Former Alabama state Rep. Ed Henry, R-Hartselle, pleaded guilty Wednesday in federal court to one count of aiding the theft of government property as part of a much larger Medicare fraud and kickback scheme.
Prosecutors agreed to waive 17 counts in the indictment and 15 counts in a related indictment in exchange for the guilty plea.
Federal prosecutors said that Rep. Henry’s role in the scheme cost the government more than $150,000. Prosecutors report in court filings that Henry cooperated with their efforts against other defendants and will recommend that his sentence be on the low end of the sentencing range. The charge carries a 10-year maximum sentence. Former state Representative Henry has also agreed to pay fines and restitution in the case.
The Alabama Media Group reports that Huntsville physician, Dr. Nicole Scruggs also pleaded guilty to a charge in a related case last week. Two other doctors have been charged in the case, including Decatur physician Punuru Reddy, who is scheduled to go to trial on February 4.
Henry was a partner in a medical clinic with Dr. Gilberto Sanchez. According to prosecutors, the clinic did not charge patients the $32 copay that Medicare requires. By waiving the copay that encouraged patients to come there over other providers and is a violation of the contract that clinics agree to when they agree to take Medicare patients. The fraud was uncovered in a larger investigation of pill mills and Dr. Sanchez and associates practice of over prescribing opioids.
Henry was a very outspoken member of the legislature who criticized then Speaker of the House Mike Hubbard, R-Auburn, for his corruption. Henry also introduced articles of impeachment against then-Gov. Robert Bentley (R).
Henry is the fifth members of the 2010-2014 House of Representatives who have been found guilty of crimes while in office. Two others, Randy Davis, R-Daphne, and Jack Williams, R-Vestavia, have been indicted and are awaiting trial.
