Former Department of Health and Hospitals (DHH) Secretary Bruce Greenstein has today been indicted by an East Baton Rouge Parish grand jury on nine felony counts of perjury, announced Louisiana Attorney General Buddy Caldwell.
The grand jury indictment accuses Greenstein of lying under oath on numerous occasions when asked about his role in the bid process in which DHH, under Greenstein’s leadership, doled out a nearly $200 million contract to his former employer, Client Network Services Inc(CNSI) to provide Medicaid billing and fraud oversight services.
Attorney General Caldwell said, “This major contract to service our seniors and most vulnerable citizens of the state was first entered into unfairly under Greenstein’s control. He then knowingly lied under oath to the legislature and the citizens of the state about his improper communication with CNSI in order to cover up his wrongdoing. This type of behavior has no place in state government, and he will be held accountable.”
DHH rules required that employees involved in the bidding process refrain from engaging in any contact with bidders or their representatives during the procurement process. However an investigation by the attorney general’s public corruption unit uncovered evidence that Greenstein engaged in hundreds of phone calls and thousands of text messages with CNSI, creating an unfair advantage for the company.
Prosecutors allege that Greenstein knowingly provided false testimony to members of the Louisiana State Legislature during a June 2011 Senate and Governmental Affairs hearing regarding his influence in CNSI’s successful contract bid, including orchestrating changes to the policy that allowed CNSI to compete when previously deemed ineligible. They further allege that he again perjured himself before an East Baton Rouge Parish grand jury in June 2014 when providing testimony regarding issues surrounding the questionable contract.
CNSI came in with the lowest bid out of the four firms vying for the contract in 2011. However, they underscored in technical marks during evaluation. CNSI competitors accused the company of low-balling its initial price for services. Once the contract was obtained, CNSI amended the contract to add on millions of dollars for additional services.
Greenstein resigned from his post as DHH Secretary in May 2013, two months after the Division of Administration terminated the contract with CNSI amid the controversy.
An arraignment date has not yet been set in the 19th Judicial District Court.