Case Document 1 Filed 03/14/18 Page 1 of FILED IN THE UNITED STATES DISTRICT COURT 1313 FOR THE MIDDLE DISTRICT OF ALABAMA NORTHERN DIVISION Ci titlt US Hl?i? CHURI UNITED STATES OF AMERICA smut [3151131 act(3. FORD GILBERT, 18 use. 665; MARTIN J. and 18 use. 1343; JACK n. WILLIAMS is U.S.C. 1346; I V- 18 134?; 18 1349; 18 U.S.C. 1952; 18 U.S.C. 2] INDICTMENT The Grand Jury charges: I. INTRODUCTION At all times relevant to this Indictment: l. Trina HeaIth, LLC (Trina Health) was a domestic limited liability company,r registered with the Secretary of State of Nevada on or about March 24, 2014. Trina Health was headquartered in McClellan Park, California. Trina Health operated, through license agreements, outpatient diabetes treatment clinics. 2. Bionica, Inc. (Bionica) was a domestic corporation registered with the Secretary of State of Nevada on or about June 25, 1999. Bionica was headquartered in McClellan Park, California. Bionica manufactured pumps that were then purchased by franchisees of Trina Health and used in Trina Health outpatient diabetes treatment clinics. 3. Defendant G. Ford Giibert, a California resident, was the founder and president of Trina Health and Bionica. In or about 1975, Gilbert obtained a juris doctor degree and became a practicing attoiney in California. Subsequentiy, Gilbert attended medical school, but did not Case Document 1 Filed 03/14/18 Page 2 of 27 graduate. He later obtained a doctor of philosophy degree from an online educational institution. Gilbert claimed that he developed the pump-based treatment provided at Trina Health clinics. 4. Defendant Martin J. Connors was a resident of Alabama and a registered lobbyist with the Alabama Ethics Commission. Connors was also the former chairman of the Alabama Republican Party. 5. Defendant Jack D. Williams was member of the Alabama House-of Representatives. Williams, a Republican, represented House District 47, which consisted of portions of Jefferson County, Alabama. Williams was the chairman of the Commerce and Small Business Committee of the House of Representatives. 6. was a member of the Alabama House of Representatives. Mil, a Republican, represented House District 4, which consisted of portions of Limestone and Morgan Counties, Alabama. From in or about 2010 until in or about 2017', M.H., a Republican, was the majority leader of the House of Representatives. Nil-I. was also a member of the Commerce and Small Business Committee, chaired by Defendant Williams. As a member of the Alabama Legislature, M.H. was an agent of the state of Alabama. 7. Blue Cross Blue Shield of Alabama was a nonpro?t, private health insurance company headquartered in Birmingham, Alabama. BCBSAAL provided coverage to over 3,000,000 peeple. That consisted of over 90 percent of the total market for health insurance in Alabama. 8. Alabama was a state. The government of the state of Alabama received federal assistance in excess of $10,000 during the one-year period begirming January 1, 2015 and ending December 31, 2015. The government of the state of Alabama again received federal assistance in excess of$10,000 during the one?year period beginning January 1, 2016 and ending December IN.) Case Document 1 Filed 03/14/18 Page 3 of 27 31,2016. II. ALABAMA LEGAL BACKGROUND At all times relevant to this Indictment: 9. Title 36, Section of the Code of Alabama provided, ?No lobbyist, subordinate of a lobbyist, or principal shall offer or provide a thing of value to a public employee or public of?cial or to a family member of the public employee or family member of the public of?cial; and no public employee or public of?cial or family member of the public employee or family member of the public of?cial shall solicit or receive a thing of value from a lobbyist, subordinate of a lobbyist, or principal." 10. Title 36, Section 36-25?19?) of the Code of Alabama provided, whenever used in Chapter 25 of Title 36 of the Code of Alabama (consisting of the above?described sections), the phrase ?public of?cial? meant: ?Any person elected to public of?ce, whether Or not that person has taken of?ce, by the vote of the people at state, county, or municipal level of government or their instrumentalities, including governmental corporations, and any person appointed to a position at the state, county, or municipal level of government or their instrumentalities, including governmental corporations. Ill. BACKGROUND EVENTS A. Trina Health?s Arti?cial Pancreas Treatment 11. At its clinics, health care providers af?liated with Trina Heaith or a Trina Health licensee provided ?arti?cial pancreas treatment.? This treatment, as described in Trina Health promotional materials, entailed a process described as ?Microburst Insulin ln?ision.? This process required a patient to spend three hours in a chair at a Trina Health outpatient clinic. During those three hours, the patient received, through intravenous injection, a series of Case Document 1 Filed 03/14/18 Page 4 of 27 injections of insulin. The Bionica pump was used to administer these intravenous insulin injections. Trina Health recommended that a patient undergo this arti?cial pancreas treatment once per week in order for the patient to see bene?cial health outcomes. In promotional materials, Trina Health stated that the arti?cial pancreas treatment could be used to treat more than diabetes. Amon the other conditions that Trina Health claimed that arti?cial pancreas treatment could treat were: neuropathy, hypoglycemia, hypertension, chronic fatigue, wounds, and erectile dysfunction. 