TRAVERSE CITY — Grand Traverse County's prosecutor won't drop a criminal probe of Meijer Inc. officials, despite a judge's ruling that halted a local investigation of the retailer's alleged campaign finance law violations.
Thirteenth Circuit Judge Philip Rodgers in a ruling released Friday, wrote "(t)here is no role for a county prosecuting attorney" under the Michigan Campaign Finance Act.
"The Legislature has clearly expressed an intent to make the Secretary of State's jurisdiction over violation of the Michigan Campaign Finance Act exclusive ..." Rodgers wrote.
The campaign finance aspect of the case now falls to Secretary of State Terri Lynn Land, who has the authority to informally settle the violations alleged against Meijer without seeking criminal prosecution.
Meijer attorney James S. Brady said the judge's ruling was "good law."
"We would anticipate that the Court of Appeals would affirm Judge Rodgers," Brady said.
But Grand Traverse Prosecutor Alan Schneider quickly reacted to the setback on several fronts and declared the investigation "will not stop."
Schneider told the Record-Eagle Friday that he's continuing perjury-related investigations into people connected to the Meijer case. That probe is not affected by Rodgers' ruling on the alleged campaign finance violations, he said.
He declined to name perjury investigation targets. But Mejier officials, attorneys hired by the company and local residents who supported Meijer testified under oath in a civil lawsuit that exposed Meijer's alleged illegal involvement in an effort to oust Acme Township's elected officials in a 2007 recall.
Case could come back to Grand Traverse
Schneider in a letter asked the Michigan secretary of state to refer its investigation to the Michigan attorney general's office for criminal prosecution.
The attorney general's office assured Schneider the case would be assigned back to Grand Traverse County, he said.
Schneider also said he intends to appeal Rodgers' decision.
"Reasonable minds can differ in regards to interpreting the law," Schneider said.
Meijer secretly targeted Acme officials in a 2007 recall effort. The company hired a Detroit law firm and paid Grand Rapids public relations firm Seyferth, Spaulding, Tennyson over $30,000 to orchestrate the recall, an apparent violation of state law.
A 2007 lawsuit against Meijer by Acme Treasurer William Boltres exposed Meijer's involvement in the recall, and Acme officials asked Schneider to investigate possible illegality.
Meijer's political action committee contributed nearly $300,000 to state politicians in the past two years, including thousands to Land during her tenure. Land hails from Kent County, Meijer's home turf.
Land's ties to Meijer prompted Acme Township Attorney Chris Bzdok to say he has "no confidence in the secretary of state" to consider allegations related to Meijer "fairly or objectively."
"We do not have any confidence in her to do the right thing," Bzdok said, adding that if Land is "serious" about the "criminal matter," she will go to the attorney general.
"Our local circuit courts do a very good job, so I am not criticizing the ruling ...," Bzdok said. "We have faith in the prosecutor to exercise good judgment here."
Land spokeswoman Kelly Chesney said her office had not received Schneider's letter so they couldn't respond to it.
She declined to discuss the status of the secretary of state's investigation into Meijer, other than to say Rodgers' decision had no bearing on their office.
Likely violated laws
State law bans the use of corporate funds in a recall election. Violation is a felony.
An unsigned statement from Meijer in February acknowledged it likely violated state campaign finance laws in the 2007 recall vote, and also in a 2005 zoning referendum on a proposed moratorium on big-box retail stores.
Schneider then issued investigative subpoenas to employees at Meijer, representatives of the Detroit-based Dickinson Wright law firm and Seyferth. Both worked for Meijer on the recall campaign.
Schneider's subpoenas sought documents and testimony related to conversations and letters between Meijer officials Scott Nowakowski and Stacie Behler and members of Dickinson Wright and the public relations firm.
Attorneys for Meijer at an April 4 hearing asked Rodgers to throw out the subpoenas, arguing that under the Michigan Campaign Finance Act the secretary of state had "exclusive" jurisdiction over campaign finance violations.
Rodgers agreed, but expressed a "distaste" for the law that prompted his ruling.
"While all other citizens are subject to the full brunt of the justice system for their alleged crimes, the Legislature has created a 'political class' of those who are elected or would be elected to office and exempted their alleged campaign crimes from scrutiny by experienced county prosecutors," he wrote.
Instead, the Legislature assigned investigative powers to the secretary of state, who lacks the authority to issue investigative subpoenas, Rodgers wrote.
Investigative subpoenas were authorized by state lawmakers in 1995 as a tool for prosecutors to gain documents or witness testimony before criminal charges are filed. They are typically used to get information from uncooperative witnesses.
Rodgers concluded that without the ability to compel Meijer's cooperation, its alleged illegal actions "will never be fully investigated unless it is referred to the attorney general."
Schneider asked in a letter to Land that she refer the case to the attorney general to "prevent an unintended miscarriage of justice."
Schneider asked that any deal Land might strike with Meijer specifically state that it covers the corporation and not any individuals who may have violated the campaign finance laws on behalf of Meijer.
Rodgers also criticized the aspect of state campaign finance law that encourages such agreements to resolve potentially felonious behavior.
"If we expect every other citizen to be held accountable for their errors, there seems no reason why well-funded and well-educated politicians and corporations should not suffer the same consequences," Rodgers wrote.
"Hypocrisy is every bit as great a danger to democracy as actual graft or corruption," Rodgers added. "Both breed contempt for the rule of law and our elected officials."
Staff writer Vanessa McCray and The Associated Press contributed to this story.
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