The grand jury that indicted former state health chief Bruce Greenstein reached the end of its term without issuing further charges, but a state prosecutor says the probe will continue.
Assistant Attorney General David Caldwell said Wednesday that the investigation into the award of a lucrative Medicaid contract to a former employer of Greenstein’s goes on. “The bottom line is we still have some matters outstanding with that grand jury that at some point we are going to have to present to a new grand jury,” Caldwell said.
“At this point, we have some details to work out,” he added.
The grand jury indicted Greenstein in September on nine counts of perjury related to his involvement in Client Network Services Inc. getting a nearly $200 million Medicaid claims processing contract. Greenstein pleaded not guilty on all counts and has consistently denied any wrongdoing.
Caldwell said either a new special grand jury will be convened next year or evidence will be presented to a grand jury that’s already seated.
“It’s going to depend on certain evidence we have available to us or that may become available,” he said.
Hypothetically, Caldwell said, if the grand jury sought evidence that is outstanding it still must be received. If there’s a court fight in another jurisdiction over providing the evidence, he said, that is going to take some time and “that’s not our fault.”
Caldwell said he could not divulge the nature of the evidence because of grand jury secrecy.
“We didn’t have enough time to complete our work,” he said.
Caldwell said complications came after CNSI’s filing of a civil lawsuit against the state for wrongful contract termination. He said time had to be spent guarding against CNSI using the civil lawsuit to learn what evidence the state had against the company in the criminal case.
Maryland-based CNSI received the state contract in 2011. The Jindal administration abruptly canceled the pact in 2013 after news of federal and state probes into the contract’s award surfaced.
A federal grand jury subpoenaed documents, but nothing came of that investigation. But the state grand jury probe has been going on for the last 18 months.
As the administration scrapped the CNSI contract, it cited — among other things — “improper contact” by then state health Secretary Greenstein throughout the bid and award process.
Greenstein had been a CNSI vice president from 1995 to 1996.
The administration also pointed to a Louisiana law that states, “if the person awarded the contract has acted fraudulently or in bad faith, the contract shall be declared null and void.”