12. On or about March 23, 2089, the Centers for Medicare and Medicaid Services (CMS) issued a decision memorandum stating that CMS had determined. that ?evidence [did] not support a conclusion that outpatient intravenous insulin therapy improves health outcomes in Medicare bene?ciaries.? Accordingly, CMS stated that it would not cover the cost of such therapy, like the artificial pancreas treatment provided by Trina Health. In expiainin its reasoning for denying coverage, CMS noted that the Food and Drug Administration (FDA) had notapproved outpatient intravenous insulin injection therapy for treating diabetes. CMS also pointed out that clinical studies had not indicated conclusively the bene?ts of the treatment. Many private health care bene?t plans generally follow coverage determinations. 13. Around the time that it issued the non-Coverage decision memorandum, CMS assigned a Healthcare Common Procedure Coding System code for outpatient intravenous insulin injection therapy. That code was (3914?. CMS instructed health care providers to use that code when submitting claims for outpatient intravenous insulin injection therapy. Because the ?rst character in the code was the CMS computer systems would recognize the code as being for a non-Covered treatment and then deny the claim. Private health care bene?t programs generally required health care providers to use codes when Case Document 1 Filed 03/14/18 Page 5 of 27 submitting claims. Those programs also would deny claims that began with the symbol 14. After CMS issued its non~coverage decision memorandum, Trina Health continued to enter into license agreements with individuals and businesses. Those agreements authorized the licensees to open Trina Healtlnaf?liated clinics in designated geographic locations. The agreements obligated the licensees to pay Trina Health fixed sums for each new clinic established, fixed sums for each chair installed within a new clinic, and percentages of annual gross pro?ts. Trina Health also required licensees to purchase pumps from Bionica for use in the Trina Health-af?liated clinics and to pay Trina Health fees for Trina Health performing billing services for the, health care providers in the clinics. By 2015, Trina Health~ af?liated clinics operated in varionsplaces, including California, Mississippi, Arizona, Nevada, and India. 13. Trina Health?s Expansion Into Southern Alabama 15. In or about 2014, Trina Health entered into a license agreement with CP Homes, LLC (CP Homes), a Texas corporation for CF Homes to open Trina Health-affiliated clinics in southern Alabama. At this time, CP Homes?s primary business was operating assisted living and memory-care residences in Texas and Alabama. Thereafter, CP Homes opened two Trina Healthwaffiliated clinics in Baldwin County, Alabama. One of those clinics was in Foley, Alabama and the other was in Fairhope, Alabama. 16. Although CMS and BCBS-AL did not reimburse for the costs of outpatient intravenous insulin injection therapy, the Fol ey and Fairhope Trina Health-affiliated clinics initially generated revenue. The clinics were pro?table because the Trina Health billing employees refrained from using the HCPC code of on the claims they submitted to CMS, and other health care benefit programs. Rather, they submitted claims using the Case Document 1 Filed 03/14/18 Page 6 of 27 codes assigned to the component parts of the treatment. As a result of the submission of these claims, health care benefit programs paid around $600 per three-hour treatment session. C. i?reparations for Trina Health?s Expansion Into Northern Alabama 17- in or about 2015, (3.13., a Georgia resident, and a group of investors formed Trina Health Care Partners, LLC THCP was a Wyoming limited liability corporation officially formed in or about February of 201 5. Soon after its formation, THCP entered into a license agreement with Trina Health. Under that agreement, THCP acquired exclusive rights to Open clinics in Alabama (outside of Baldwin County), Florida, Georgia, Mississippi, the southern portion of Louisiana, Texas, South Carolina, New Mexico (outside of Albuquerque), Wyoming, Illinois, Wisconsin, Virginia, and Boise, Idaho. For these rights, THCP agreed to pay Trina Health: (1) $100,000 for each new clinic established; (2) fees of $i6,000 for each chair installed in each new clinic (with each clinic having a minimum of 12 chairs); and (3) a royalty fee of 5 percent of the gross revenues of each clinic. THCP also agreed to pay an additional 5 percent of gross revenues to Trina Heaith in exchange for Trina Health performing billing services for Trina Health-affiliated clinics. 18. In or about June of 20E 5, CB. and other investors formed THCP Bham AL 1, LLC Bham), a Wyoming limited liability corporation and a subsidiary of TCHP. THCP Bham existed to operate, as. a sub licensee of THCP, a Trina Health-af?liated clinic in the metropolitan area surrounding Birmingham, Alabama. CB. was the president of THCP Bham. 19. In or about 20M, as (3.13. planned to form these entities, he recruited MH. into the business. To do so, CB. took M. H. to the Baidwin County Trina-af?liated clinics. There, MUH met with Defendant Gilbert. Defendant Gilbert attempted to convince to invest in business. QB. then gifted NIH. an ownership interest in THCP. M.H. paid nothing for Case Document 1 Filed 03/14/18 Page 7 of 27 that ownership interest. Rather, in exchange for the ownership interest, MH. agreed to: (I) solicit investment ?uids from other investors within Alabama and elsewhere (which could result in ME. retaining a ??nder?s fee?); identify a suitable location within the Birmingham area for a Trina Health af?liated clinic; (3) negotiate a lease for the clinic space; and (4) perfonn the site improvements necessary for the opening and operation of the clinic. 