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Grundy Pleads Guilty to Honest Services Wire Fraud

Breaking News - Original 06-04-2013 Hits:337 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:355 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:1718 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:556 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:322 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:401 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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Oprah's Interview with Lance Armstrong Airs Tonight

Appetites already whet by Lance Armstrong's reported admission to Oprah Winfrey of performance-enhancing drug use, we now eagerly wait to see what else the disgraced cycling legend puts on the table with the talk show queen.

(CNN) -- Appetites already whet by Lance Armstrong's reported admission to Oprah Winfrey of performance-enhancing drug use, we now eagerly wait to see what else the disgraced cycling legend puts on the table with the talk show queen.

The first part of their 2 1/2-hour interview airs on Winfrey's OWN cable network and the Internet Thursday at 9 p.m. ET. Whatever transpires, Armstrong's carefully constructed public persona has been altered forever.

Livestrong: Come clean

The cancer charity Armstrong founded urged the fallen star to come clean, ahead of the interview airing.

"We expect Lance to be completely truthful and forthcoming in his interview and with all of us in the cancer community," Livestrong said in a statement released Wednesday. "We expect we will have more to say at that time."

In October, Armstrong resigned as chairman of the charity he founded "to spare the foundation any negative effects as a result of controversy surrounding my cycling career," according to a statement posted to the group's website at the time. A few weeks later, he left the board entirely amid concerns that his involvement was harming the charity.

On Monday, he visited the charity and "expressed his regret for the stress the team suffered in recent years as a result of the controversy surrounding his cycling career," the organization said in a statement.

"Inspired by the people with cancer whom we serve, we feel confident and optimistic about the Foundation's future and welcome an end to speculation," the group said.

Postage due

As part of his public reclamation project, Armstrong might pay back part of the money he received from the U.S. Postal Service, which sponsored the cyclist and his team while he was winning six of his Tours de France, a source familiar with the situation said.

The source said Armstrong was in negotiations to repay some of the money.

ESPN reported in 2011 that the agency, which is not taxpayer funded, paid more that $31 million to sponsor the team during the final four years of its agreement.

A spokeswoman for the postal service said: "We are not in a position now to discuss any of the legal issues associated with these developments and the prior relationship between the U.S. Postal Service and Mr. Armstrong, but we will do so at an appropriate time."

Armstrong won the Tour de France a record seven straight years, beginning in 1999. The postal service sponsored the team from 1996 to 2004.

Slipping from his pedestal

The court of public opinion came down decidedly against Armstrong this week after he acknowledged using performance-enhancing drugs after years of denials.

"This guy is a loser and a liar!!" Melinda Morgan said on CNN's Facebook page. "He is not sorry for what he did, he is sorry that he got caught!!"

Margaret Midkiff said there's no hope of Armstrong reviving his career. "He's lied to folks way too long."

Cycling fan Beverlee Ring said she has "mixed feelings" about the Winfrey interview.

"He should apologize and do whatever it takes to begin the healing," she said in a submission to CNN's iReport. "Now is when the real work begins for Lance."

But Gretta Michellé said it's too late for redemption.

"He had the opportunity to be honest from the beginning and he should have," she posted on the Facebook page. "Winning was more important."

Sanctions still stick

Armstrong's reported admissions, if true, would be a stunning reversal after years of vigorous denials, including lawsuits filed against accusers.

But it still will not be enough to reverse the lifetime ban and other sanctions that have kept him from participating in some triathlons, the three-event sport he took up after retiring from cycling.

"Only when Mr. Armstrong makes a full confession under oath, and tells the anti-doping authorities all he knows about doping activities, can any legal and proper process for him to seek any reopening or reconsideration of his lifetime ban commence," said David Howman, director general of the World Anti-Doping Agency.

Critics find vindication

Those who spoke out against Armstrong at the height of his power and popularity, not only felt his wrath, but the wrath of an adoring public.
Now, stripped of endorsement deals and his titles, those who did speak out are feeling vindicated.

Former colleagues, assistants and journalists who ran afoul of the Armstrong machine, complained of being blackballed, ostracized and the object of lawsuits designed to shut them up.

"Eleven years of bullying and threats," Kathy LeMond, the wife of cyclist Greg LeMond -- one of Armstrong's earliest targets -- wrote on Twitter. "LA is now the Greatest Fraud in the History of Sports."

Once a close friend of Armstrong, cyclist Frankie Andreu had a falling out with him after his wife, Betsy, began to cooperate with a reporter working on a book about doping allegations against Armstrong.

She recently told Cycling News that "grown men were torn to shreds by Armstrong," and said she was "extremely grateful" to the U.S. Anti-Doping Agency for its investigation that resulted in a lifetime ban for Armstrong and loss of his seven Tour de France titles.

'What Joe Public thinks of me I don't care," Andreu told the New York Daily News. "I care what my family and close friends think of me. When it affects my husband's ability to work then it's grossly unfair. Who knows how many jobs he lost because I refused to lie to protect Lance."

http://www.cnn.com/2013/01/17/sport/lance-armstrong-interview/index.html?hpt=hp_t2

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