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Jeff Thompson, the alleged financier behind the biggest campaign finance fraud case in city history, is not giving up control of his Medicaid managed care organization quietly.

Thompson is currently suing the city in D.C. Superior Court over the proposed sale of Chartered Health Plan, the single biggest provider of health insurance to the city’s poor. Citing Chartered’s faltering financial health, the city seized Chartered from Thompson’s control last year. Thompson filed a protest with the city’s Contract Appeals Board last year saying that the city’s contracting process had been “tainted by illegal collusive bidding” because Chartered hadn’t been able to bid on a new city contract. Thompson argued there were conflict of interest issues involving Chartered’s receiver and an outside law firm brought in to help sell the company.

The Superior Court case is ongoing, but the Contract Appeals Board dismissed Thompson’s protest earlier today. The CAB ruled that it lack jurisdiction to consider Thompson’s protest and Thompson lacked standing to file the protest. A lawyer handling the protest for Thompson did not immediately return a call seeking comment.

And yes, in case you are wondering, it is very awkward that Thompson and the Gray administration are going full bore at one another over the sale of Chartered. According to Thompson’s associate Jeanne Clarke Harris, Thompson backed Vince Gray in the 2010 mayoral contest because Thompson thought Gray would be better for business. And one of Gray’s early moves in office, before the federal investigation blew up, was to approve a massive settlement to Chartered.

Photo courtesy of Charles Parsons