Fired Ficano aide Michael Grundy sentenced to 7 1/2 years in prison for defrauding insurance program

July 01--An ex-Wayne County official was sentenced to 7 1/2 years in prison today for raiding an insurance program for the needy to pamper himself with perks like $10,000 hair plugs, a convertible Mustang and nearly $2,000 in goods from Zingerman's Bakehouse.

Michael Grundy, a fired former top aide to Wayne County Executive Robert Ficano, got a break from the judge as the government had requested a 17-year prison sentence, arguing "Grundy stole from the poor to bankroll his luxury lifestyle."

Grundy's lawyer had asked for a 36-to-47 month sentence.

U.S. District Judge Denise Page Hood gave Grundy a lot more than that -- nearly double the prison time he had requested, but still less than half the sentence prosecutors wanted.

"I thought that under all the circumstances, the punishment was severe," said Grundy's lawyer, Bill Swor, who argued that his client never stole from poor people and that he "did not personally benefit" from the alleged kickback scheme.

"He was a political person who was appointed to a political position to engage in political activity ... that doesn't excuse what he did, but it explains it," Swor said. "We're glad that the court made a careful and considered decision and did not simply adopt the government's point of view."

Grundy pleaded guilty last June to fraud in his role in a $1-million kickback scheme that bilked hundreds of thousands of dollars from an insurance program for people in need. He admitted he instructed an accountant at HealthChoice of Michigan to wire $400,000 to Medtrix, an IT company owned by his childhood friend, Keith Griffin. Grundy said he expected to get a cut of that payment.

Grundy, who was executive director of HealthChoice and an assistant county executive to Ficano, also admitted Medtrix did no work for the payment, which was supposed to be used to implement an electronic medical records system.

Grundy was fired Nov. 7, 2011, for not cooperating with a federal probe of county government. His friend, Griffin, pleaded guilty to his role in the scheme in 2013 and is awaiting sentencing.

Grundy and Griffin are among five men ensnared in the federal government's ongoing public corruption probe in Wayne County. They include: Tahir Kazmi, 49, of Rochester Hills, who was sentenced to 57 months in prison last year for taking $70,000 in bribes from a businessman who had millions of dollars in contracts with Wayne County; Wayne County appointee Zayd Allebban, who was sentenced to 41 months in prison last year for obstruction of justice; and David Edwards, Kazmi's deputy chief information officer, was sentenced to 12 months in prison for taking a bribe from a county vendor.

Grundy got the stiffest punishment. The government argued he deserved it, stating in court documents that Grundy was an unrepentant ringleader who "has not shown any remorse for the damage he caused."

"Grundy's failure to accept responsibility for the impact of his crimes is shameful," prosecutors wrote, stressing he should have known better. "Michael Grundy had education and opportunities, but he made the choice to abuse his considerable power in a manner that caused significant quantifiable and non-quantifiable harm."

The government called Grundy's crimes "deplorable," saying he "selfishly" bilked insurance programs for the needy to help himself to things like a Caribbean timeshare, a house in Detroit and appliances. By doing this, prosecutors argued, he "reduced the availability of health benefits for Wayne County's indigent and low-income residents and increased the costs of participation in HealthChoice's plans. When assessing Grundy's history and characteristics, the court should consider the deplorable nature of these crimes."

Grundy will self-report to the Federal Bureau of Prisons to begin his sentence. An actual date has not yet been set.

Contact Tresa Baldas at [email protected]

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