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Grundy Pleads Guilty to Honest Services Wire Fraud

Breaking News - Original 06-04-2013 Hits:316 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:349 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:1704 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:548 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:315 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:391 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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Gov. Snyder: A new culture for Michigan

New Gov Snyder-S

Gov. Rick Snyder is attending the Mackinac Policy Conference for the second time this year. Prior to last year’s conference, he said one of the themes he wanted to see was “people coming together in the new culture we need for our state.” Asked to what degree people have come together, he said there has been progress.

“It’s a work in progress, so it’s not done,” Snyder said. “You don’t change a culture overnight, but I think we’ve made tremendous progress.”

He pointed out that people are working better together, and that the jobs environment has improved dramatically since last year.

He also noted that a number of things discussed last year have been accomplished.

“And now we’re going to continue that dialogue,” he said. “I hope both on working on the cultural issue of better teamwork, working better together, and continuing to work on the same subject matter, which is the need for more and better jobs, and a brighter future for our kids.”

As to the state’s relationship with Detroit, Snyder said his administration has been very proactive about wanting to engage the city in a positive, constructive and supportive way.

His goal, he noted, isn’t to run Detroit, but to be a supporting resource.

Snyder also said he hopes there’s an environment in place to create that working relationship to provide additional supporting resources, particularly on growing the city.

“To grow the city, we need to deal with better financial stability, and we need better services for the citizens of Detroit,” he said.

Asked if he’s ever taken a drive through a random neighborhood, and if so what his assessment was, Snyder said he does things like that on a regular basis. and that he acknowledges that there’s tremendous room for improvement.

“One thing I try to do when we’re in the Detroit area is get off the freeways just drive around,” he said. 

Snyder was at a recent No Kid Hungry campaign at Gompers Elementary School. He called it “an illustration of a really nice school” where the kids were excited, but also noted that there were four abandoned homes across the street.

“That’s not the kind of environment you want to have,” he said, adding that such a dichotomy clearly shows there are things  that must be improved on.

Last September, a partnership between the state and the Council of Michigan Foundations led to the creation of the Office of Urban and Metropolitan Initiatives, which is based in Detroit. The office is overseen by Harvey Hollins III, whom Snyder called an important asset.

Snyder also said there will be an urban-focused dashboard at some point.

Returning to the subject of the Mackinac conference, Snyder said he wants to emphasize two major things he believes are adding value. The first is Pure Michigan Business Connect.

“Which is that concept of getting Michigan businesses to work more and better with one another,” he said, adding that we’ve already seen great success, particularly with Consumer’s Energy and DTE, as well as with a number of large lenders.

“We’re seeing good results from that, but I want to see many companies and organizations belong,” he said.

“The other one is MI talent.Org, our essentially Pure Michigan Talent Connect equivalent,” Snyder said. “Because we’ve got 80,000 open jobs in our state. And how do we get people connected with these jobs? Because these are great jobs, a lot of them are. And then how do we get more employers telling about their future employment needs?”

He prefers terms like “connecting talent” over “workforce development,” saying it’s more about talent and connecting supply and demand.

“We can do a much better job,” he said.

With respect to the outsider’s impression of Michigan, Snyder, who has traveled around the world, said it’s improving.

“Generally, it’s pretty positive,” he said. “I don’t get a lot of negative feedback, even on some of the Detroit issues.”

Snyder said Michigan has good things to build on; the state just needs to show results.

He reiterated the importance of getting Michiganders to do better business with one another.

“Lowest labor cost is not the driver,” he said. “It’s total cost to quality, and we’re high quality producers here.”

He also plans to stay on the talent question for the next several years.

“It’s just a great opportunity,” he said. “I don’t think anyone does it well in our country, in terms of making that connection.”

He said Germany provides the best illustration of how it’s done well.

“They do really well because they’ve built this program, you know this way of getting people into apprenticeships and other programs,” he said. “Skilled trades is a huge opportunity.”

Snyder added that while Michigan isn’t going to be just like Germany, one can see how the Germans were thoughtful and brought all the sectors together.

He emphasized, however, that the solution isn’t government solving problems.

“It’s government being part of a collaborative effort with the for-profit sector, the not-for-profit sector, everyone coming together and us playing a leadership role,” he said. “But it’s not just about spending money. It’s about bringing us together as a team, working together with relentless positive action.”

Snyder added that it’s working.

He said Germans he’s talked to understand what he’s doing for Michigan as opposed to the U.S.

“All I have to do is go through the list of accomplishments,” he said. “We are the role model.”

He added that Michigan has an appealing environment.

“And more than that, we’ve got people working much better together,” he said. “That’s where I view our opportunity here in Detroit. To get Detroit on the path of being a great city. Think about the power of Michigan with Detroit being on a path for success.”

The governor also spoke about the importance of making library services — especially those delivered via technology — available to all.

“Access to intellectual capital is the real question behind all this,” he said.

Snyder acknowledged the many services libraries provide, which in addition to lending out books, magazines, CDs and DVDs, includes computer and Internet access, a plethora of reference materials, and resources for job hunting — some of which are available through online access, and said making access easier for young people will get them engaged in reading and learning more.

Snyder discussed regional transportation, but said he’d like to take it off the Mackinac conference’s “recurring list.”

“We’re not done with that yet,” Snyder said. “We’ve got it in the legislature, so it’s in process. In a perfect world, we would have had that done.”

Asked how close we are to having a regional transportation system within the next five years, Snyder said he believes we’re making progress.

“I think we just have to go through the normal legislative process, and you run into challenges there,” he said.

With respect to the future of Detroit, Snyder said the city needs to go back to doing what it does best — making thing and exporting goods.

“The ‘imported from Detroit’ line is a fabulous visual for where the city’s going,” he said.

Snyder also said it’s about making Detroit a magnet for young people, and that the neighborhoods have to be part of the equation.

For decades, Detroit has been defined by the auto industry. Snyder said the industry remains very important, and is on a parallel path with the state in many respects.

“There’s a symbiotic relationship,” he said. “So it’s not two separate tracks, it’s like they’re interwoven.”

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