Kentucky reviewing state contract after bribery trial

Published: Jun. 25, 2018 at 4:26 PM CDT|Updated: Jun. 25, 2018 at 4:27 PM CDT
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FRANKFORT, Ky. (AP) - An Illinois-based company's million-dollar contract with Kentucky could be in trouble after one of its executives testified during a federal bribery trial earlier this month.

Kentucky pays Cannon Cochran Management Services Inc. about $1 million a year to manage the state's workers compensation claims. The contract was the subject of a federal bribery trial earlier this month. During the trial, CCMSI Vice President Jerry Armatis testified the company paid its Kentucky-based lobbyists on a "success basis."

But state law bans lobbyists from being paid in this way. Personnel Cabinet Secretary Thomas Stephens said he has "grave concerns." He has launched an internal review of the contract and has requested a meeting with Armatis.

Armatis did not return a phone call seeking comment.

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