Breaking news: John Ford indicted on federal wire fraud charges

Six-count indictment unsealed today involves undisclosed 'consulting' for TennCare contractors

Email | Print By Ken Whitehouse and E. Thomas Wood

John Ford

Former State Senator John Ford (D-Memphis) has been indicted this morning on federal charges related to an undisclosed consulting relationship involving TennCare. Ford is already facing trial in the Operation Tennessee Waltz public corruption case, having been arrested in May 2005 along with a number of other then-serving and former lawmakers, some of whom are now serving prison time.

A six-count indictment was announced by U.S. Attorney Craig S. Morford, charging Ford with one count of wire fraud and two counts of concealment in connection with each of two different schemes that allegedly occured while Ford was in the State Senate.

According to the indictment, Ford used his position in the Senate to defraud the public by entering into a "consulting services" contract with "Managed Care Services Group," a company in which he had a 40% stake, and that MCSG would assist the managed care organization Doral Tennessee in becoming the "sole MCO to handle dental services for all eligible TennCare enrollees."

Under the agreement, Doral was to pay MCSG a monthly rate of three cents per every TennCare enrollee assigned to Doral Tennessee. Ultimately, MCSG received over $1 million from Doral, and Ford received over $400,000 of that from MCSG. TennCare terminated Doral's contract in April 2005 after concerns were raised about Ford's role.

Also, Ford is alledged to entered into a similar consulting agreement with a Michigan corporation known as "United American Health Care Corporation," which had a Tennessee subsidiary known as "Omnicare," a TennCare MCO.

The indictment alledges that Ford received more than $400,000 from UAHC from April of 2001 until the payments stopped in February of 2005.

Alledgedly, Ford asked various state officials for more TennCare enrollees to be assigned to Omnicare and once met with a "high-ranking Tennessee state official with authority over TennCare matters" in an effort to obtain more favorable terms for the company.

Ford also is said to have approached "high-level executives of a private medical center, and there asked the executives to settle the medical center's outstanding claims against Omnicare on terms satisfactory to Omnicare." Ford is said to have sent a letter to the "director of the Bureau of TennCare, which cpmplained that Omnicare had not received reimbursement of certain administrative costs Omnicare allegedly incurred on behalf of Tennessee."

Mentioned throughout the indictments is the involvement of an "Individual A" and "Individual B." These two individuals were not identified by name, but the U.S. Attorney's office did say that they had a 30 percent stake in the "Managed Care Services Group" that represented Doral Tennessee.

"Individual B" is also identified as having been a "high-ranking executive in both Omnicare and UAHC.

The U. S. Attorney's office said the investigation was conducted jointly by the FBI and TBI.