20. Mil. performed these tasks throughout in or about the late part of 2014 and in or about the ?rst half of 2015. Dining this time, Defendant Gilbert, as president of the licensor, Trina Health, closely supervised work. When THCP Bham lacked suf?cient funding to prepare to open the clinic, Gilbert secured funding for the clinic. Gilbert assured M.H., C.B., and other investors in THCP Bharn that, when the clinic opened, the clinic would be immediately profitable. Gilbert stated that public and private health care bene?t programs would pay claims submitted for services provided at the new clinic. 21. Defendant Gilbert knew that this was not true. In or about May of 2015, AL realized that Trina Health was en?oneously omitting the proper HCPC code from bills submitted for the services provided at the Baldwin County clinics. Accordingly, sent letters to the health care providers associated with the claims requesting that those providers: (I) begin using the applicable HCPC code; and (2) repay money erroneously paid by based upon the incorrect claims. BCBS-AL estimated that, at that time, it had erroneously paid $40,000 for the non-covered outpatient intravenous insulin injection therapy. Gilbert was aware. of these letters. Trina Health, at Gilbert?s direction, paid the money requested by BCBS-AL. 22. In or about Au gust of 20 5, Defendant Gilbert revealed to the investors in TI-I-CP Bham, including MH. and (3.13., that BCBS-AL would likely refuse to reimburse for the treatment that would be provided at the new clinic. Gilbert assured the investors that he was Case Document 1 Filed 03/14/18 Page 8 of 27 capable of causing to reconsider its position. 23. As NIH. assisted in the preparations for the opening of the Trina Health-af?liated clinic in the Birmingham area, Trina Health and THCP made payments to MH. Between in or about May of 2015 and in or about September of 2015, M.H. received, by way of wire transfers, a total of $12,500 from Trina Health. During that same period, M.H. received, by way of wire transfers, a total of $16,289.23 from THCP and THCP Bham. Defendant Gilbert was aware of, and funded, in all or in part, these wire transfers. D. The Opening and Early Operations of the Hoover, Alabama Trina Health-Af?liated Clinic 24. On or about September 15, 2015, a Trina Health-affiliated clinic opened in Hoover, Alabama. This clinic was owned by THCP Bham and operated under the THCP license agreement with Trina Health. Defendant Gilbert attended the grand opening. At the request of Mil, the governor of Alabama, Robert Bentley, attended the ceremony. Bentley personally cut the ribbon to open the clinic. 25. Three days later, on or about September 18, 2015, M.H. deposited into his personal bank account a check from HPC Bham in the amount of $35,320. 26. The clinic immediately found itself in dire ?nancial straits. refused to cover claims Submitted by the clinic. In an effort to disguise the. claims, Trina Health attempted to. use alias business names on the claims. Nevertheless, denied coverage. To keep the clinic operational, Defendant Gilbert arranged for additional funding for the clinic. 27. In an effort to force to reimburse for the arti?cial pancreas treatment provided at Trina Health?af?liated clinics, Defendant Giibett formed what he named the ?BlueGate Coalition.? In promotional materials, Gilbert described this grow: as ?an unincorporated association helping victims and ?ghting insurance abuses.? The group?s slogan Case Document 1 Filed 03/14/18 Page 9 of 27 added that ?membership is free and con?dential.? In a letter sent to various individuals, including Gilbert described a pian of action. Components of that plan included: (1) launching a public opinion campaign; (2) ?ling a complaint in the Circuit Court of Baldwin County alleging state law tort claims; (3) ?ling a complaint in a federal court alleging claims under the Racketeer Influenced and Corrupt Organizations Act and the Employee Retirement Income Security Act; (4) obtaining the support of unions and other labor organizations, including the Alabama Education Association; and (5) advocating for the enactment of a state law that would require BCBS-AL to cover the arti?cial pancreas treatment. 28. In or about November and December of 201 5, Defendant Gilbert attended meetings with of?cials at the BCBS-AL of?ce in Birmingham. During those meetings, Gilbert tried to convince the of?cials to cover the arti?cial pancreas treatment. The of?cials refused. At one of the meetings, Gilbert informed the of?cials that the Alabama Legislature would likely intervene on behalf of Trina Health and its licensees. IV. THE CHARGES COUNT 1 (Conspiracy) 29. The factual allegations contained in paragraphs 1 through 28 of this Indictment are hereby realleged and incorporated herein as if copied verbatim. 30. Beginning in or aboat May of 2015 and continuing until in or about May of 20] 6, in Montgomery County, within the Middle District of Alabama, and elsewhere, the defendants, G. FORD GILBERT, MARTIN J. CONNORS, and JACK D. WILLIAMS, as well as others, both known and unknown, did knowingly and intentionally conspire, combine, and agree with themselves and others, to commit offenses against the United States, speci?cally, Case Document 1 Filed 03/14/18 Page 10 of 27 bribery concerning a program receiving federal funds, in violation of Title 18, United States Code, Section OVERT ACTS 3 1. In furtherance of the conspiracy, a defendant took one or more of the overt acts described below. A. The Hiring of Defendant Connors 32. In or about January of 20E 6 and February of 6, Defendant Gilbert sent a series of electronic mail messages to various of?cials of in those messages, Gilbert implored the of?cials to reconsider their positions. He also accused the of?cials of extortion and intentionally causing sickness among the people of Alabama. Gilbert blind carbon copied MH. on each of these messages. 