A Christmastime purge at Blue Cross & Blue Shield of Rhode Island is the harbinger of a possible deal by the health insurer with federal prosecutors in Operation Dollar Bill, the long-running State House corruption probe.

The chairman of Blue Cross, Frank J. Montanaro, confirmed to The Journal last night that Blue Cross’ dismissal of four longtime executives is connected to an expected announcement, possibly today or tomorrow, by the health insurer and the U.S. Attorney’s office in Providence.

“I understand there’s going to be a press release, from both [Blue Cross and the U.S. Attorney],” said Montanaro. “But I really can’t say much. There are certain things I cannot comment on until things are finalized.”

Blue Cross, which has been under investigation but not charged, confirmed that two senior vice presidents, Lynne A. Urbani and Matthew T. Brannigan, and two longtime State House lobbyists, Scott A. Fraser and Brian Jordan, had “departed” the insurance company on Tuesday. Urbani and Brannigan had been promoted earlier this year.

Blue Cross spokeswoman Kim Keough declined to discuss the reason for their abrupt departures, or to say if it was connected to Operation Dollar Bill.

“Our policy is that we don’t discuss any employees,” said Keough. “I cannot discuss any details.”

Montanaro said that the personnel moves were made by Blue Cross president James E. Purcell, and they are connected to the forthcoming announcement, but he declined to elaborate.

This week’s developments signal that a sprawling corruption case that began four years ago, with questions of political influence peddling involving Rhode Island’s dominant health insurer, has come full circle. The case has since spun off in several directions, with the convictions of two former lawmakers and two hospital executives, the indictment of two CVS drugstore executives expected to go to trial early next year, and active probes of several other political figures and companies.

The central figure in the case is former state Sen. John A. Celona, of North Providence, who pleaded guilty to selling his office to Blue Cross, the CVS drugstore chain and Roger Williams Medical Center. Last month, another political figure, ex-House Majority Leader Gerard M. Martineau, of Woonsocket, pleaded guilty to accepting $900,000 worth of paper and plastic bag contracts from CVS and Blue Cross in exchange for influencing legislation.

Under U.S. Department of Justice guidelines, the government can strike a deal with a company under investigation, not charging them in return for their pledge to cooperate — an agreement that, depending on the circumstances, can involve instituting internal reforms and dismissing certain employees. Any forthcoming agreement between the government and Blue Cross could be reminiscent of a deal that Roger Williams struck with prosecutors last year to resolve criminal charges against the hospital involving Celona.

Last year, Roger Williams Medical Center negotiated a deferred prosecution agreement, weeks after the hospital was indicted on corruption charges along with then-president Robert A. Urciuoli, who was subsequently convicted of corruption charges involving Celona’s hiring.

As part of its agreement with the government, Roger Williams agreed to institute ethical reforms and offer an additional $4 million in free health care to the poor.

Blue Cross has said repeatedly that it has continued to cooperate fully with the federal investigation. The company’s lawyer, former federal prosecutor Joan McPhee, did not return calls seeking comment.

A spokesman for U.S. Attorney Robert Clark Corrente also declined to comment.

CELONA’S DEALINGS with Blue Cross helped launch Operation Dollar Bill. Four years ago, The Journal published a story detailing Blue Cross’ decision to bankroll a cable TV show cohosted by Celona, who chaired a powerful Senate committee that oversaw health-care legislation.

Thomas Lynch, a former Rhode Island senator from Warwick and Blue Cross vice president for legislative affairs who helped arrange the show, left Blue Cross during the ensuing controversy. He is represented by Boston defense lawyer Richard M. Egbert. Public anger at Blue Cross, over its political dealings, extravagant spending on corporate perks and low medical reimbursements, also led to the departure of controversial Blue Cross president Ronald A. Battista.

Then, things quieted down. Purcell, Battista’s successor, rebuilt relations with the medical community. The investigation shifted to other companies and politicians. From time to time, however, Blue Cross did pop up.

During Urciuoli’s trial last year, Battista testified that Lynne Urbani, who negotiated reimbursement rates with hospitals, may have told him about a State House meeting that Celona had arranged between Battista and Urciuoli to discuss Roger Williams’ low reimbursements. The jury concluded that Urciuoli had hired Celona for his political influence, including pressuring Blue Cross to increase its reimbursements to the hospital. Urbani didn’t testify, and wasn’t accused of any wrongdoing.

In 2004, The Journal reported that another politician, former Senate President William V. Irons, had received hundreds of thousands of dollars in insurance commissions from Blue Cross on a health-insurance policy for CVS employees in Rhode Island, after calling his friend, CVS chief executive Thomas Ryan. The Blue Cross sales executive who negotiated the policy, Joseph Pirri, said that he protested to his boss at Blue Cross, Matthew Brannigan, that Irons, an insurance broker, had not been involved and shouldn’t receive a commission. Pirri said that Brannigan initially agreed, then told him later that Irons would be paid.

CVS, Blue Cross and Irons have denied any wrongdoing.

This fall, Martineau, the former House majority leader, admitted to selling his office to Blue Cross and CVS in return for the bag contracts — including 8 million bags for Blue Cross that didn’t exist. Blue Cross paid Martineau $175,500 from 1999 to 2002.

According to the criminal charges, Martineau initially solicited the Blue Cross bag business at the State House from a Blue Cross lobbyist, who referred him to another Blue Cross executive “to facilitate the formation of a business relationship.” According to people familiar with the case, Fraser was the lobbyist whom Martineau solicited.

The four dismissed Blue Cross executives had a combined 76 years of experience at the company. Fraser and Brannigan did not respond to calls seeking comment. Urbani and Jordan could not be reached.

Urbani, who became known as a prominent female executive in Rhode Island, joined Blue Cross in 1986, the same year as Jordan, who was assistant vice president for government relations. In September, Urbani was promoted to senior vice president for external services, taking on oversight of community services along with her prior responsibilities over customer, provider and medical services.

Brannigan, a former chairman of the East Greenwich Republican Town Committee, joined Blue Cross in 1996 and had also been promoted earlier this year, from vice president to senior vice president for sales and marketing.

Fraser, who joined Blue Cross in 1984, was vice president for government relations, and also served for years as Blue Cross’ spokesman. He also used to serve as public-address announcer for the Pawtucket Red Sox. Yesterday, Fraser’s recorded voice still greeted callers to Blue Cross headquarters in Providence.

A onetime critic of Blue Cross, Rhode Island Medical Society lobbyist Steven R. DeToy, reacted with sadness to the news of Fraser’s and Jordan’s departures.

“There were no two finer people at the State House than Scott Fraser and Brian Jordan,” said DeToy. “It’s very unfortunate that they seem to have been caught up in something beyond their pay grade and their responsibilities.”

With staff reports from Felice Freyer

mstanton@projo.com