Alabama
11:05 am
Thu May 27, 2004

Former Governor Siegelman Indicted

Birmingham, AL – A former Alabama Governor is among three people who face an 8-count federal indictment on charges of fraud and conspiracy. Prosecutors say Don Siegelman was part of a scheme to undermine the state's competitive bid process.

Former Alabama Governor Don Siegelman, his former chief of staff Paul Hamrick and Tuscaloosa physician Phillip Bobo face an 8-count indictment after being accused of undermining the state's bid process for Alabama's Maternity Care Program.

That program is a Medicaid service created to help poor pregnant women. Siegelman and Hamrick are accused of shuffling 550-thousand dollars in funding from the state's education budget to the state fire college, where Bobo held a state appointed position. Prosecutors say Bobo accessed the money, and used it to pay off a competitor also seeking contracts for the Maternity Care Program. The value of the contracts was around a hundred million dollars per year.

U.S. Attorney Alice Martin has asked the three men to surrender to authorities.