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Newly revealed FBI documents show deceased former Orioles owner Peter Angelos was target of two investigations

No charges were ever brought amid suspicion of fraud
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Peter Angelos

BALTIMORE — Recently the FBI began publicly releasing some documents related to historically high profile cases that generated great public interest.

It was revealed deceased former Baltimore Orioles owner Peter Angelos was the target of two separate federal investigations back in the mid-80s and late 90s.

Besides owning the Orioles, Angelos was a well-known attorney nationally recognized for representing factory workers impacted by asbestos.

It was his work on asbestos that attracted the attention of federal prosecutors in 1984.

Angelos owned a Northeast Baltimore clinic called Medical Resource Management on Harford Road.

The clinic operated out of the same building as Angelos' law office and the International Union of Operating Engineers, who bargained on behalf of Bethlehem Steel Company employees.

A large portion of steel workers later came down with asbestos.

Angelos reportedly used the clinic to provide affected union workers chest x-rays.

The clinic went onto bill Bethlehem's health insurer, Blue Cross Blue Shield, tens-of-thousands in x-ray fees.

Blue Cross paid the initial $27,000 in filed claims, but later discovered the x-rays were conducted without a doctor present, for no medical purpose, other than finding asbestos symptoms. At the time Bethlehem's Blue Cross plan did not cover asbestos screenings.

Upon learning of this, the FBI launched an investigation citing potential "fraudulent performance of medical services" in attempt to "embezzle health, welfare and pension funds" from the union.

As the investigation unfolded, Angelos' clinic started another endeavor with the union, a cost containment program for workers who'd been hospitalized.

The union agreed to pay the clinic $2.50 per member per month.

Case documents show investigators believed the clinic failed to staff the program, with no intentions of performing the services offered.

One witness described the clinic program as "a sham."

Blue Cross ended up suing the clinic, seeking a civil judgment for reimbursement and a court order halting any outstanding bills.

A grand jury eventually convened, as agents executed search and seizure warrants at Angelos' clinic and law firm.

Prosecutors, however, ultimately declined to prosecute in December 1987.

Angelos was in federal cross hairs again in 1998, while representing the State of Maryland in a multi-billion dollar case against big tobacco companies.

State lawmakers intended to pass a bill making it easier for evidence to be admitted in court.

Instead of people testifying on the negative impacts of smoking, the legislation allowed statistics to be entered into the record.

The proposal was in limbo because Republican lawmakers were threatening a legislative filibuster.

Being in the minority, the GOP needed a single Democratic vote to kill the bill.

Federal investigators suspected Angelos was behind an unnamed Democratic Senator changing their vote in exchange for an election campaign contribution.

The lawmaker in question had a long record of opposing the state's attempts to end tobacco vending machine sales.

Despite admitting to participating in a call with leaders to avoid the filibuster, Angelos denied making any promises.

Angelos originally vouched against the legislation, confident the suit was already winnable, yet it passed anyway, leading to a successful lawsuit netting him more than $100 million.

In June 1999 prosecutors closed their investigation without pressing any charges.

Angelos died in March 2024 at the age of 94.

The Orioles franchise was sold a few months earlier following a bitter legal battle between the Angelos family.