Former Wayne County employee sentenced to prison for $2.3 million fraud scheme
WAYNE COUNTY, Mich. (FOX 2) - A former Wayne County Road Division employee will spend time in prison for a $2.3 million fraud scheme.
Kevin Gunn, 64, of West Bloomfield, was sentenced this week to 32 months in prison this week. The sentence comes after a guilty plea earlier this year.
Authorities say Gunn, who was a supervisor, worked with another employee, John L. Gibson, 54, of Detroit, during the scheme. From January 2019 to August 2021, they are accused of using taxpayer funds to make unauthorized purchases of generators and other power equipment and then selling the items for personal profit.
Former Wayne County employee pleads guilty to conspiring to steal $1.7 million
A former employee with the Wayne County Roads Division pleaded guilty to conspiring to steal more than $1.7 million after authorities say he worked with another employee to defraud taxpayer money.
The vendors would then submit invoices for these items to the county. In order to conceal the scheme to defraud, Gunn allegedly told 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 and Gibson’s request.
Employees would then approve and pay each vendor’s invoice with taxpayer funds. After these fraudulent purchases were verified and approved, Gibson allegedly took the equipment, paid Gunn for the items, and resold them.
"Mr. Gunn could have served the citizens of Wayne County by being honest and forthright when performing his job. Instead, he chose to betray the public trust by stealing for his own personal gain. This case sends an important message that this conduct will never be accepted in Wayne County," said Prosecutor Kym Worthy.
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.
An investigation started in March 2021. Investigators first discovered Gunn's alleged activity through a search warrant. Other investigations led them to Gibson.
Both men were arrested in May 2022.
Gunn is also facing charges stemming from separate allegations that he stole funds from the county to fix up a Romulus shake shop.