BATON ROUGE - The state of Louisiana is suing the Louisiana Oilfield Restoration Association over their accounting following a malfeasance investigation into how employees managed contractor money.

In 2024, WBRZ reported on Office of Conservation Assistant Commissioner Johnny Adams being investigated for using his position to influence the Office of Conservation in selecting LORA to provide financial backing to oil well operators.

Documents allege LORA’s owners hired his children as employees and, later, as contractors through two companies sharing ownership with LORA. Additionally, LORA allegedly gave Adams money to buy a home.

The East Baton Rouge Sheriff's Office then sought a warrant for Adams' and his wife, Metro Councilwoman Laurie Adams', financial records. That search warrant was executed after the state Legislative Auditor's Office asked for assistance.

Johnny Adams is also one of 11 defendants in the LORA suit.

On Friday, the state of Louisiana asked for an injunction to prevent LORA from disposing of business records or moving money while the state seeks a complete accounting.

They claim reports from the Louisiana Legislative Auditor and the National Resource Trust Authority revealed "LORA's failure to meet its contractual obligations, its failure to act in good faith and fair dealing, violations of LORA's fiduciary duties to Secured Operators and the State, self-dealing by defendants' owners and officers, breaches of corporate fiduciary duties by defendants' owners and officers, and conflict of interest."

LORA was brought on to the Office of Conservation to reduce the number of abandoned oil wells in the state.

The state terminated the Cooperative Endeavor Agreement in May 2025, leading the state to seek the funds LORA holds in its reserve account and all money equal to securities called upon by the Office of Conservation for wells not plugged.

Louisiana Attorney General Liz Murrill issued a statement saying her office "made reasonable efforts to ensure that these funds were being protected to no avail" and they're "taking the appropriate legal steps to ensure these funds are properly safeguarded, and to obtain restitution for any funds that [they] believe were not properly spent.”