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Grundy Pleads Guilty to Honest Services Wire Fraud

Breaking News - Original 06-04-2013 Hits:323 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:351 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:1708 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:551 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:319 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:393 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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A Father's Legacy: Romney Running From Detroit Roots?

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In Commerce Township last week, it was a sight to watch the education and political transformation of Republican presidential nominee Gov. Mitt Romney, once viewed as the Boston moderate who could insert sanity into our current diabolical political climate, now embrace extreme views of right wing politics, which have come to define the base of the Republican Party.

Fair enough. Commerce Township, roughly an hour away from Detroit, sits at the center of right wing politics and it was symbolic of why it hosted the first joint presidential campaign of Romney and his running mate, Congressman Paul Ryan, in Michigan.

And in Commerce Township, what did Romney do?

He gave the roughly 5000 supporters in that Oakland County enclave red meat that they consumed, reassured that Romney is the living embodiment of their views — extreme views — totally outside the discourse of regular mainstream politics.

“No one’s ever asked to see my birth certificate. They know that this is the place that we were born and raised,” Romney said throwing red meat to the birther movement — the group of political activists who believe that the legitimate 44th president of the United States, Barack Obama, is not American, and thus has no business in the White House.

 

Later, Romney tried to backtrack on his comments dismissing any suggestions that he was giving credibility to the birther movement, part of the Republican base that has been demanding Obama’s birth certificate. But it was late because with his remarks that smack of racism, Romney, had entered the birther movement through the back door at the Commerce Township rally.

The dog whistle politics that he used under the pretext of expressing pride in his Detroit roots for being born at Harper Hospital, was evident and says a lot about the candidate seeking to be president.

To decipher the conflicting candidacy of Gov. Mitt Romney is to bring to the fore the unbelievable, hopeful and respected legacy of his father, George Romney, who served as governor of Michigan from 1963 to 1969, a pivotal period of the Civil Rights Movement.

His father’s legacy is well documented in articles and books that have been written about the campaigns of the Civil Rights Movement. He was an unashamed and unafraid supporter of the movement for equal rights.

It is time for that story to be told as Mitt Romney moonwalks further and further away from his father’s legacy. Because there is a spurious political evolution happening in our national consciousness, where both candidates on the Republican ticket, Romney and Ryan, are evolving in strange ways before our eyes.

Romney is running away from the moderate politics of his father, George Romney, and Paul Ryan is evolving from the atheistic dogmas of Ayn Rand as he panders to the Bible-loving Evangelical Right in the deep South.

Is this what politics has come to in America today?

When he went before the NAACP, Mitt Romney had historical and political currency given his father’s legacy to show his understanding of the struggles of ordinary people, and connect their struggles to what his father stood for in the bitter days of Jim Crow.

Before the NAACP he had a golden opportunity that no other Republican presidential candidate in recent history has had in their experience: a father who was very visible on the political stage supporting equal rights for all. He blew the opportunity to connect.

Mitt Romney cannot deny what his father did out of his conviction to make a lasting political statement that all men are created equal and thus should be treated fairly in this democratic experience.

Is it realistic to think that Mitt Romney, in any serious and real way, can deny his father’s legacy by supporting proposals that contradict his father’s views? The health care law he passed in Massachusetts is consistent with the more liberal outlook that his father held. Because it afforded health care to those in the underprivileged class, similar to the one passed under President Obama.

Why then would this candidate now drastically move away from his father’s position and adopt Tea Party policies that are in diametric opposition to George Romney?

On some of the major issues of our day like the assault on voting rights in Ohio, Pennsylvania and Florida, candidate Mitt Romney and his campaign have been conspicuously silent in rebuking Republican secretaries of state to halt the attack on voting that could deny minorities, including poor seniors, the right to vote in November.

How ironic that George Romney was a staunch supporter of the Voting Rights legislation that passed in the early days of the Civil Rights Movement.

Is Romney now a victim of political schizophrenia where the base of the Republican Party is forcing him into a state of split consciousness — where on the one hand embracing the birther movement and Tea Party politics that has sunk to a reprehensible all-time low, and on the other hand, he cannot deny his father’s views? This is nothing short of a split personality.

