TRAVERSE CITY — Authorities can't pursue criminal charges against individuals involved in Meijer Inc.'s illegal campaign finance activity in Acme Township, a state attorney general's spokesman said.
Secretary of State Terri Lynn Land brokered a deal with Meijer that fined the company $190,000 in civil penalties for violations in 2005 and 2007 Acme elections, but closes the door on potential criminal probes under the Michigan Campaign Finance Act, said Rusty Hills, spokesman for attorney General Mike Cox.
Hills said Land did not consult with Cox's office on the settlement agreement.
"The attorney general is now precluded from investigating any campaign-related charge, such as improper donations, corporate donations, or the laundering of contributions," Hills said.
That upset township attorney Chris Bzdok, who said a criminal investigation against individuals should be pursued as part of the probe.
"If that's not the case, then (Land) is letting all these people off the hook ... it's a good deal for the folks who broke the law," he said.
Hills said the Grand Traverse County prosecutor can still pursue obstruction of justice or perjury charges that are not covered by the campaign finance act.
"If they intend that to mean the attorney general is precluded by the agreement from pursuing an investigation of individuals who have violated the act, I would disagree," said Grand Traverse Prosecutor Alan Schneider. "I think I have to have some further conversation with someone at the AG office and hopefully I can persuade them otherwise."
Schneider appealed a Grand Traverse County Circuit Court ruling that a county prosecutor has no authority to instigate an investigation of criminal violations of the campaign finance act. Schneider had asked Land to refer the case for criminal investigation to Cox. He also asked Cox to refer it back to him for investigation.
"I'm confident if we prevail on appeal we will be free to pursue our investigation," Schneider said. "The agreement won't be a bar to anything."
Land's deal requires Meijer Inc. to pay the largest campaign finance violation fine in state history to resolve part of a state investigation into the retailer's efforts to manipulate two Acme Township elections — a 2005 zoning referendum in Acme Township, and an unsuccessful 2007 recall election that targeted the township board.
Both elections were part of a years-long controversy over the Grand Rapids-area retailer's stalled efforts to build a new superstore along M-72. Land's decision leaves the door open for possible criminal investigations of individuals tied to the campaign violations, though Meijer Inc. will not face criminal charges.
"Our campaign finance laws are about open and disclosure and in this case Meijer tried to avoid both," Land said in a statement today. "The overall goal of the Campaign Finance Act is to ensure compliance and disclosure, which we achieve with these settlements in addition to a record fine."
The fines didn't satisfy some Acme Township officials. They want to see a stalled criminal investigation pursued.
"To a corporation like Meijer, $190,000 isn't a lot of money and this needs to be fixed so it doesn't happen again," said township Supervisor Wayne Kladder.
Schneider this year launched a criminal probe into Meijer's elections violations. A local circuit judge last month ruled that state law doesn't allow Schneider to pursue aspects of that investigation, including Schneider's efforts to force Meijer executives to turn over some documents and potential witnesses through subpoena.
Schneider asked that any agreement specifically exempt individuals from being covered by the agreement and require Meijer to cooperate with a criminal investigation. He said the corporation was not the focus of his investigation.
"It was never a priority to me to pursue a corporation when the only penalty you can impose on a corporation is monetary," he said.
The fines levied by Land were broken down separately for violations in both a 2005 big box moratorium referendum that voters narrowly overturned, as well as for the 2007 recall vote against the township board.
Bzdok, who questioned the potential for a "sweetheart deal" between the state and Meijer because of the company's substantial campaign contributions to Land, said it was a fair resolution — but only if the state also pursues criminal charges against those who personally violated campaign finance laws.
Land said the agreement also specifies internal controls and company restructuring by Meijer to prevent future campaign finance violations.
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