33. In or about early 2016, T.G., an of?cial of CP Homes (the owner of the Baldwin County clinics), hired a lobbyist to advocate for the enactment of a bill that would solve Trina Health?s problems in Alabama. T.G. did so at Gilbert?s direction. That lobbyist was Defendant Cormors. Connors was aware of Mil. ?s ?nancial interest in and ongoing receipt of payments from Trina Health and the licensees of Trina Health. 34. During in or about early 2016, Defendant Gilbert and Defendant Connors frequently corn municated with M.l-l. regarding the introduction into the Alabama Legislature a bill that would require BCBS-AL to reimburse for artificial pancreas treatment provided at Trina Heaith?a?iliated clinics. MH. informed Gilbert. and Connors that his overt involvement in any legislation that would directly benefit Trina Health would be illegal. MH. suggested that Gilbert and Connors consult with another member of the Alabama House of longtime friend, Defendant Williams. Case Document 1 Filed 03/14/18 Page 11 of 27 B. Gilbert?s Offer to Repay Mil. ?a Debt 35. Meanwhile, throughout his involvement with Trina Health, endured severe ?nancial hardship. In or about February of 201 6, M.H. owed Regions Financial Corporation (Regions) approximately $240,000. MH. informed Defendant Gilbert of the maturation of this outstanding debt obligation. 36. Thereafter, in or about February of 2016, Defendant Gilbert spoke over the telephone with an attorney, KG, representing Regions in the debt collection matter involving M.H. Gilbert told KG. that MH. was about to receive a large sum of money through a successful business venture. Gilbert requested that Regions extend the repayment period. 37. On or about February 13, 20-l6, Defendant Gilbert sent an electronic mail message to KG, the attorney representing Regions. Gilbert blind carbon copied on the message. Gilbert wrote, has been working on the massive diabetes problem of Alabama for over a year. Through his funding and associates, he was able to get our company to open 3 clinics in Alabama, (Hoover, Fairhope and Foley).as As Gilbert then knew, this statement was partially false. had not provided any funding used to open or operate a Trina Healtha affiliated clinic. Moreover, MH. had not had any involvement in the opening of the Baldwin County'clinics. Later in the message, Gilbert assured KG. that Trina Health would soon become pro?table. Gilbert closed the message by writing, ?Please allow me to facilitate payment that is helpful for all.? 38. Soon after Defendant Gilbert sent the above-described electronic mail message to K.G., lvl.H. sent an electronic mail message to Gilbert. M.H. wrote, ?Great letter. Thank you Ford.? 39. On or about March I, 2016, Defendant Gilbert sent another message to K.G. in Case Document 1 Filed 03/14/18 Page 12 of 27 that message, Gilbert appeared to offer that Trina Health would repay debt. Gilbert wrote that he was ?ready to write the instructions from the Bank to Trina Health for Trina to pay the Bank ?rst, with an ongoing payment plan at the same time.? 40. Throughout this period, during private conversations, Defendant Gilbert assured MH. that, as soon as Trina Health or Gilbert had suf?cient funds, payment of MH. ?a debt to Regions would be made. MH. understood this promise to be related to Gilbert?s efforts to persuade M.H. to facilitate the enactment of a bill to require to cover the artificial pancreas treatment. C. The Drafting of the Bill 41. During in or about February and March of 2016, Defendant Gilbert drafted a bill to be introduced in the Alabama Legislature that would require health care bene?t programs operating in Alabama, including to reimburse for the costs of outpatient intravenous insulin injection therapy, including Trina Health?s artificial pancreas treatment. 42. In or about February' of 20l 6, Defendant Gilbert had dinner at a Birmingham restaurant with Defendant Williams. During that dinner, they discussed the bill that Gilbert wanted introduced and enacted. Williams informed Gilbert that he (Williams) would ensure that the bill was assigned to the committee be chaired, the Commerce and Small Business Committee. Williams further promised that, once the bill was assigned to his committee, Williams would hold a hearing on the bill. it was Williams?s hope that the holding of 'a hearing would cause to consent to Trina Health?s demands. 43. Defendant Williams attended the dinner with Defendant Gilbert and made the above-described promises aware of: financial interest in licensees of Trina Health and his receipt of payments from those licensees; and (2) MH. ?s ongoing financial dif?culties. Case Document 1 Filed 03/14/18 Page 13 of 27 Williams, thus, knew that enactment of the bill or a negotiated settlement of the issue would be of ?nancial benefit to ME. Alter Williams attended the-dinner with Gilbert, Williams spoke with MH. over the telephone. During that conversation, Williams conveyed to ME. the promises Williams had made to Gilbert. 