There is something genuinely likable about Mitt Romney. He is a family man and a successful businessman. When he first entered the presidential race I thought he was going to be a breath of fresh air by distancing himself from the inflammatory remarks like those of Donald Trump and the unjustifiable and vicious criticism of President Obama from such questionable quarters of extreme conservative punditry.

Even some friends of mine on both sides of the political spectrum, especially those on the Republican side, have expressed dismay and shock at the direction of the campaign of a man who has the historical credence that Republicans have long been seeking to attract a larger segment of the Black vote.

It is not the expectation that Mitt Romney becomes George Romney. But the weight of history and the political good sense of George Romney cannot be ignored when his son is running to become president of the United States. That his father’s legacy on equal rights for all was shaped in Detroit shows the importance of this urban center’s long political struggles and the challenges it presents for both presidential candidates in 2012.

Leading a march against housing discrimination in Gross Pointe against Blacks, George Romney said, “Until we eliminate inequality our words will have a hollow sound to the people of the world.”

Even against the advice of an official of the Mormon Church during Jim Crow, George Romney demonstrated a self-evident truth — that every human being is born free, equal in dignity and rights. A pointed 1964 letter steeped in the vestiges of racism of the early Mormon Church was sent to George Romney by an apostle of the church, Delbert L. Stapley, asking the then Michigan governor to reconsider his support for civil rights.

“After listening to your talk on civil rights, I am very concerned. Several others have expressed the same concern to me. It does not altogether harmonize with my own understandings regarding this subject. I felt, George, your views were most liberal on this vital problem in light of the revelations, but nevertheless, I cannot deny you the right of your position if it represents your true belief and feelings,” Stapley wrote.

Further down in the letter Stapley reminded George Romney saying, “I am sure you know that Prophet Joseph Smith, in connection with the Negro problem of this country, proposed to Congress that they sell public lands and buy up the Negro slaves and transport them back to Africa from whence they came. I am sure the prophet, with his vision and understanding, foresaw the problems we are faced with today with this race, which caused him to promote this program.”

For a man to step out side the theological doctrine shows the courage George Romney had.

When Barry Goldwater refused to support the Civil Rights Act of 1964, George Romney refused to support Goldwater’s candidacy for president at the 1964 Republican Party Convention where he (Romney) worked to push the party to go on record against discrimination.

In the book “Judgement Days,” Nick Kotz writes about Bloody Sunday and George Romney’ role in Detroit.

“In Detroit on Tuesday, Gov. George Romney, a Republican, and Mayor Jerome Cavanaugh, a Democrat, had led ten thousand marchers five times around the federal building to protest the brutality of Bloody Sunday,” Kotz wrote.

The 1967 edition of Harper’s magazine explained the special bond between George Romney and Dr. King in this way: “When the Rev. Dr. Martin Luther King marched in Detroit three years ago, Romney marched with him. He is proud that he helped write a state Constitution that has the most comprehensive civil rights guarantees in the nation, including open occupancy in housing.”

With such a forceful legacy, it is unimaginable how candidate Mitt Romney has turned to the extreme right of his party. It is glaringly clear that the positions of some of the speakers at this week’s Republican Convention would have been flatly rejected by George Romney. If he rejected Barry Goldwater then he would today reject those who opposed equal pay for women and the Lilly Ledbetter Fair Pay Act.

For a man whose father supported equal rights, why would Mitt Romney do a semantical dance around women issues and a less than vocal support for the Lilly Ledbetter Act?

Bankole Thompson is editor of the Michigan Chronicle and author of a six-part book series on the Obama presidency. His book “Obama and Black Loyalty,” published in 2010, follows his recent book, “Obama and Christian Loyalty” with a foreward by Bob Weiner, former White House spokesman. Thompson is a political news analyst at WDET-101.9FM (NPR affiliate) and a member of the weekly “Obama Watch” Sunday evening roundtable on WLIB-1190AM New York and simulcast in New Jersey and Connecticut.

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