California CEO pleads guilty in Alabama legislative bribery scheme
G. Ford Gilbert, the CEO of Trina Health clinics, a California-based health care company, pleaded guilty in a Montgomery federal court on Friday to attempting to bribe an Alabama lawmaker. On Friday, in a Montgomery federal court Gilbert pleaded guilty to one count of conspiracy to bribe a public official. The government dropped the other six counts against him. According to court documents, when he committed his offense, Gilbert was the owner of a California-based company, Trina Health, LLC (Trina Health). At outpatient clinics, Trina Health provided a form of diabetes treatment known as the “Artificial Pancreas Treatment.” In 2014 and 2015, Trina Health and associated business entities opened three clinics in Alabama—one in Foley, one in Fairhope, and one in Hoover. Micky Hammon, who, at the time, was the majority leader of the Alabama House of Representatives, was a part-owner of the Hoover clinic. Shortly after the Foley and Fairhope clinics opened and just before the Hoover clinic began operations, the state’s largest health insurer, Blue Cross and Blue Shield of Alabama, informed Trina Health that it would not cover the treatments provided at these clinics. Throughout 2015 Gilbert tried unsuccessfully to persuade the health insurance company to reconsider. In early 2016, Gilbert developed a scheme to force the insurer to change its position. Gilbert came up with a plan to push a bill through the Alabama Legislature’s 2016 session that would require Blue Cross to cover the treatments. He then made payments Hammon in exchange for his efforts on behalf of the bill. He also hired former Alabama GOP chairman Marty Connors. Hammon and Connors then recruited longtime State Rep. Jack Williams, the chairman of the Commerce and Small Business Committee of the Alabama House of Representatives, to hold a public hearing on the bill. The bill ultimately failed. “Mr. Gilbert thought that it would take only a small payment to turn the Alabama House of Representatives into a tool for solving his own business problems,” U.S. Attorney Louis V. Franklin Sr. said Friday. “Fortunately, Gilbert was not successful in persuading the legislature to pass this tainted bill. Nevertheless, it is my hope that this case sends a strong message to business owners and special interest groups who might seek to obtain legislative assistance through improper means. My office will do whatever it takes to ensure that the citizens of this state are served by the state legislature they deserve—one committed to doing only the people’s work.” Gilbert faces a maximum sentence of five years in prison and a fine of up to $250,000, and up to three years of supervised release. He will be sentenced in April.
Jack Williams’ lawyer believes his case will not go to trial, will end favorably
Vestavia Hills-Republican, longtime State Rep.Jack Williams‘ lawyer reportedly does not believe Williams’ case will go to trial and that whatever the solution it will end favorably for him. Williams, along with former Alabama Republican Party Chairman Martin “Marty” Connors, California-based health care executive G. Ford Gilbert were arrested in April on federal bribery charges. This week, a new defendant was added to the case. Outgoing Daphne-Republican State Rep. Randy Davis was also indicted on Wednesday by a feral grand jury on charges of bribery and conspiracy. In light of the new filing against Davis, Williams’ attorney Jake Watson told AL.com he expects to see a resolution soon, and that Williams could avoid the trial currently scheduled for September 4. “All I can say is that we are in the process of resolving the previous indictment. And I would think it will be resolved within the next few weeks,” Watson continued. “I expect it to be resolved in a manner that is favorable to the government and to Mr. Williams.” According to the indictment originally filed in April, Defendant Gilbert is the owner of a California company that operates diabetes treatment centers throughout the world—Trina Health, LLC (Trina Health). In 2014 and 2015, Trina Health opened three clinics in Alabama. Soon thereafter, the state’s largest health insurer, Blue Cross and Blue Shield of Alabama (a.k.a. Blue Cross), informed Trina Health that it would not cover the treatments provided by them. Gilbert then schemed to force Blue Cross to change its position. He came up with a plan to push a bill through the Alabama Legislature’s 2016 session that would require Blue Cross to cover the treatments. Gilbert then made payments to State of Alabama House Majority Leader Micky Hammon in exchange for his efforts on behalf of the bill. Gilbert also hired Defendant Connors to act as a lobbyist on behalf of the bill. Connors knew of Gilbert’s payments to Majority Leader Hammon. Hammon and Connors then recruited Defendant Williams, the chairman of the Commerce and Small Business Committee of the Alabama House of Representatives, to hold a public hearing on the bill. Williams also knew of the payments to Hammon and acted in part to help Hammon, who, as everyone in the scheme knew, was experiencing grave financial problems. The indictment does not include charges against Hammon since he has already been convicted in federal court of other offenses related to mail fraud and misusing campaign funds. Williams plead “not guilty” in a federal arraignment later in April. “I have done nothing wrong, and once the facts are presented, I expect to be found innocent by a jury of all the allegations outlined in Monday’s indictment,” he said in a statement. If convicted, Williams faces up to 20 years in prison.