44. Meanwhile, Defendant Connors worked to. ?nd a sponsor for the bill and to get the bill to the ?oor of the House of Representatives. On or about March 1, 2016, Connors approached before a political fundraiser event held in honor of a United States Senator. Connors asked M.H. if M.H. would present or authorize the presenting of Defendant Gilbert?s draft bill to the Legislative Reference Service. As Connors and MH. then knew, to be introduced in a chamber of the Alabama Legislature, a draft bill had to be presented to the Legislative Reference Service for the employees of that office to put the draft bill into the appropriate format. Only a member of the Alabama Legislature, or someone speci?cally authorized by a member, could present a bill to the Legislative Reference Service. MH. declined to present the bill to the Legislative Reference Service or to authorize Connors to present the bill on his behalf. MH. suggested that Connors obtain Defendant Williams?s authorization to present the bill. 45. Later, on or about March 1, 2016, Connors sent an electronic mail message to Gilbert (and others) stating that he (Connors) ?had a strategic chat with the Majority Leader tonight before [Cormors] got to the Senator Shelby event.? The message went on to state that the majority leader advised that the bill should be assigned to ?Commerce. (Williams).? Connors suggested that Gilbert schedule a conference call and then closed by writing, ?I?ll talk to Leader.? Gilbert scheduled a conference call for the next day. He did so by sending out an electronic mail message to Connors and others interested in the bill. He blind carbon copied l3 Case Document 1 Filed 03/14/18 Page 14 of 27 M.H. on that message. Importantly, as noted, M.H. was the majority leader of the House of Representatives when Connors sent the March 1, 2016 electronic mail message. 46. Thereafter, in or about March of 2016, Defendant Connors obtained Williams?s authority to present the draft bill (which Defendant Gilbert had drafted) to the Alabama Legislative Reference Service. The employees of the Legislative Reference Service ensured that the draft bill was put into an form at. Connors then enlisted the help of a member of the Alabama House of Representatives. RJ. agreed to sponsor the bill. D. The Introduction of 1-1.13. 415 On or about March 15, 2016, the bill was introduced onto the floor of the Alabama House of Representatives. The bill was captioned House Bill (H.B.) 415. At Williams?s request, the speaker of the Alabama House of Representatives, Michael Hubbard, assigned the bill to the committee chaired by Williams, the Commerce and Small Business Committee. When a member of the committee asked Williams why Speaker Hubbard had assigned the bill to the Commerce and Small Business Committee instead of the Health Committee or the Insurance Committee, Williams stated that he (Williams) was trying to ?help out? M.H. 48. On or about March 23, mt 6, Defendant Gilbert traveled to Montgomery, Alabama and attended a lunch meeting of the Alabama House of Representatives Republican Caucus. Gilbert attended that meeting as the invited guest of M.H. At the time Gilbert attended the meeting, H.133. 415?the bill written by Gilbert and backed by Trina Health?was pending before the Commerce and Small Business Committee. E. Committee Hearing on HB. 415 49. After Speaker Hubbard assigned the bill to the committee chaired by Defendant Case Document 1 Filed 03/14/18 Page 15 of 27 Williams, Williams scheduled a hearing on the bill for April 13, 201.6. 50. On or about April 2, 2016, Defendant Gilbeit sent an electronic mail message to the physicians who had worked at the Baldwin County Trina Health?affiliated clinics. Gilbert copied (3.13., the lead investor in THCP Bham, and T.G., a principal in CF Homes, the owner of the Baidwin Cetmty Trina Healthnaffiliated clinics. The subject line of the email was ?Our Bill.? Gilbert blind carbon copied MH. In the message, Gilbert informed the recipients of the date of the hearing and he asked the recipients to help to create ?such a newsworthy event.? that AL would ?recent? or the bill would advance out of the committee. 51. On or about April 1 1, 2016, Defendant Gilbert traveled from Mexico to Montgomery, Alabama. He then sent an electronic message to Defendant Williams, C.B., and others informing the recipients of his arrival. Gilbert blind carbon copied M.H. on this message. 52. On or about April 13, 2016, before the scheduled hearing, Defendant Gilbert, Defendant Williams, Defendant Connors, and NIH. met in a conference room located within the Alabama State House- During that meeting, the men strategized as to how the hearing might go. M.H. offered his advice. Williams speculated that the hearing could be used as a tool to force BCBS-AL to negotiate with Trina Health and its licensees. Williams sought a resolution in part because such a resolution would result in the payment of money to M.H. in the form of royalties and other payments. 53. Therea?er, on or about April 13, 2016, Defendant Williams presided over a hearing of the Alabama House of Representatives Commerce and Small Business Committee on HB. 415-. Defendant Connors attended the hearing. MH. did not physically attend the meeting. Rather, he stood in the hallway outside of the meeting room and tried to eavesdrop on the proceedings. During those proceedings, a physician employed by spoke against the 15 Case Document 1 Filed 03/14/18 Page 16 of 27 bill. Defendant Gilbert spoke in favor of the bill. 54. After the meeting, Defendant Connors sent to a clerical employee of the House of Representatives, by electronic mail message, promotional materials related to Trina Health. Connors then forwarded this sent message to Defendant Gilbert?s assistant. The assistant sent the message to Gilbert and .H. 55. On or about April 18, 2016, Trina Health and CP Homes jointly hired a second lobbyist, OM. On or about that date, CM. ?led documents with the Alabama Secretary of State registering himself as a lobbyist for Trina Health and CP Homes. On that document, (1M. listed Trina Health as a principal. On or about April 17, 2016, Defendant Gilbert signed a document confirming that Trina Health was a principal and that (1M. was its registered lobbyist. F. The Failure of H.133. 