BATON ROUGE, LA (WAFB) - Bruce Greenstein, Governor Bobby Jindal's former Health Secretary, entered a not guilty plea Monday morning. He was indicted on nine counts of perjury. Greenstein's attorney entered his plea on charges that he lied about being involved in a now-canceled $200 million Medicaid contract with CNSI.
The grand jury indictment accuses Greenstein of lying under oath on numerous occasions when asked about his role in the bid process in which DHH, under Greenstein's leadership, handed out a nearly $200 million contract to his former employer, Client Network Services Inc. (CNSI) to provide Medicaid billing and fraud oversight services.
Prosecutors allege that Greenstein knowingly provided false testimony to members of the Louisiana State Legislature during a June 2011 Senate and Governmental Affairs hearing regarding his influence in CNSI's successful contract bid, including orchestrating changes to the policy that allowed CNSI to compete when previously deemed ineligible. They further allege that he again perjured himself before an East Baton Rouge Parish grand jury in June 2014 when providing testimony regarding issues surrounding the questionable contract.
CNSI came in with the lowest bid out of the four firms vying for the contract in 2011. However, they underscored in technical marks during evaluation. CNSI competitors accused the company of low-balling its initial price for services. Once the contract was obtained, CNSI amended the contract to add on millions of dollars for additional services.
Greenstein resigned from his post as DHH Secretary in May 2013, two months after the Division of Administration terminated the contract with CNSI amid the controversy.