WAYNE COUNTY, Mich. — Two county workers in Michigan are facing federal charges after prosecutors said they embezzled more than $1.7 million in taxpayer funds to buy and resell equipment, including nearly 600 generators.
According to MLive.com and the Detroit Free Press, authorities on Tuesday arrested Wayne County Roads Division employees Kevin Gunn, 64, and John L. Gibson, 54, on charges of conspiring to commit and committing federal program theft, money laundering and wire theft, the U.S. Attorney’s Office for Michigan’s Eastern District said in a news release.
Officials said the alleged scheme, which also involved other employees and vendors, took place from January 2019 to August 2021.
“Gunn solicited approved Wayne County vendors to purchase generators and other power equipment from local retailers on behalf of Wayne County,” federal prosecutors said in the release. “The vendors would then submit invoices for these items to Wayne County. In order to conceal the scheme to defraud, Gunn instructed the vendors to falsify the invoices they submitted to the Roads Division, and list items the vendors were authorized to sell to the county under their contracts, rather than the generators and power equipment they were unlawfully acquiring at Gunn’s request.”
The U.S. Attorney’s Office said workers in the Roads Division would “then approve and pay each vendor’s invoice with taxpayer funds.” The county receives more than $20 million in federal funds annually for its roads, according to the 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,” the release said.
Prosecutors said the purchases included 596 generators and other equipment, such as lawn mowers, backpack blowers and chain saws.
“The purchase of these items was not authorized under any vendor contract with Wayne County nor were the items ever provided to or used by Wayne County,” the release said. “The total value of equipment purchased as part of the scheme was approximately $1.7 million in taxpayer funds.”
If convicted, Gunn and Gibson could face dozens of years in prison and up to $1 million in fines, the release said. The Free Press was unable to reach the men’s attorneys for comment.
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