Randy Davis indicted on bribery, conspiracy charges
Outgoing Daphne-Republican State Rep. Randy Davis was indicted by a feral grand jury on Wednesday on charges of bribery and conspiracy. According to federal court documents, Davis has been accused of pressuring Blue Cross and Blue Shield of Alabama to “cover infusion treatments at Trina Health clinics even though the Centers for Medicare and Medicaid Services said there was no evidence the outpatient insulin therapy treatment improved outcomes,” the Associated Press reported. Allegedly, Davis worked with former Alabama House Majority Leader and Decatur-Republican Micky Hammon to recruit investors to the Trina Health clinics, after which he would receive a finders’ fee. He has also been accused of working with Hammon to push a bill through the Alabama State Legislature’s 2016 session aimed at forcing insurance coverage of the treatments at the clinics. “After Trina Health encountered difficulties with the health insurance companies, Davis attempted to lobby the insurance company to change its position,” reads a Department of Justice press release. “When that failed, Davis took steps to advance the bill. For example, Davis helped to recruit a sponsor, arranged for the public hearing to be video recorded, and then spoke in favor of the bill at a public hearing.” Vestavia Hills-Republican, longtime State Rep. Jack Williams, former Alabama Republican Party Chairman Martin Connors, along with a California-based health care executive G. Ford Gilbert were arrested in April for the alleged plan. “Based on these events, the superseding indictment charges Davis, Gilbert, and Connors with conspiracy to commit bribery related to federal programs. Additionally, the superseding indictment alleges that Gilbert committed various acts of bribery related to federal programs. Gilbert and Davis are also charged with interstate travel and communications in aid of racketeering. The last count in the superseding indictment charges Connors with making a false statement to a federal agent,” the press release continues. The defendants face a maximum of 10 years imprisonment. Hammon was sentenced to three months in prison in February on charges relating to mail fraud while Williams, Connors and Gilbert await their trial on September 4.
Conspiracy case: State Rep. Jack Williams, ex-GOP chair Marty Connors plead ‘not guilty’
Both Vestavia Hills-Republican, longtime State Rep. Jack Williams and former Alabama GOP chairman Marty Connors pleaded not guilty in federal court on Wednesday in Montgomery, Ala. The two, along with a California-based health care executive G. Ford Gilbert were arrested on federal bribery and conspiracy charges earlier this month. According to the Department of Justice, Gilbert is the owner of a California company that operates diabetes treatment centers throughout the world—Trina Health, LLC (Trina Health). In 2014 and 2015, Trina Health opened three clinics in Alabama. Soon thereafter, the state’s largest health insurer, Blue Cross and Blue Shield of Alabama (a.k.a. Blue Cross), informed Trina Health that it would not cover the treatments provided by them. Gilbert then schemed to force Blue Cross to change its position. He came up with a plan to push a bill through the Alabama Legislature’s 2016 session that would require Blue Cross to cover the treatments. Gilbert then made payments to State of Alabama House Majority Leader Micky Hammonin exchange for his efforts on behalf of the bill. Gilbert also hired Defendant Connors to act as a lobbyist on behalf of the bill. Connors knew of Gilbert’s payments to Majority Leader Hammon. Hammon and Connors then recruited Defendant Williams, the chairman of the Commerce and Small Business Committee of the Alabama House of Representatives, to hold a public hearing on the bill. Williams also knew of the payments to Hammon and acted in part to help Hammon, who, as everyone in the scheme knew, was experiencing grave financial problems. The indictment does not include charges against Hammon since he has already been convicted in federal court of other offenses related to mail fraud and misusing campaign funds. Following the arraignment, Connors released a statement claiming his innocence. “I am innocent of the charges that have been made against me. I have worked hard to conduct myself in the most honorable way possible, in a way that my family, friends and colleagues can be proud of,” Connors said in the statement. “I built not only a life here, but a reputation. The charges against me are totally unfounded, and will be vigorously defended.” A trial has been set for Sept. 4.
