Former Georgia Rep. Robin Williams and his business associates used an Augusta mental health center to funnel millions in health care money to companies that would then kick back as much as half to Mr. Williams, federal officials alleged Wednesday.
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The 30-count indictment from the federal grand jury in Savannah charges Mr. Williams with health care fraud and money laundering in orchestrating a scheme to defraud the Community Mental Health Center of East Central Georgia out of about $2 million, of which he got back more than $800,000.
The indictment ties together payments and fleshes out details of lucrative contracts with companies tied to Mr. Williams that have been investigated by The Augusta Chronicle since January 2003 and were later the subject of scathing state audits.
Mr. Williams, who served in the House of Representatives from 1991 to 2000, did not return a message left on his cell phone Wednesday.
The indictment's first count details a complex conspiracy, which says:
In 1999, Mr. Williams used his position as legislator to get C. Michael Brockman hired at the Augusta mental health center as its business manager and got the state to give the center $68,000 for his salary. Mr. Williams would later line up companies to do business with the center through Mr. Brockman with the understanding that part of that money would end up in his pocket.
Mr. Williams rewarded Mr. Brockman with cash and gifts, including a $7,200 Caribbean cruise.
Mr. Brockman, who was fired last year, referred questions to his attorney, Jerry Froelich, of Atlanta, who did not return a message left with his law office.
Also indicted as part of the scheme were lobbyists Rick Camp, a former pitcher for the Atlanta Braves, and M. Chad Long, a grandson of former House Speaker Tom Murphy. Duncan Fordham and his pharmacy, Duncan Drugs, rounded out the conspiracy charge.
Other charges include health care fraud, theft from an organization receiving federal funds, money laundering, bribery and receiving a bribe and making a false statement to officials and to the federal grand jury. Some counts carry potential sentences of five years each, while others could result in as much as 20 years, with potential fines of up to $500,000.
The U.S. Attorney's Office served notice in the indictment that it would seize stolen property and forfeit other assets to recoup what was allegedly taken.
The health center also has a fraud insurance policy worth $1.5 million, Acting Executive Director Phil Horton said.
According to the charges:
Mr. Brockman negotiated fat contracts with the lobbyists, Duncan Drugs and a company called Capitol Health Systems, which Mr. Williams partly owned. Mr. Brockman would make a periodic payment, and days later the contractor would typically write a check for half to Mr. Williams.
Mr. Brockman also allegedly used a nonprofit company affiliated with the center to draw down a line of credit and write checks directly. For instance, he had a $20,000 check sent to Mr. Camp on May 2, 2000; the same day Mr. Camp wrote a $10,000 check to Mr. Williams, according to the indictment. After Mr. Williams negotiated an $11,500-a-month contract for Duncan Drugs to provide pharmacy services at the center, the indictment alleges, Duncan Drugs sent him 24 payments totaling $357,586 in two years.
Mr. Fordham said he didn't understand why he was indicted.
"I've just got to wait and see," he said. "I really don't have any comment until I figure out what they say I've done wrong."
Mr. Long did not respond to a message left on his cell phone Wednesday, and no one answered Mr. Camp's home phone in White, Ga.
Many of the contracts were canceled after the former administrators were removed. But the center, which is often the only source of mental health care for the poor and uninsured in the Augusta area, faced a $1 million deficit at one point last year. It later received a $900,000 bailout to make it through last fiscal year.
"What a shame," said Nancy Williamson, the chairwoman of the board that oversees the center. "What a shame, because I look at our clients out there as among the most needy, and this was done on the backs of those clients. They're the ones that need the funds."
News of the indictments spread "like wildfire" at the center, where many felt unfairly besmirched by the actions of the former administrators, Dr. Horton said. The center's board called for the state investigation after an employee sent an anonymous letter of allegations, many of which ended up in the indictment.
"I do think it's a vindication for the board and for the hard-working employees out here," Dr. Horton said. "Until today, we didn't think there was going to be any justice delivered."
Reach Tom Corwin, Sandy Hodson and Sylvia Cooper at (706) 724-0851.
SUBJECT OF INDICTMENT
Robin L. Williams was a member of the state House of Representatives and once ran as a candidate for mayor of Augusta. He was indicted by a federal grand jury on charges that include conspiracy, health care fraud and money laundering.\n
Charges against each defendant:
Robin L. Williams: conspiracy; theft; four counts health care fraud; three counts money laundering; 10 counts bribery
C. Michael Brockman: conspiracy; two counts theft; three counts money laundering; five counts health care fraud; eight counts bribery
Duncan Fordham and Duncan Drugs: one count each conspiracy; one count each health care fraud
Rick L. Camp: conspiracy; health care fraud; false statements; three counts money laundering
M. Chad Long: conspiracy and health care fraud
Each count is punishable by a maximum penalty of:
Conspiracy: Five years in prison and $250,000 fine
Health care fraud: 10 years in prison and $250,000 fine
Bribery: 10 years in prison and $250,000 fine
Theft: 10 years in prison and $250,000 fine
Money laundering: 20 years in prison and $500,000 fine
False statements: Five years in prison and $250,000 fine
ALLEGATIONS MADE
Some allegations made in the indictment:
IN LATE 1998 OR EARLY 1999: Then-state Rep. Robin Williams recommended to the Community Mental Health Center board that Michael Brockman be hired as business manager and that he would have the money allocated to pay for that position.
DECEMBER 1999: Mr. Brockman and two others, not named in the indictment, incorporated Insight as a Georgia corporation.
JANUARY 2000: Mr. Brockman had the mental health board buy a $90,000 certificate of deposit and in turn pledged it as collateral on a line of credit for Insight from Georgia Bank and Trust in Augusta.
FEBRUARY 2000: Mr. Williams got the center to enter into a $2,000-a-month contract with Rick Camp for lobbying and consulting services.
APRIL 11, 2000: Mr. Brockman had Insight issue a $35,000 check for Mr. Camp drawn on its line of credit at Georgia Bank & Trust.
BETWEEN APRIL AND JUNE 2000: Mr. Camp wrote checks totaling $82,500 for Mr. Williams.
BETWEEN JUNE 16 and July 4, 2000: Mr. Brockman had the center issue checks totaling $91,218 to Mr. Camp.
July 7, 2000: Mr. Williams deposited into his account a $20,000 check from the center made out to Mr. Camp.
JULY 12, 2000: Mr. Brockman had Insight issue a $25,000 check to LTD & Associates, which is not a defendant in the case.
JULY 12, 2000: LTD & Associates issued a $24,000 check to Mr. Williams.
OCT. 26, 2000: Mr. Williams negotiated to establish a contract for Duncan Fordham and Duncan Drugs to manage a pharmacy at the mental health center.
BETWEEN DEC. 28, 2000, AND JAN. 7, 2003: Duncan Drugs made about 24 payments for Mr. Williams by check, totaling $357,586, which coincided with payments to Duncan Drugs from the mental health center.
MARCH 6, 2001: Mr. Brockman had the board approve a contract with Mr. Williams and Williams Services for lobbying and consulting services.
MARCH 9, 2001: Mr. Brockman had a $30,000 check issued from the center to Mr. Williams and Williams Services.
Between March and May 2002: Mr. Brockman had the center issue four checks totaling $250,000 to "The ICC Companies." The checks were deposited into Mr. Williams' Insurance Coverage Consultants bank account at Georgia Bank & Trust in Augusta.
Sources: Indictment Cr 104-51, U.S. District Court For The Southern District Of Georgia, Augusta Division, and Augustachronicle.com
