TRAVERSE CITY -- Grand Traverse County Prosecutor Alan Schneider won't go quietly in his effort to probe Meijer Inc.'s illegal campaign against Acme Township officials.
Schneider formally asked state Attorney General Mike Cox for a go-ahead to continue an investigation into Meijer employees and others who may have criminally violated state campaign finance laws leading to a 2007 recall election in Acme.
But Cox offered no encouragement. His spokesman, Rusty Hills, on Thursday said Cox can't turn over the case to Schneider because the secretary of state did not refer it to Cox for a criminal probe.
Secretary of State Terri Lynn Land's staff cut a "conciliation agreement" with Meijer after the retailer acknowledged it illegally secretly spent tens of thousands of dollars on the recall.
"We never got a referral from the secretary of state's office, because (Land) conciliated it," Hills said. "As a result of the conciliation, there is nothing to refer."
Meijer was fined more than $190,000 for violations in that election, as well as for wrongdoing in a 2005 Acme zoning referendum, in the deal reached with Land.
Schneider contends that Cox's office misinterpreted Land's agreement with Meijer, and said the conciliation should not bar local prosecution of individuals who violated state campaign finance laws.
"The Legislature could not have intended a one-for-all conciliation which would mean that a single violator, perhaps the least culpable among his accomplices and co-conspirators, could bring all violators absolution by appearing before the Secretary of State to conciliate his own wrongdoing, no matter how many conspired, nor how egregious their conduct," Schneider wrote in a letter to Cox.
Schneider maintains that Land's deal with Meijer "segregates" the company's corporate conduct as a separate offense from violations that involve employees, agents and others making contributions or expenditures on behalf of Meijer.
The conciliation agreement only covers the company and its political action committee, along with the current treasurer of the Meijer PAC, and there are no other "third party beneficiaries" included, he said.
"There were no complaints made (to Land) against any individuals," Schneider said. "So those matters were not before the secretary of state."
Acme Township officials said they're pleased Schneider continues to pursue the case.
"Nothing the secretary of state did resolved whether those individuals who were part of this broke the law," Acme attorney Chris Bzdok said. "What the last several months have been is a series of machinations ... all of which has been moving things around that central question."
Schneider is appealing an April ruling made by 13th Circuit Judge Philip Rodgers that a county prosecutor has no authority to investigate criminal violations of the state's campaign finance act. Schneider said he's optimistic that decision will be reversed on appeal, adding he won't need a referral from Cox to pursue the case if the county prevails in appellate court.
"I'm sure there have been convictions under the state Campaign Finance Act in the past that were brought by local prosecutors," Schneider said.
He also said the state Legislature may further amend the campaign finance law to allow him to proceed.
"My goal is to clarify the law," he said. "It just doesn't seem clear to me."
Schneider expects it will be a "matter of months" before the issues surrounding the Meijer case are resolved, but he intends to grind through the legal process.
"I have to be patient," Schneider said. "I can't let my frustrations affect how we go forward on this."
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