Alabama legislator Jack Williams, ex-GOP chair Marty Connors arrested on federal bribery charges
Vestavia Hills-Republican, longtime State Rep. Jack Williams, former Alabama Republican Party Chairman Martin “Marty” Connors, along with a California-based health care executive G. Ford Gilbert were arrested Monday on federal bribery charges. “Three individuals — two of whom reside in Alabama and one who resides in California — were arrested on charges stemming from their involvement in a public corruption scheme,” said United States Attorney Louis V. Franklin, Sr. in a press release. According to the indictment, Defendant Gilbert is the owner of a California company that operates diabetes treatment centers throughout the world—Trina Health, LLC (Trina Health). In 2014 and 2015, Trina Health opened three clinics in Alabama. Soon thereafter, the state’s largest health insurer, Blue Cross and Blue Shield of Alabama (a.k.a. Blue Cross), informed Trina Health that it would not cover the treatments provided by them. Gilbert then schemed to force Blue Cross to change its position. He came up with a plan to push a bill through the Alabama Legislature’s 2016 session that would require Blue Cross to cover the treatments. Gilbert then made payments to State of Alabama House Majority Leader Micky Hammon in exchange for his efforts on behalf of the bill. Gilbert also hired Defendant Connors to act as a lobbyist on behalf of the bill. Connors knew of Gilbert’s payments to Majority Leader Hammon. Hammon and Connors then recruited Defendant Williams, the chairman of the Commerce and Small Business Committee of the Alabama House of Representatives, to hold a public hearing on the bill. Williams also knew of the payments to Hammon and acted in part to help Hammon, who, as everyone in the scheme knew, was experiencing grave financial problems. “Based on these events, the indictment charges all three defendants with conspiracy to commit bribery related to federal programs, conspiracy to commit honest services wire fraud, and honest services wire fraud,” wrote Franklin. “Additionally, the indictment alleges that Gilbert and Connors committed the substantive offense of bribery related to federal programs. Gilbert alone is charged with wire fraud, health care fraud, and interstate travel in aid of racketeering.” The indictment does not include charges against Hammon since he has already been convicted in federal court of other offenses related to mail fraud and misusing campaign funds. If convicted, the men face up to 20 years in prison. Gov. Kay Ivey weighed in on the indictment Monday afternoon following a speech in Huntsville, Ala. “There’s just no place for corruption in our great state. And so the Justice Department, the FBI, they’ve just got to go ahead and ferret out what needs to be explored because we cannot tolerate corruption,” Ivey told AL.com. “I just pointed out (during her speech in Huntsville) that the people of Alabama, the morale was very low because they had been misled by their leader and lost faith in the government. So I’ve tried my best to restore faith and trust in the government and operate an open, transparent administration.” The United States Postal Inspection Service investigated the case with the assistance of the Federal Bureau of Investigation. Assistant United States Attorneys Jonathan S. Ross and Joshua Wendell are prosecuting the case. This is a developing story and will continue to be added to.
