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Ex-Wayne County Official Guilty In Kickback Probe

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DETROIT (WWJ/AP) – A former high-ranking Wayne County official has pleaded guilty in a kickback scheme involving an insurance program.

Michael Grundy pleaded guilty Tuesday in Detroit federal court to a conspiracy charge.

Grundy was executive director of HealthChoice, a county health program for the needy. He also was an assistant county executive until fall 2011.

Grundy was accused of enriching himself by having a contractor inflate invoices and pass him the cash.

According to a 25-count Federal indictment, Grundy conspired to bilk HealthChoice for more than $1 million through a series of kickback contracts with corporations doing business with the program, which he set up.

The indictment also charged that Grundy used “deception and fear” to extort a company that had contracts with HealthChoice.

Co-conspirator Keith Griffin pleaded guilty a year ago, admitting he provided the kickbacks.

There’s wide disagreement between prosecutors and Grundy’s attorney about the potential length of his sentence.

He returns to court on Sept. 16.

(TM and © Copyright 2013 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2013 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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