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Ford Released On Bond, Says Charges Are False

POSTED: 11:19 am CST December 18, 2006
UPDATED: 7:12 pm CST December 19, 2006

Former state Sen. John Ford of Memphis was released on his own recognizance Tuesday in Nashville after appearing in federal court on charges of wire fraud and concealment.

Ford Says New Charges 'Absolutely Ridiculous'

Ford turned himself in at the federal courthouse just after 11 a.m.

He was released after appearing in federal court on charges of wire fraud and concealment.

Ford was released on the same conditions as those for his unrelated charges in the Tennessee Waltz investigation.

Under the conditions described Tuesday, Ford must notify the court of any change in address or phone number; refrain from getting a passport, not possess firearms or other weapons and generally avoid contact with any potential witnesses in his cases or other officers of the court.

Ford resigned from the Legislature after he was indicted on charges of taking bribes in the Tennessee Waltz undercover corruption investigation in 2005.

Download - John Ford's Full Indictment (pdf)

He has pleaded not guilty in that case.

His trial on the earlier charges is set for February.

"I categorically deny every allegation," Ford said after the hearing, flanked by his attorney. "The charges made are absolutely ridiculous. This is nothing but a rehash of the ethics investigation and they found nothing. ... As a citizen legislator you have a right to work, whether it's a doctor, lawyer, consultant, pharmacist. You have a right to work and earn a living."

He is to be arraigned Jan. 4.

Ford characterized the charges as an unfair follow-up to ethics legislation passed in response to his consulting work and after the Tennessee Waltz investigation that indicted four other current or former lawmakers. He said the new restrictions are too limiting for lawmakers.

"You saw for yourself how many House members chose not to run for re-election..." he said. "And it has nothing to do with something being illegal -- but you can't be a part-time legislator and work and operate under these conditions."

The latest charges against Ford are over consulting deals he had with two contractors with TennCare, the state's expanded Medicaid program.

The two contractors Ford was consulting for were UAHC Health Care, formerly known as OmniCare, and Doral Dental.

The 23-page indictment claims Ford made more than $800,000 as a consultant at the same time that he was chairing a committee that oversaw the program.

A grand jury accused Ford of six counts in alleged schemes to defraud not only the public and the state but to earn himself hundreds of thousands of dollars.

"As a public servant, Sen. Ford had a duty to provide honest services to the people of Tennessee," U.S. attorney Craig S. Morford said in a news conference on Monday.

"The facts alleged in this indictment reveal an appalling willingness to violate that duty by using his public position for personal gain."

But investigators said not only does Ford face more problems, but so could two other people referred to in the indictment only as individuals A and B who worked with Ford on the deals.

Individual B, is, according to the indictment, the person who signed the TennCare contract with Omnicare. TennCare officials released the signature page Monday, showing Osbie Howard's signature. Howard was president and CEO of Omnicare.

TennCare officials said they never knew that Ford, Howard and the third person had formed Managed Care Services Group to help outside companies get TennCare contracts and that Ford was voting on those same contracts as a state lawmaker.

These latest indictments are not part of Operation Tennessee Waltz.

In that case, surveillance video allegedly showed Ford accepting bribes, although Ford pleaded not guilty in that case.

Investigators would not say Monday if surveillance was part of this investigation.

State Rep. Frank Buck was one of the earliest critics of Ford or other lawmakers setting up consulting deals.

"These rumors have been flying all 33 years that I have been down here. I kind of wonder what the difference in the word bribery and consulting fee means under these circumstances," he said.

Buck and other lawmakers led the fight to pass tough new ethics laws as a direct result of the Ford revelations. It is now illegal for state lawmakers to get consulting work for state contractors.


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