Ex-Wayne County Official Guilty In Kickback Probe
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.
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