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Grundy Pleads Guilty to Honest Services Wire Fraud

Breaking News - Original 06-04-2013 Hits:318 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:350 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:1706 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:549 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:316 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:392 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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Obama Speaks At Sandy Hook Vigil

Speaking before an auditorium of grieving parents, community members and others there to mourn the killing of 20 first graders and six educators from Newtown, Conn., President Barack Obama pledged Sunday to use the power of the office he occupies to end the epidemic of gun violence shaking the nation.

WASHINGTON -- Speaking before an auditorium of grieving parents, community members and others there to mourn the killing of 20 first graders and six educators from Newtown, Conn., President Barack Obama pledged Sunday to use the power of the office he occupies to end the epidemic of gun violence shaking the nation.

"We're not doing enough," the president said. "And we will have to change."

"We can't tolerate this anymore," he added. "These tragedies must end, and to end them, we must change. We will be told that the causes of such violence are complex, and it is true. No single law, no set of laws can eliminate evil from the world or prevent every senseless act of violence in our society. But that can't be an excuse for inaction. Surely we can do better than this."

The speech was the fourth and most direct that the president has given in the wake of a major instance of gun-related violence. His day had started with a trip to see his daughter, Sasha, at her dance rehearsal at the Music Center at Strathmore in North Bethesda, Md. And as he took the stage at Newtown High School, in a quiet New England town tucked in the southwestern corner of Connecticut, it was evident that he still occupied the mindset of a father frightened at vulnerability of young children.

"If there's even one step we can take to save one child, or one parent, or one town from the grief that has visited Tucson, and Aurora and Oak Creek and Newtown and communities from Columbine to Blacksburg before that, then surely we have an obligation to try," the president told the auditorium.

"In the coming weeks, I'll use whatever power this office holds to engage my fellow citizens, from law enforcement to mental health professionals to parents and educators in an effort to prevent more tragedies like this," he said. "Because what choice do we have?"

These moments have become disturbingly regular for this president. His speech in the aftermath of the Fort Hood shootings touched on the concept of justice for such heinous acts. His address to the victims of the Tucson, Ariz., shooting that nearly took former Rep. Gabrielle Gifford's (D-Ariz.) life focused on the need to renew the human spirit in the wake of seeming madness. His talk before the National Urban League convention following the shooting in Aurora, Colo., rested on the notion of community and how society can protect and better itself even amid epidemics of gun violence.

The address in Newtown offered a more stern call for cultural, or even legislative, change.

"We can't accept events like this as routine," he said. "Are we really prepared to say that we're powerless in the face of such carnage? That the politics are too hard? Are we prepared to say that the violence visited on our children year after year after year is somehow the price of our freedom?"

But like the three speeches before, the president stayed vague on the methods of seeing that change through. This could very well be out of a sense of proper setting. A vigil isn't always the best time to make policy points. But that may not be much comfort to those who are tired of the debate being ducked.

Obama's advocacy for gun control has, to this point, had an inverse relationship with his rise in elected politics. The state politician who once touted a comprehensive plan to get guns off the streets of Chicago was absent from the debates once he came to Washington. The Senate candidate who said it was a "scandal" that the assault weapons ban was allowed to lapse in 2004 became a president who pledged to pursue gun-control reform only within existing law.

Over time, caution was how the president became defined on the issue, his eloquent words of sympathy no longer sufficing.

"The president's tears were nice," said Toby Hoover, director of the Ohio Coalition Against Gun Violence, shortly after Obama addressed the Newtown shootings in a statement on Friday. Hoover lost her husband to gun violence when she was 30 years old, and was attending a candlelight vigil outside the White House gates. "But he was supposed to lead us. He told us that if we elected him, he'd give us hope. I need hope."

Whether the president's remarks on Sunday will change the viewpoints of Hoover or others -- or whether it will alter the contours of the gun control debate -- will be clearer in the weeks ahead. But certainly there is more room to operate.

Americans' support for stricter gun control laws appeared to grow in the days following the shooting at Sandy Hook Elementary School. According to a poll conducted by YouGov and The Huffington Post, 50 percent of respondents support stricter gun control laws, up from 43 percent in August.

This January, congressional Democrats plan to introduce identical bills in the House and Senate to renew the 1994 Federal Assault Weapons Ban, which was allowed to lapse in 2004 after 10 years. California Sen. Dianne Feinstein (D) said on Sunday that the bills would be introduced on the first day that Congress reconvenes next year.

Whether the ban would have changed the course of the Sandy Hook shootings is a complicated question. Authorities said Sunday that a Bushmaster .223 assault rifle was one of the weapons that 20-year-old Adam Lanza used to commit Friday's murders, and that it was purchased legally.

Connecticut has a statewide ban on certain types of assault weapons, but in the decade since the expiration of the federal assault weapons ban, gun manufacturers have devised numerous ways to get around state bans like the one in Connecticut by making small alterations.

Feinstein initially called for renewing the assault weapons ban in July, following the massacre of 12 people at a movie theater in Aurora, Colo. In the wake of this and other instances of gun violence, the White House has usually reaffirmed the president's support for the legislation, which President George W. Bush declined to renew when it expired. But that support is always accompanied by lines -- usually from the serving press secretary -- that the administration would work within existing law, rather than revisit old ones. Obama has actually loosened gun restrictions while in office and declined to pursue others that were recommended by his own Justice Department.

Feinstein and her caucus face a powerful and well-funded opposition to any legislation designed to curtail access to firearms.

Led by the National Rifle Association, pro-gun lobbying groups in Washington have donated more than $5 million to House and Senate candidates since the assault weapons ban expired in 2004. In 2012, the NRA's political action committee made more than $600,000 in federal campaign donations, overwhelmingly directed towards Republicans. The NRA has been largely silent in the wake of Friday's mass shooting, and an NRA spokeswoman said that the group would not release any comments "until the facts are thoroughly known."

In the meantime, the pro-gun lobby faced an ongoing barrage of criticism on Sunday from a wide range of public figures. As Feinstein was calling on Congress to act on gun control, across town, the dean of the Washington National Cathedral, the Very Rev. Gary Hall called on people of faith to "serve as a counterweight to the gun lobby," and "stand together with our leaders and support them as they act to take assault weapons off the streets."

http://www.huffingtonpost.com/2012/12/16/obama-speaks-at-sandy-hoo_n_2312869.html

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