DETROIT – Former Wayne County assistant executive Michael Grundy could spend the next 14 to 17 and 1/2 years in prison after taking a plea deal in a case that accused him of accepting kickbacks when he was at the helm of the county's health care program.
In a sentencing memorandum filed Monday, federal prosecutors say Grundy abused his power as head of county health care programs by immediately starting a kickback scheme that allowed him to collect almost $700,000 in cash, cashier's checks and money orders. He was working on a scheme to get even more money through kickbacks. He also obtained a 1/3 share in a $50,000 Caribbean time share.
View/download: Sentencing memorandum for Michael Grundy
According to prosecutors, Grundy used his fiancée to launder about $120,000. Among the items purchased with that money were $10,000 hair plugs bought before the couple's wedding. The rest of the money was spent on items including floor tiles for his home, Delta Airlines flights, appliances, electronics, designer clothing -- specifically $3,135.33 paid to Louis Vuitton -- and cable bills.
Grundy took office in 2008. Prosecutors say he began scheming and stealing money almost immediately. Many of the purchases listed above were made in 2011.
He was fired from his post as aide to county Executive Robert Ficano in November 2012. He was indicted on extortion, accepting kickbacks and seven charges including money laundering and conspiracy to launder money.
Keith Griffin, who was originally charged with Grundy, pleaded guilty to charges. He testified against Grundy.
In his deal, Grundy pleaded guilty to one count of wire fraud. He is scheduled to be sentenced May 8.