Rep. Greg Wren, R-Montgomery, this morning submitted his resignation to the Alabama House of Representatives and pleaded guilty to a Class A Misdemeanor charge of using his official office for personal gain.
According to court documents, Wren & Associates received an $8,000/month payment from RxAlly, an advocacy organization for over 22,000 member pharmacies nationwide. Multiple news outlets reported last year that RxAlly shuttered its operations in August of 2013 after being in business for only 18 months.
Court documents reveal that Wren had directed, or at least attempted to direct, funds from Medicaid to a company with which he had financial ties.
According to multiple reports, Wren had language inserted into the General Fund budget that would have made American Pharmaceutical Cooperative, Inc. (APCI) Alabama’s primary, if not only, drug supplier for Medicaid patients. APCI was a part owner of the aforementioned RxAlly cooperative, through which Wren was receiving payments. The budget language was ultimately stripped out before it was passed, but only after state Medicaid officials voiced their concerns.
Wren has been one of the key players when it comes to the allocation of Medicaid funds over the last few years. He was chairman of the Joint Legislative Medicaid Committee and chairman of the National Conference of State Legislatures Task Force on Federal Health Reform Implementation.
Wren today agreed to pay $24,000 in restitution to the state’s General Fund within the next 90 days. Prosecutors asked the judge to give him a one-year suspended sentence and two years of probation.
“Wren used his office as a member of the Alabama Legislature to obtain confidential information, which was not available to the general public,” the Alabama Attorney General’s office explained in a release. “Wren further provided that information to a private company, RxAlly, a national company that previously represented the interests of member pharmacies. Wren obtained personal gain for himself through $24,000.00 in payments from RxAlly.”
Wren’s attorney told Raycomm Media political report Max Reiss that what happened was simply “an unintentional conflict on matters that he shouldn’t have acted on.”
American Pharmaceutical Cooperative, Inc., was also at one time a client of a company owned by Alabama House Speaker Mike Hubbard, R-Auburn.
“They are a client of Auburn Network Incorporated which means it’s not solely me doing work for them but I do get involved in it,” Hubbard told AL.com last year. “We help to build and market their brand and business development. In that one, we don’t do any work in the state of Alabama. It’s only in states other than Alabama.”
An attorney for Hubbard today released a statement saying, “The matters related to Representative Wren’s actions today do not involve or affect Speaker Hubbard.”
Speculation now turns to what is said to be an ongoing Lee County Grand Jury investigation into public corruption. Numerous state legislators are believed to have testified before the Grand Jury in recent months. According to press reports today, Wren has agreed to cooperate in the investigation.
“Citizens of the State of Alabama are entitled to the honest services of those who hold public office,” said Acting Attorney General W. Van Davis. “Public servants who violate their oath of office in order to achieve personal gain should expect to be held accountable. Several months ago, I was appointed as Acting Attorney General in a matter involving alleged corruption at high levels of state government. Former Representative Wren’s guilty plea, negotiated in light of his acceptance of responsibility and cooperation with the State, marks a significant point in the ongoing investigation. We will continue to enforce the laws of the State of Alabama vigorously and professionally without regard to political affiliation or position.”
Wren was first elected to the Alabama Legislature in 1994 and has served four terms. His political career ends with only three days remaining in the 2014 legislative session.
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