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Grundy Pleads Guilty to Honest Services Wire Fraud

Breaking News - Original 06-04-2013 Hits:301 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:344 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:1694 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:541 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:311 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:385 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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Biden’s aggressive vice presidential debate performance boosts Democratic base

Vice President Joe Biden went into last night’s debate with a heavy burden to revive the hopes and passion of the Democratic base, who were becoming dispirited after a listless performance by President Barack Obama at last week’s debate and the media onslaught and polls that followed.

His mission was to aggressively expose the Romney/Ryan platform as full of falsehoods, and get out a series of key talking points: the “47 percent,” the saving of General Motors, the refusal of congressional Republicans to work with President Obama, and their slavish devotion to an extreme ideology on taxes, abortion, and Grover Norquist. Biden managed to get those points out, in one instance, during a single answer. Asked by the moderator, veteran ABC reporter Martha Raddatz, what the Obama administration would do to get unemployment under 6 percent, and when, the vice president reeled off an exhaustive (and exhausting) bill of particulars:

… I don’t know how long it will take. We can and we will get it under 6 percent. Let’s look at — let’s take a look at the facts. Let’s look at where we were when we came to office. The economy was in free fall. We had — the great recession hit; 9 million people lost their job; $1.7 — $1.6 trillion in wealth lost in equity in your homes, in retirement accounts for the middle class.

We knew we had to act for the middle class. We immediately went out and rescued General Motors. We went ahead and made sure that we cut taxes for the middle class. And in addition to that, when that — when that occurred, what did Romney do? Romney said, “No, let Detroit go bankrupt.” We moved in and helped people refinance their homes. Governor Romney said, “No, let foreclosures hit the bottom.”

But it shouldn’t be surprising for a guy who says 47 percent of the American people are unwilling to take responsibility for their own lives. My friend recently in a speech in Washington said “30 percent of the American people are takers.”

These people are my mom and dad — the people I grew up with, my neighbors. They pay more effective tax than Governor Romney pays in his federal income tax. They are elderly people who in fact are living off of Social Security. They are veterans and people fighting in Afghanistan right now who are, quote, “not paying any tax.”

I’ve had it up to here with this notion that 47 percent — it’s about time they take some responsibility here. And instead of signing pledges to Grover Norquist not to ask the wealthiest among us to contribute to bring back the middle class, they should be signing a pledge saying to the middle class we’re going to level the playing field; we’re going to give you a fair shot again; we are going to not repeat the mistakes we made in the past by having a different set of rules for Wall Street and Main Street, making sure that we continue to hemorrhage these tax cuts for the super wealthy.

And with that, he became an instant hero of the Democratic base.

Biden used his age and experience to his advantage, making the youthful-looking 42-year-old congressman appear much younger, and far from the star who once threatened to overshadow Mitt Romney. When Biden repeatedly referred to the prime minister of Israel as “Bibi,” and flaunted his foreign policy acumen, it stood in stark contrast to Ryan’s faltering knowledge of Afghanistan.

The vice president was dismissive of his young opponent, turning the term “my friend” into the prelude to an insult. He constantly brought the focus back to Ryan’s record in Congress. (Raddatz apparently ignored an apparent request from the Romney campaign that Ryan be addressed as “Mr. Ryan” rather than “congressman,” which one can only assume is due to Congress’ abysmal approval ratings.) He brought up the “47 percent” remarks made by Romney at a private fundraiser in May, no fewer than five times, and literally laughed when Ryan attempted to make a case for Romney’s tax plan, or the ticket’s plans for Medicare. And Ryan was forced to own both the Medicare voucher plan, and his desire to partially privatize Social Security.

