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Grundy Pleads Guilty to Honest Services Wire Fraud

Breaking News - Original 06-04-2013 Hits:333 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:555 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:398 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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Factoring the factors in Detroit’s mayoral race

Factoring the factors in Detroit’s mayoral race

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Like the battle of Armageddon, the campaigns of the various candidates seeking to be Detroit’s next mayor are lining up support, building political ammunition with zest and ready to duke it out in what is to become the most hotly contested mayoral race in decades.

It’s political show time in Detroit this summer as the battle for the next leadership of a city in transition is decided by voters after listening to those who say they can steer the city ship safely to shore.

Why?

Because for the first time in many years a White candidate, Mike Duggan, former CEO of the Detroit Medical Center, with an expected unmatched campaign war chest, stands the chance of taking up residence in the Manoogian Mansion.

Because an alternative candidate Benny Napoleon, the Wayne County Sheriff with strong name recognition in Detroit, also stands the chance of becoming mayor of a city he once served as chief of police.

A recent poll showed these two candidates leading other contenders, including State. Reps. Fred Durhal and Lisa Howze.

This election, with all of the makings of an epic political story as Detroit writes another chapter in its future, is also about the community crusaders, business ambassadors and political spokespersons who will be negotiating on behalf of the candidates.

And so far for each of the candidates or would-be candidates, we are seeing or hearing familiar names in the political corridors of power in Detroit as individuals who are either deciding or have already made up their minds about who to support in this mayoral election.

For example, when Napoleon announced his exploratory committee a few weeks back, an army of ministers with a long track record of political activism in Detroit, joined him at the press conference, including Rev. Kenneth Flowers. But it was also a show of allegiance to Napoleon’s father, who is a minister, while underscoring the sheriff’s deep roots.

And most notable in that array of supporters for Napoleon is Greg Mathis, the nationally acclaimed TV judge whose story of growing out of the trenches of Detroit to becoming an internationally renowned African American leader will come to bear on the campaign.

Mathis will bring with him his financial largesse, celebrity, strongly opinions and the broad respect he has across Detroit and the country.

Mathis is upbeat about the campaign and when you talk with him he seems ready for the political showdown this summer.

Another supporter of Napoleon is UAW Vice President Jimmy Settles, a vocal voice on labor issues in Detroit who told the Detroit News that there was no question he would be supporting Napoleon if the sheriff puts his hat in the ring. With Settles strongly behind Napoleon, it signals potential mass support from other labor groups.

For Duggan, who was born and raised on Detroit’s west side and later lived in Livonia until recently moving back into the city, one of his leading ambassadors and top strategists is Conrad Mallett Jr., a former chief justice of the Michigan Supreme Court.

Mallett is a known veteran of the administration of the legendary Mayor Coleman Alexander Young and throughout the years has been at the center of every political movement in Detroit, with a mastery of Detroit politics and helping to orchestrate chapters in Detroit politics including the Kwame Kilpatrick administration.

I ran into him at a reception over the weekend and he confidently made it clear to me that he was on the winning side and that this election will show the difference between Duggan and Napoleon if it sticks to the issues and not race politics.

Duggan also has Bryan Barnhill, the 26-year-old brilliant former chief of staff to Detroit City Council President Charles Pugh. The Harvard educated Barnhill, who decided to return home after his education from Cambridge, is Duggan’s campaign manager and the connecting link to a pool of young people in Detroit for the campaign.

Barnhill represents the generation that has not been talked to or included fully in Detroit politics since the Kilpatrick era. The young professional class returning to Detroit is integral to the survival of the city. One need not look far to see how Facebook and Twitter are espousing the power of this professional class.

Rep. Durhal also has been garnering support and among them is Wayne State University Board of Governor’s member Gary Pollard who also was former chief of staff to Wayne County Commissioner Martha Scott during her term as a state senator.

Pollard, a community advocate with broad knowledge of issues, has been beating drums and pounding the pavement for Durhal who brands himself as a turnaround guy because of his work in Highland Park as economic development planner and other urban projects he handled before going to Lansing.

Lisa Howze — the only number cruncher-certified public accountant in the group of candidates running for mayor — has on her team a veteran of the Detroit Police Department and one-time police chief James Barren whose tenure under Mayor Dave Bing was short-lived.

Barren, who is popular on the police force, is advising Howze on crime, an issue that will be at the forefront of the mayoral debates.

Her campaign director is an energetic youth campaigner, Brandon Jessup, who worked on the Obama campaign in Michigan as well as the NAACP and other civil rights campaigns in the state.

Above all else one issue that is sure to fire up this year’s mayoral campaign is Duggan’s candidacy. Can a White candidate who is no stranger to Detroit politics, having served as Wayne County Prosecutor, make a credible claim on the mayorship?

The answer belongs to voters who will be buffeted with messages this summer regarding who to support even as they struggle with basic living standards, a shortage of basic city services and rampant violent crime.

The class divide is also a potential political weapon in this campaign. Napoleon alluded to it when his remarks about Detroit’s upscale Palmer Woods not being a part of Detroit went viral and grabbed everyone’s attention instantly about the mayor’s race.

The Wayne County Sheriff later said the issue wasn’t about excluding Palmer Woods but, rather, underscoring the mass underclass in Detroit whose experience is different from those who live in affluent neighborhoods across the city.

Duggan, who moved into Palmer Woods, has conducted more than 40 house meetings so far with residents from mostly impoverished areas of the city, hearing their concerns, needs and challenges.

He said the meetings have been enlightening and the homeowners have been welcoming, for the first time in years seeing a political candidate conducting private meetings in their living rooms about how to improve their lives.

On the other hand, Napoleon has initiated a listening tour, talking to residents about what they want their next mayor to do and the issues that need to be tackled in Detroit.

However, one thing is clear. All of the candidates running for mayor are no strangers to public service. Each has a record — an interesting record — to run on and thus their résumés will be scrutinized by everyone who has a stake in this election. And raising money will be key, with Duggan, a former CEO, expected to have the backing of most of the business leaders.

Bankole Thompson is editor of the Michigan Chronicle and the author of the forthcoming book “Rising From the Ashes: Engaging Detroit’s Future With Courage.” His book “Obama and Black Loyalty,” published in 2010, follows his recent book, “Obama and Christian Loyalty” with an epilogue 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. E-mail This email address is being protected from spambots. You need JavaScript enabled to view it. or visit his personal page at www.bankolethompson.com.

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