DETROIT (WXYZ) - Breaking news in the Wayne County severance scandal, former Assistant County Executive Michael Grundy has been indicted.
Grundy was once the head of Wayne County Health Choice. Grundy has been charged in a federal grand jury with receiving kickbacks and extortion.
According to the 25 count indictment, Grundy conspired to personally enrich himself and his longtime friend, Keith Griffin, by bilking Health Choice out of money.
The indictment charges that Grundy used his positions with the County and Health Choice to enrich himself and Griffin by using deception and fear to extort a company that had contracts with Health Choice.
Last November, Wayne County Health Choice board members said they were amazed that someone they thought had great credentials, Michael Grundy, was involved in questionable, and perhaps criminal, activities.
The 7 Action News Investigators reported on the federal investigation into Grundy's dealings back in October, 2011.
Shortly after our report aired, Grundy was suspended from his position as Assistant County Executive.
Wayne County Executive Robert Ficano terminated Grundy back in November. He said he terminated Grundy for not being cooperative with an internal investigation.
Grundy's attorney issued the following statement:
Michael Grundy unequivocally denies the allegations in the indictment. He has been a loyal and faithful public servant, and has given the citizens of Wayne County 100% value for every dollar paid to him.
Mr. Grundy looks forward to defending himself in court, where he is confident he will be exonerated. In the meantime, he asks that everyone withhold judgement and respect the constitutional presumption of innocence.
He also asks that you all respect his privacy, and the privacy of his family, and allow him the opportunity to defend himself in court.
We will make no further public statement at this time. Thank you for your respect and courtesy.
William W. Swor
I am extremely angry at the betrayal demonstrated by an individual who was in a position of trust, if these allegations are true. Mr. Grundy was terminated from the county on Nov. 7 of last year. Based on our own internal review of the situation and our cooperation with the federal investigation, this was not unexpected. Again, if these charges prove true, he should be held accountable and punished to the full extent of the law. We will continue to cooperate fully with federal authorities.
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