Asst. Wayne County CEO Grundy suspended as FBI probe expands to kickback allegation
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Copyright 2011 Scripps Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Posted: 10/27/2011
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By: Ross Jones
(WXYZ) DETROIT - Wayne County Asst. CEO Mike Grundy has been suspended by County Executive Robert Ficano, it was disclosed today. Grundy will be paid while on leave.
"There have been many media inquiries about alleged illegal activities and subpoenas involving ProCare and Mr. Michael Grundy," Ficano said in a statement today.
"Wayne County has not been subpoenaed in regards to these activities. As a precaution I felt it was necessary to place Mr. Grundy on administrative leave, effective immediately while we meet with counsel on how to best proceed,"
Multiple sources say that agents with the FBI have met with officials from ProCare Plus, a Detroit based healthcare provider for Medicaid recipients. The company is part of a county initiative called Wayne County Health Choice, a program that offers local businesses and individuals the opportunity for low cost healthcare.
Action News has learned that agents with the FBI met recently with Pro Care Plus CEO Robin Cole. The feds are digging into allegations that Cole was pressured to provide kickbacks in the thousands of dollars to the man in charge of Wayne County Health Choice, Assistant CEO Michael Grundy.
A source tells Action News that the FBI also visited the county’s offices at 640 Temple, where Wayne County Health Choice is located.
Earlier this month, State Rep. John Olumba (D-Detroit) alleged that it was Grundy who pressured him to call off his request for an Attorney General investigation into Turkia Mullin’s $200,000 severance. Grundy denied the allegation, but he’s known inside the county’s headquarters as a forceful and aggressive figure.
In 2011, Grundy was elevated to assistant county CEO. His salary jumped from 96,000 to $140,000. When Action News spoke to Grundy yesterday, he said he had no idea why the FBI would be looking into his relationship with ProCare Plus. He insisted that there was nothing improper.
If you have a tip for the Action News Investigative Team, contact us at tips@wxyz.com or at (248) 827-9466.
Copyright 2011 Scripps Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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