415 and Final Payment to M.H. 56. On or about April 22, 2016, Defendant Gilbert sent an electronic mail message to lead in?house physician. lathe subject line, Gilbert wrote ?personal please.? Gilbert blind carbon copied MH. In the message, Gilbert wrote that Trina Health had secured the votes necessary to advance HB. 415 out of committee and that ?some of the legislators suggested that [Trina Health] try to negotiate with BCBSAL on a resolution.? Gilbert claimed that he was ?doin as asked? and then proposed financial terms under which BCBS-AL might cover arti?cial pancreas treatment. 57. The bill failed to advance out of the Commerce and Small Business Committee before the end of the 201.6 legislative session. 58. On or about April 29, 2016, NIH. deposited into his personal checking account a check issued by Trina Health in the amount of $2,000. (3. Gilbert?s Efforts to Introduce a Bill During the 2017 Legislative Session [6 Case Document 1 Filed 03/14/18 Page 17 of 27 59. In or about May of 20 6, Defendant Gilbert began making efforts to have a new bill introduced during the 2017 session of the Alabama Legislature that would require that cover outpatient intravenous insulin injection therapies like the arti?cial pancreas treatment offered by Trina Health and its licenseesabout May of 2016, Defendant Gilbert contacted MH. and asked Mil. to support a bill that would be introduced during the 201'? legislative session. 61. In or about May of 2016, MH. meanwhile was still attempting to repay the money he owed Re ginns. Defendant Gilbert sent M.H. an electronic mail message in which Gilbert offered to pay ?all fees due? by NIH. to Regions. 62. MH. refused to support another bill. In or about February of 2017, MH. resigned as the majority leader of the Alabama House of Representatives. in or about September of 2017, NIH. resigned from the House of Representatives. 6.3. In or about 2017', the three Trina Healtbwaf?liated clinics located in Alabama closed. All in violation of Title 18, United States Code, Section 371. COUNT 2 {Bribery Concerning a Program Receiving Federal Funds) 64. The factual allegations contained in paragraphs 1 through 63 of this Indictment are hereby realleged and incorporated herein as if'copied verbatim. 65. Beginning in or about May of 2015 and continuing until in or about May of 201 6-, in Montgomery County, within the Middle District of Alabama, and elsewhere, the defendants, G. FORD GILBERT and MARTIN CONNORS, Case Document 1 Filed 03/14/18 Page 18 of 27 each aiding and abetting another, and each aiding and abetting another, did corruptly give, offer, and agree to give a thing of value to any person intending to in?uence and reward Mil. in connection with a transaction and series of transactions of Trina Health and involving $5,000 or more. All in violation of Title 18, United States Code, Section 666(a)(2) and Title 1.8, United States Code, Section 2. COUNT 3 (Conspiracy to Commit Honest Services Wire Fraud) 66. The factual allegations contained in paragraphs 1 through 65 of this Indictment are hereby realleged and incorporated herein as if copied verbatim. 67. Beginning on an unknown date and continuing until in or about May of 2016, in Montgomery County, within the Middle District of Alabama, and elsewhere, the defendants, G. FORD GILBERT, MARTIN l. CONNORS, and JACK D. WILLIAMS, did knowingly and willfully conspire, combine, and agree with themselves and others, both known and unlmown, including M.H., to devise and intend to devise a scheme to defraud and to deprive the citizens of Alabama of the intangible right to honest services of a public official; that is, to deprive the citizens of Alabama of the honest services of M.H., an elected member of the Alabama Heuse of Representatives and the majority leader of that body, and Defendant Williams, an elected member of the Alabama House of Representatives, in violation of Title l8, United States Code, Sections 1343 and 1346. All in violation of Title 18, United States Code, Section 1349. COUNT 4 (Honest Services Wire Fraud Scheme) 68. The factual allegations contained in paragraphs 1 through 7.2 of this Indictment 18 Case Document 1 Filed 03/14/18 Page 19 of 27 are herebyr realieged and incorporated herein as if copied verbatim. THE SCHEME 69. Beginning on an unknown date and continuing until in or about May of 20] 6, in Montgomery County, within the Middle District of Alabama, and elsewhere, the defendants, G. FORD GILBERT, MARTIN J. CONNORS, and JACK D. WILLIAMS, each aiding and abetting another, and each aiding and abetting another, did devise and intend to devise a scheme and arti?ce to defraud. and to deprive the citizens of Alabama of the intangible right to honest services of a public of?cial; that is, to deprive the citizens of Alabama of the honest services of M.H., an elected member of the Alabama House of Representatives and the majority leader of that body, and Defendant Williams, an elected member of the Alabama House of Representatives. The scheme and arti?ce are set forth below. MANNER AND MEANS ltwas part of the scheme that: 70. Defendant Gilbert offered and gave things of value to M.H., and Mil. accepted those things of value from Gilbert. Among the things of value given by Gilbert were: money and offers to directly repay creditons of MH. "s on behaif. Gilbert gave some of these things of value to ME. through Trina Health and entities af?liated with Trina Health. 