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« At the aquarium: My, what a toothy grin | Today | Sundlun settles Lloyd's lawsuit » October 10, 2007Martineau to be arraigned on fraud charges Friday
PROVIDENCE -- Former House Majority Leader Gerard M. Martineau is scheduled to be arraigned in District Court Friday afternoon after prosecutors say he steered legislation on behalf of a health insurer and a pharmacy company while receiving hundreds of thousands of dollars to make plastic and paper bags for the companies. Martineau agreed to plead guilty to two fraud charges related to the scheme, the U.S. Attorney's Office announced yesterday afternoon. Today, the office said he is expected to sign a plea agreement after Friday's arraignment. Now, Martineau is the second ex-legislator, after former state Sen. John Celona, to admit to selling his office in the federal State House corruption probe known as Operation Dollar Bill. As part of a $900,000 corruption scheme that the longtime Woonsocket Democrat has admitted to, Martineau sold 10 million bags to Blue Cross & Blue Shield of Rhode Island — but fewer than 2 million bags were ever manufactured, according to court documents filed yesterday by federal prosecutors. In return, according to U.S. District Attorney Robert Clark Corrente, Martineau used his position in the legislature to affect the outcomes of legislation for the two companies. Martineau faces two counts of "honest services mail fraud." Each carries a maximum five years in prison and several hundred thousand dollars in fines. Read the full text of the charges against Martineau. Read the full text of Martineau's plea agreement.
Posted by Brandie Jefferson Commentsjenni | October 10, 2007 5:36 PM link In 2003 Mr Martineau and his wife purchased a home in Narragansett. The home is in an exclusive neighborhood called Annawan Cliffs. His neighbors are Tom Ryan of CVS and his attorney Jim O'Neil. The purchase price of the home in 2003 was $900,000.00!!!!! The towns assessment today is over $1,300,000.00 Maggie S. | October 10, 2007 8:30 PM link Call me naive and simplistic, but could Projo editors figure out what percentage of my insurance premiums, in effect, went toward this Blue Cross/Martineau bribery? As we all struggle to meet the rise of health insurance premium costs, this really ticks me off. Hmm. . . which should I do first? Cancel my BCBS policy, cut up my CVS frequent customer card, boycott or picket? Nancy Peck | October 10, 2007 8:49 PM link Ryan got something like $24 million last year including the woo-hoo increase in the value of his stock options. Martineau is just a pawn, a sacrificial lamb. It takes two to tango, and it takes two (or more even) to bribe. When are we going to start seeing more big corporate names? Also, if Martineau received 900k, just how much do you suppose it was worth to CVS' bottom line and the stock value? Lastly, how much did it cost the state to lose Brooks Pharmacy? How many jobs were lost? No fan of fraud | October 11, 2007 3:31 PM 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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ProJo 9 to 5 News Blog
Oct 2005 - March 2006
There are many more legislators who do this type of thing. It is likely widespread and only a handful get caught.