similarly, on January 24, 2005, a November invoice was stamped and on February 17, 2005 a December invoice was stamped. The state treasury check for October was misplaced, and subsequently re-issued in May 2005. State treasury checks for November and December invoices were deposited into the Community Bank Don Peterson dba Friends 4 Teens account in February and March 2005. From January 2005-March 2005, state treasury checks for the Don Peterson contract with the GPA invoices July-December 2004 were deposited totaling $10,500.00. From January 2005-March 2005, David Cox received $3,800.00 or 36% of the state treasury deposits into the same account.
DON PETERSON'S AFFIDAVIT EXPLAINING THE TRUTH OF THIS WAS NOT ALLOWED IN AT TRIAL AND HE SEEMED INTIMIDATED ON THE STAND TO NOT REPEAT HIS EARLIER TRUTHS OF THIS MONEY AS HE HAD WITH THE STATE AUDITORS AND IN HIS AFFIDAVIT.
On July 27, 2005, Gail Dignam deposited Don Peterson dba F4T check #1032 into Moroni account 31379 which she controlled at the time. Also, on May 24, 2005 David Cox deposited Don Peterson dba F4T check #1020 into the same account and withdrew $250.00. On July 6, 2005 David Cox as Don Peterson is endorsed on Community Bank account check #1025 for $500.00 into the Moroni account, and on April 28, 2005 David Cox is endorsed on Community Bank account check #1011 for $400.00 into the Moroni account.
THIS ACCOUNT WAS USED FOR TWO YEARS BY BOTH DAVID COX AND DON PETERSON WHEN GAIL WAS NOT WORKING FOR THE GPA AND THOUGH SHE DID TAKE HER NAME OFF TWO MONTHS AFTER TAKING THE GPA POSITION BECAUSE SHE WAS LIVING IN LOUISIANA AND HAD TO GO TO UTAH TO DO SO, SHE DID NOT OPERATE OR CONTROL THE FUNDS IN THAT ACCOUNT OUTSIDE DON PETERSON'S DIRECTION.
On September 2, 2009, Don Peterson testified that he provided no service to the GPA until he was approached by Gail Dignam at Christmas 2004. Also, Peterson testified thathe did not sign or provide the services listed on GPA invoices from July-December 2004. Also, Peterson testified that David Cox did not perform any work at his direction.
EMAILS FOUND IN THE SEIZED COMPUTERS SHOWED ALL THE WORK DON PETERSON DID WHICH INCLUDED WRITING OVER 20 GRANTS AND SUBMITTING THEM ALONG WITH HIS CLOSELY WORKING WITH DAVID COX AS PRESIDENT OF FRIENDS FOR TEENS SINCE 2003. WAS HE WAS MADE TO TELL OR THROUGH HIS FEAR REFUSED TO TELL THE TRUTH AT TRIAL. THIS EXCULPATORY EVIDENCE WAS SEIZED FROM THE DEFENSE BEFORE TRIAL ON AN UNFOUDED AND STILL ANONYMOUS AFFIDAVIT THE PROSECUTION SUCCEEDED IN NOT ALLOWING THE DEFENSE TO INTRODUCE AT TRIAL. WHO SIGNED IT? AND WHY HAS THAT SIGNATURE BEEN REFUSED THE DEFENSE IN SPITE OF TWO MOTIONS WITH THE JUDGE AND SEVERAL TURNED DOWN BRADY MOTIONS TO REQUEST IT.
Also on September 2, 2009, Donna Hardin testified that she was directed by Gail Dignam to open a Don Peterson dba Friends 4 Teens bank account in her own name, as well as Don Peterson's name via Power of Attorney. Hardin also testified that she was directed to write and mail checks to David Cox and Don Peterson at Gail Dignam's direction.
DON PETERSON, HAVING GIVEN DONNA HARDIN POWER OF ATTORNEY, ASKED DONNA HARDIN TO DO THIS WHICH WAS THE POLICY OF ALL CONTRACTORS UNDER GAIL TO NOT MIX PERSONAL ACCOUNTS WITH GPA MONIES.
On October 28, 2009, Jacquelyne Champagne testified that she had observed partially completed Don Peterson invoices in the desk of Gail Dignam at the GPA office.
