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Grundy Pleads Guilty to Honest Services Wire Fraud

Breaking News - Original 06-04-2013 Hits:311 Chronicle Staff  - avatar Chronicle Staff

Grundy Pleads Guilty to Honest Services Wire Fraud

  Former Wayne County Assistant County Executive Michael Demetrus Grundy, of Detroit, Michigan, pleaded guilty today to conspiracy to commit honest services wire fraud in connection with his position as Executive Director of HealthChoice of Michigan, United States Attorney Barbara L. McQuade announced today.  Joining McQuade in the announcement were Special Agent in Charge Robert D. Foley, III, Federal Bureau of Investigation and Special Agent in Charge Erick Martinez, Internal Revenue Service, Criminal Investigation.    According to court records, on October 19, 2011, Grundy caused the accountant of HealthChoice to wire transfer $400,000.00 to a company called Medtrix, falsely representing that the payment was pursuant to a contract between HealthChoice and Medtrix executed on March 1, 2011 for Medtrix to develop and implement an electronic medical records (“EMR”) system for HealthChoice medical providers. However, the contract was actually not executed until October of 2011, and it was not approved by the HealthChoice Board of Trustees. Further, Medtrix never created or obtained any EMR programming, and an EMR system that was developed by another company was already being offered to HealthChoice networks and medical providers.    Co-conspirator Keith Griffin pleaded guilty on May 10, 2012 to the wire fraud scheme. He admitted that Grundy used his position as Executive Director of HealthChoice to authorize fraudulent payments to Medtrix and Advertise Me (also owned by Griffin), and that Griffin kicked back substantial portions of those payments to Grundy. In his plea agreement, Grundy admits that he was receiving kickbacks of funds that were supposed to be used for the benefit of the participants of HealthChoice insurance programs.    Grundy faces a maximum of twenty years in prison, a fine of up to $250,000, and forfeiture of the unlawful payments he received.  United States Attorney McQuade said, "The citizens of Wayne County deserve honest services from their public officials. It is particularly offensive...

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Former Highland Park Police Officer Pleads Guilty to Bribery and Extortion …

Breaking News - Original 05-23-2013 Hits:347 Cathy Nedd - avatar Cathy Nedd

Former Highland Park Police Officer Pleads Guilty to Bribery and Extortion Conspiracy

    A former Highland Park Police officer pleaded guilty today to conspiring with three other police officers to protect shipments of cocaine and to take bribes in return for not appearing in court as a witness, U.S. Attorney Barbara L. McQuade announced today.    McQuade was joined in the announcement by FBI Special Agent in Charge Robert D. Foley, III.    During a hearing before U.S. District Judge Avern Cohn, Anthony Bynum, 29, of Highland Park, Michigan, admitted that he and another Highland Park police officer accepted a $10,000 bribe from a man they had arrested on gun charges in return for agreeing not to appear as witnesses at the man’s November 7, 2012 criminal trial.    Bynum also admitted that in late 2012 and early 2013, he agreed with three other Highland Park police officers to take money in exchange for protecting shipments of cocaine. Bynum admitted that on November 15, 2012, he and another Highland Park police officer protected and delivered a shipment of what they believed were two kilograms of cocaine in exchange for $1,500 in cash. Bynum further admitted that on January 23, 2013, he protected two cars containing what he believed to be a total of four kilograms of cocaine. Bynum brought his police badge and gun to protect the shipments. Two other Highland Park police officers drove the cars containing what they believed to be cocaine. Later, Bynum accepted $1,500 in cash from an FBI informant for his work in delivering and protecting the drug shipment.   United States Attorney McQuade said, "Police officers who take bribes have no place in law enforcement. They will be prosecuted for violating their duties to serve the public.”   FBI Special Agent in Charge Foley stated, "Police officers who swear an oath to serve and protect must be held to the highest standards of ethics and integrity. The...

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UPDATE: Election commission decides to keep Duggan on the ballot

Breaking News - Original 05-23-2013 Hits:1698 AJ Williams, Chronicle Web Editor - avatar AJ Williams, Chronicle Web Editor

UPDATE: Election commission decides to keep Duggan on the ballot

Today the election commission decided to keep mayoral candidate, Mike Duggan on the ballot despite Tom Barrow's claim Duggan was ineligible to run for mayor. The commission concluded a candidate must be a qualified resident and registered voter in the city of Detroit one year prior to the filing deadline.  

