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untanglingwebs
El Supremo
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Genesee County controller says he's subject of criminal probe
By Ron Fonger | rfonger1@mlive.com
on January 09, 2013 at 2:00 PM, updated January 09, 2013 at 2:01 PM
GENESEE COUNTY, MI -- County Controller George Martini says he's been the subject of a criminal investigation by the U.S. Attorney's Office for years and been told he won't be prosecuted if he resigns his position.
Martini, in a letter to the county Board of Commissioners today, Jan. 9, said the investigation is tied to his office's oversight of improper spending at the job training agency Career Alliance Inc., and said he has no plan to leave his job.
County, state and federal investigators found chronic mismanagement and improper spending at Career Alliance after a series of Flint Journal stories in 2007 detailed problems at the organization.
Martini on Wednesday said his office has made "many improvements" in its oversight of Career Alliance since 2007 but the federal probe has continued.
"I would like to say it's all over with but it is still, I guess, (an) open (investigation)," Martini said today. "It is five-and-a-half years old, and I haven't been charged."
Former Career Alliance Chief Executive Officer Pam Loving was placed on unpaid administrative leave at the time and never returned to her position, and former Flint Police Chief David Dicks was sentenced to six months home confinement for collecting paychecks for what authorities said was a no-show job at the agency.
Career Alliance serves as a job training agency for Genesee, Shiawassee and Lapeer counties and is responsible for millions of dollars for employment programs for the unemployed.
Martini said the investigation of his office's oversight of Career Alliance has been ongoing for years and said that he has never been told it was closed.
The Flint Journal could not immediately reach the U.S. Attorney's Office in Detroit for comment.
"The claims that the U.S. Attorney's Office have made against me have changed through the years ...," Martini's letter says. "What has remained consistent ... is the offer that there would not be any criminal prosecution if I were to resign my position and sign a diversion agreement with that office."
County board Chairman Jamie Curtis said the federal investigation is one of the reasons he asked for Martini's resignation in 2011 and suggested it may be time for commissioners to reconsider the controller's future.
The controller is the county's chief financial and accounting officer and is an at-will employee, serving as long as he has the support of the nine-member county commission. State law requires six votes to fire a county controller, former county attorney Ward Chapman has said.
"Now that George has admitted it publicly ... why should (leaving) be on his terms?" Curtis asked. "Why in the hell can't we go out and (get a new controller)?"
Martini was recently a finalist to become Saginaw County executive but was not offered the position.
In his letter, Martini said it is not his intent to resign "unless I am able to secure a promotional opportunity with another employer."
Last edited by untanglingwebs on Sun Jan 27, 2013 8:39 am; edited 1 time in total |
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Wed Jan 09, 2013 7:59 pm |
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untanglingwebs
El Supremo
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Genesee County Sheriff Robert Pickell says county controller should stay out of his budget
By Ron Fonger | rfonger1@mlive.com
on January 10, 2013 at 7:05 AM
GENESEE COUNTY, MI -- Sheriff Robert Pickell wants Controller George Martini to stay out of his office's business, saying Martini is retaliating against him for starting a criminal investigation that involves the county's top financial officer.
Pickell last month asked the county Board of Commissioners to force Martini to "recuse himself from any, and all, matters involving the Sheriff's Office."
"At the very least, the Board of Commissioners should not allow Mr. Martini to have input on matters involving the Sheriff's Office to prevent speculations of impropriety," Pickell wrote in a Dec. 14 letter to commissioners.
Picekll said Martini has targeted his office, proposing "several devastating cuts" to the department as a "direct result of my office investigating him criminally."
Martini responded to the sheriff's letter Wednesday, Jan. 9, saying he has been the subject of a U.S. Attorney's Office probe tied to improper spending and oversight of Career Alliance Inc.
That case involving Martini started in 2007, after "my office partnered with the Federal Bureau of Investigations" to investigate possible criminal wrongdoing in connection with years of improper spending and disallowed expenditures at Career Alliance, Pickell said.
Martini has said his office has improved oversight of Career Alliance, the job training agency for Flint and Genesee and Shiawasee counties, after the investigation brought problems to light.
Genesee County has been paid with federal funds to oversee spending and cash draw-downs of money intended to help the unemployed find jobs, and the controller's office managed that oversight.
Martini denied that his recommendations for cutting the county budget, including cuts in the Sheriff's Office, have been influenced by the Career Alliance investigation, a charge that is "not supported by any of the facts relating to the extent of reductions in (the sheriff's) office as compared to reductions in other offices," according to a Wednesday, Jan. 9, letter to the county Board of Commissioners.
"To say (Pickell has been) treated unfairly ... that characterization is very unfair," Martini said.
The controller provided commissioners with a breakdown of cuts in county departments since 2006, showing that the sheriff has lost just 14.7 percent of his employees since that time, the lowest percentage loss of any department in county government.
