Physician in prison health company charged with bribing Epps

JACKSON – A physician associated with a company that provides health care for prisoners has been indicted on charges of bribing former Mississippi Corrections Commissioner Christopher Epps.

Federal prosecutors on Wednesday unsealed a July 13 indictment charging Dr. Carl Reddix, 57, with six counts of bribery and one count of conspiracy to commit honest services wire fraud.

The indictment says Reddix began paying Epps $6,000 in cash monthly in 2012, an amount that rose to $8,000 per month in 2013 after Health Assurance gained an additional contract to provide care at Wilkinson County Correctional Facility. The amounts rose to $9,000 in August and September 2014, concluding with $9,500 in October 2014, court documents say.

The company eventually was providing health care at four privately-run state prisons – East Mississippi Correctional Facility, Walnut Grove Correctional Facility, Marshall County Correctional Facility and the Wilkinson County prison.

Prosecutors say the contracts at the four prisons were worth $29 million.

Records maintained by the Mississippi Center for Public Policy show Health Assurance collected more than $40 million from the state since 2003 and more than $22 million from Harrison, Hancock, Jackson, Pearl River, Rankin and Scott counties since 2004.

Authorities have said Harrison County political operative Robert Simmons was a conduit for bribes from Health Assurance to a county supervisor. Simmons pleaded guilty in February to bribing a Harrison County supervisor in exchange for Health Assurance securing the Harrison County jail medical contract. Former Supervisor William Martin killed himself in February 2015, hours before he was due in federal court on bribery charges.

The Harrison County contract has been the most lucrative of the six county contracts that Health Assurance has handled, producing more than $12 million in revenue for the company from 2004 to 2012.

Simmons is scheduled to be sentenced Sept. 15.

Epps and Brandon businessman Cecil McCrory pleaded guilty in February 2015 to charges connected to the bribery scheme, which cast a harsh light on Mississippi politics and its prison system.

Epps faces up to 23 years on charges of money laundering and filing false tax returns related to $1.47 million in bribes prosecutors say he took. He’s forfeiting $1.7 million in assets. McCrory, a former state House member, pleaded guilty to one count of money laundering conspiracy and faces a 20-year sentence. He’s forfeiting $1.7 million in assets. Their sentencing has been delayed.

Former prison phone consultant Sam Waggoner and has pleaded guilty to bribing Epps. His sentencing has also been delayed.

Former state Rep. Irb Benjamin of Madison is charged with bribing Epps for contracts at prison work centers and county jails. Benjamin’s trial is now set for Oct. 3.

Federal prosecutors have said as many as 11 others could face criminal charges in the prison contract bribery scheme. Assistant U.S. Attorney Darren LaMarca said this week that prosecutors will announce some of those charged on Monday, with defendants expected to appear before Ball. LaMarca told U.S. District Judge Henry T. Wingate at least one defendant is expected to appear before Wingate that day, which could indicate that someone might waive indictment and make an immediate guilty plea.

Reddix had told The Associated Press by phone Tuesday that he was unsure if he would be indicted and didn’t name his lawyer before hanging up. No lawyer is listed in court papers.

The physician is scheduled to appear Wednesday before U.S. Magistrate Judge Keith Ball. If convicted, Reddix faces up to 90 years in prison, as well as $1.75 million in fines.

Corporate records show Reddix was a leader of Health Assurance, a company that provides medical care to state prisons and county jails, until 2015. The indictment describes him as an owner.

Other leaders include Reddix’s brother Dr. Michael Reddix and Charlene Priester, the wife of Hinds County Court Judge Melvin Priester, Sr. Priester himself was listed as an officer until 2015.

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This story was originally published July 20, 2016 at 1:41 PM with the headline "Physician in prison health company charged with bribing Epps."