The Detroit Free Press 02/26/12 M.L. Elrick
“Records Trace web of No Bid dealing”
Hours before FBI agents delivered subpoenas last fall seeking records from Wayne County headquarters, the director of a county health care program for needy people wired $400,000 of the program's money to a fledgling IT company that apparently did no work for the payment, according to records the Free Press obtained.
Though the company was paid in full before the work was completed, there is no evidence in records the Free Press obtained from HealthChoice that Medtrix, founded by Grundy's childhood friend Keith Griffin, did any work for the money.
On Dec. 2, the FBI sent subpoenas to HealthChoice for records related to Grundy, Griffin and Griffin's companies.
By then, Grundy, a top aide to Wayne County Executive Robert Ficano, already had been fired for failing to cooperate with an internal county investigation of his dealings.
The Medtrix deal raises questions that include whether the company was qualified to do the job for which it was paid and why payment was made before work was completed.
State records show that Griffin incorporated Medtrix less than a year before landing the HealthChoice deal.
Common Sense Review
Once again Detroit is spotlighted for fraud and corruption as the City seeks fund from the state to help in their financial problems. It seems the patients are running the asylum.
It amazes me that in 2012, these municipalities have not installed oversight to prevent this incident.
It will be interesting if Wayne Co. will now bring in oversight after this incident and the extortion case with Wayne Co executive aid Tahir Kazmi.
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