However, the FBI affidavit alleges that the medical firm executive, whose son is represented by Roxborough, had provided $28,000 in bribes to Sen. Ronald Calderon to make sure he advocates for Michael D. Drobot, the former CEO of Pacific Hospital of Long Beach, on worker's compensation bills.
Allegedly, Steinberg has made it clear that he does not know the medical firm executive, but is taking the step to avoid controversies or conflicts of interest.
The elder Drobot, and his son had been sued by the State Compensation Insurance Fund and some of their companies for fraud in June. The complaints alleged that the Drobots significantly marked up implant costs, later used in surgeries, enabling the hospital to seek higher than ordinary reimbursements from the state.
The controversy heightened after Calderon filed a court motion last week alleging the FBI wanted him to wear a wireless transmitter to record his conversations with Steinberg. The filing alleges, "The FBI was specifically interested in Sen. Steinberg's financial activities with Michael Drobot, the former chief executive officer of Pacific Hospital of Long Beach."
There have been no charges against either Calderon or Steinberg in the matter.