JAQUELYNE CHAMPAIGN WAS ACCUSED BY GWEN BEAN OF FORGING NAMES TO CONTRACTOR'S CONTRACTS WITHOUT PERMISSION. GAIL DIGNAM TOOK THIS COMPLAINT TO HER SUPERIORS AND THEY ADMITTED IT WAS A BAD POLICY WHICH GAIL EVENTUALLY FIXED. THIS WAS SHOWN IN THE STATE AUDIT REPORT AS A FACT BUT THE PROSECUTION SUCCEEDED IN CONVINCING THE JUDGE TO NOT LET THIS EXCULPATORY EVIDENCE IN AT TRIAL.
Also on October 28, 2009, Gwen Bean testified that she had observed Gail Dignam produce Don Peterson invoices by bringing them into the office at the GPA.
WHEN RETURNING FROM UTAH, AND ONLY AFTER BEING ASKED TO DO SO, GAIL DID HAND DELIVER SOME OF HIS INVOICES FOR PAYMENT. AGAIN SHE CONTINUED THE POLICY OF HER PREDICESSOR AS STATED IN THE OFFICIAL STATE AUDITOR'S REPORT OF SIGNING HER 74 CONTRACTORS INVOICES ONLY TEMPORARILY TILL SHE COULD FIX THE CONFUSION LEFT TO HER WHEN SHE TOOK OVER THE CRIME RIDDEN PROGRAM. THIS WAS THE POLICY AND THE GOVERNOR TOLD HER TO KEEP THE PROGRAM RUNNING TILL IT WAS FIXED. SHE FIXED IT B UT THE PROSECUTION USED THESE FIRST FEW MONTHS OF PRGRAM CHAOS TO INCRIMINATE AND CONVICT HER.
On September 29, 2009, Accountant I Linda Price advised 01that she handled GPA invoices for the time period July-December 2004 as evidenced by the handwritten word single atop the right hand comer on the Peterson invoices. On January 27, 2010, Price advised 01that the "Single" written atop an invoice meant she had been asked to issue a hard check to be picked up rather than have the check sent out automatically. Price recalled placing the "single" checks into separate envelopes for pick-up; most often in the case of the GPA, by Gwen Bean.
AGAIN ONLY WHEN REQUESTED BY A CONTRACTOR TO DO SO WHICH WAS THE POLICY SHE INHERITED HAVING ONLY TWO WORKERS FOR 74 CONTRACTORS FROM ACROSS THE STATE AND COUNTRY AND OVER 600 SMALL VOLUNTEERS AND STIPEND REGIONAL WORKERS. IN THE OFFICIAL STATE AUDIT REPORT IT EMPHASIZED THAT GAIL "COULD NOT DO HER JOB PROPERLY AS SHE WAS SEVERELY UNDERSTAFFED".
On January 28, 2010 MaryAnn Sherry, COE reported a high probability that the exemplars completed by Gail Dignam on October 6, 2006 indicate Gail Dignam completed the July-December 2004 Don Peterson GPA contracted invoices, monthly reports, and timesheets.
DON PETERSON TESTIFIED THAT HIS SIGNATURE IN SEPTEMBER WAS HIS YET THE PROSECUTION SUCCEEDED IN CONVINCING THE JUDGE AND JURY THAT HE DID NOT START WORKING TILL DEC. OF 2004 AND SO WAS UNAWARE OF THOSE FIRST FEW MONTHS INVOICES FOR WHICH GAIL WAS ACCUSED OF SECRETLY DIRECTING $4,500. TO HER SON. AT DAVID COX'S GRAND JURY HEARING HE PRESENTED INVOICES FOR ALL HIS THREE YEARS OF WORK EXCEPT THE FIRST FEW MONTHS OF THE PROGRAM WHICH WAS STILL IN CONFUSION. THE PROSECUTION HAVING DENIED THE DEFENSE THE COMPUTERS AND TIME NEEDED FOR GAIL'S NEW ATTORNEY TO UNDERSTAND THIS, DID NOT SHOW THE JUDGE OR JURY ANY OF THESE INVOICES AND WAS NOT ALLOWED TO SHOW THE STATE AUDIT DESCRIBING THE CHAOS GAIL INHERITED SO THE PROSECUTION SUCCEEDED IN FRAMING GAIL'S ACTIONS AS CRIMINAL INSTEAD OF FOLLOWING THE MANDATE OF THE GOVERNOR TO KEEP THE PROGRAM GOING ANY WAY SHE HAD TO TILL THE INVOICE PROBLEMS WERE FIXED.
GailDignam.com 
