Federal court records indicate Grundy, 50, a former Neosho resident who now lives in Hilton Head, South Carolina, violated the terms of his bond in that state.
His trial is scheduled to begin June 1, 2020 in Springfield.
A federal grand jury indicted Grundy in June 2017.
Grundy was owner of Innovative Objects in Joplin before selling the business to Miami Nations Enterprise, part of what the government says are his fraudulent dealings.
Out of the $26 million, the government alleges that the former owner of Innovative Objects, PILR Technology, Choice Technologies, Wyerless, and Audio Input, defrauded Miami Nations Enterprise, a claim that had been made earlier in a lawsuit filed in October 2015 in Greene County Circuit Court.
An additional $862,856, came when Grundy committed fraud against Land O'Lakes/Nutra Blend, according to a news release from the U.S. Attorney for the Western District of Missouri.
From the release:
Grundy (through his company Innovative Objects) was contracted by Land O’Lakes, Inc., and its subsidiary, Nutra Blend, LLC, from January 2004 to Sept. 27, 2015, to create propriety software to inventory, track, and coordinate the disbursement of products. Grundy also contracted with Land O’Lakes and Nutra Blend to provide equipment and technical support for the use, upkeep and maintenance of the software.
The indictment alleges that Grundy falsely told Land O’Lakes and Nutra Blend that third party software programs were built into that proprietary software and were essential to the successful operation of the software.
Grundy (through his company Innovative Objects) was contracted by Land O’Lakes, Inc., and its subsidiary, Nutra Blend, LLC, from January 2004 to Sept. 27, 2015, to create propriety software to inventory, track, and coordinate the disbursement of products. Grundy also contracted with Land O’Lakes and Nutra Blend to provide equipment and technical support for the use, upkeep and maintenance of the software.
The indictment alleges that Grundy falsely told Land O’Lakes and Nutra Blend that third party software programs were built into that proprietary software and were essential to the successful operation of the software. Grundy allegedly claimed that some of the payments made to Innovative Objects were remitted to third party license holders. In reality, the indictment says, there were no third party licensee fees; instead, Grundy kept those payments for his personal or unrelated expenses.
The indictment charges Grundy with six counts of wire fraud related to a series of payments from August 2013 to April 2015, totaling $862,856.
Grundy engaged Miami Nations Enterprise in negotiations to provide financial assistance in the form of loans, and for Miami Nations Enterprise to purchase a controlling interest in all of Grundy’s technology-based companies.
According to the indictment, Grundy falsely told Miami Nations Enterprise that his companies had been awarded a $3.5 million contract from Wal-Mart Stores, Inc., to develop and provide information technology services. Grundy allegedly presented numerous e-mails, invoices, conditional award letters and other documents to support his false claims. From May 19, 2014, to June 24, 2015, Miami Nations Enterprise loaned Grundy the money to cover the costs associated with software and hardware purchases and training necessary to obtain the $3.5 million Wal-Mart contract.
On Aug. 24, 2014, Miami Nations Enterprise paid an additional amount to purchase a 70 percent interest in Grundy’s companies.
Officials with Miami Nations Enterprise later discovered that neither Grundy nor any of his companies had been awarded any contract with Wal-Mart, and determined that the e-mails, conditional contract award, invoices and bank deposits Grundy had used to support his claims were fraudulently created.
The indictment charges Grundy with 10 counts of wire fraud related to a series of payments from May 19, 2014, to April 12, 2015, totaling $5,990,000
Miami Nations Enterprise alleged in its lawsuit against Grundy that he cheated them out of $24 million.
3 comments:
Wonder what his bond violation was?
He went to the beach in North Carolina.
Googled my college roommates names to see if anything returned only to find Russ Grundy in jail for fraud. Can't say I'm surprised. Russ is a big nerd. Super smart but definitely a guy who can lie his ass off.
Good Luck Grundy.
BB
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