Commissioners met Wednesday, but received Martini's letter just before committee meetings and did not discuss the hands-off request from the sheriff.
"The county has been and continues to be financially challenged with no clear end in sight of the need for further reductions," Martini's letter says. "I believe that the reductions that I have recommended have been the best, least painful options for achieving necessary reductions while also attempting to continue providing the mandated functions of this county."
While Martini has been asked to recommend budget cuts to county departments, the nine-member Board of Commissioners approves any cuts.
The sheriff said the loss of 28 positions in his department since 2006 is felt differently than those lost in other departments -- regardless of the percentage reduction -- because of the area's high violent crime rate and jail overcrowding.
Pickell's charges against Martini for unfair treatment are not new.
In 2009, the sheriff and county Prosecutor David Leyton called proposed cuts to their budgets by Martini "retaliation" for the criminal investigation of Career Alliance.
Pickell told commissioners in a December letter that the case involving the controller "is still open," and Martini said, "it is still, I guess, (an) open (investigation). It is five-and-a-half years old, and I haven't been charged."
Martini said in Wednesday's letter to commissioners that he has been told he won't be prosecuted if he resigns his position.
Martini has said he has no plan to resign, "unless I am able to secure a promotional opportunity with another employer." |
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Thu Jan 10, 2013 10:26 am |
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untanglingwebs
El Supremo
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Remember the news stories about Pickell confiscating the Career Alliance files because the agency refused to comply with requests for infomation. Leyton and the feds did little about the mess. They prosecuted Dicks yet ignored the allegations against Pam Loving for giving a fraudulent contract to her son. Other significant allegations have been ignored by the feds.
Pickell had an investigations into allegations involving then Gd Blanc supervisor Delaney. An excellent report, then Prosecutor Busch refused to charge. Allegation were Busch and Delaney were close friends.
Pickell and his detectives also did a good investigation into the Giacalone/Robin fraud case involving the 108 loan for OK Industries that the City of Flint is still paying for and Leyton plea bargained the case and deep sixed it.
Odd the only prosecution was a black man whle the white defendents have skated.
Historically in the 60's and 70's the best detectives and investigators in the county were with the Prosecutors office. |
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Thu Jan 10, 2013 10:35 am |
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untanglingwebs
El Supremo
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Ron Fonger wrote a story on October,9, 2008 entitled "Career Alliance debt climbs to more than half million for improper spending" that detailed some of the egregious programs at Career Alliance.
Regulators cited over-paid vendors, unsupported credit card bills and a More than $82,000 motivational program for the agencies custodians and other non employees.
"A federal grand jury has been seated for months and continues to hear testimony about possible criminal wrongdoing at Career Alliance, the culmination of a federal corruption investigation that came after a series of stories about the agency by the Flint Journal", wrote Fonger.
"State Department of Labor and Economic Growth (DLEG) regulators have also questioned Career Alliance's spending, slopy bookeeping and possible conflicts of interest for years."
Complicating the issue is the DLEG would be forced to repay the debt if it forgives the debt of Career Alliance.
Flint Family Road and Amistad Academy were programs closed and repayment requested due to unallowable and unsupported costs. The Agency sued former Director Pamela Loving over some of her credit card expenses disallowed by the state. Despite the abuses cited Loving won her court case that alleged the agency breached her contract, forcing the agency to appeal.
To the best of my knowledge this issue has never been resolved. Who can forget the photos of Sheriff Pickell's deputies seizing records after Career Alliance refused to cooperate in the investigation. |
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Wed Jan 23, 2013 1:55 am |
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untanglingwebs
El Supremo
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Allegedly Loving gave a no-bid contract for unnecessary phone systems to her son from a previous marriage.
Documents denied, county acts
Sheriff conducts search; board votes to release Loving
FLINT
THE FLINT JOURNAL FIRST EDITION
Saturday, August 25, 2007
By Ron Fonger
rfonger@flintjournal.com • 810.766.6317
FLINT - Genesee County Sheriff's Department investigators descended on Career Alliance Inc. on Friday, loading a trailer with seized documents from the job training agency.
Sheriff Robert J. Pickell said he had no choice but to obtain a search warrant to carry out the seizure because officials for the nonprofit agency would not turn over the records earlier this week.
"Normally I would not comment but I'm forced to do this because the Career Alliance attorney told us he would not make the records available to us," Pickell said. "I understand he's trying to protect his client, but in the process he's forced us to do something I didn't want to do.
"It makes these people look like they are trying to hide something."
Neither Career Alliance attorney Peter Goodstein nor interim president and chief executive officer Craig Coney would comment on the situation Friday.
The Flint Journal could not reach Mike Zelley, the longtime chairman of the Career Alliance oversight board, for comment.
