By Tresa Baldas From Detroit Free Press

Ex-Wayne County official Michael Grundy should go to prison for 14-17½ years for stealing “from the poor” to pamper himself with perks like $10,000 hair plugs, a Mustang Convertible, a Caribbean time share and nearly $2,000 in goods from Zingerman’s Bakehouse, federal prosecutors said in a court filing today.

“In essence, Grundy stole from the poor to bankroll his luxury lifestyle,” the government wrote in a sentencing memo, in which it urged a federal judge to punish Grundy severely for bilking hundreds of thousands of dollars from an insurance program for people in need.

In pushing for a stiff sentence, prosecutors argued that “Grundy 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.”

Grundy, a fired former top aide to Wayne County Executive Robert Ficano, pleaded guilty last June to fraud over his role in a 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. Grundy’s lawyer, William Swor, has asked for a significantly shorter sentence: 37-46 months in prison.

Grundy’s lawyer, William Swor, declined to elaborate on the government’s claims in the sentencing memo, saying only: “We’re certainly contesting these claims.”

Prosecutors argued in court documents that Grundy should face a stiff punishment for several reasons: He was the ringleader of a criminal scheme; “a public official in high level decision making position,” and the value of his kickbacks “easily exceeded $1 million.”

Grundy has alleged that the large amounts in cash, cashier’s checks and money orders that Griffin gave him him were loans.

“Even if that were believable (it is not) … when it comes to bribery schemes, loans are considered things of value,” prosecutors wrote in their memo today.

Prosecutors also argued that Grundy deceived and used “his own fiancee (now is wife) for his money laundering activities.” They wrote that Grundy misled his fiancee into believing that in addition to his county salary, he earned money from a consulting business and from a thriving landscaping business.

Grundy also lied to his finacée, they wrote, about paying for their house with money from a retirement account. They said that the fiancée did not learn until after Grundy was indicted that a $34,000 cashier’s check in which she was listed as the remitter was used to pay for the house. His fiancée also did not know that she was helping him buy a car with laundered fraud proceeds, prosecutors wrote.

The government says that Grundy “selfishly” bilked insurance programs for for people in need “so that he could have a constant stream of thousands of dollars of cash on hand; to purchase and renovate a house, and to purchase cars, appliances, a Caribbean time share, hair plugs and more. While enjoying these unearned riches, 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 be sentenced May 8.

According to Swor, the two sides disagree about some key issues that affect Grundy’s sentencing guidelines. Among the issues is whether Grundy was acting as a public official when he committed a crime. Swor contends he was not. The two sides also disagree on whether Grundy participated in one act of bribery or multiple acts, as the government argues. And they diverge on how much money was lost: The government says more than $1 million, and Grundy says $200,000.

“He certainly didn’t receive a $1-million benefit, and had no intention of receiving a $1-million benefit,” Swor has previously stated.

Griffin pleaded guilty in May 2013 to his role in the scheme. He said Grundy used his position as executive director of HealthChoice to authorize fraudulent payments to two of his companies, and he kicked back payments to Grundy.

PHOTO: Michael Grundy. / U.S. Marshal Service

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