Republicans are crying foul on Biden’s derisive laughter and interruptions, accusing Biden of being “disrespectful” to his opponent. There’s a case to be made that Biden was over the top during the first 30 minutes of the debate — though the base, again, loved it. But more importantly, those who last week (including much of the media) praised Romney’s constant interruptions and diminution of the moderator, PBS’ Jim Lehrer, are in an awkward place criticizing Biden for doing the same to Ryan. It’s also hard to imagine an Obama surrogate explaining Ryan’s debate performance as caused by his being “lazy,” as Romney surrogate John Sununu described Obama after last week’s presidential debate, with nary a walk-back from the campaign.

During a particularly pointed riff, Biden looked into the camera and asked the television audience to “trust your instincts” on whether Americans should trust Medicare to the party that passed it, or to the party that wants to privatize it, along with Social Security. And Biden decimated Ryan’s argument on taxes, in part because Ryan refused to provide specifics on how his and Romney’s tax cuts for the wealthy would be paid for, and in part by the deployment of a classic Biden closing line:

BIDEN: Now, there’s not enough — the reason why the AEI study, the American Enterprise Institute study, the Tax Policy Center study, the reason they all say it’s going — taxes go up on the middle class, the only way you can find $5 trillion in loopholes is cut the mortgage deduction for middle-class people, cut the health care deduction, middle-class people, take away their ability to get a tax break to send their kids to college. That’s why they arrive at it.

RADDATZ: Is he wrong about that?

RYAN: He is wrong about that. They’re…

BIDEN: How’s that?

RYAN: You can — you can cut tax rates by 20 percent and still preserve these important preferences for middle-class taxpayers…

BIDEN: Not mathematically possible.

RYAN: It is mathematically possible. It’s been done before. It’s precisely what we’re proposing.

BIDEN: It has never been done before.

RYAN: It’s been done a couple of times, actually.

BIDEN: It has never been done before.

RYAN: Jack Kennedy lowered tax rates, increased growth. Ronald Reagan…

BIDEN: Oh, now you’re Jack Kennedy?

Far from being Kennedyesque, Ryan at times during the debate seemed like an earnest young college student who dutifully memorized his lessons for oral exams, only to find out he would be debating his teacher. When Biden reminded him of the two letters the congressman had mailed the vice president asking for stimulus funds so that jobs could be created in his Wisconsin district, all Ryan could do was grimace — and drink a lot of water. A lot of water.

BIDEN: … And I love my friend here. I — I’m not allowed to show letters but go on our website, he sent me two letters saying, “By the way, can you send me some stimulus money for companies here in the state of Wisconsin?” We sent millions of dollars. You know…

(CROSSTALK)

RADDATZ: You did ask for stimulus money, correct?

BIDEN: Sure he did. By the way…

RYAN: On two occasions we — we — we advocated for constituents who were applying for grants. That’s what we do. We do that for all constituents who are…

(CROSSTALK) BIDEN: I love that. I love that. This was such a bad program and he writes me a letter saying — writes the Department of Energy a letter saying, “The reason we need this stimulus, it will create growth and jobs.” His words. And now he’s sitting here looking at me.

Democrats — many of whom were cringing at the possibility that he might drop a classic gaffe during the debate — were looking at Biden too, and it’s fair to say they liked what they saw. Biden accomplished his mission of firing up the base during the debate, and he won handily on the points most Americans are voting on: taxes, the future of Medicare and Social Security, who will control a woman’s healthcare decisions, and whether the stimulus created jobs. Ryan didn’t implode, and it’s fair to say the section on the attacks on the U.S. mission in Benghazi, Libya, as well as his personal accounting of his faith were strong moments for the Republican contender, but he clearly lost the debate.

And Biden, who has always been a strong, and underrated, debater, did something else: he burnished his own brand as, next to Bill Clinton, the strongest spokesman for Democratic populism among the Obama surrogates.

Now, the onus is on President Obama to build on Biden’s big night when it’s his turn at bat next Tuesday at Suffolk University.

UPDATE: the Obama campaign is already out with a video highlighting what it calls Ryan’s “thirsting for answers” on important issues in the campaign.

http://thegrio.com/2012/10/12/biden-boosts-the-base/1/

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