On Tuesday June 4 Michael Grundy pleaded guilty to wire fraud involving the transfer of $400,000 to Medtrix, Grundy’s company, from Wayne County’s health insurance agency. Grundy is a former Assistant Wayne County Executive; he was fired by Robert Ficano in late 2011 when news of the FBI investigation involving Grundy came to light.
According to a news article at Mlive.com, Grundy allegedly arranged the transfer of the money to his company to be used for implementing an electronic medical records system. However, it was revealed that another company was already providing this service. Grundy was initially charged with obstruction of justice, extortion, and accepting kickbacks involving another $1.7 million that was allegedly transferred to companies he owned.
In March of 2012 a press release revealed that Grundy and Keith Griffin, a longtime friend, had worked together to bilk Wayne County HealthChoice in order to enrich their own lives. Griffin allegedly invoiced HealthChoice for advertisement and other services rendered by Advertise Me for more than $1 million. The press release indicates that Grundy received a kickback from payments made on the inflated invoices to Advertise Me from HealthChoice.
Ultimately, Grundy is alleged to have abused his powers as Assistant Wayne County Executive to discreetly engage in illegal activities and obtain kickbacks, according to a statement made by Erick Martinez, IRS Criminal Investigation Special Agent in Charge. Martinez said that IRS Criminal Investigation is committed to ensuring that public officials who line their pockets with money gained through their positions are deprived of the financial gains illegally obtained, and brought to justice.
In 2012, Grundy’s vehicles, Detroit home, and approximately $7,700 were seized by the government.
Michigan fraud lawyers know that individuals who are convicted of theft-related crimes on a federal level face extremely serious consequences. Wire fraud is a federal crime; individuals may face prison time of up to 20 years and fines of up to $1 million depending on the circumstances.
Have you been arrested for wire fraud or any theft related offense, or are you under investigation? It is imperative that you secure the support and legal guidance of a capable and aggressive Michigan criminal defense attorney right away.