One month after resigning in disgrace, John Chianelli pitched his old Milwaukee County boss with a proposal to privatize more mental health services so his new firm could oversee them.

Records show Chianelli and Peg DuBord of Transitional Living Services urged a top county official to let their private agency - which already has several county contracts - provide services to patients with developmental disabilities or mental health problems if the 72-bed Hilltop unit at the Mental Health Complex is downsized. The firm also wants to begin caring for children with serious emotional issues.

The pair met with Geri Lyday, interim administrator of the county's Department of Health and Human Services, on March 10. Chianelli had submitted his resignation to Lyday on Feb. 11.

County ethics rules say former staffers must wait at least a year before contacting anyone in their former agency on behalf of a private business or individual.

"That's very disconcerting," said County Supervisor Lynne De Bruin. "He's not allowed to lobby her on any contract, period."

In making its pitch for further privatization, the proposal from Chianelli's new firm cited the county's extensive troubles in treating mentally ill patients in recent years, problems documented by the Journal Sentinel.

"In 2010, there were a number of articles outlining issues related to individual (mental illness and developmental disorder) difficulties in receiving safe and effective treatment in the Adult Mental Health System," says a copy of the five-page proposal.

That doesn't sound so bad, right?

Well, here's what really went on at the Mental Health Complex under Chianelli's watch:

The newspaper's investigation showed hospital administrators and staff botched numerous cases by doing everything from ignoring medical orders to falsifying documents to hide their mistakes.

One patient, who was supposed to be on birth control, became pregnant after having sex with a fellow patient who had a history of violence and sexual assault. That man was allowed to roam freely through the ward - and at times leave it - even as the staff stated on documents he was being checked every 10 minutes. Once staff learned the woman was pregnant, they waited at least two weeks to notify her guardian, and she remained on medications potentially harmful to the fetus.

Last year, Chianelli was demoted from his post in charge of the Mental Health Complex, and he left county government earlier this year.

He did not return calls to his work or cell phone.

In an interview, Lyday downplayed the significance of the Hilltop proposal offered by the two officers of the nonprofit firm back in March.

She said she filed it away with all of the other proposals she has received from vendors. She noted that her agency has not solicited bids on the projects that Transitional Living is interested in working on.

"I didn't look at it real closely," Lyday said of Chianelli's proposal. "I have people calling me all the time with ideals, particularly as they've heard about the Behavioral Health Division, just coming to talk."

One reason nothing has been done with the pitch may be that the county has launched a wide-ranging effort to overhaul its mental health system. Several committees and task forces are examining community treatment alternatives, building a new and smaller Mental Health Complex and figuring out how to pay for the reforms.

County Board members will be voting this week on a proposal to give Transitional Living a $272,000 county grant to help with the cost of constructing Highland Commons, a 50-unit housing development in West Allis for mentally ill individuals.

De Bruin, chairwoman of the board's Economic and Community Development Committee, said she has been assured that Chianelli and DuBord did not discuss their request for these funds during their meeting with Lyday. A spokeswoman for Transitional Living offered the same assurances.

But that still doesn't address the possible problem with the county ethics rules.

The aim of the ethics rule is that ex-county workers shouldn't use their old connections to try to gain taxpayer-funded deals for a private interest.

But that's exactly what it looks like happened here.

"We really should not have been meeting," Lyday acknowledged late last week.

In a stunning admission, the department head said she really wasn't acquainted with the specifics of the county ethics policy. The penalty for violating the no-contact provision is a civil forfeiture of up to $1,000.

"I certainly didn't know there was a prohibition in terms of contact," Lyday said. "Had I really known the gravity of that, I certainly wouldn't have met with him."

But she's been boning up on it since No Quarter first inquired about the meeting. Lyday repeatedly emphasized that it would be Chianelli, not Lyday, who might be in trouble because of the meeting.

DuBord, chief executive officer of TLS, referred questions to a spokesman but first said she and Chianelli acted innocently.

"There was no intent to do that," she said of a possible violation of county ethics rules.

De Bruin said she has been generally impressed with Lyday's work but was surprised by her handling of this situation.

Not only do county department heads have to follow the ethics rules, De Bruin said, but they also are supposed to be enforcing them. It's hard to enforce rules that you don't know or understand.

"That's a problem," De Bruin said. "That's a big problem."

Daniel Bice can be contacted by phone at (414) 224-2135 or by e-mail at dbice@journalsentinel.com. Follow him on Twitter @NoQuarterr.