Walter Smith, director of the $250 million Louisiana State Police Retirement System, Baton Rouge, was named in a limited audit of the pension plan for alleged ethics and system rules violations, according to Daniel Kyle, state legislative auditor. Mr. Kyle conducted the audit, which he said was spurred by allegations of mismanagement from unidentified sources. According to the auditors report, Mr. Smith used system funds and property inappropriately, accepted lodging and airfare from businesses with which the fund has dealings and abused leave-time policies in violation of the Louisiana Code of Governmental Ethics and the systems own rules. Mr. Kyle has forwarded the report to the district attorneys office for the East Baton Rouge District Parish; officials there were not available to comment at press time.
Mr. Smith declined to comment. In a written response to the auditors report, James Champagne, system chairman, denied any fiduciary misconduct by Mr. Smith but said the system would investigate accusations made in the audit.