muckraker report

Top Senate leader calls for investigation into treasury’s handling of Andy Dillon, others

Michigan 20/20 Plan

Senate Minority Leader Gretchen Whitmer is calling for an investigation into the Michigan Department of Treasury after we revealed that former Treasurer Andy Dillon was on a Caribbean cruise during his final week of work in Lansing.

Dillon’s disappearance was unknown to even the governor’s office, it insisted.

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Gov. Snyder

“The Governor needs to stop trying to cover this up and come clean about the sweetheart deals and cronyism that is rampant in the Department of Treasury,” Whitmer, D-East Lansing, said in a news release. “These people are supposed to be charged with improving the state’s finances, not their own, and Michigan taxpayers deserve a thorough review of what is really going on with their money.”

Dillon’s resignation on Halloween came after the Motor City Mucrkaker revealed alcohol problems and racially charged text messages sent from his cell phone, but Snyder quietly put Dillon back on the payroll until Jan. 31 to help his successor learn the ropes. He continued receiving his $174,000 annual salary.

But instead of wrapping up his final week and a half in Lansing, Dillon has been on a cruise.

After contacting the governor’s office, a treasury spokesman told us that Dillon is on unpaid vacation because his work is complete. We are requesting records to confirm.

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Andy Dillon

The handling of Dillon’s compensation is just the latest in a number of unsettling revelations against the treasury that has prompted Whitmer to call for an independent review of the department’s handling of hiring and compensation practices.

According to Whitmer, treasury officials are among the highest-paid state employees. In fact, she said, eight of the 10 highest-salaried state officials work for the treasury.

What’s more, Whitmer said, several treasury officials received “exponential increases” and one reached $300,000. One of the biggest beneficiaries of those raises is Richard DiBartolomeo, a campaign aide for Snyder and treasurer of the controversial NERD Fund, which raises money without being required to disclose the donors. His treasury salary – $180,000.

Steve Neavling

Steve Neavling lives and works in Detroit as an investigative journalist. His stories have uncovered corruption, led to arrests and reforms and prompted FBI investigations.

  • Maurice Townsend

    How about former Macomb State Rep. Brian Palmer, 64, of Romeo, pleaded no contest at arraignment this morning to one count of Neglect of Duty by a Public Official, a misdemeanor punishable by up to one year or a $1,000 fine. The conviction stems from Palmer using his position as an elected official to assist the ring-leader of a $9 million Ponzi scheme.

    The scheme, conducted by API Worldwide, Inc., defrauded more than 150 victims between 2006 and 2012. The charges against Palmer follow a joint investigation by the Department of Attorney General’s Corporate Oversight Division and Public Integrity Unit and the Department of Insurance and Financial Services. Palmer cooperated with investigators after losing $400,000 of his own money to one of the API ringleaders in a separate transaction.
    Ponzi Palmer ripps off old folks and Bill gives him 1 year probation! He is serving community service at MCREST homeless shelter in Roseville, MI–say hello to him.

    Palmer is the fifth individual convicted by Schuette for advancing the API Worldwide, Inc. scheme.

    • http://motorcitymuckraker.com Steve Neavling

      Thank you so much, Maurice. I am on it. I wrote stories about his financial troubles about six years ago at the Free Press. Appreciate it.

    • Dust Buster

      and all this time bob ficano is whistling through the graveyard … i bet he ratted on a bunch of people because i cant see how he is still on the loose and going to work for the county every day

  • Sizz

    Keep digging, Steve. You may just end up bringing down the whole house of cards.

    • http://motorcitymuckraker.com Steve Neavling

      I appreciate that. I think I’m going to need a bigger shovel. :)