DETROIT (WWJ) - Two employees with the Wayne County Roads Division have been arrested and charged with the fraudulent purchase of almost 600 generators and other power equipment which they sold for personal profit, authorities said on Tuesday.
Wayne County Prosecutor Kym Worthy and United States Attorney Dawn N. Ison announced the charges against Kevin Gunn, 64, of West Bloomfield, and John L. Gibson, 54, of Detroit, who are accused of embezzling over $1.7 million in county funds in the scheme.
Worthy and Ison said the two men are charged with with conspiring to commit and committing federal program theft, wire fraud, and money laundering.
Gunn has been employed by Wayne County for 34 years and managed the Bridge Unit of Wayne County Roads Division. Gibson, a foreman in he Bridge Unit, has worked for Wayne County for 20 years, the U.S. Attorney's office said.
Both men were fired from their positions as of 4:20 p.m. Tuesday.
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The two men, with help from others, are accused of scheming to defraud Wayne County by "using taxpayer dollars to make unauthorized purchases of generators and other power equipment from retailers in Southeast Michigan which they sold for personal profit," authorities said.
Officials said $20 million in federal funds are giving to Wayne County every year for road repair, construction, maintenance.
A total of 596 generators and other power equipment such as lawnmowers, chainsaws, and backpack blowers were unlawfully acquired between January 2019, and August 2021, totaling $1.7 million in taxpayer funds.
None of the purchases were authorized and none of the equipment was approved or used by Wayne County, officials said.
Gunn and Gibson are accused of soliciting approved Wayne County vendors to purchase the power equipment. Invoices would then be submitted to Wayne County where Gunn told vendors to change the invoices to listed items approved by the county in an attempt to conceal the illegal purchase of generators and other power equipment.
"Roads Division employees would then approve and pay each vendor’s invoice with taxpayer funds," officials said in a press release. "After these fraudulent purchases were verified and approved by Roads Division employees, Gibson, and Gunn took possession of the equipment which was resold over the internet and social media for personal profit."
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Gunn and Gibson face extensive jail time and fines if found guilty; Federal program theft carries a maximum sentence of 10 years’ imprisonment and a fine of $250,000. Wire fraud carries a maximum sentence of up to 20 years’ imprisonment and a fine of up to $250,000. Money laundering carries a sentence of up to 20 years’ imprisonment and a fine of up to $500,000.
“The Wayne County Prosecutor’s Office has never and will never shy away from prosecuting corruption in any form, said Prosecutor Worthy. "I am proud of the focus and dedication of all of the investigators, who have worked together with our Wayne County Prosecutor’s Detectives to expose the alleged theft and fraudulent conduct against the citizens of Wayne County. The support of U.S. Attorney Dawn N. Ison, CEO Evans, the Wayne County Sheriff’s Office, and the FBI resulted in the federal complaint against Gibson and Gunn.”
United States Attorney Dawn Ison said, “Today’s arrests reinforce our dedication to prosecuting corrupt public officials who elevate their own greed over the best interests of the public who rely on the safe administration and maintenance of public infrastructures like roads."
Gibson and Gunn were taken into custody on Tuesday by FBI agents, Wayne County Prosecutor’s Office Investigators, and Wayne County Sheriff’s Deputies.