71. MH. took steps to conceal these payments. For example, on his statements of economic interest filed with the Alabama Ethics Commission, MH. did not disclose his affiliation with THCP Bharn, THCP, or Trina Health. 72. Defendant Gilbert offered and gave these things of value to Mil. for the purpose of inducing M.l-l. to take official action that wonid bene?t Trina Health, or to cause another 19 Case Document 1 Filed 03/14/18 Page 20 of 27 public of?cial to take of?cial action that would bene?t Trina Health. Speci?cally, Gilbert sought for MH. to sponsor and support or to cause another member of the Alabama House of Representatives to sponsor and support a bill that would require BCBS-AL to cover and reimburse for costs associated with outpatient intravenous insulin injection therapy. 73. Defendant Connors acted to assist Defendant Gilbert in convincing MB. to take of?cial action that would bene?t Trina Health, or to cause another public of?cial to take of?cial action that would bene?t Trina Health. 74. Knowing that Trina Health had offered and given things of value to M.H., and that MH. wouid receive additional things of value if BCBSAAL covered outpatient insulin injection treatment, Defendant Williams took of?cial action to support the Trina Health bill. Williams did so, in part, because of the bene?t that would be conferred on MR. as a result of the of?cial action. Among the actions taken by Williams were: (1) causing the draft bill to be accepted by the Legislative Reference Service; (2) causing the introduced bill, H.133. 415, to be assigned to the committee chaired by Williams; and (3) scheduling a hearing on H.B. 415 before the committee Williams chaired. 75. In furtherance of the scheme, the defendants sent and received wire communications in interstate commerce, speci?cally, electronic mail messages. All in violation of Title 18, United States Code, Sections 1343 and 1346 and Title 18, United States Code, Section 2. COUNTS 5 THROUGH 11 (Honest Services Wire Fraud) 7?6. The factual allegations contained in paragraphs 1 through 75 of this Indictment are hereby reaileged and incorporated herein as if copied verbatim. Case Document 1 Filed 03/14/18 Page 21 of 27 77'. On or about the dates set forth below, in Montgomery County, within the Middle District of Alabama, and elsewhere, the defendants, G. FORD GILBERT and MARTIN J. CONNORS, each aiding and abetting another, and each aiding and abetting another, for the purpose of executing the scheme and artifice to defraud the citizens of Alabama of their intangible right to honest services, and attempting to do so, as described in count 4 of this Indictment, caused to be transmitted by means of wire communication in interstate commerce the signals and sounds described below for each count, each transmission constituting a separate count: COUNT ON OR ABOUT DATE DEFENDANT CHARGED DESCRIPTION OF WIRE TRANSMISSION 5 February 13, 2016 GILBERT Electronic mail message sent by Defendant Gilbert to K.G., an attorney representing Regions, in which Giibeit offered to ?facilitate payment? of ME. ?3 outstanding debt owed to Regions 6 March 2, 2016 CONNORS Electronic mail message sent by Defendant Connors to Defendant Gilbert and others describing a ?strategic chat with Majority Leader? 7 March 2, 2016 GILBERT Electronic mail message sent by Defend-ant Gilbert to Defendant Connors and MIT. scheduling 21 Case Document 1 Filed 03/14/18 Page 22 of 27 a conference call for March 3, 2016 for the purposes of discussing the introduction of a bill that would benefit Trina Health April 4, 2016 GILBERT Electronic mail message sent by Defendant Gilbert to M.H., (3.3., and others discussing strategy for the upcoming committee meeting; the Subject line was ?Our Bill? Apri111,2016 GILBERT Electronic mail message sent by Defendant Gilbert to M.H., Defendant Williams, and Defendant Connors stating that Gilbert had arrived in Montgomery for the committee bearing 10 April 29, 2016 GILBERT Wire transfer of $2,000 from a ?nancial institution account belonging to Trina Health to a personal account of MH. May12,2016 GILBERT Electronic mail message to M.H. requesting informati on about debt obligation owed to Regions Case Document 1 Filed 03/14/18 Page 23 of 27 Each in violation of Title 18, United States Code, Sections 1343 and 1346 and Title 18, United States Code, Section 2. COUNT 12 (Health Care Fraud) 78. The factual allegations contained in paragraphs 1 through 7? of this Indictment are hereby realleged and incorporated herein as if copied verbatim. 79. On or about April 22, 2016, in Montgomery County, within the Middle District of Alabama, and elsewhere, the defendant, G. FORD GILBERT, aiding and abetting another, and aided and abetted by another, knowingly and willfully executed and attempted to execute a scheme or arti?ce. to defraud and to obtain by means of materially false and fraudulent pretenses, representations, and promises, to wit: the assertion that Trina Health had accrued the necessary votes to advance BB. 415 out of committee, money and property opined by and under the custody and control of a health care benefit program as de?ned in Title 18, United States Code, Section in connection with the delivery of and payment for health care benefits, items, and services, in violation of Title 18, United States Code, Section 1347 and Title 18, United States Code, Section 2. COUNT 13 (Wire Fraud) 30- The factual allegations contained in paragraphs 1 through 72 of this Indictment are hereby realleged and incolporated herein as if copied verbatim. 