Related Federal Cases
DETROIT, MICHIGAN
Two Wayne County Roads Division employees were arrested and charged with embezzling over $1.7 million in county funds in a federal complaint unsealed today. Wayne County Prosecutor Kym Worthy and United States Attorney Dawn N. Ison announced the charges.
Kevin Gunn, 64, of West Bloomfield, and John L. Gibson, 54, of Detroit, were charged with conspiring to commit and committing federal program theft, wire fraud, and money laundering. Gunn manages the Bridge Unit of the Wayne County Roads Division and has been employed by Wayne County for 34 years. Gibson is a foreman within the Bridge Unit and has been employed by Wayne County for 20 years.
According to the complaint, the Wayne County Sheriff’s Department began the investigation, and then solicited the assistance of the FBI to investigate the criminal actions of Gunn, Gibson, and other employees of the Wayne County Roads Division, and vendors to Wayne County. At the beginning of the investigation, the Wayne County Prosecutor’s Office secured a search warrant which broke open the case and led to the uncovering of the embezzlement scheme.
The scheme involved using taxpayer dollars to make unauthorized purchases of generators and other power equipment from retailers in Southeast Michigan, which were then sold for personal profit. Gunn solicited approved Wayne County vendors to purchase the items, and the vendors submitted invoices to Wayne County. Roads Division employees would then approve and pay each vendor’s invoice with taxpayer funds.
A review of invoices from Wayne County vendors revealed that between January 16, 2019, and August 3, 2021, Wayne County vendors purchased 596 generators, and a variety of other power equipment including lawnmowers, chainsaws, and backpack blowers. 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.
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.
Gunn and Gibson were arrested today by FBI agents, Wayne County Prosecutor’s Office Investigators, and Wayne County Sheriff’s Deputies. Wayne County Executive Warren C. Evans and his administration have been assisting and cooperating with the ongoing investigation since they first learned of fraudulent activity within their organization.
Key Facts
- State: Michigan
- Category: Public Corruption
- Source: DOJ Press Release â†â€â€
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