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Mayor Bing Announces AAA Michigan Support for Fire Equipment

Breaking News - Original 05-16-2013 Hits:542 Cathy Nedd - avatar Cathy Nedd

Mayor Bing Announces AAA Michigan Support for Fire Equipment

    Detroit Mayor Dave Bing announced today that AAA Michigan will donate $23,500 to the Detroit Public Safety Foundation to pay for the inspection of 20 aerial ladders and 4,600 feet of ground ladders used by the Detroit Fire Department (DFD).  The gift is the latest in a recent series of recent corporate donations in support of the City of Detroit’s public safety operations.   “Once again, one of Detroit’s corporate citizens has come forward and generously shown its support for our public safety operations, our first responders and our citizens,” Mayor Bing said.  “The proper inspection of our fire department’s aerial ladders and ground ladders was a critical need that AAA Michigan has graciously met.  I appreciate the leadership and continued concern for public safety that AAA has demonstrated with this gift.” "Our history of supporting the community dates back nearly a century," said AAA Michigan President Steve Wagner.  "We are very pleased to present the Detroit Fire Department with this grant, which we know will help save lives."              The ladder inspections are required to keep DFD equipment in compliance with standards of the National Fire Protection Association (NFPA), an independent organization that establishes fire safety codes and regulations for various industries and the firefighting profession.  Detroit Fire Commissioner Donald Austin ordered last February that until a full inspection of the entire ladder fleet is completed, DFD will not engage in manned aerial ladder operations -- unless there is an immediate threat to life.  In cases where a manned ladder must be used, every effort will be made to properly support the ladder.  DFD continues to use unmanned aerial ladders as “water towers” to fight large fires. “We are grateful for AAA’s generous donation,” Commissioner Austin said.  “Aerial ladders can place firefighters 100 feet above ground, often with large amounts of water flowing under high pressure.  Because...

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EFM Report: Detroit Should Get Out of Power Supply Business

Breaking News - Original 05-13-2013 Hits:314 Cathy Nedd - avatar Cathy Nedd

EFM Report:  Detroit Should Get Out of Power Supply Business

  The current state of Detroit’s electricity grid is not only unreliable but a burden to the city and its residents and the maintenance of the public lighting system has cause the city to continue to operate at a loss, according to a new report emergency financial manager Kevyn Orr will release Monday to the public.   The report is coming 45 days after Gov. Rick Snyder named Orr, a Washington DC bankruptcy attorney emergency manager setting in motion the emergency wheels to get the city on the road to financial stability. According to the report the city estimates a $250 million to $500 million in capital improvements that would be needed to modernize Detroit’s public lighting system, funds that the city does not have and cannot generate at this time. “The Emergency Manager believes that it is in the best interest of the citizens of Detroit for the city to exit the power supply business. As of 2010, when the city ceased generating a portion of the electricity it sold, the grid has solely operated as a resale mechanism for its 200-­‐plus customers. The current state of the City's electricity grid has been characterized as unreliable, as well as a liability to the city and its citizens,” the report stated. “. Accordingly, the Emergency Manager seeks both to limit the city's exposure to the liabilities associated with an aging grid and provide a solution to ensure reliable power to the City of Detroit. For this reason, the city's electricity customers will be transitioned to a third party, and the grid will be closed down pursuant to a phased plan.” The Detroit Public Lighting (DPL) department serves over 200 commercial electric customers and about 88,00 streetlights.  The report cites the recently created Public Lighting Authority (PLA) as part of a comprehensive plan to overhaul the city’s...

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Detroit Emergency Manager Defends Use of Consultants in Financial Recovery

Breaking News - Original 05-13-2013 Hits:387 Cathy Nedd - avatar Cathy Nedd

Detroit Emergency Manager Defends Use of Consultants in Financial Recovery

  The criticism that the use of consultants getting paid over a million dollars per month to help craft a financial recovery map for Detroit is baseless according to emergency financial manager Kevyn Orr. Since December of last year, Detroit agreed to pay $14 million to nine different companies to provide financial and legal services in the city’s turnaround. In an exclusive interview with the Michigan Chronicle’s Bankole Thompson ahead of his Monday announcement of a financial operating plan, Orr vigorously defended the city's consultants saying it is disingenuous for some to be questioning use of consultants some of whom were here before his arrival. “I think part of it is Detroit’s been sort of removed from the world. First of all the amount of money that’s paid is actually small relative to other major cities. We shouldn’t be so provincial about the dollars,” Orr said. “We’ve gotten ourselves into a situation where the amount of debt given ordinary course- the way the city has been running- somebody’s got to come in here with a fresh perspective and say we can’t continue running in place, doing what we are doing that’s taken us to the edge of ruin.” Orr said if the city were to shut down today and no police or fire services in operation as well as the water department, the city could not pay of its debt in half a generation. He said the magnitude of work that has to b done in a city that has over 15 billion dollars of debt against a revenue stream of a billion dollars or less requires new fresh eyes. “Frankly in my opinion to have the consultants most of whom were here before I got here and to hear any criticism about consultants that have been here longer than a year helping the city is...

