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Grundy Pleads Guilty to Honest Services Wire Fraud

Breaking News - Original 06-04-2013 Hits:314 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:348 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:1700 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:546 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:390 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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George Zimmerman In Police Custody

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MIAMI — George Zimmerman, the neighborhood watch volunteer charged with murder in the killing of Trayvon Martin, surrendered to police Sunday and was booked into jail after having his bail revoked two days earlier.

Zimmerman's legal team said in a tweet that he was in police custody. Zimmerman's bail was revoked because the judge said he and his wife lied to the court about their finances so he could obtain a lower bond.

On Sunday afternoon, about 40 minutes before the 2:30 p.m. deadline to surrender, Zimmerman was listed as an inmate on the jail website. He was listed as being held without bail and having $500 in his jail account.

Seminole County Sheriff Donald Eslinger said Zimmerman turned himself in to two sheriff's office employees around 1:25 p.m. near the jail, and was then driven to the jail. Zimmerman arrived in a white minivan and did not respond to questions from reporters as he walked inside, handcuffed and wearing blue jeans, sneakers and a button-down shirt.

"He is quiet and cooperative," Eslinger said at a news conference after Zimmerman's surrender.

The Seminole County Sheriff's Office said Zimmerman would be in a cell by himself, separated from the general population, because the case is so high-profile. The 67-square-foot cell is equipped with a toilet, two beds, a mattress, pillow, blanket and bed sheets. Zimmerman will not have access to a TV.

Prosecutors had said Zimmerman and his wife told the judge at a bond hearing in April that they had limited money, even though he had raised about $135,000 through a website. Defense attorneys said the matter was a misunderstanding.

Attorney Mark O'Mara announced earlier Sunday on his website that Zimmerman had arrived in Florida late Saturday evening ahead of his surrender. Zimmerman, who is charged with second-degree murder in the fatal shooting of the 17-year-old Martin, was ordered by a judge Friday to return to jail.

During a bond hearing in April, the couple had indicated they had limited funds. But prosecutors say Zimmerman had raised thousands through a website he had set up for his legal defense.


Zimmerman has pleaded not guilty to the second-degree murder charge. He maintains he shot Martin in self-defense under Florida's so-called "stand your ground" law because the teen, who was unarmed, was beating him up after confronting Zimmerman about following him in a gated community outside Orlando.Zimmerman's legal team said Sunday that they will ask for a new bond hearing to address those concerns, and that they hope Zimmerman's voluntary surrender will show he is not a flight risk. Furthermore, the money Zimmerman has raised is in an independent trust and cannot be directly accessed by Zimmerman or his attorneys, according to the press release.

Zimmerman's credibility could become an issue at trial, legal experts said, noting the case hinges on jurors believing Zimmerman's account of what happened the night in February that Martin was killed.

Zimmerman wasn't charged in the case until more than a month after the shooting. Protests were held across the nation, and the case spurred debate about whether race was a factor in Zimmerman's actions and in the initial police handling of the case. Martin was black; Zimmerman's father is white and his mother is from Peru.

Police in Sanford did not immediately arrest Zimmerman, citing the Florida law that gives wide latitude to use deadly force rather than retreat in a fight if people believe they are in danger of being killed or seriously injured.

Zimmerman was arrested 44 days after the killing.

Prosecutors pointed out in their motion that Zimmerman had $135,000 available when the bond hearing was held in April. It had been raised from donations through a website he had set up. They suggested more has been collected since and deposited in a bank account.

Shellie Zimmerman was asked about the website at the hearing, but she said she didn't know how much money had been raised. Circuit Judge Kenneth Lester set bail at $150,000. The 28-year-old was freed a few days later after posting $15,000 in cash – which is typical.

Prosecutor Bernie De la Rionda complained Friday, "This court was led to believe they didn't have a single penny. It was misleading and I don't know what words to use other than it was a blatant lie." The judge agreed and ordered Zimmerman returned to jail by Sunday afternoon.

The defense countered that Zimmerman and his wife never used the money for anything, which indicated "there was no deceit."

The judge said he would schedule a hearing after Zimmerman is back in custody so he could explain himself.

Benjamin Crump, an attorney for Trayvon Martin's parents, Tracy Martin and Sybrina Fulton, said his clients have always said Zimmerman should remain in jail until trial.

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