Baldwin County Legislator Charged in Public Corruption Case Related to Diabetes Treatment Clinics

U.S. Attorney's Office

Middle District of Alabama

FOR IMMEDIATE RELEASE

Wednesday, July 25, 2018

Baldwin County Legislator Charged in Public Corruption Case Related to Diabetes Treatment Clinics

Montgomery, Alabama - On Wednesday, July 25, 2018, another Alabama legislator was arrested in a pending public corruption case involving the owner of a chain of diabetes treatment clinics, announced United States Attorney Louis V. Franklin, Sr.

State Representative Randall M. "Randy" Davis, 66, of Daphne, Alabama is the new defendant in this case and was charged in a superseding indictment along with co-defendants G. Ford Gilbert, 70, of Carmichael, California, and Martin J. "Marty" Connors, 61, of Alabaster.

The case began in April of 2018 when a federal grand jury returned an DOJ - USAOlobbyist-and-owner-california-company-charged-public) against G. Ford Gilbert, the chief executive officer (CEO) of Trina Health, LLC (Trina Health)-a California-based company that operates diabetes treatment clinics all over the United States and in some foreign countries.

The original indictment alleged that in 2014 and 2015, Trina Health opened three clinics in Alabama. Soon thereafter, the state's largest health insurer informed Trina Health that it would not cover the treatments provided by Trina Health. Gilbert then schemed 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 the insurer to cover the treatments. Gilbert then made payments and gave things of value to a legislator, former House of Representatives Majority Leader Micky Ray Hammon, in exchange for Hammon working behind the scenes to push the bill. Gilbert also hired co-defendant Martin Connors to act as a lobbyist on behalf of the bill. Connors knew of Gilbert's payments to the legislator.

The new charges contained in the superseding indictment alleges that Davis also stood to gain from Trina Health's successes. According to the indictment, during 2014 and 2015, Davis tried to recruit investors to Trina Health and, as a result of doing so, he received finder's fees. After Trina Health encountered difficulties with the health insurance companies, Davis attempted to lobby the insurance company to change its position. 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.

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.

An indictment merely alleges that crimes have been committed. Each defendant is presumed innocent until proven guilty beyond a reasonable doubt.

If convicted of the most serious offenses, each defendant in this case faces a maximum sentence of 10 years in prison, significant monetary penalties, asset forfeiture, and restitution.

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, Joshua J. Wendell, and Stephanie Billingslea are prosecuting the case.

Updated July 25, 2018