Meijer wants county off case

BY BILL O'BRIEN
bobrien@record-eagle.com

April 06, 2008 04:00 am

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TRAVERSE CITY -- Meijer wants to quash a series of subpoenas issued by the county prosecutor in his probe of the retail giant's possible campaign finance violations, arguing the Secretary of State has sole jurisdiction over the dispute.

Attorneys for Meijer Inc. were in court Friday and urged 13th Circuit Judge Philip Rodgers to throw out subpoenas Grand Traverse Prosecutor Alan Schneider issued in February to Meijer employees and consultants.

Schneider's office is investigating possible campaign finance violations by Meijer at the request of Acme Township officials who were targeted in a 2007 recall effort chiefly funded by Meijer.

John Pirich, a Lansing attorney representing Meijer, said the state's 1976 campaign finance act gives "exclusive" jurisdiction over campaign finance violations to the Michigan Secretary of State's office.

That office can reach conciliation agreements with the involved parties to resolve violations, or turn more serious violations over to the state Attorney General's office.

Pirich, who conducted an internal probe for Meijer that's been turned over to the Secretary of State, said there's no authority for local prosecutors to seek criminal prosecutions, based on the 1976 law.

"We think it's clear the prosecution does not have that ... authority," Pirich said. "I think we've shown that what we've done is authorized, permitted and mandated under the statute. We followed the process, we followed the procedure."

Schneider argued there's nothing in the law that prevents "traditional law enforcement" from probing campaign finance violations, particularly in serious cases that could result in felony violations.

"How can the Secretary of State correct a felony violation with a civil fine?" Schneider asked. "Where's the criminal deterrent here?"

Acme Township attorney Chris Bzdok said officials there reviewed campaign finance laws before filing a complaint with local authorities.

"We were confident the county prosecutor does have authority, or we wouldn't have filed the charges there," he said.

Bzdok said Acme officials didn't go to Secretary of State Terri Lynn Land's office because of concerns over her close political ties with Meijer. Land has received thousands of dollars in campaign contributions from the retailer.

"We have no confidence in her to do anything other than try to fix this problem for her friends and allies," Bzdok said.

Schneider issued investigative subpoenas to employees at Meijer, representatives of the Detroit-based Dickinson Wright law firm and the Grand Rapids public relations firm Seyferth Spaulding Tennyson Inc.

The 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.

Seyfeth Spaulding complied with Schneider's subpoena. Meijer and Dickinson Wright provided some financial documents, but wouldn't provide correspondence between Nowakowski, Behler and Dickinson Wright attorney Timothy Stoepker.

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 asked a handful of questions of the attorneys, but made no immediate decision on Meijer's request. Rodgers said he expects to issue a written ruling within a week.

Billing records from a separate lawsuit show Meijer paid more than $30,000 to Seyferth to orchestrate a 2007 recall campaign against the township board. An unsigned statement from the company 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.

Pirich's internal investigation, which he said took more than a month to complete, showed the company used corporate funds to sway the 2007 recall vote, and may have violated election law in the 2005 big-box vote.

Kelly Chesney, a spokeswoman for Land's office, said her office has reviewed Meijer's report, but has taken no other action.

"The investigation is still ongoing," Chesney said.

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