The California-based owner of a national network of insulin infusion centers for people with diabetes was arrested Monday on federal public corruption charges, including bribery, racketeering, healthcare fraud, and wire fraud.
A federal grand jury in Alabama indicted G. Ford Gilbert, CEO of Sacramento-based , as well as an Alabama legislator and a lobbyist, for their roles in an alleged scheme to win insurance coverage for the chain's unique brand of diabetes treatment.
Gilbert and his company have made deals with investors to open more than a dozen Trina clinics nationally. He claims the insulin infusion procedure he developed reverses complications of diabetes, such as neuropathy.
The indictment said Gilbert "came up with a plan to push a bill through the Alabama Legislature's 2016 session that would require Blue Cross Blue Shield of Alabama to cover the treatments." The insurance company in 2015 had denied reimbursement for Trina Health's three Alabama clinics, which had operated in 2014 and 2015 in Fairhope, Foley, and Birmingham.
"Gilbert then schemed to force Blue Cross to change its position," according to a in Montgomery, Alabama. The charges said Gilbert made payments to Alabama House Majority leader Micky Hammon, a Republican who had agreed to lobby for the bill. Hammon pleaded guilty in federal court on mail fraud charges in an unrelated case and is serving a three-month sentence. Because of that conviction, he was not included in Monday's indicthment.
Asked about the Alabama reimbursement problems late last year, Gilbert, a lawyer, told ľֱ, "Yes, we tried to go the way through the Legislature. But that all fell apart. Since then we've decided to file a lawsuit. We have a lawyer there to help us file a lawsuit." The lawsuit was not yet filed, he said recently.
U.S. Attorney Louis V. Franklin said the other defendants, both in Alabama, are state Rep. Jack D. Williams, 60, of Vestavia Hills, and lobbyist Martin J. "Marty" Connors, 61, of Alabaster.
Franklin's news release said Gilbert hired Connors -- former chairman of the Alabama Republic Party -- to lobby on behalf of the bill, and Connors recruited Williams, who chaired the Commerce and Small Business Committee of the Alabama House of Representatives. Connors asked Williams to hold a public hearing on the bill. The bill failed.
"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," according to the news release.
All three defendants are charged with conspiracy to commit bribery related to federal programs, conspiracy to commit honest services wire fraud, and honest services wire fraud.
Gilbert, 70, also is charged with wire fraud, healthcare fraud, and interstate travel in aid of racketeering. He did not respond to requests for comment.
, Gilbert is scheduled for arraignment in California on April 18. The investigation was conducted by the FBI and the U.S. Postal Inspection Service.