BY BRIAN McGILLIVARY
TRAVERSE CITY -- Three of the state's heaviest political hitters -- representatives of labor and business -- are aligned against Grand Traverse County's prosecutor and his criminal probe of Meijer Inc. for campaign finance violations.
The Michigan Chamber of Commerce, the Michigan Education Association and the Michigan Teamsters filed a joint motion with the Michigan Supreme Court asking it to overturn an appellate court decision that allows local prosecutors to investigate criminal campaign finance act violations.
"Talk about strange bedfellows," said Grand Traverse Prosecutor Alan Schneider. "I guess they don't want local prosecutors looking into their campaign activities."
Meijer acknowledged in 2008 it illegally spent more than $100,000 on lawyers and a public relations firm to use front groups to secretly influence a 2005 Acme Township referendum and a 2007 recall attempt.
Meijer paid a $190,000 civil fine to the Secretary of State in a conciliation agreement and apologized for its actions in an unsigned statement. It's never disclosed who in its corporate hierarchy sanctioned the illegal activity.
Schneider said he plans to investigate potential criminality by individuals who orchestrated the recall.
But his investigation is on hold while the state Supreme Court decides whether it will hear Meijer's appeal of a state Court of Appeals ruling that allowed county prosecutors, not just the Secretary of State, to investigate campaign finance law violations.
The appellate court also ruled the Meijer's conciliation agreement with Secretary of State Terri Lynn Land did not preclude criminal prosecution.
The Michigan chamber, MEA and Teamsters -- who've contributed millions of dollars the past decade to political groups and causes in Michigan -- called the decision "dreadfully unfair." Campaign finance law violators who've cut deals with the Secretary of State expect those agreements to prevent additional legal proceedings, they contend.
"The Court of Appeals decision is simply wrong and significantly undermines the current system of campaign finance regulation in this state," the parties wrote. "The decision also puts an effective end to voluntary and cooperative disclosures to the Secretary of State, due to fear of incrimination and prosecution."
Robert LaBrant, senior vice president and legal counsel to the Michigan Chamber, said the law's clear intent is for the Secretary of State to enforce the act and turn it over for criminal prosecution only if it can't be resolved through a voluntary conciliation deal.
"If we want to change that, we ought to have the legislature change it," LaBrant said. "For the three of us to file a brief together tells you how much we think the Michigan Court of Appeals got this wrong."
Schneider said the groups didn't offer any legal arguments that Meijer's attorneys hadn't already made.
Rich Robinson, executive director of the nonprofit Michigan Campaign Finance Network, said the business and labor alignment doesn't surprise him.
"It serves them all well to have the opportunity for a do-over anytime they violate the act," Robinson said, referring to the common use of conciliation agreements. "This idea they could be found criminally liable anytime they violate the act makes it a lot more serious when they push the envelope."
Robinson called the Secretary of State's enforcement of the act "uneven" at best and said it's important to allow another entity, such as a county prosecutor, the ability to enforce the ordinance.
But Robinson doesn't expect political watchdog organizations such as his to file legal briefs in support of Schneider because they lack financial resources to do so.
"I'm left sitting here, quietly cheering him on," Robinson said.