The Genesee-Shiawassee Workforce Development Board met Friday morning before the search warrant was executed, but the criminal investigation was not mentioned during the meeting.
The same members of the Workforce Development Board, who are appointed by Flint, Genesee and Shiawassee counties, also make up the Career Alliance Board of Directors.
That group voted Friday to give notice to President and CEO Pamela Loving that members do not intend to renew her contract.
Loving's salary and benefit package was reported as the richest of its kind in Michigan - worth more than $200,000 in salary and benefits in 2006, according to state documents obtained by The Journal through the Freedom of Information Act.
The oversight board placed Loving on paid leave after Career Alliance's troubles with regulators were detailed in a series of stories in The Journal earlier this year.
Among its problems with state monitors: lack of documentation in credit card purchases, non-competitive procurement and generally lax controls over spending.
In June, Keith W. Cooley, director of the state Department of Labor & Economic Growth, said he was gravely concerned about the agency's condition.
The Career Alliance board also voted Friday to negotiate an early separation agreement with Loving, whose contract expires July 1, 2008.
Members of the Workforce Development Board said they have been working since placing Loving on leave to restore credibility to the agency, have resolved some outstanding issues with regulators and have improved their own oversight policies and practices.
One board member, Ivan Love of Shiawassee County, said the agency's mode of operation has to change so that board members start receiving monitoring letters and other documents that tell them directly and early of any problems.
"Many of these difficulties could have been resolved" if board members knew how long problems were lingering, Love said.
Ed Donovan, another board member, said the group was "duped."
"We can feign indignation, but ultimately, we're responsible," Donovan said. "I believe this board got duped. We need to not allow that to happen again."
Donovan said it was "bush league" to have to read about problems at Career Alliance in The Journal instead of hearing about problems directly from Career Alliance executives.
Pickell would not discuss what was seized from Career Alliance on Friday, but a letter to him from Genesee County Board of Commissioners Chairman Archie Bailey, D-Flushing, in early July suggested the sheriff has a broad jurisdiction to investigate possible crimes at the agency.
Bailey's letter suggests Career Alliance used a non-competitive process to purchase a telephone system valued at more than $117,000 last year.
"A consultant was obtained to evaluate the existing Career Alliance telephone system and to determine the telephone system the agency may have needed," Bailey's letter says. "A new system was recommended ... from the consultant's company."
The letter suggests an executive for one company that benefited from the purchase may be related to a Career Alliance administrator.
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Wed Jan 23, 2013 2:00 am |
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untanglingwebs
El Supremo
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As of today, I believe David Dicks and his father were the only individuals under any form of indictment.
[PDF]
United States_District Court _ - MLive.com
blog.mlive.com/newsnow_impact/2009/01/David_Dicks.pdf
During the course df my investigation, I learned that Career Alliance contracted ... David Dicks is a police officer at the Flint Police Department (“FPD”) and has ... |
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Wed Jan 23, 2013 2:09 am |
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untanglingwebs
El Supremo
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Genesee County board chairman Jamie Curtis dumps Ted Henry as finance chair
By Ron Fonger | rfonger1@mlive.com
on January 27, 2013 at 8:30 AM, updated January 27, 2013 at 8:31 AM
GENESEE COUNTY, MI -- Commissioner Ted Henry says he's been dumped as chairman of county's important finance committee following his refusal to vote to fire former controller George Martini.
Henry said received an email Thursday, Jan. 24, from Jamie Curtis, chairman of the county board, informing him he was being replaced by freshman Commissioner Mark Young, D-Grand Blanc Twp.
"I will continue to fight for what I think is correct and fighting to keep county (employees') jobs," Henry said. "I sensed it coming ... I guess I was undermined by the powers that be."
In addition to Curtis, Henry said, "the sheriff is always involved."
The Flint Journal could not immediately reach Curtis for comment. Sheriff Robert Pickell declined to comment.
Young confirmed the board chairman had appointed him to lead the finance committee, which helps in developing the general fund budget and recommends cuts that have been built into this year's $78.6-million spending plan.
"My understanding was that it was based on time constraints for Ted Henry," said Young.
Henry is running in the especial election to replace county Clerk John Gleason in the state Senate.
"We need someone who is able to put in some hours," said Young, citing issues like replacing Martini and the county's annual audit.
The friction between Henry and Curtis has been spilling over in public since Martini's firing.
Henry and Commissioner John Northrup, D-Flint, voted against the firing and later that day, Henry walked out of a committee meeting, saying he felt ill.
Curtis and Henry have also clashed about an appointment to the county Road Commission, where Henry's nephew has been among candidates for that job. |
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Sun Jan 27, 2013 8:42 am |
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untanglingwebs
El Supremo
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Was the decision to review the County Commission's option to take over the Road Commission a factor?
It seems the City is not the only local entity with hidden agendas! |
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Sun Jan 27, 2013 8:44 am |
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