81. On or about April 22, 2016, in Montgomery County, within the Middle District of Aiabama, and elsewhere, the defendant, G. FORD GILBERT, Case Document 1 Filed 03/14/18 Page 24 of 27 aiding and abetting another, and aided and abetted by another, knowingly and willfully executed and attempted to execute a scheme or arti?ce to defraud and to obtain money by means of materially false and fraudulent pretenses, representations, and promises. 82. In furtherance of that scheme, Gilbert sent, by wire communication in interstate commerce, an electronic maii message to an employee of BCBS-AL. In that electronic mail message, Gilbert stated that Trina Health had secured the votes necessary to advance 1-1.3. 4i 5 out of the Commerce and Small Business Committee. As Gilbert then knew, this statement was false. 83. Gilbert made this false statement in hopes of inducing BCBS-AL to voluntarily agree to cover the arti?cial pancreas treatment provided by Trina Health and its licensees. All in violation of Title 18, United States Code, Section 1343 and Title 13, United States Code, Section 2. (Interstate Travel in Aid of Racketeering) 84. The factual allegations contained in paragraphs 1 through 83 of this Indictment are hereby reaileged and incorporated herein as if copied verbatim. 85. On or about April 11, 2016, in Montgomery County, within the Middle District of Alabama, and elsewhere, the defendant, G. FORD GILBERT, traveled in interstate and foreign commerce from Mexico to Montgomery, Alabama with the intent to promote, manage, establish, and carry on, and facilitate the promotion, management, establishment, and carrying on of an unlawful activity, to wit: bribery involving a principal of a lobbyist, in violation of Title 36, Section of the Alabama Code and bribery concerning a program receiving federal funds, in violation of Title 18-, United States Code, 24 Case Document 1 Filed 03/14/18 Page 25 of 27 Section 666(a)(2), as alleged in count 2 ofthis Indictment, and thereafter performed and attempted to perform an .act to promote, manage, establish and carry on, and to facilitate the promotion, management, establishment and carrying on of such unlawful activity. All in violation of Title 18, United States Code, Section 1952(a)(3). FORFEITURE A. The allegations contained in counts 1 through 11, I3 and 14 of this indictment are hereby realleged and inc0rporated by reference for the purpose of alleging forfeitures pursuant to Title 18, United States Code, Section 981(a)(1)(C) and Title 28, United States Code, Secti'On 2461(c). B. Upon Conviction of the offenses in violation of Title 18, United States Code, Sections 371, 666(a)(2), 1343, 1346, 1349 and 1952(a)(3), set forth in counts 1 through 11, 13 and I4 ofthis indictment, the defendants, G. FORD GILBERT, MARTIN I. CONNORS, and JACK D. WILLIAMS, shalt forfeit to the United States, pursuant to Title United States Code, Section and Title 28, United States Code, Section 2461(0), any and all property, real or personal, constituting or derived from proceeds defendants obtained directly or indirectly as a result of the said 1vioiations including, but not limited to, a Forfeiture Money Judgment. C. If any of the property described in this forfeiture allegation, as a result of any act or omission of the defendants: (1) cannot be located upon the exercise of due (2) has been transferred or sold to, or deposited with, a third party; (3) has been placed beyond the jurisdiction of the court; 25 Case Document 1 Filed 03/14/18 Page 26 of 27 has been substantially diminished in value; or (5) has been with other property which cannot be divided without dif?culty, the United States shall be entitled to forfeiture of subStitute property pursuant to Title 21, United States Code, Section 853(1)), as incorporated by Title 23, United States Code, Section 2461(c). All pursuant to Title 18, United States Code, Section 981(a)(1)(C) and Title 28, United States Code, Section 2461(c). FORFEITURE ALLEGATION-Z A. The allegations contained in count 12 of this indictlnent'are hereby realleged and incorporated by reference for the purpose of alleging forfeitures pursuant to Title 1 8, United States Code, Section 982(a)(7). 13. Upon conviction of the offenses in violation of Title 18, United States Code, Section 1347', set forth in count 12 of this indictment, the defendant, G. FORD GILBERT, shall forfeit to the United States, pursuant-to Title 18, United States Code, Section 982(a)(7), any and all property, real or personal, constituting or derived from proceeds the said defendant obtained directly or indirectly as a result of the said violations and any property, real or personal, involved in the. offenses, and any property traceable to such property including, but not limited to, a Perfeiture Money Judgment. C. If any of the property described in this forfeiture allegation, as a result of any act or omission of the defendant: (1) cannot be Iocated upon the exercise of due diligence; (2) has been transferred or sold to, or deposited with, a third party; (3) has been placed beyond the jurisdiction of the court; 26 Case Document 1 Filed 03/14/18 Page 27 of 27 (4) has been substantially diminished in value; or (5) has been commingled with other property which cannot be divided without dif?culty, the United States shall be entitled to forfeiture of substitute property pursuant to Title 21, United States Code, Section 853(1)), as incorporated by Title 28, United States Code, Section 24610:). All pursuant to Title 18, United States Code, Section 932(a)(7). A TRUE 13 LL: ,r A ?1 Foreijerson (ff?5 Mg ?g Ebola SR UNITED STATES AHQRNEY xiv/?N .ionathan Ross f0? Assistant tates Attorney Randolph Neeleyl7 Assistant United States Attorney 27