Representative England holds DOC legal contract amid criticism of YesCare handling and unpaid employees

Representative England placed the Department of Corrections’ legal contract on hold and publicly urged the attorney general to investigate YesCare after testimony that the company received expedited state payments but failed to pay some employees.

Mary Coleman Roberts, general counsel for the Department of Corrections, told the committee that YesCare received an expedited payment to cover payroll on April 24 and that the company did make that April 24 payroll but did not make the May 8 payroll. Roberts said she asked YesCare’s restructuring officer, David Goldwasser, how the state funds were used and was told they were used “for other things.” She added that employees who were not paid would need to file claims in the company’s bankruptcy as creditors.

Representative England, who identified himself in the hearing, said the facts described “sound like fraud” and urged a referral to the attorney general for possible prosecution under Alabama’s aggravated‑theft‑by‑deception statute. “Publicly asking for the attorney general’s office to investigate this company because they defrauded us millions of dollars and also did not pay employees,” England said, arguing the state should pursue criminal and civil avenues to recoup losses and protect employees.

Mandy Spears of the Department of Corrections described the department’s legal approach as still in an investigative stage and said continuity of care remained an initial priority. She told the committee the department is pursuing all avenues, including performance‑bond recovery and bankruptcy counsel, and noted YesCare’s insolvency and multi‑jurisdictional proceedings in Texas and Florida.

Committee members pressed for more detail about sums allegedly owed; Representative England cited a figure “around” $12 million as the department’s estimate, while Roberts described the total as “a little south of that number.” England also questioned how outside counsel was selected and raised concerns about hiring a firm that employs an attorney who previously served as an advisor to YesCare and who had been involved in earlier related procurements.

England said he would hold the $200,000 legal contract (two years at $345/hour as presented) until committee members were satisfied with the vetting and with answers about the state’s recovery strategy and the specific claims being pursued. DOC counsel confirmed the department intends to pursue recovery under a $15 million performance bond and in bankruptcy proceedings but said details of legal strategy remain under evaluation while the department seeks continuity of medical services.

Next steps: The contract was held for further review and committee members requested more detailed financial figures and an explanation of counsel selection procedures; DOC counsel said discussions with bond and bankruptcy counsel are ongoing.