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« Attleboro man arraigned after motel shooting | Today | Update: Rt. 95 closure in Conn. may continue tomorrow » November 2, 2007Update: Martineau pleads guilty to corruption chargesPROVIDENCE -- Former House Majority Leader Gerard M. Martineau pleaded guilty today in federal court to public corruption charges, admitting he steered the fates of legislation to benefit companies with which he had $900,000 worth of contracts to sell paper and plastic bags. Under a plea agreement, Martineau, 49, admitted to two felony counts of honest-services mail fraud in U.S. District Court. Honest-services mail fraud is defined as using the mail to deprive Rhode Island citizens of their right to honest services. Martineau's sentencing is slated for Feb. 22. Martineau was paid $175,500 by Blue Cross for 10 million paper bags, but delivered fewer than 2 million. He also got more than $715,000 in commissions from 1999 to 2002 for selling paper and plastic bags to CVS. A former Democratic state representative from Woonsocket for 16 years, Martineau faces a maximum of five years in prison and a fine of up to $1.8 million. He is the second official, after former state Sen. John A. Celona, to admit to corruption charges, and the seventh person charged in the probe of alleged State House influence-peddling known as Operation Dollar Bill.
Prosecutor Gerard B. Sullivan said at the plea hearing that the government could prove that Martineau, operating as the Upland Group, arranged to sell paper prescription bags to the health insurance company for use as promotional items, and plastic and paper bags to the pharmacy company for merchandising purposes. He then used his position to affect the outcome of legislation, Sullivan said. The health insurer and pharmacy opposed the "Pharmacy Freedom of Choice" legislation, which would have opened to other pharmacies a closed prescription network that the companies controlled. The U.S. Attorney's office said Martineau never disclosed to the public his conflicts of interest with the pharmacy and the health insurer. Martineau, through the Upland Group, billed Blue Cross/Blue Shield for paper bags in lots of one and three million, at $19,500 per million. On occasions in December 1998, December 2000 and December 2001, he billed the company days or weeks before the legislative session's start.
Posted by Mike McKinney Commentsfrank sullivan | November 2, 2007 9:25 PM link Victimless crime? Hardly. The fact that this sleazeball (and others) traded the public trust for (literally) bags of money is bad enough, but what most people fail to comprehend is that his crime directly affected the cost of health care for every citizen of Rhode Island. By blocking legislation designed to lower the cost of prescription drugs...legislation opposed by corporate giants CVS and Blue Cross of RI...Martineau (and Celona and Irons and others) drove up the cost for anyone filling a prescription in Rhode Island. Not only did Martineau and these other thieves line their own pockets, they did it with your money. Disgraceful. How about sentencing this bum to two years at a Woonsocket nursing home, where he can watch his former constituents struggle to pay the bills during the final years. BC | November 2, 2007 9:27 PM link A real-life "bag man." Nice! Peter | November 3, 2007 6:56 AM link I want to see Tom Ryan take the fall, too. Because of this, I'm FORCED to buy from CVS if my drugs are to be covered by my insurance. I'd love to see a class action suit started to make cvs pay Rhode Islanders back. Consumer VALUE, indeed! Tom | November 5, 2007 11:31 AM link Post a commentPlease be civil. Vicious comments, personal attacks and profanity won't be published. Name and email are required; email address will not publish. |
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