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Grosse Pointe Shores Residents to Vote on Exit of Wayne County

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Grosse Pointe Shores residents will be asked in August to vote about whether they would like their city to secede from Wayne County. Their decision will guide the city council as to whethera committee devoted to studying a move to Macomb County should continue to pursue the idea.

The discussion began as an update from the council's Move to Macomb Committee liaison, Dan Schulte, and evolved into a vote from the council to garner a decision from the city's own residents.

Schulte said the study has shown that the move would save residents money and potentially improve county services. The estimated savings is about 4 mills, which currently equals about $1.2 million for the city. The savings for a resident owning a home valued at $100,000 would be about $440 annually, Schulte said. For a $1 million home, the savings would be about $4,400 annually, he said.

Councilmen Alexander Ajlouni and Bruce Bisballe questioned why Wayne County residents would ever agree to let the Shores secede considering it is wealthiest city within Wayne County and the largest source of revenue.

Schulte was not dissuaded by their thoughts but said historically when a city has wanted to leave one county to join another, voters have allowed it to happen. Bisballe said he does not believe such a request to Wayne County voters has a chance.

Other council members began questioning what Wayne County voters would be told to persuade them to let the Shores go and whether Macomb County would come through on their promises as outlined thus far in the study. Schulte said he did not believe such a move would require a campaign but councilman Robert Gesell disagreed, saying he believes something of this magnitude would require a hefty campaign including television commercials.

"Sometimes you can cause more harm by trying to oversell something," Schulte said.

Schulte wanted to put it before Wayne County residents for a vote but other council members felt it was more appropriate to find out what the majority of Shores residents want first.

Councilwoman Kay Felt said before such a decision is put before the entire county, she wants to know what how everyone in the city feels about making such a move. Gesell echoed her thoughts.

Schools were a major factor in even establishing the Move to Macomb Committee, when the former council asked the city's attorney, Mark McInerney, to check into whether such a move would change the status being within the Grosse Pointe Public School System.

The answer, shared months ago and repeated tonight, is the district would not change so for those students who currently attend Grosse Pointe Public Schools, they would continue doing so even after the city joined Macomb County.

McInerney, who also represents the school district, said for a district to even consider redrawing its boundaries would be a lengthy, laborious process. Residents of the Shores who would still live within the district would also be allowed to vote on school related issues, he said, despite living in a different county.

The move is something that requires the majority votes from each counties' registered voters, meaning Wayne County registered voters would have to approve the Shores exit and Macomb County registered voters would have to approve the Shores addition.

Resident Gloria Anton, who is on the study committee, addressed the council and said her work showed the Shores contributes $10 million in revenue to Wayne County but county officials cannot provide information about what services they provide in return.

Anton also questioned why any Shores resident would oppose such a move, explaining saving money is appealing to everyone.

Immediately behind her, however, was resident Jim Jacobs, who spoke against it. Although it has been stated now that Grosse Pointe Public School district lines would not be redrawn, Jacobs believes it is not out of the realm of possibilities once the Shores would officially be part of Macomb. That is not a risk he's willing to take, he explained.

The chatter among those attending the meeting Tuesday competed with the council's discussion, to the point that Mayor Ted Kedzierski had to use his gavel a few times to quite the crowd. Other attendees also asked some to quiet down.

Ajlouni said he was not prepared to vote on the issue Tuesday. The topic was originally on the agenda as an update from the committee, not as an action item or recommendation from the committee.

Kedzierski began trying to table the topic until the next meeting but Schulte then said he did not want to leave the meeting without a motion to get it on a ballot for voters.

Then discussion morphed into how such a move could be accomplished without the vote of all of Wayne County. Bisballe suggested that the committee approach lawmakers and state legal officials about getting the law changed to reflect a choice of a city's residents when the city straddles county lines.

There are very few cities within the state that straddle two county lines as the Shores does, which worked in their favor when attempting to keep their municipal court/judge, Bisballe said, explaining it could be used to address this unique situation as well.

Ultimately, the council voted unanimously to put an "advisory vote" on the August primary ballot for Grosse Pointe Shores residents only to say whether they are interested in leaving Wayne County and joining Macomb County.

They also approved a motion by Bisballe to have the study committee host at least two public meetings between now and the August primary for the benefit of residents to provide them information so they may be informed voters on the topic. The motion included that representatives from Wayne and Macomb counties will be invited to share their selling points of why Grosse Pointe Shores should be located in their respective county.

The date and times of those meetings are to be posted, according to their approval.

There are a host of additional issues that would need to be considered, including the maintenance and care of the seawall in Lake St. Clair, which is currently handled by Wayne County. Mayor Ted Kedzierski said he would like to know if Macomb County is going to take on that responsibility.

There would also be other, smaller yet time intensive changes residents would have to make, such as altering wills and a host of other personal documents, Bisballe said.

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