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Grundy Pleads Guilty to Honest Services Wire Fraud

Breaking News - Original 06-04-2013 Hits:331 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:352 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:1712 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:554 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:320 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:397 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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Why Mitt Romney Was Called A Liar By Obama Campaign

WASHINGTON -– When Obama adviser David Plouffe walked into the spin room in Denver last week after the president's poor debate performance, there was little doubt that his boss had just stumbled badly.

But Plouffe spent the better part of a half-hour arguing the opposite. Romney "was on defense all night long," Plouffe insisted, surrounded by reporters standing three and four deep. Everybody knows that the job of surrogates in a spin room is to put the best face on their candidate's performance. But Plouffe's arguments didn't resemble reality.

"What Mitt Romney told the American people tonight is, I'm not going to ask anything from anybody like myself: millionaires and billionaires. I'm going to stick it to the middle class. Ok? He couldn't have been clearer about that," Plouffe said.

Plouffe was trying to bend reality to his view of the facts. But in fact, during the debate, Romney had stressed his intent to cut tax rates for middle-class Americans.

"My view is that we ought to provide tax relief to people in the middle class. But I’m not going to reduce the share of taxes paid by high-income people," Romney said. "Middle-income families are being crushed. And so the question is how to get them going again, and I’ve described it."

He said the same thing again moments later: "No tax cut that adds to the deficit. But I do want to reduce the burden being paid by middle-income Americans."

Obama was nonplussed during the debate. And his advisers and campaign spokespeople afterward devised a strategy to say that Romney was simply lying.

"I give him credit for a strong performance. I give him an 'F' for being honest with the American people," Obama adviser David Axelrod said on MSNBC's "Morning Joe" the next day.

Plouffe, who made a rare appearance in the press cabin on Air Force One the day after the debate, went even further, calling Romney a liar.

"We thought it was important to let people know that someone who would lie to 50 million Americans, you should have some questions about whether that person should sit in the Oval Office," Plouffe said, understating the debate's broadcast audience by almost 20 million.

The liar tag was based largely on Romney's characterization of his tax plan. Despite the Obama campaign's howls of protest, there's an actual debate about whether Romney's plan would do what he says. It may be that he's promising too much, but it's not as cut and dry as the Obama campaign wants to make it sound.

"I also don’t think he won by lying," wrote Ezra Klein of the Washington Post. "He mostly danced around the ambiguities in his policies in a way that appeared to confound Obama."

Obama's campaign has characterized Romney's proposal as a $5 trillion tax cut that will do one of two things: explode the deficit or require higher taxes for the middle class.

Romney repeatedly and forcefully rebutted this assertion in the debate, and much of the public discussion over the last few days has centered around his tax plan.

Yet the Obama campaign's ferocious response since then has been motivated by more than just a disagreement over policy details. The president, Axelrod, Plouffe, campaign manager Jim Messina and others realized that Romney had done a good deal on Wednesday to tear up the nightmarish portrait of him that they have been painting for months.

Romney the out-of-touch, lame, blood-sucking elitist –- or the "wealthy plutocrat married to a known equestrian," as former Mississippi Gov. Haley Barbour jokingly put it -– morphed into Romney the optimistic, energetic, detail-oriented turnaround specialist. And with a good touch of empathy for the poor and working class to boot.

It didn't help that Obama couldn't bring himself to look up from his legal pad or to smile for most of the night.

Obama's top advisers could see that Romney had deconstructed the narrative they've been telling since the summer. And they know that much of winning over the voters who will decide a swing state like Ohio depends on whether those men and women feel like they can trust Romney. The story of each candidate is important, not just their 12-point plans for this or that subject area.

Plouffe and Axelrod have driven Romney's negatives up with attacks on his career in private equity, on his wealth, and on his refusal to release more than two years of tax returns. But Romney's debate performance did a lot to undo negative perceptions of him. Multiple polls on Sunday and Monday showed him gaining ground, and in some cases overtaking, Obama nationally and in key swing states.

A Public Policy Polling survey of Virginia voters showed Obama's lead had shrunk to three points from five points. It also showed Romney with a 10-point turnaround in his personal favorability rating, from 47 percent approval and 49 percent disapproval to a 52/44 rating.

Plouffe, in the spin room, was already practicing a version of the pep talk he has likely since delivered to nervous campaign staff, donors, maybe even the president himself. Essentially, it boiled down to a belief in repetition and message discipline.

"For you guys who have been in battleground states and spent time with the president, you understand what we have been communicating to the voters. Romney's tax cut plan is a problem for the middle class. We've been doing that for months," Plouffe said.

"So there's a consistency to the argument the president is making to the American people," Plouffe concluded.

In other words: we've pounded and pounded and pounded with the same effective message. And that's what we're going to continue to do.

But as the debate demonstrated, message, tactics and strategy only go as far as the candidate is willing to take them. And Obama did not deliver. There are two more debates where he will have to. And nobody doubts that the president will be more aggressive on Oct. 16 at Hofstra University in New York. The X-factor is how Romney responds.

As for the details of Romney's tax plan, he says he would reduce individual tax rates for all incomes by 20 percent and cut the corporate rate from 35 percent to 25 percent. A combination of economic growth from a simpler, less onerous tax code and the closing of loopholes and deductions would add up to deficit neutrality, Romney argues.

The Obama campaign finds this ludicrous. But as CBS News' John Dickerson pointed out to Axelrod on Sunday, it's hard to call something a flat-out lie when the resulting argument involves which budget baseline you're working from.

http://www.huffingtonpost.com/2012/10/08/mitt-romney-liar-obama-campaign_n_1949732.html

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